BUSINESS MANAGEMENT COMPLETE
STUDY GUIDE PRACTICE QUESTIONS AND
REVIEW NOTES 2026
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales Included
,What is the formula for profit? Sales revenue - expenses
Economics The study of how wealth is created and distributed.
Economy The system through which a society creates and distributes wealth.
Capitalism A system in which individuals own and operate the majority of businesses that
provide goods and services.
Socialism A system in which the government owns and controls the means of production.
Communism A system where factors of production are owned and directed by the state.
What type of economy is the U.S.? Capitalist
Why is the U.S. a mixed economy? They include both capitalism and socialism.
What do businesses purchase after they sell their goods Factors of production.
and services?
Factors of Production Land, labor, and capital.
What does the government do in exchange for taxes? They provide public services not provided by businesses.
Ex: Law Enforcement
Command Economy An economic system in which the government controls a country's economy.
What type of economies are in command economy? Socialism and communism.
Competition Competing on sales for potential customers.
Pure Competition Large number of small that businesses that sell the same type of products with the
same characteristics.
, What are some characteristics of a pure competition? - It is easy to enter leave the market
- All prices are basically the same
Supply Quantity of a product producers are willing to sell.
Demand Quantity of a product buyers are willing to purchase.
Market Price (equilibrium) The price at which the amount that buyers wish to buy equals the amount that
sellers wish to sell.
Monopoly Competition A one seller market.
What are some characteristics of a monopoly - No competition
competition? - Great degree of power
- Power of pricing
- Hard to enter and leave the mark
Monopolistic Competition A large number of small businesses that sell similar products.
What are some characteristics of a monopolistic - Similar products, different characteristics.
competition? - Good degree of information (not perfect though).
- Most common type of market.
- Easy to enter and leave the market.
Oligopoly A few large business that sell identical or very similar products.
Ex: Automobiles, oil industries, etc.
What are some characteristics of a oligopoly - Sizable investment needed to enter.
competition? - Compete on price and characteristics.
Barter System A system in which people buy and sell goods by exchanging one item for
another; no money is involved.
Domestic System The manufacture of goods in the household setting; a production system that
gave way to the factory system.
Factory System A method of production that brought many workers and machines together into
one place.
STUDY GUIDE PRACTICE QUESTIONS AND
REVIEW NOTES 2026
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales Included
,What is the formula for profit? Sales revenue - expenses
Economics The study of how wealth is created and distributed.
Economy The system through which a society creates and distributes wealth.
Capitalism A system in which individuals own and operate the majority of businesses that
provide goods and services.
Socialism A system in which the government owns and controls the means of production.
Communism A system where factors of production are owned and directed by the state.
What type of economy is the U.S.? Capitalist
Why is the U.S. a mixed economy? They include both capitalism and socialism.
What do businesses purchase after they sell their goods Factors of production.
and services?
Factors of Production Land, labor, and capital.
What does the government do in exchange for taxes? They provide public services not provided by businesses.
Ex: Law Enforcement
Command Economy An economic system in which the government controls a country's economy.
What type of economies are in command economy? Socialism and communism.
Competition Competing on sales for potential customers.
Pure Competition Large number of small that businesses that sell the same type of products with the
same characteristics.
, What are some characteristics of a pure competition? - It is easy to enter leave the market
- All prices are basically the same
Supply Quantity of a product producers are willing to sell.
Demand Quantity of a product buyers are willing to purchase.
Market Price (equilibrium) The price at which the amount that buyers wish to buy equals the amount that
sellers wish to sell.
Monopoly Competition A one seller market.
What are some characteristics of a monopoly - No competition
competition? - Great degree of power
- Power of pricing
- Hard to enter and leave the mark
Monopolistic Competition A large number of small businesses that sell similar products.
What are some characteristics of a monopolistic - Similar products, different characteristics.
competition? - Good degree of information (not perfect though).
- Most common type of market.
- Easy to enter and leave the market.
Oligopoly A few large business that sell identical or very similar products.
Ex: Automobiles, oil industries, etc.
What are some characteristics of a oligopoly - Sizable investment needed to enter.
competition? - Compete on price and characteristics.
Barter System A system in which people buy and sell goods by exchanging one item for
another; no money is involved.
Domestic System The manufacture of goods in the household setting; a production system that
gave way to the factory system.
Factory System A method of production that brought many workers and machines together into
one place.
