BUS 101 EXAM #1 - CHAPTERS 1-5 UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Question:
1. tangible products
Answer:
goods (ex. shoes, vegetables, phones)
Question:
2. intangible products
Answer:
services (ex. health care, education)
Question:
3. mission statement
Answer:
powerful, short description of a business's purpose; broadly focused to ensure
endurance, and must be flexible
Question:
4. vision statement
Answer:
company's "road map"; points to future and where business is trying to go
Question:
5. stakeholders
Answer:
All the people who stand to gain or lose by the policies and activities of a
business
Question:
6. primary stakeholders
Answer:
owners, employees, customers
Question:
7. scarce
Answer:
too few goods & resources to satisfy the wants of all individuals
, Question:
8. factors of production
Answer:
land, labor, capital, & entrepreneurial ability (all scarce; limited in supply)
Question:
9. opportunity cost
Answer:
benefit, profit, value of something that must be given up to acquire/achieve
something else
(ex. 60k/yr job offer vs. starting own company - 60k is the opportunity cost)
Question:
10. positive incentive
Answer:
increases the benefit of making a decision, making the choice more likely (ex.
lowering a price)
Question:
11. negative incentive
Answer:
an incentive that either increases costs or reduces benefits, making choice less
likely (ex. a tax)
Question:
12. what will be added to what was there before (ex. marginal revenue is the
additional $$ made by producing one more unit of a good/service)
Answer:
marginal
Question:
13. positive sum game
Answer:
trading a good or service; creates new wealth; buyer & seller are better off
Question:
14. framing
Answer:
the way a choice is posed to customer/decision-maker; can significantly affect
decisions and judgments.
QUESTIONS AND CORRECT ANSWERS
Question:
1. tangible products
Answer:
goods (ex. shoes, vegetables, phones)
Question:
2. intangible products
Answer:
services (ex. health care, education)
Question:
3. mission statement
Answer:
powerful, short description of a business's purpose; broadly focused to ensure
endurance, and must be flexible
Question:
4. vision statement
Answer:
company's "road map"; points to future and where business is trying to go
Question:
5. stakeholders
Answer:
All the people who stand to gain or lose by the policies and activities of a
business
Question:
6. primary stakeholders
Answer:
owners, employees, customers
Question:
7. scarce
Answer:
too few goods & resources to satisfy the wants of all individuals
, Question:
8. factors of production
Answer:
land, labor, capital, & entrepreneurial ability (all scarce; limited in supply)
Question:
9. opportunity cost
Answer:
benefit, profit, value of something that must be given up to acquire/achieve
something else
(ex. 60k/yr job offer vs. starting own company - 60k is the opportunity cost)
Question:
10. positive incentive
Answer:
increases the benefit of making a decision, making the choice more likely (ex.
lowering a price)
Question:
11. negative incentive
Answer:
an incentive that either increases costs or reduces benefits, making choice less
likely (ex. a tax)
Question:
12. what will be added to what was there before (ex. marginal revenue is the
additional $$ made by producing one more unit of a good/service)
Answer:
marginal
Question:
13. positive sum game
Answer:
trading a good or service; creates new wealth; buyer & seller are better off
Question:
14. framing
Answer:
the way a choice is posed to customer/decision-maker; can significantly affect
decisions and judgments.
