BUSINESS PRINCIPLES BUSI 1301 EXAM 1 UPDATED
ACTUAL QUESTIONS AND CORRECT ANSWERS
Question:
1. Business
Answer:
Any activity that seeks to provide goods and services to others while operating at
a profit.
Question:
2. Entrepreneur
Answer:
A person who risks time and money to start and manage a business.
Question:
3. Revenue
Answer:
The total amount of money a business takes in during a given period by selling
goods and services.
Question:
4. Profit
Answer:
The amount of money a business earns above and beyond what it spends for
salaries and other expenses.
Question:
5. Loss
Answer:
Occurs when a business's expenses are more than its revenues.
Question:
6. Risk
Answer:
The chance an entrepreneur takes of losing time and money on a business that
may not prove profitable.
,Question:
7. Do Businesses take risks?
Answer:
Yes, but with great risks could come great profit. Risk should match profit
potential.
Question:
8. Standard of Living
Answer:
The amount of goods and services people can buy with the money they have.
Question:
9. Quality of Life
Answer:
The general well-being of a society in terms of its political freedom, natural
environment, education, healthcare, safety, amount of leisure and rewards that
add to personal satisfaction.
Question:
10. Stakeholders
Answer:
All the people who stand to gain or lose by the policies and activities of a
business and whose concerns the businesses need to address. To be World Class
a company must respond to ALL stakeholders
Question:
11. Outsourcing
Answer:
Contracting with other companies (often in other countries) to do some of the
firm's functions, like production or accounting.
Question:
12. Insourcing
Answer:
Foreign companies opening offices and factories in the United States.
Question:
13. Nonprofit Organization
Answer:
An organization whose goals do not include making a personal profit for its
owners or organizers. Nonprofits often strive for social gains that are achieved by
its financial gains. These organizations are not subject to income taxes.
, Question:
14. Factors of Production
Answer:
Land
Labor
Capital
Machines, tools, and other means of manufacturing NOT cash, bonds, etc.
Entrepreneurship
Knowledge
Entrepreneurs use what they've learned maximize the factors of production to
grow their businesses and increase wealth.
The Factors of Production that contribute the most to making most countries rich
are entrepreneurship and knowledge
Question:
15. Efficiency
Answer:
Producing goods and services using the least amount of resources.
Question:
16. Productivity
Answer:
The amount of output you generate given the amount of input (example: hours
you work). Your individual productivity and your ability to communicate it are your
job security and promotion tools for your career.
Question:
17. Customers Expectations
Answer:
Meet them and keep your job
Exceed them and move ahead, delight them by providing them with a quality
procut at a good price with outstanding service and you are a superstar!
Question:
18. Empowerment
Answer:
Giving frontline workers the responsibility, authority, and freedom to respond
quickly to customer requests. Learn how your staff learns and how they want to
be managed
ACTUAL QUESTIONS AND CORRECT ANSWERS
Question:
1. Business
Answer:
Any activity that seeks to provide goods and services to others while operating at
a profit.
Question:
2. Entrepreneur
Answer:
A person who risks time and money to start and manage a business.
Question:
3. Revenue
Answer:
The total amount of money a business takes in during a given period by selling
goods and services.
Question:
4. Profit
Answer:
The amount of money a business earns above and beyond what it spends for
salaries and other expenses.
Question:
5. Loss
Answer:
Occurs when a business's expenses are more than its revenues.
Question:
6. Risk
Answer:
The chance an entrepreneur takes of losing time and money on a business that
may not prove profitable.
,Question:
7. Do Businesses take risks?
Answer:
Yes, but with great risks could come great profit. Risk should match profit
potential.
Question:
8. Standard of Living
Answer:
The amount of goods and services people can buy with the money they have.
Question:
9. Quality of Life
Answer:
The general well-being of a society in terms of its political freedom, natural
environment, education, healthcare, safety, amount of leisure and rewards that
add to personal satisfaction.
Question:
10. Stakeholders
Answer:
All the people who stand to gain or lose by the policies and activities of a
business and whose concerns the businesses need to address. To be World Class
a company must respond to ALL stakeholders
Question:
11. Outsourcing
Answer:
Contracting with other companies (often in other countries) to do some of the
firm's functions, like production or accounting.
Question:
12. Insourcing
Answer:
Foreign companies opening offices and factories in the United States.
Question:
13. Nonprofit Organization
Answer:
An organization whose goals do not include making a personal profit for its
owners or organizers. Nonprofits often strive for social gains that are achieved by
its financial gains. These organizations are not subject to income taxes.
, Question:
14. Factors of Production
Answer:
Land
Labor
Capital
Machines, tools, and other means of manufacturing NOT cash, bonds, etc.
Entrepreneurship
Knowledge
Entrepreneurs use what they've learned maximize the factors of production to
grow their businesses and increase wealth.
The Factors of Production that contribute the most to making most countries rich
are entrepreneurship and knowledge
Question:
15. Efficiency
Answer:
Producing goods and services using the least amount of resources.
Question:
16. Productivity
Answer:
The amount of output you generate given the amount of input (example: hours
you work). Your individual productivity and your ability to communicate it are your
job security and promotion tools for your career.
Question:
17. Customers Expectations
Answer:
Meet them and keep your job
Exceed them and move ahead, delight them by providing them with a quality
procut at a good price with outstanding service and you are a superstar!
Question:
18. Empowerment
Answer:
Giving frontline workers the responsibility, authority, and freedom to respond
quickly to customer requests. Learn how your staff learns and how they want to
be managed
