BUSN Exam 1 Questions and Answers
Business - correct answer-Any organization or activity that provides goods and services
in an effort to earn a profit
Profit - correct answer-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)
Loss - correct answer-When a business incurs expenses that are greater than its
revenue
Entrepreneurs - correct answer-People who risk their time, money, and other resources
to start and manage a business
Standard of Living - correct answer-The quality and quantity of goods and services
available to a population
Quality of Life - correct answer-The overall sense of well-being experienced by either an
individual or a group
What are the 5 business eras? - correct answer-1. The Industrial Revolution
2. The Entrepreneurship Era
3. The Production Era
4. The Marketing Era
5. The Relationship Era
Describe the Industrial Revolution - correct answer-(First) Technological advances
fueled a period of rapid industrialization in America from the mid-1700s to the mid
1800s.
-huge factories replaced artisan workshops
-factories hired many semiskilled workers who specialized in a limited number of tasks
*The result was unprecedented production efficiency but also a loss of individual
ownership and personal pride in the production process*
Describe the Entrepreneurship Era - correct answer-(Second) large-scale entrepreneurs
emerged in the second half of the 1800s, building business empires
-these industrial titans created enormous wealth, raising the overall standard of living
across the country
-many dominated their markets, forcing out competitors, manipulation prices, exploiting
workers, and decimating the environment
, -the gov't stepped in towards the end of the 1800s and passed laws to regulate
business and protect consumers and workers, creating more balance in the economy
The Production Era - correct answer-(Third) In the early part of the 1900s, major
businesses focused on further refining the production process and creating greater
efficiency
-jobs became more specialized, inc productivity and lowering costs and prices
-Henry Ford introduced the assembly line (became the standard in industries)
-customers was an afterthought, focussed on EFFICIENCY
-hard sell emerged: aggressive persuasion designed to separate consumers from their
cash
The Marketing Era - correct answer-(fourth) After WWII, the balance of power shifted
away from producers and towards consumers, flooding the market with enticing choices
-businesses developed brands to help consumers differentiate products
-the marketing concept: s consumer focus that permeates successful companies in
every department, at every level (still stands today)
The Relationship Era - correct answer-(fifth) Today, leading edge firms look beyond
each immediate transaction with a customer and aim to build long-term relationships
-satisfied customers can become advocates for a business
-keeping current customers is more profitable than always seeking new ones
-technology
Nonprofits - correct answer-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
Factors of Production - correct answer-4 fundamental elements- natural resources,
capital, human resources, and entrepreneurship-that businesses need to achieve their
objectives
Natural Resources - correct answer-includes all inputs that offer value in their natural
state, such as land, fresh water, wind, and mineral deposits
-the value of all natural resources tends to rise with high demand, low supply, or both
Capital - correct answer-includes machines, tools, buildings, information, and
technology- the synthetic resources that a business needs to produce goods or services
-in this context, capital does not include money
Human Resources - correct answer-includes the physical, intellectual, and creative
contributions of everyone who works within an economy
-education and motivation have become extremely important due to technology
replacing manual labor jobs
Business - correct answer-Any organization or activity that provides goods and services
in an effort to earn a profit
Profit - correct answer-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)
Loss - correct answer-When a business incurs expenses that are greater than its
revenue
Entrepreneurs - correct answer-People who risk their time, money, and other resources
to start and manage a business
Standard of Living - correct answer-The quality and quantity of goods and services
available to a population
Quality of Life - correct answer-The overall sense of well-being experienced by either an
individual or a group
What are the 5 business eras? - correct answer-1. The Industrial Revolution
2. The Entrepreneurship Era
3. The Production Era
4. The Marketing Era
5. The Relationship Era
Describe the Industrial Revolution - correct answer-(First) Technological advances
fueled a period of rapid industrialization in America from the mid-1700s to the mid
1800s.
-huge factories replaced artisan workshops
-factories hired many semiskilled workers who specialized in a limited number of tasks
*The result was unprecedented production efficiency but also a loss of individual
ownership and personal pride in the production process*
Describe the Entrepreneurship Era - correct answer-(Second) large-scale entrepreneurs
emerged in the second half of the 1800s, building business empires
-these industrial titans created enormous wealth, raising the overall standard of living
across the country
-many dominated their markets, forcing out competitors, manipulation prices, exploiting
workers, and decimating the environment
, -the gov't stepped in towards the end of the 1800s and passed laws to regulate
business and protect consumers and workers, creating more balance in the economy
The Production Era - correct answer-(Third) In the early part of the 1900s, major
businesses focused on further refining the production process and creating greater
efficiency
-jobs became more specialized, inc productivity and lowering costs and prices
-Henry Ford introduced the assembly line (became the standard in industries)
-customers was an afterthought, focussed on EFFICIENCY
-hard sell emerged: aggressive persuasion designed to separate consumers from their
cash
The Marketing Era - correct answer-(fourth) After WWII, the balance of power shifted
away from producers and towards consumers, flooding the market with enticing choices
-businesses developed brands to help consumers differentiate products
-the marketing concept: s consumer focus that permeates successful companies in
every department, at every level (still stands today)
The Relationship Era - correct answer-(fifth) Today, leading edge firms look beyond
each immediate transaction with a customer and aim to build long-term relationships
-satisfied customers can become advocates for a business
-keeping current customers is more profitable than always seeking new ones
-technology
Nonprofits - correct answer-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
Factors of Production - correct answer-4 fundamental elements- natural resources,
capital, human resources, and entrepreneurship-that businesses need to achieve their
objectives
Natural Resources - correct answer-includes all inputs that offer value in their natural
state, such as land, fresh water, wind, and mineral deposits
-the value of all natural resources tends to rise with high demand, low supply, or both
Capital - correct answer-includes machines, tools, buildings, information, and
technology- the synthetic resources that a business needs to produce goods or services
-in this context, capital does not include money
Human Resources - correct answer-includes the physical, intellectual, and creative
contributions of everyone who works within an economy
-education and motivation have become extremely important due to technology
replacing manual labor jobs
