BUS120 FINAL EXAM
A core goal for successful businesses is to deliver value to customers while generating long-
term profits.
ANSWER True
Even though non-profit organizations are not in business for financial gain, they are still
businesses in every other sense.
ANSWER True
Organizations generate long-term success by delivering unsurpassed value to their customers.
ANSWER True
Value is the relationship between the price of a good or a service and the benefit that the
service offers to the customer.
ANSWER True
Economic factors are not as important to non-profit organizations as they are to for-profits.
ANSWER True
The technological environment is less important to small business than it is to large businesses.
ANSWER False
For-profits are understandably less concerned about trends in the social environment.
ANSWER False
Non-profits have no need to be concerned about the competitive environment.
ANSWER False
,Small businesses have no need to be concerned about the global environment.
ANSWER False
Supply is defined as:
ANSWER the quantity of products that a producer will make for a specific price.
Ann is a manager at a store than sells casual clothing and accessories for both men and
women. She notices that the jeans priced at $120 aren't selling very well. She wants to increase
sales of these jeans before next season. The approach Ann should take to achieve this is:
ANSWER lower the price of the jeans so that demand will increase.
Demand is defined as
ANSWER the amount of products or services consumers are willing to pay at different prices.
Fair competition among businesses:
ANSWER drives higher quality and lower prices in capitalism.
A basic characteristic of ______________________ is that both producers and consumers are
free to make their own economic decisions on many basic issue.
ANSWER capitalism.
_____________________ is an economic system based upon the principle that the government
should own and operate key enterprises that directly affect public welfare.
ANSWER Socialism
Which of the following is a difference between a socialist economic system and a communist
economic system?
ANSWER Socialism controls social welfare. Communism controls almost everything.
, To encourage fair competition and protect both consumers and workers, the Federal
Government:
ANSWER creates regulations to intervene in the free market.
Government regulations are likely to become stronger in the wake of the
_____________________.
ANSWER economic crisis like the Great Recession.
Fiscal policy refers to:
ANSWER government efforts to influence the economy through taxation and spending.
_______________________ refers to actions that shape the economy by influencing interest
rates and the supply of cash.
ANSWER Monetary policy.
The primary way that the Fed controls the supply of money is by:
ANSWER buying and selling government securities in open market operations.
The amount of goods and services produced by an economy divided by the amount of
resources used to make those goods and services equals:
ANSWER productivity.
Capitalism, as an economic system, has many advantages and disadvantages. Describe some
of these advantages and disadvantages.
ANSWER The advantages with capitalism is: capitalism provides customers with a choice, a
huge deal of economic growth happens with capitalism, and naturally we are compassionate
when it comes to living in a capitalist society.
The disadvantages are: Inequality eventually occurs with capitalism, there is never a set
pattern with capitalism, and it always require consumption on order to be successful.
A core goal for successful businesses is to deliver value to customers while generating long-
term profits.
ANSWER True
Even though non-profit organizations are not in business for financial gain, they are still
businesses in every other sense.
ANSWER True
Organizations generate long-term success by delivering unsurpassed value to their customers.
ANSWER True
Value is the relationship between the price of a good or a service and the benefit that the
service offers to the customer.
ANSWER True
Economic factors are not as important to non-profit organizations as they are to for-profits.
ANSWER True
The technological environment is less important to small business than it is to large businesses.
ANSWER False
For-profits are understandably less concerned about trends in the social environment.
ANSWER False
Non-profits have no need to be concerned about the competitive environment.
ANSWER False
,Small businesses have no need to be concerned about the global environment.
ANSWER False
Supply is defined as:
ANSWER the quantity of products that a producer will make for a specific price.
Ann is a manager at a store than sells casual clothing and accessories for both men and
women. She notices that the jeans priced at $120 aren't selling very well. She wants to increase
sales of these jeans before next season. The approach Ann should take to achieve this is:
ANSWER lower the price of the jeans so that demand will increase.
Demand is defined as
ANSWER the amount of products or services consumers are willing to pay at different prices.
Fair competition among businesses:
ANSWER drives higher quality and lower prices in capitalism.
A basic characteristic of ______________________ is that both producers and consumers are
free to make their own economic decisions on many basic issue.
ANSWER capitalism.
_____________________ is an economic system based upon the principle that the government
should own and operate key enterprises that directly affect public welfare.
ANSWER Socialism
Which of the following is a difference between a socialist economic system and a communist
economic system?
ANSWER Socialism controls social welfare. Communism controls almost everything.
, To encourage fair competition and protect both consumers and workers, the Federal
Government:
ANSWER creates regulations to intervene in the free market.
Government regulations are likely to become stronger in the wake of the
_____________________.
ANSWER economic crisis like the Great Recession.
Fiscal policy refers to:
ANSWER government efforts to influence the economy through taxation and spending.
_______________________ refers to actions that shape the economy by influencing interest
rates and the supply of cash.
ANSWER Monetary policy.
The primary way that the Fed controls the supply of money is by:
ANSWER buying and selling government securities in open market operations.
The amount of goods and services produced by an economy divided by the amount of
resources used to make those goods and services equals:
ANSWER productivity.
Capitalism, as an economic system, has many advantages and disadvantages. Describe some
of these advantages and disadvantages.
ANSWER The advantages with capitalism is: capitalism provides customers with a choice, a
huge deal of economic growth happens with capitalism, and naturally we are compassionate
when it comes to living in a capitalist society.
The disadvantages are: Inequality eventually occurs with capitalism, there is never a set
pattern with capitalism, and it always require consumption on order to be successful.
