BUS 100 FINAL EXAM STUDY GUIDE | BUS 100 FINAL EXAM REVIEW | PRACTICE
QUESTIONS & ANSWERS 2026/2027
What is Business? - ANS ✔✔The organized effort of individuals to produce and sell, for a profit, the
goods and services that satisfy society's needs
Classification of business (manufacturing vs. service vs. intermediaries) - ANS ✔✔Manufacturing- any
business that uses components to make a finished good
Service- providing work by and individual or team for its customers, such as intangible goods like
insurance, education, banking
Intermediaries- buy products from manufacturers and resell
The function of profit - ANS ✔✔-Reward for producing goods and services people want
-Compensation for assuming the risks of ownership
= risk of not receiving payment
=risk of losing investment
Microeconomics vs. Macroeconomics - ANS ✔✔Micro- The study of the decisions made by individuals
and businesses
Macro- The study of the national and global economies
Capitalism Economy vs. Command Economy(socialism and communism) - ANS ✔✔Capitalism-
Individuals and businesses own the resources and are free to exchange and contract with each other
without decree from government authority. The collective term for these uncoordinated exchanges is
the "market."
Command- Under a command economy, governments own all of the factors of production such as land,
capital and resources, and government officials determine when, where and how much is produced at
any one time
Economic Indicators- GDP; inflation; unemployment - ANS ✔✔Gross Domestic Product (GDP)- The total
value of all goods and services produced by all people within the boundaries of a country during a one-
year period
Inflation- The value of the dollar goes down and demand increases
-Unemployment
Monetary vs. Fiscal policy - ANS ✔✔Monetary- The Federal Reserve's ("the Fed") decisions that
determine the size of the supply of money in the nation and the level of interest rates
Fiscal- Governmental decisions aimed at affecting the level of spending. Accomplished primarily through
government spending and tax rates
(Business) Ethics vs. Laws - ANS ✔✔Ethics- Is the application of moral standards (principles and values
that govern actions) to business situations. Right vs. Wrong
Laws- The system of rules that a particular country or community recognizes as regulating the actions of
its members and may enforce the imposition of penalties
, Social Responsibility (what it is; 4 concepts; Pros and Cons) - ANS ✔✔What it is- The recognition that
business activities have an impact on society and the consideration of that impact in business decision
making
4 Concepts- 1. Philanthropic- contribute resources to community, improve quality of life
2. Ethical- obligation to do what is right, just, and fair
3. Legal- law is society's codification of right and wrong
4. Economic- the foundation upon which all other rest
Pros- As a part of society, business can't ignore social problems.
- Business has the means to tackle social problems.
- Addressing social problems can create a more stable environment.
- Socially-responsible decision making prevents government intervention.
Cons- Businesses are primarily responsible to shareholders.
- Corporate time, money and talent should be used to create profit.
- Individual businesses can't be expected to solve problems affecting society in general.
- Social issues are the problem of government officials elected for that purpose.
International Business - ANS ✔✔Activities that involve exchanges across national borders
Balance of Trade - ANS ✔✔the total value of a nation's exports minus the total value of its imports over
some period of time.
Trade Deficit - ANS ✔✔a negative (unfavorable) balance of trade where imports exceed exports in value
Types of Trade Restrictions (import duty; revenue tariff; protective tariff; dumping; nontariff barriers) -
ANS ✔✔import duty- A tax levied on a particular foreign product entering a country
revenue tariff-imposed to generate income for the government.
protective tariff- imposed to protect a domestic industry from competition by keeping the prices of
imports at or above the price of domestic products.
dumping- The exportation of large quantities of a product at a price lower than that of the same product
in the home market
nontariff barriers- nontax measures imposed by a government to favor domestic over foreign suppliers
International Business Entry Strategies (indirect exporting; direct exporting; licensing A&D; joint venture
A&D; totally owned facilities A&D; multinational firm - ANS ✔✔
Indirect Exporting - ANS ✔✔Selling to or through an intermediary; use an export/import merchant who
assumes the risks of ownership, distribution, and sale. The agent who arranges sale for a commission or
fee
Direct Exporting - ANS ✔✔selling directly to your target customer in a market. May establish own sales
offices or branches in foreign countries
licensing- A contractual agreement in which one firm
Licensing A&D - ANS ✔✔A contractual agreement in which one firm permits another to produce and
market its product and use its brand name in return for a royalty or other compensation
=Advantage-It allows expansion into foreign markets with little
or no direct investment
QUESTIONS & ANSWERS 2026/2027
What is Business? - ANS ✔✔The organized effort of individuals to produce and sell, for a profit, the
goods and services that satisfy society's needs
Classification of business (manufacturing vs. service vs. intermediaries) - ANS ✔✔Manufacturing- any
business that uses components to make a finished good
Service- providing work by and individual or team for its customers, such as intangible goods like
insurance, education, banking
Intermediaries- buy products from manufacturers and resell
The function of profit - ANS ✔✔-Reward for producing goods and services people want
-Compensation for assuming the risks of ownership
= risk of not receiving payment
=risk of losing investment
Microeconomics vs. Macroeconomics - ANS ✔✔Micro- The study of the decisions made by individuals
and businesses
Macro- The study of the national and global economies
Capitalism Economy vs. Command Economy(socialism and communism) - ANS ✔✔Capitalism-
Individuals and businesses own the resources and are free to exchange and contract with each other
without decree from government authority. The collective term for these uncoordinated exchanges is
the "market."
Command- Under a command economy, governments own all of the factors of production such as land,
capital and resources, and government officials determine when, where and how much is produced at
any one time
Economic Indicators- GDP; inflation; unemployment - ANS ✔✔Gross Domestic Product (GDP)- The total
value of all goods and services produced by all people within the boundaries of a country during a one-
year period
Inflation- The value of the dollar goes down and demand increases
-Unemployment
Monetary vs. Fiscal policy - ANS ✔✔Monetary- The Federal Reserve's ("the Fed") decisions that
determine the size of the supply of money in the nation and the level of interest rates
Fiscal- Governmental decisions aimed at affecting the level of spending. Accomplished primarily through
government spending and tax rates
(Business) Ethics vs. Laws - ANS ✔✔Ethics- Is the application of moral standards (principles and values
that govern actions) to business situations. Right vs. Wrong
Laws- The system of rules that a particular country or community recognizes as regulating the actions of
its members and may enforce the imposition of penalties
, Social Responsibility (what it is; 4 concepts; Pros and Cons) - ANS ✔✔What it is- The recognition that
business activities have an impact on society and the consideration of that impact in business decision
making
4 Concepts- 1. Philanthropic- contribute resources to community, improve quality of life
2. Ethical- obligation to do what is right, just, and fair
3. Legal- law is society's codification of right and wrong
4. Economic- the foundation upon which all other rest
Pros- As a part of society, business can't ignore social problems.
- Business has the means to tackle social problems.
- Addressing social problems can create a more stable environment.
- Socially-responsible decision making prevents government intervention.
Cons- Businesses are primarily responsible to shareholders.
- Corporate time, money and talent should be used to create profit.
- Individual businesses can't be expected to solve problems affecting society in general.
- Social issues are the problem of government officials elected for that purpose.
International Business - ANS ✔✔Activities that involve exchanges across national borders
Balance of Trade - ANS ✔✔the total value of a nation's exports minus the total value of its imports over
some period of time.
Trade Deficit - ANS ✔✔a negative (unfavorable) balance of trade where imports exceed exports in value
Types of Trade Restrictions (import duty; revenue tariff; protective tariff; dumping; nontariff barriers) -
ANS ✔✔import duty- A tax levied on a particular foreign product entering a country
revenue tariff-imposed to generate income for the government.
protective tariff- imposed to protect a domestic industry from competition by keeping the prices of
imports at or above the price of domestic products.
dumping- The exportation of large quantities of a product at a price lower than that of the same product
in the home market
nontariff barriers- nontax measures imposed by a government to favor domestic over foreign suppliers
International Business Entry Strategies (indirect exporting; direct exporting; licensing A&D; joint venture
A&D; totally owned facilities A&D; multinational firm - ANS ✔✔
Indirect Exporting - ANS ✔✔Selling to or through an intermediary; use an export/import merchant who
assumes the risks of ownership, distribution, and sale. The agent who arranges sale for a commission or
fee
Direct Exporting - ANS ✔✔selling directly to your target customer in a market. May establish own sales
offices or branches in foreign countries
licensing- A contractual agreement in which one firm
Licensing A&D - ANS ✔✔A contractual agreement in which one firm permits another to produce and
market its product and use its brand name in return for a royalty or other compensation
=Advantage-It allows expansion into foreign markets with little
or no direct investment
