GEB 1011 Test 1 Questions with Correct Answers
What is a business loss? Correct Answer-When a business's expenses are
more than its revenues.
What is profit? Correct Answer-The amount of money a business earns
above and beyond what it spends for salaries and other expenses.
What is revenue? Correct Answer-The total amount of money a business
takes in during a given period by selling goods and services.
What is a nonprofit and how are they similar and different from for-
profit businesses? Correct Answer-n organization whose goals do not
include making a personal profit for its owners or organizers.
What is the standard of living and what does it depend on Correct
Answer-The amount of goods and services people can buy with the
money they have.
Who are stakeholders in a business Correct Answer-All the people who
stand to gain or lose by the policies and activities of a business and
whose concerns the business needs to address.
What is the meaning of the phrase "The more risk, the more potential
reward"? Correct Answer-the more you are willing to risk the bigger the
potential for reward
, What is an entrepreneur? Correct Answer-A person who risks time and
money to start and manage a business.
What are factors of production? Correct Answer-1.Land
2.Labor
3.Capital
4.Entrepreneurship
5.Knowledge
How can countries create the most wealth? Correct Answer-
entrepreneurship and knowledge.
Capitalism Correct Answer-all or most of the factors of production and
distribution are privately owned and operated for profit.
Socialism Correct Answer-some, if not most, basic businesses should be
owned by the government so that profits can be more evenly distributed
among the people.
Communism Correct Answer-he government makes almost all economic
decisions and owns almost all the major factors of production.
cons of communism Correct Answer-shortages of items
economic depression.
What is a business loss? Correct Answer-When a business's expenses are
more than its revenues.
What is profit? Correct Answer-The amount of money a business earns
above and beyond what it spends for salaries and other expenses.
What is revenue? Correct Answer-The total amount of money a business
takes in during a given period by selling goods and services.
What is a nonprofit and how are they similar and different from for-
profit businesses? Correct Answer-n organization whose goals do not
include making a personal profit for its owners or organizers.
What is the standard of living and what does it depend on Correct
Answer-The amount of goods and services people can buy with the
money they have.
Who are stakeholders in a business Correct Answer-All the people who
stand to gain or lose by the policies and activities of a business and
whose concerns the business needs to address.
What is the meaning of the phrase "The more risk, the more potential
reward"? Correct Answer-the more you are willing to risk the bigger the
potential for reward
, What is an entrepreneur? Correct Answer-A person who risks time and
money to start and manage a business.
What are factors of production? Correct Answer-1.Land
2.Labor
3.Capital
4.Entrepreneurship
5.Knowledge
How can countries create the most wealth? Correct Answer-
entrepreneurship and knowledge.
Capitalism Correct Answer-all or most of the factors of production and
distribution are privately owned and operated for profit.
Socialism Correct Answer-some, if not most, basic businesses should be
owned by the government so that profits can be more evenly distributed
among the people.
Communism Correct Answer-he government makes almost all economic
decisions and owns almost all the major factors of production.
cons of communism Correct Answer-shortages of items
economic depression.
