BMGT Exam 1 questions well answered
to pass
What are the factors of production? - correct answer ✔✔The five factors of production are
labor, capital, entrepreneurs, physical resources, and information resources.
Is one factor more important than the other? - correct answer ✔✔All five factors are crucial.
However, their relative importance depends on the product and the industry. In the software
development business, for example, skilled labor and information resources are especially
important, but the business couldn't survive without capital and physical resources (computers),
and it wouldn't have been launched without an entrepreneur.
What is a demand curve? - correct answer ✔✔it is a line on a graph shows how many products
or bought at different prices.
What is a supply curve? - correct answer ✔✔a graph that shows the amount of a product that
would be supplied at all possible prices in the market
What is the term for the point at which they intersect? - correct answer ✔✔Market Price
(Equilibirum)
Who are the major stockholders with which most businesses should be concerned? - correct
answer ✔✔Stakeholders include customers, employees, investors, suppliers, and local
communities in which the firm operates. Most businesses will need to consider all these.
What are the four basic approaches for social responsibility? - correct answer ✔✔Responsibilty
toward the environment, costumers, employees, and the investors.
, What industries are the easiest start ups to enter? Which are the hardest? - correct answer
✔✔Services are the easiest industries for small business to enter because they require few
resources to get started. Manufacturing and transportation are among the most difficult
because they require enormous resources.
What are the forms of non-corporate business ownership? - correct answer ✔✔Sole
Proprietorship, Partnership, and Corporation.
What are the advantages and disadvantages of a sole proprietorship? - correct answer
✔✔You're in control and can take all of the profit (Advantage). .Owner is personally liable.
(Disadvantage)
What are the advantages and disadvantages of a partnership? - correct answer ✔✔A
partnership may benefit from the combination of complimentary skills of two or more people.
There is a wider pool of knowledge, skills and contacts. (Advantage). Business partners are
jointly and individually liable for the actions of the other partners. (disadvantage).
What are the advantages and disadvantages of corporation? - correct answer ✔✔The
corporation is considered a legal person with perpetual existence. It exists until it is liquidated
and death or change in ownership has no effect on the corporation. (advantage). In case of
corporations there is double taxation. First of all the corporate income is taxed at a flat rate and
then the dividends paid to the shareholders is taxed.
What are the three possible levels of involvement with international business? Give an example
of each. - correct answer ✔✔1. Going international: adapting to costumers needs. 2. Levels of
international: exporters or importers. 3. Involvement organization structures: Licensing
arrangements.
What are the elements of national comparative advantage? - correct answer ✔✔Factor
conditions, Demand Conditions, Related and Supporting industries, strategies, structures, and
rivalries.
to pass
What are the factors of production? - correct answer ✔✔The five factors of production are
labor, capital, entrepreneurs, physical resources, and information resources.
Is one factor more important than the other? - correct answer ✔✔All five factors are crucial.
However, their relative importance depends on the product and the industry. In the software
development business, for example, skilled labor and information resources are especially
important, but the business couldn't survive without capital and physical resources (computers),
and it wouldn't have been launched without an entrepreneur.
What is a demand curve? - correct answer ✔✔it is a line on a graph shows how many products
or bought at different prices.
What is a supply curve? - correct answer ✔✔a graph that shows the amount of a product that
would be supplied at all possible prices in the market
What is the term for the point at which they intersect? - correct answer ✔✔Market Price
(Equilibirum)
Who are the major stockholders with which most businesses should be concerned? - correct
answer ✔✔Stakeholders include customers, employees, investors, suppliers, and local
communities in which the firm operates. Most businesses will need to consider all these.
What are the four basic approaches for social responsibility? - correct answer ✔✔Responsibilty
toward the environment, costumers, employees, and the investors.
, What industries are the easiest start ups to enter? Which are the hardest? - correct answer
✔✔Services are the easiest industries for small business to enter because they require few
resources to get started. Manufacturing and transportation are among the most difficult
because they require enormous resources.
What are the forms of non-corporate business ownership? - correct answer ✔✔Sole
Proprietorship, Partnership, and Corporation.
What are the advantages and disadvantages of a sole proprietorship? - correct answer
✔✔You're in control and can take all of the profit (Advantage). .Owner is personally liable.
(Disadvantage)
What are the advantages and disadvantages of a partnership? - correct answer ✔✔A
partnership may benefit from the combination of complimentary skills of two or more people.
There is a wider pool of knowledge, skills and contacts. (Advantage). Business partners are
jointly and individually liable for the actions of the other partners. (disadvantage).
What are the advantages and disadvantages of corporation? - correct answer ✔✔The
corporation is considered a legal person with perpetual existence. It exists until it is liquidated
and death or change in ownership has no effect on the corporation. (advantage). In case of
corporations there is double taxation. First of all the corporate income is taxed at a flat rate and
then the dividends paid to the shareholders is taxed.
What are the three possible levels of involvement with international business? Give an example
of each. - correct answer ✔✔1. Going international: adapting to costumers needs. 2. Levels of
international: exporters or importers. 3. Involvement organization structures: Licensing
arrangements.
What are the elements of national comparative advantage? - correct answer ✔✔Factor
conditions, Demand Conditions, Related and Supporting industries, strategies, structures, and
rivalries.
