BUS 120 QUESTIONS AND ANSWERS
Why must organizations of all kinds be open to changes that are taking place in the
"business environment"? - Answers - Organizations of all kinds need to be open to
change in the business environment so they can be successful. A successful business
considers all factors: Competition; The Economy; Technology; Residential Environment
and Global Environment because these factors are always changing and in order to
create a long term value for customers these organizations need to change as well.
A core goal for successful businesses is to deliver value to customers while generating
long-term profits. - Answers - True
Even though nonprofit organizations are not in business for a financial gain, they are still
businesses in every other sense. - Answers - True
Organizations generate long-term success by delivering unsurpassed value to their
customers. - Answers - True
Value is the relationship between the price of a good or a service and the benefit that
the service offers to the customer. - Answers - True
Economic factors are not as important to non-profit organizations as they are to for-
profits. - Answers - False
The technological environment is less important to small business than it is to large
businesses. - Answers - False
For profits are understandably less concerned about trends in the social environment. -
Answers - False
Non-profits have no need to be concerned about the competitive environment. -
Answers - False
Small businesses have no need to be concerned about the global environment. -
Answers - False
Supply is defined as - Answers - The quantity of products that a producer will make for a
specific price.
Ann is a manager at a store that sells casual clothing and accessories for both men and
women. She notices that the jeans priced at $120 aren't selling very well. She wants to
increase sales of these jeans before next season. The approach Ann should take to
achieve this is to: - Answers - lower the price of the jeans so that demand will increase
,Demand is defined as - Answers - the quantity of products consumers are willing to pay
at different prices.
Fair competition among businesses: - Answers - drives higher quality and lower prices
in capitalism
A basic characteristic of ____________ is that both producers and consumers are free
to make their own economic decsions on many basic issues. - Answers - capitalism
___________________ is an economic system based on the principle that the
government should own and operate key enterprises that directly affect public welfare. -
Answers - Socialism
Which of the following is a difference between a socialist economic system and a pure
communist economic system? - Answers - Socialism controls social welfare. Pure
communism controls everything.
To encourage fair competition and protect both consumers and workers, the federal
government: - Answers - creates regulations to intervene in the free market.
Government regulations are likely to become stronger in the wake of
_______________. - Answers - an economic crisis like The Great Recession.
Fiscal policy refers to: - Answers - government efforts to influence the economy through
taxation and spending.
___________________ refers to actions that shape the economy by influencing interest
rates and the supply of cash. - Answers - Monetary policy
The primary way that "central banks", like the U.S. Federal Reserve Bank, controls the
supply of money is by: - Answers - buying and selling government securities (i.e.,
treasure bond, notes and bills) in open market operations.
The amount of goods and services produced by an economy divided by the amount of
resources used to make those goods and services equals: - Answers - productivity
Capitalism, as an economic system, has many advantages and disadvantages.
Describe some of these advantages and disadvantages. - Answers - Capitalism is an
economic system that allows the people to have control over their own business down
to the types of products they wish to produce. This is an advantage because unlike
other economic systems where the government has full control over what can be
produced, capitalism allows individuals freedom to produce any type of product that
they think would help society society then has control over whether the business
succeeds or fails those are the disadvantages of capitalism.
, Why do global economists believe that most global economic powers are moving
towards "mixed economies"? - Answers - Global economies believe that most global
economic powers are moving towards Mixed economies is due to the fact that "mixed
economies are best at handling the circular flow of goods money and resources"
(Clifford 2015).
Which of the following is an advantage of a sole proprietorship? - Answers - Retention
of control
A key advantage of a sole proprietorship is that: - Answers - it is easy and inexpensive
to form this type of business.
Tina is the owner of a dance studio. As a sole proprietor, any profit she earns is: -
Answers - treated as a personal income of Tina.
A key reason most sole proprietorships remain relatively small is that - Answers - they
have limited ability to raise funds needed to finance growth.
Sole proprietorships have _______________________ for the debts of their companies
- Answers - unlimited liability.
Which of the following statements is true of formation of a general partnership? -
Answers - It is safer to get everything in writing and to seek expert legal assistance
when drawing up an agreement.
Compared to a sole proprietorship, a general partnership: - Answers - is likely to have a
stronger financial base.
A similarity between a general partnership and a sole proprietorship is - Answers - their
ability to avoid double taxation
_____________ are the most common types of corporations. - Answers - C
corporations
A ________ is a legal business entity that offers limited liability to all of its owners. -
Answers - C corporation.
Which of the following best describes the document filed with a state government to
establish the existence of a new corporation? - Answers - Articles of incorporation.
Stockholders are the ______________ of the corporation. - Answers - owners.
A key advantage of a C corporation is: - Answers - ability to raise large amounts of
financial capital.
Why must organizations of all kinds be open to changes that are taking place in the
"business environment"? - Answers - Organizations of all kinds need to be open to
change in the business environment so they can be successful. A successful business
considers all factors: Competition; The Economy; Technology; Residential Environment
and Global Environment because these factors are always changing and in order to
create a long term value for customers these organizations need to change as well.
A core goal for successful businesses is to deliver value to customers while generating
long-term profits. - Answers - True
Even though nonprofit organizations are not in business for a financial gain, they are still
businesses in every other sense. - Answers - True
Organizations generate long-term success by delivering unsurpassed value to their
customers. - Answers - True
Value is the relationship between the price of a good or a service and the benefit that
the service offers to the customer. - Answers - True
Economic factors are not as important to non-profit organizations as they are to for-
profits. - Answers - False
The technological environment is less important to small business than it is to large
businesses. - Answers - False
For profits are understandably less concerned about trends in the social environment. -
Answers - False
Non-profits have no need to be concerned about the competitive environment. -
Answers - False
Small businesses have no need to be concerned about the global environment. -
Answers - False
Supply is defined as - Answers - The quantity of products that a producer will make for a
specific price.
Ann is a manager at a store that sells casual clothing and accessories for both men and
women. She notices that the jeans priced at $120 aren't selling very well. She wants to
increase sales of these jeans before next season. The approach Ann should take to
achieve this is to: - Answers - lower the price of the jeans so that demand will increase
,Demand is defined as - Answers - the quantity of products consumers are willing to pay
at different prices.
Fair competition among businesses: - Answers - drives higher quality and lower prices
in capitalism
A basic characteristic of ____________ is that both producers and consumers are free
to make their own economic decsions on many basic issues. - Answers - capitalism
___________________ is an economic system based on the principle that the
government should own and operate key enterprises that directly affect public welfare. -
Answers - Socialism
Which of the following is a difference between a socialist economic system and a pure
communist economic system? - Answers - Socialism controls social welfare. Pure
communism controls everything.
To encourage fair competition and protect both consumers and workers, the federal
government: - Answers - creates regulations to intervene in the free market.
Government regulations are likely to become stronger in the wake of
_______________. - Answers - an economic crisis like The Great Recession.
Fiscal policy refers to: - Answers - government efforts to influence the economy through
taxation and spending.
___________________ refers to actions that shape the economy by influencing interest
rates and the supply of cash. - Answers - Monetary policy
The primary way that "central banks", like the U.S. Federal Reserve Bank, controls the
supply of money is by: - Answers - buying and selling government securities (i.e.,
treasure bond, notes and bills) in open market operations.
The amount of goods and services produced by an economy divided by the amount of
resources used to make those goods and services equals: - Answers - productivity
Capitalism, as an economic system, has many advantages and disadvantages.
Describe some of these advantages and disadvantages. - Answers - Capitalism is an
economic system that allows the people to have control over their own business down
to the types of products they wish to produce. This is an advantage because unlike
other economic systems where the government has full control over what can be
produced, capitalism allows individuals freedom to produce any type of product that
they think would help society society then has control over whether the business
succeeds or fails those are the disadvantages of capitalism.
, Why do global economists believe that most global economic powers are moving
towards "mixed economies"? - Answers - Global economies believe that most global
economic powers are moving towards Mixed economies is due to the fact that "mixed
economies are best at handling the circular flow of goods money and resources"
(Clifford 2015).
Which of the following is an advantage of a sole proprietorship? - Answers - Retention
of control
A key advantage of a sole proprietorship is that: - Answers - it is easy and inexpensive
to form this type of business.
Tina is the owner of a dance studio. As a sole proprietor, any profit she earns is: -
Answers - treated as a personal income of Tina.
A key reason most sole proprietorships remain relatively small is that - Answers - they
have limited ability to raise funds needed to finance growth.
Sole proprietorships have _______________________ for the debts of their companies
- Answers - unlimited liability.
Which of the following statements is true of formation of a general partnership? -
Answers - It is safer to get everything in writing and to seek expert legal assistance
when drawing up an agreement.
Compared to a sole proprietorship, a general partnership: - Answers - is likely to have a
stronger financial base.
A similarity between a general partnership and a sole proprietorship is - Answers - their
ability to avoid double taxation
_____________ are the most common types of corporations. - Answers - C
corporations
A ________ is a legal business entity that offers limited liability to all of its owners. -
Answers - C corporation.
Which of the following best describes the document filed with a state government to
establish the existence of a new corporation? - Answers - Articles of incorporation.
Stockholders are the ______________ of the corporation. - Answers - owners.
A key advantage of a C corporation is: - Answers - ability to raise large amounts of
financial capital.
