Business 101 - Exam 1 Questions and Answers Fully Solved
Goods - Answers tangible products
Services - Answers intangible products
Business - Answers any activity that seeks to provide goods and services to others while operating at a
profit
Entrepreneur - Answers a person who risks time and money to start and manage a business
Revenue - Answers The total amount of money a business takes in during a given period by selling goods
and services.
Profit - Answers The financial gain made in a transaction
Loss - Answers when a business's expenses are more than its revenues
Examples of what taxes are used for: - Answers Schools, Hospitals, Roads, Libraries, Fire and Police
Safety & Playgrounds
Standard of Living - Answers The number and kinds of goods and services people can have
Quality of Life - Answers the standard of health, comfort, and happiness experienced by an individual or
group.
Stakeholders - Answers 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.
Examples of Stakeholders: - Answers customers, employees, stockholders, suppliers, governments,
communities & competitors
Outsourcing - Answers Hiring workers in other countries to do a set of jobs
Insourcing - Answers the creation of domestic jobs by foreign employers
Nonprofit Organization - Answers an organization whose goals do not include making a personal profit
for its owners or organizers
Benefits of Entrepreneurship: - Answers 1. Freedom to Succeed
2. Make your own decisions
3. High possibility of wealth
4. Hire your own staff
Negatives of Entrepreneurship: - Answers 1. Freedom to Fail
, 2. No paid vacations
3. No health insurance
4. No daycare
Five Factors of Production: - Answers 1. Land
2. Labor
3. Capital
4. Entrepreneurship
5. Knowledge
Five Factors of the Business Environment - Answers economic, competitive, global, technology, social
Four Benefits of Government for Businesses: - Answers 1. Allowing private ownership of businesses
2. Minimizing spending and keeping taxes and regulations to a minimum
3. Establishing a currency that's tradable in the world's markets
4. Minimizing corruption
Whats the difference between efficiency, effectiveness, and productivity? - Answers Efficiency focuses
on how well resources are used to achieve a desired outcome, Effectiveness measures how frequently
the desired outcome occurs, and Productivity is the rate in which an output is produced
E-Commerce - Answers the buying and selling of goods over the internet
What is B2C and B2B? - Answers Business to Consumer
Business to Business
Database - Answers an electronic storage file for information
Identity Theft - Answers the obtaining of individuals' personal information, such as Social Security and
credit card numbers, for illegal purposes
Empowerment - Answers giving frontline workers the responsibility, authority, freedom, training, and
equipment they need to respond quickly to customer requests
Demography - Answers The scientific study of population characteristics. (size, density, age, race,
gender, and income)
Greening - Answers the trend toward saving energy and producing products that cause less harm to the
environment
Goods - Answers tangible products
Services - Answers intangible products
Business - Answers any activity that seeks to provide goods and services to others while operating at a
profit
Entrepreneur - Answers a person who risks time and money to start and manage a business
Revenue - Answers The total amount of money a business takes in during a given period by selling goods
and services.
Profit - Answers The financial gain made in a transaction
Loss - Answers when a business's expenses are more than its revenues
Examples of what taxes are used for: - Answers Schools, Hospitals, Roads, Libraries, Fire and Police
Safety & Playgrounds
Standard of Living - Answers The number and kinds of goods and services people can have
Quality of Life - Answers the standard of health, comfort, and happiness experienced by an individual or
group.
Stakeholders - Answers 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.
Examples of Stakeholders: - Answers customers, employees, stockholders, suppliers, governments,
communities & competitors
Outsourcing - Answers Hiring workers in other countries to do a set of jobs
Insourcing - Answers the creation of domestic jobs by foreign employers
Nonprofit Organization - Answers an organization whose goals do not include making a personal profit
for its owners or organizers
Benefits of Entrepreneurship: - Answers 1. Freedom to Succeed
2. Make your own decisions
3. High possibility of wealth
4. Hire your own staff
Negatives of Entrepreneurship: - Answers 1. Freedom to Fail
, 2. No paid vacations
3. No health insurance
4. No daycare
Five Factors of Production: - Answers 1. Land
2. Labor
3. Capital
4. Entrepreneurship
5. Knowledge
Five Factors of the Business Environment - Answers economic, competitive, global, technology, social
Four Benefits of Government for Businesses: - Answers 1. Allowing private ownership of businesses
2. Minimizing spending and keeping taxes and regulations to a minimum
3. Establishing a currency that's tradable in the world's markets
4. Minimizing corruption
Whats the difference between efficiency, effectiveness, and productivity? - Answers Efficiency focuses
on how well resources are used to achieve a desired outcome, Effectiveness measures how frequently
the desired outcome occurs, and Productivity is the rate in which an output is produced
E-Commerce - Answers the buying and selling of goods over the internet
What is B2C and B2B? - Answers Business to Consumer
Business to Business
Database - Answers an electronic storage file for information
Identity Theft - Answers the obtaining of individuals' personal information, such as Social Security and
credit card numbers, for illegal purposes
Empowerment - Answers giving frontline workers the responsibility, authority, freedom, training, and
equipment they need to respond quickly to customer requests
Demography - Answers The scientific study of population characteristics. (size, density, age, race,
gender, and income)
Greening - Answers the trend toward saving energy and producing products that cause less harm to the
environment
