MGT100 TEST #1 UPDATED ACTUAL
Exam Questions and CORRECT Answers
business - CORRECT ANSWER - any activity and enterprises that seeks to provide goods
and services to others while operating at a profit
profit - CORRECT ANSWER - The financial gain made in a transaction. Rewards for
businesspeople who take the risks involved in offering goods and services to customers.
non-profit organization - CORRECT ANSWER - an organization whose primary aims are
public service, and whose goals do not include making a personal profit for its owners or
organizers.
Ex. The Canadian Red Cross organizes efforts to respond to natural disasters such as the forest
fires that threatened Fort McMurray, Alberta in 2016.
What activity lies at the heart of every business endeavor? - CORRECT ANSWER - is an
exchange between a buyer and a seller.
What are the primary objectives of a not-for-profit organization? - CORRECT ANSWER -
place public service above profits, although they need to raise money to operate and achieve their
social goals.
factors of production - CORRECT ANSWER - four basic inputs for effective economic
operation: natural resources, capital, human resources, and entrepreneurship.
Factors of production and their factor payments - CORRECT ANSWER - Natural
resources- rent for land leased for operations
Capital-interest for money used to acquire capital items
, Human resources- wages for employees
Entrepreneurship- Profit for starting and managing operations
natural resources - CORRECT ANSWER - All production inputs that are useful in their
natural states, including agricultural land, building sites, forests, and mineral deposits.
Capital - CORRECT ANSWER - production inputs consisting of technology, tools,
information, and physical facilities (types of capital).
human resources - CORRECT ANSWER - production inputs consisting of anyone who
works, including both the physical labour and the intellectual inputs contributed by workers.
entrepreneurship - CORRECT ANSWER - Willingness to take risks to create and operate
a business.
Accepting the risk of starting and running a business.
Private enterprise system - CORRECT ANSWER - 1. an economic system that rewards
firms for their ability to identify and serve the needs and demands of customers.
2. An economic system in which individuals and groups, rather than the government, own or
control the means of production—the human and natural resources and capital goods used to
produce goods and services. Also known as free market economy, private profit system, market
system, capitalistic system, or free enterprise system
Capitalism - CORRECT ANSWER - an economic system that rewards firms for their
ability to perceive and serve the needs and demands of consumers; also called the private
enterprise system.
Exam Questions and CORRECT Answers
business - CORRECT ANSWER - any activity and enterprises that seeks to provide goods
and services to others while operating at a profit
profit - CORRECT ANSWER - The financial gain made in a transaction. Rewards for
businesspeople who take the risks involved in offering goods and services to customers.
non-profit organization - CORRECT ANSWER - an organization whose primary aims are
public service, and whose goals do not include making a personal profit for its owners or
organizers.
Ex. The Canadian Red Cross organizes efforts to respond to natural disasters such as the forest
fires that threatened Fort McMurray, Alberta in 2016.
What activity lies at the heart of every business endeavor? - CORRECT ANSWER - is an
exchange between a buyer and a seller.
What are the primary objectives of a not-for-profit organization? - CORRECT ANSWER -
place public service above profits, although they need to raise money to operate and achieve their
social goals.
factors of production - CORRECT ANSWER - four basic inputs for effective economic
operation: natural resources, capital, human resources, and entrepreneurship.
Factors of production and their factor payments - CORRECT ANSWER - Natural
resources- rent for land leased for operations
Capital-interest for money used to acquire capital items
, Human resources- wages for employees
Entrepreneurship- Profit for starting and managing operations
natural resources - CORRECT ANSWER - All production inputs that are useful in their
natural states, including agricultural land, building sites, forests, and mineral deposits.
Capital - CORRECT ANSWER - production inputs consisting of technology, tools,
information, and physical facilities (types of capital).
human resources - CORRECT ANSWER - production inputs consisting of anyone who
works, including both the physical labour and the intellectual inputs contributed by workers.
entrepreneurship - CORRECT ANSWER - Willingness to take risks to create and operate
a business.
Accepting the risk of starting and running a business.
Private enterprise system - CORRECT ANSWER - 1. an economic system that rewards
firms for their ability to identify and serve the needs and demands of customers.
2. An economic system in which individuals and groups, rather than the government, own or
control the means of production—the human and natural resources and capital goods used to
produce goods and services. Also known as free market economy, private profit system, market
system, capitalistic system, or free enterprise system
Capitalism - CORRECT ANSWER - an economic system that rewards firms for their
ability to perceive and serve the needs and demands of consumers; also called the private
enterprise system.
