Strayer University BUS 100 Exam 1 (pdf) | 2026/2027 | Intro to
Business Q&A | Businesss
1. Which of the following best defines a business?
A) An activity that provides goods and services solely to the government
B) An activity that seeks to provide goods and services to others while
operating at a profit
C) An organization that only manufactures physical products
D) A non-profit entity that provides services for free
Correct Answer: An activity that seeks to provide goods and services to
others while operating at a profit
Rationale: A business is any activity that seeks to provide goods and services
to others while operating at a profit. This includes all profit-seeking activities
and enterprises that provide goods and services necessary to an economic
system . Not-for-profit organizations also provide goods and services but do
not operate for profit.
2. The amount of money a business earns above and beyond what it spends
for salaries, materials, and other expenses is called:
A) Revenue
B) Profit
C) Income
D) Capital
Correct Answer: Profit
Rationale: Profit is the amount of money a business earns above and beyond
what it spends for salaries, materials, and other expenses . It is the reward
,for businesspeople who take the risks involved in offering goods and services
to customers.
3. The total amount of money obtained by a business in a certain period is
known as:
A) Profit
B) Loss
C) Revenue
D) Capital
Correct Answer: Revenue
Rationale: Revenue is the total amount of money obtained in a certain period
. Profit is calculated by subtracting expenses from revenue. When expenses
exceed revenue, the business incurs a loss.
4. Which of the following is NOT one of the five factors of production?
A) Land and natural resources
B) Capital
C) Marketing
D) Entrepreneurship
Correct Answer: Marketing
Rationale: The five factors of production are land and natural resources, labor
(human resources), capital, entrepreneurship, and knowledge . Marketing is a
business function, not a factor of production.
,5. The factor of production that encompasses the physical, intellectual, and
creative contributions of everyone who works within an economy is called:
A) Capital
B) Land
C) Human resources
D) Entrepreneurship
Correct Answer: Human resources
Rationale: Human resources refers to anyone who works, including the CEO
and a self-employed mechanic . Their talent can be a company's competitive
edge. This factor encompasses the physical, intellectual, and creative
contributions of everyone who works within an economy .
6. A person who risks time, effort, and money to start and operate a business
is called:
A) A stakeholder
B) A manager
C) An entrepreneur
D) An investor
Correct Answer: An entrepreneur
Rationale: An entrepreneur is a risk taker in the private enterprise system
who fuels the growth of the U.S. economy . They risk time, effort, and money
to start and operate a business .
7. All the people who stand to gain or lose by the policies and activities of a
business are called:
, A) Stockholders
B) Stakeholders
C) Shareholders
D) Investors
Correct Answer: Stakeholders
Rationale: Stakeholders are all the people who stand to gain or lose by the
policies and activities of a business . This includes stockholders, customers,
surrounding community, employees, suppliers, government leaders, and
bankers.
8. The study of how wealth is created and distributed is called:
A) Business
B) Finance
C) Economics
D) Management
Correct Answer: Economics
Rationale: Economics is the study of how wealth is created and distributed .
It examines how individuals, businesses, and societies allocate scarce
resources to produce and distribute goods and services.
9. The study of the decisions made by individuals and businesses is called:
A) Macroeconomics
B) Microeconomics
C) Global economics
Business Q&A | Businesss
1. Which of the following best defines a business?
A) An activity that provides goods and services solely to the government
B) An activity that seeks to provide goods and services to others while
operating at a profit
C) An organization that only manufactures physical products
D) A non-profit entity that provides services for free
Correct Answer: An activity that seeks to provide goods and services to
others while operating at a profit
Rationale: A business is any activity that seeks to provide goods and services
to others while operating at a profit. This includes all profit-seeking activities
and enterprises that provide goods and services necessary to an economic
system . Not-for-profit organizations also provide goods and services but do
not operate for profit.
2. The amount of money a business earns above and beyond what it spends
for salaries, materials, and other expenses is called:
A) Revenue
B) Profit
C) Income
D) Capital
Correct Answer: Profit
Rationale: Profit is the amount of money a business earns above and beyond
what it spends for salaries, materials, and other expenses . It is the reward
,for businesspeople who take the risks involved in offering goods and services
to customers.
3. The total amount of money obtained by a business in a certain period is
known as:
A) Profit
B) Loss
C) Revenue
D) Capital
Correct Answer: Revenue
Rationale: Revenue is the total amount of money obtained in a certain period
. Profit is calculated by subtracting expenses from revenue. When expenses
exceed revenue, the business incurs a loss.
4. Which of the following is NOT one of the five factors of production?
A) Land and natural resources
B) Capital
C) Marketing
D) Entrepreneurship
Correct Answer: Marketing
Rationale: The five factors of production are land and natural resources, labor
(human resources), capital, entrepreneurship, and knowledge . Marketing is a
business function, not a factor of production.
,5. The factor of production that encompasses the physical, intellectual, and
creative contributions of everyone who works within an economy is called:
A) Capital
B) Land
C) Human resources
D) Entrepreneurship
Correct Answer: Human resources
Rationale: Human resources refers to anyone who works, including the CEO
and a self-employed mechanic . Their talent can be a company's competitive
edge. This factor encompasses the physical, intellectual, and creative
contributions of everyone who works within an economy .
6. A person who risks time, effort, and money to start and operate a business
is called:
A) A stakeholder
B) A manager
C) An entrepreneur
D) An investor
Correct Answer: An entrepreneur
Rationale: An entrepreneur is a risk taker in the private enterprise system
who fuels the growth of the U.S. economy . They risk time, effort, and money
to start and operate a business .
7. All the people who stand to gain or lose by the policies and activities of a
business are called:
, A) Stockholders
B) Stakeholders
C) Shareholders
D) Investors
Correct Answer: Stakeholders
Rationale: Stakeholders are all the people who stand to gain or lose by the
policies and activities of a business . This includes stockholders, customers,
surrounding community, employees, suppliers, government leaders, and
bankers.
8. The study of how wealth is created and distributed is called:
A) Business
B) Finance
C) Economics
D) Management
Correct Answer: Economics
Rationale: Economics is the study of how wealth is created and distributed .
It examines how individuals, businesses, and societies allocate scarce
resources to produce and distribute goods and services.
9. The study of the decisions made by individuals and businesses is called:
A) Macroeconomics
B) Microeconomics
C) Global economics
