BADM 101 MIDTERM UPDATED ACTUAL QUESTIONS
AND CORRECT ANSWERS
Question:
1. Business
Answer:
Individuals or organizations who try to earn a profit by providing products that
satisfy people's needs.
Question:
2. Product
Answer:
A good or service with tangible and intangible characteristics that provide
satisfaction and benefits.
Question:
3. Profit
Answer:
The difference between what it costs to make and sell a product and what a
customer pays for it.
Question:
4. Nonprofit Organizations
Answer:
Organizations that may provide goods or services but do not have the
fundamental purpose of earning profits.
Question:
5. Stakeholders
Answer:
Groups that have a stake in the success and outcomes of a business.
Question:
6. Economics
Answer:
The study of how resources are distributed for the production of goods and
services within a social system.
, Question:
7. Natural Resources
Answer:
Land, forests, minerals, water, and other things that are not made by people.
Question:
8. Human Resources
Answer:
The physical and mental abilities that people use to produce goods and services;
Also called labour.
Question:
9. Financial Resources
Answer:
The funds used to acquire the natural and human resources needed to provide
products; Also called Capital.
Question:
10. Economic System
Answer:
A description of how a particular society distributes its resources to produce
goods and services.
Question:
11. Communism
Answer:
First described by Karl Marx as a society in which the people, without regard to
class, own all the nation's resources.
Question:
12. Socialism
Answer:
An economic system in which the government owns and operates basic industries
but individuals own most businesses.
Question:
13. Capitalism
Answer:
An economic system in which individuals own and operate the majority of
businesses that provide goods and services.
AND CORRECT ANSWERS
Question:
1. Business
Answer:
Individuals or organizations who try to earn a profit by providing products that
satisfy people's needs.
Question:
2. Product
Answer:
A good or service with tangible and intangible characteristics that provide
satisfaction and benefits.
Question:
3. Profit
Answer:
The difference between what it costs to make and sell a product and what a
customer pays for it.
Question:
4. Nonprofit Organizations
Answer:
Organizations that may provide goods or services but do not have the
fundamental purpose of earning profits.
Question:
5. Stakeholders
Answer:
Groups that have a stake in the success and outcomes of a business.
Question:
6. Economics
Answer:
The study of how resources are distributed for the production of goods and
services within a social system.
, Question:
7. Natural Resources
Answer:
Land, forests, minerals, water, and other things that are not made by people.
Question:
8. Human Resources
Answer:
The physical and mental abilities that people use to produce goods and services;
Also called labour.
Question:
9. Financial Resources
Answer:
The funds used to acquire the natural and human resources needed to provide
products; Also called Capital.
Question:
10. Economic System
Answer:
A description of how a particular society distributes its resources to produce
goods and services.
Question:
11. Communism
Answer:
First described by Karl Marx as a society in which the people, without regard to
class, own all the nation's resources.
Question:
12. Socialism
Answer:
An economic system in which the government owns and operates basic industries
but individuals own most businesses.
Question:
13. Capitalism
Answer:
An economic system in which individuals own and operate the majority of
businesses that provide goods and services.
