BUSINESS 101 FINAL EXAM UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Question:
1. business
Answer:
an organization that strives for a profit by providing goods and services desired
by its customers
Question:
2. goods
Answer:
tangible items manufactured by businesses
*EX: Laptops
Question:
3. services
Answer:
intangible offerings of businesses that can't be held, touched, or stored
*EX: physicians, lawyers, hair stylists, car washes, and airlines all provided services
Question:
4. business-to-business (B2B)
Answer:
selling products and services between two businesses, rather than to a consumer
Question:
5. business-to-consumer (B2C)
Answer:
selling products and services directly to a consumer (the end user)
Question:
6. what is the traditional purpose of a business?
Answer:
to maximize the value of the firm to its owners
*ANOTHER WAY TO THINK ABOUT IT? --> to maximize shareholder's wealth
***So... what is the best way to do this? --> by increasing profits
, Question:
7. stakeholder
Answer:
anyone involved with or affected by an organization --> shareholders, customers,
community members, employees, suppliers, etc.
Question:
8. shareholder
Answer:
owns a share of a company's stock; could be an individual, a company, or an
institution (financial, educational, medical, etc.)
***common stock shareholder: has the right to vote on major decisions made by
the company; hopes the stock value will increase and/or the company will pay a
dividend
Question:
9. dividend
Answer:
distribution of a company's earnings to shareholders
Question:
10. profit
Answer:
the difference between the amount earned and the amount spent in buying,
operating, or producing something
*(revenue - expenses)
Question:
11. revenue
Answer:
the dollar amount of a firm's sales plus any other income it received from sources
such as interest, dividends, and rents
*what you earn from selling goods and services
Question:
12. what it costs you to operate your business
Answer:
expense
QUESTIONS AND CORRECT ANSWERS
Question:
1. business
Answer:
an organization that strives for a profit by providing goods and services desired
by its customers
Question:
2. goods
Answer:
tangible items manufactured by businesses
*EX: Laptops
Question:
3. services
Answer:
intangible offerings of businesses that can't be held, touched, or stored
*EX: physicians, lawyers, hair stylists, car washes, and airlines all provided services
Question:
4. business-to-business (B2B)
Answer:
selling products and services between two businesses, rather than to a consumer
Question:
5. business-to-consumer (B2C)
Answer:
selling products and services directly to a consumer (the end user)
Question:
6. what is the traditional purpose of a business?
Answer:
to maximize the value of the firm to its owners
*ANOTHER WAY TO THINK ABOUT IT? --> to maximize shareholder's wealth
***So... what is the best way to do this? --> by increasing profits
, Question:
7. stakeholder
Answer:
anyone involved with or affected by an organization --> shareholders, customers,
community members, employees, suppliers, etc.
Question:
8. shareholder
Answer:
owns a share of a company's stock; could be an individual, a company, or an
institution (financial, educational, medical, etc.)
***common stock shareholder: has the right to vote on major decisions made by
the company; hopes the stock value will increase and/or the company will pay a
dividend
Question:
9. dividend
Answer:
distribution of a company's earnings to shareholders
Question:
10. profit
Answer:
the difference between the amount earned and the amount spent in buying,
operating, or producing something
*(revenue - expenses)
Question:
11. revenue
Answer:
the dollar amount of a firm's sales plus any other income it received from sources
such as interest, dividends, and rents
*what you earn from selling goods and services
Question:
12. what it costs you to operate your business
Answer:
expense
