Introduction to Business questions with
accurate answers.
any activity that seeks to provide goods and services to consumers to make a profit ANS - Business
The relationship between the price of a good or a service and the benefits that it offers its customers.
ANS - Value
The money that a business earns in sales (or revenue), minus expenses, such as the cost of goods, and
the cost of salaries. Revenue - Expenses = Profit (or Loss). ANS - Profit
When a business incurs expenses that are greater than its revenue ANS - Loss
People who risk their time, money, and other resources to start and manage a business. Entrepreneurs
who are successful benefit everyone since, they spend money on goods and their product or service
benefits others as well. ANS - Entrepreneurs
The quality and quantity of goods and services available to a population. ANS - Standard of living
The overall sense of well-being experienced by either an individual or a group ANS - quality of life
Business-like establishments that employ people and produce goods and services with the fundamental
goal of contributing to the community rather than generating financial gain. ANS - Nonprofits
Natural resources, Entrepreneurship, Capital, and Human Resources. These are what businesses rely on
to function. ANS - Factors of production
resources that are in their natural state that humans can not create, such as land, oil, water, wind etc..
The value of these resources depend on supply and demand. ANS - Natural Resources
,what businesses use to produce goods or supply services. This includes machines, tools, building,
information, and technology. ANS - Capital
This factor encompasses the physical, intellectual, and creative contributions of everyone who works
within an economy. ANS - Human Resources
Entrepreneurs are people who take the risk of launching and operating their own businesses, largely in
response to the profit incentive. They perform best when the economy supports them with the freedom
of choice (who to hire, what to produce), freedom from regulation, and taxation. ANS -
Entrepreneurship
The setting in which business operates ANS - Business environment
Businesses are greatly affected by the economy. During the stock market crash, many people were out
of work, many businesses went out of business, people lost their money, which means they spend less
on goods. Less regulation allows businesses to operate more freely. No corruption or bribery makes
running a business safer. ANS - Economic environment
Businesses focus on customer satisfaction since, it is more expensive to get new customers than it is to
keep current customers loyal. Also, loyal customers help grow the business by promoting it to others. A
product has value when its benefits to the customer are equal to or greater than the price that the
customer pays. Customers will pay more for better quality if the poor quality items are not worth it.
ANS - Competitive environment
The rate at which a new product moves from conception to commercialization. ANS - Speed to market
launch products that fail because they're too far ahead of the market. ANS - Bleeding-edge firms
By making employees satisfied they work better and harder, which usually leads to more profit and
makes them more money than they spend on making the employees happy. Businesses with better
workers will beat out the competition. ANS - workforce advantage
Business technology- Any tools—especially computers, telecommunications, and other digital products
—that businesses can use to become more efficient and effective. ANS - Technology Environment
,The service that allows computer users to easily access and share information on the Internet in the
form of text, graphics, video, apps, and animation. ANS - World Wide Web
Business transactions conducted online, typically via the Internet ANS - e-commerce
demographics The measurable characteristics of a population. Demographic factors include population
size and density, as well as specific traits such as age, gender, and race. Businesses pay attention to
demographics. Aging Population: with many people retiring some businesses such as healthcare, travel,
and pharmaceutical companies will boom, while other businesses will alter their products to serve the
elderly ANS - Social environment
young workers are expecting more out of businesses ANS - Rising worker expectation
businesses are expected to make their community a better place and make products ethically. May be
more regulation in order to preserve the future of the environment. ANS - Ethics and socially
responsible
The U.S economy interacts globally with other economies through trades and tariffs. Jobs have migrated
to the lowest bidder with the highest quality—regardless of where that bidder is based. Often, the
lowest bidder is based in China or India. Free trade has lowered price and GATT a international trade
agreement that works to keep free trade and lower tarrifs. ANS - Global environment
A financial and social system of how resources flow through society, from production to distribution, to
consumption ANS - Economy
The study of the choices that people, companies, and governments make in allocating society's
resources ANS - Economics
The study of a country's overall economic dynamics, such as the employment rate, the gross domestic
product, and taxation policies. ANS - Macroeconomics
The study of smaller economic units such as individual consumers, families, and individual businesses
ANS - microeconomics
, Government efforts to influence the economy through taxation and spending
Lower taxes leave people with more money to put into the economy. Government spending can
improve the economy by supplying jobs such as road workers and bridge repairers ANS - Fiscal policy
maximum amount Congress lets the government borrow. To avert a government shutdown congress
usually raises the debt ceiling when the government reaches it. ANS - Debt ceiling
occurs when revenue is higher than expenses over a given period of time. ANS - Budget Surplus
Shortfall that occurs when expenses are higher than revenue over a given period of time. ANS - budget
deficit
The sum of all the money that the federal government has borrowed over the years and not yet repaid.
As debt increases taxes would increase as well ANS - Federal debt
Federal Reserve decisions that shape the economy by influencing interest rates and the supply of
money. ANS - Monetary Policy
Privately owned financial institutions that accept demand deposits and make loans and provide other
services for the public. ANS - Commercial Banks
The total amount of money within the overall economy ANS - Money supply
Anything generally accepted as a medium of exchange, a measure of value, or a means of payment ANS
- Money
includes all currency plus checking accounts and traveler's checks ANS - M1 Money supply
Includes all of M1 money supply plus most savings accounts, money market accounts, and certificates of
deposit. ANS - M2 Money supply
accurate answers.
any activity that seeks to provide goods and services to consumers to make a profit ANS - Business
The relationship between the price of a good or a service and the benefits that it offers its customers.
ANS - Value
The money that a business earns in sales (or revenue), minus expenses, such as the cost of goods, and
the cost of salaries. Revenue - Expenses = Profit (or Loss). ANS - Profit
When a business incurs expenses that are greater than its revenue ANS - Loss
People who risk their time, money, and other resources to start and manage a business. Entrepreneurs
who are successful benefit everyone since, they spend money on goods and their product or service
benefits others as well. ANS - Entrepreneurs
The quality and quantity of goods and services available to a population. ANS - Standard of living
The overall sense of well-being experienced by either an individual or a group ANS - quality of life
Business-like establishments that employ people and produce goods and services with the fundamental
goal of contributing to the community rather than generating financial gain. ANS - Nonprofits
Natural resources, Entrepreneurship, Capital, and Human Resources. These are what businesses rely on
to function. ANS - Factors of production
resources that are in their natural state that humans can not create, such as land, oil, water, wind etc..
The value of these resources depend on supply and demand. ANS - Natural Resources
,what businesses use to produce goods or supply services. This includes machines, tools, building,
information, and technology. ANS - Capital
This factor encompasses the physical, intellectual, and creative contributions of everyone who works
within an economy. ANS - Human Resources
Entrepreneurs are people who take the risk of launching and operating their own businesses, largely in
response to the profit incentive. They perform best when the economy supports them with the freedom
of choice (who to hire, what to produce), freedom from regulation, and taxation. ANS -
Entrepreneurship
The setting in which business operates ANS - Business environment
Businesses are greatly affected by the economy. During the stock market crash, many people were out
of work, many businesses went out of business, people lost their money, which means they spend less
on goods. Less regulation allows businesses to operate more freely. No corruption or bribery makes
running a business safer. ANS - Economic environment
Businesses focus on customer satisfaction since, it is more expensive to get new customers than it is to
keep current customers loyal. Also, loyal customers help grow the business by promoting it to others. A
product has value when its benefits to the customer are equal to or greater than the price that the
customer pays. Customers will pay more for better quality if the poor quality items are not worth it.
ANS - Competitive environment
The rate at which a new product moves from conception to commercialization. ANS - Speed to market
launch products that fail because they're too far ahead of the market. ANS - Bleeding-edge firms
By making employees satisfied they work better and harder, which usually leads to more profit and
makes them more money than they spend on making the employees happy. Businesses with better
workers will beat out the competition. ANS - workforce advantage
Business technology- Any tools—especially computers, telecommunications, and other digital products
—that businesses can use to become more efficient and effective. ANS - Technology Environment
,The service that allows computer users to easily access and share information on the Internet in the
form of text, graphics, video, apps, and animation. ANS - World Wide Web
Business transactions conducted online, typically via the Internet ANS - e-commerce
demographics The measurable characteristics of a population. Demographic factors include population
size and density, as well as specific traits such as age, gender, and race. Businesses pay attention to
demographics. Aging Population: with many people retiring some businesses such as healthcare, travel,
and pharmaceutical companies will boom, while other businesses will alter their products to serve the
elderly ANS - Social environment
young workers are expecting more out of businesses ANS - Rising worker expectation
businesses are expected to make their community a better place and make products ethically. May be
more regulation in order to preserve the future of the environment. ANS - Ethics and socially
responsible
The U.S economy interacts globally with other economies through trades and tariffs. Jobs have migrated
to the lowest bidder with the highest quality—regardless of where that bidder is based. Often, the
lowest bidder is based in China or India. Free trade has lowered price and GATT a international trade
agreement that works to keep free trade and lower tarrifs. ANS - Global environment
A financial and social system of how resources flow through society, from production to distribution, to
consumption ANS - Economy
The study of the choices that people, companies, and governments make in allocating society's
resources ANS - Economics
The study of a country's overall economic dynamics, such as the employment rate, the gross domestic
product, and taxation policies. ANS - Macroeconomics
The study of smaller economic units such as individual consumers, families, and individual businesses
ANS - microeconomics
, Government efforts to influence the economy through taxation and spending
Lower taxes leave people with more money to put into the economy. Government spending can
improve the economy by supplying jobs such as road workers and bridge repairers ANS - Fiscal policy
maximum amount Congress lets the government borrow. To avert a government shutdown congress
usually raises the debt ceiling when the government reaches it. ANS - Debt ceiling
occurs when revenue is higher than expenses over a given period of time. ANS - Budget Surplus
Shortfall that occurs when expenses are higher than revenue over a given period of time. ANS - budget
deficit
The sum of all the money that the federal government has borrowed over the years and not yet repaid.
As debt increases taxes would increase as well ANS - Federal debt
Federal Reserve decisions that shape the economy by influencing interest rates and the supply of
money. ANS - Monetary Policy
Privately owned financial institutions that accept demand deposits and make loans and provide other
services for the public. ANS - Commercial Banks
The total amount of money within the overall economy ANS - Money supply
Anything generally accepted as a medium of exchange, a measure of value, or a means of payment ANS
- Money
includes all currency plus checking accounts and traveler's checks ANS - M1 Money supply
Includes all of M1 money supply plus most savings accounts, money market accounts, and certificates of
deposit. ANS - M2 Money supply
