Introduction to Business DSST
Revamped Exam Official
Questions and Answers
2025/2026
absolute advantage - Correct Answers-A monopoly on producing a product at a
lesser price.
absolute liability - Correct Answers-Responsibility of a producer of any harm
that is caused by s product (regardless if it was foreseeable).
accountability - Correct Answers-Accepting consequences of actions.
accounting - Correct Answers-The occupation of maintaining and auditing
records and preparing financial reports for a business and the interpretation
thereof.
accounting system - Correct Answers-Computer program for accounting.
accounts payable - Correct Answers-Bills due as part of a normal course of a
business.
accounts receivable - Correct Answers-Debts owed to a business.
accrual-based accounting - Correct Answers-Business accounting, assuming
accounts payable.
accumulated depreciation - Correct Answers-Reduces the accounting value of
assets.
acquisition costs - Correct Answers-Incremental costs involved in a new
customer.
activity based costing - Correct Answers-An accounting framework based on
determining the cost of activities and allocating these costs to products using
activity rates.
actuaries - Correct Answers-Mathematicians predicting future losses based on
history.
,adaptive firm - Correct Answers-Ability to respond to and address changes in
their market, environment, and history.
adventure capital - Correct Answers-Money needed at the earliest stages of the
creation before a product or service is available.
advertising - Correct Answers-Paid communication in selling a product.
affirmative action - Correct Answers-Favored employment for minorities.
agency shop agreement - Correct Answers-Employee must pay union dues.
agent - Correct Answers-One who negotiates, purchases, an/or sells, but no
title to goods.
alternative dispute resolution - Correct Answers-Resolving disputes through
mediation and arbitration.
American Federation of Labor (AFL) - Correct Answers-A national organization
of labor unions founded in 1886 by Samuel Gompers.
analytics - Correct Answers-Process of making decisions based on evidence.
area of job freedom - Correct Answers-area of discretion over job
arbitrator - Correct Answers-A neutral third party chosen to judge and decide a
disputed issue.
articles of incorporation - Correct Answers-Legal document with name and
address of corporation and purpose of company.
artificial intelligence - Correct Answers-Computers mimicking human thought.
asset turnover - Correct Answers-Sales divided by total assets.
assets - Correct Answers-Property owned by a business.
assimilation - Correct Answers-Minority members must learn ways of majority.
assumed similarity - Correct Answers-The assumption that others are like
oneself.
at-risk pay - Correct Answers-Pay not received if employee does not meet
targets.
,attitude - Correct Answers-A frame of mind that predisposes a reaction. (three
components: thoughts, feelings, behavior)
attribution theory - Correct Answers-The theory that we explain someone's
behavior by crediting either the situation or the person's disposition.
attribution - Correct Answers-Judgments on behavior.
attrition - Correct Answers-Gradual and natural reductions.
augmented skills - Correct Answers-Skills helpful to expatriate managers.
authoritarianism - Correct Answers-Power and status exist in an organization.
authority - Correct Answers-The right to tell people what to do.
authorization card - Correct Answers-Statement signed by employee
empowering union to negotiate on their behalf.
autonomy - Correct Answers-Degree to which a job gives freedom,
independence, scheduling and procedures.
balance of payments - Correct Answers-Difference of value in exports/imports.
balance sheet - Correct Answers-Reports financial position at specific date.
baseline information - Correct Answers-Existing operation levels used to
compare.
bases of power - Correct Answers-Sources of power leaders use (personal,
legitimate, expert, reward, and coercive)
back end - Correct Answers-Development section of website.
benchmarking - Correct Answers-Measures products/services/practices
against competitors.
blog - Correct Answers-Online journal.
blue chip stocks - Correct Answers-High quality company stock.
boiled frog phenomenon - Correct Answers-Small changes that are unnoticed.
bond - Correct Answers-Indebtedness contract issued by a corporation or
government that promises future payment.
, boundary spanners - Correct Answers-Employees with strong communication
skills within and outside their group.
bounded rationality - Correct Answers-People only have time to process a
certain amount of information.
brainstorming - Correct Answers-Group encouraging creative and quick
thinking without judgment or evaluation of ideas.
brand - Correct Answers-A name, term, sign, symbol, design, or a combination
of these that identifies the products or services of one seller or group of sellers
and differentiates them from those of competitors
brand equity - Correct Answers-Benefit a brand name brings.
breach of contract - Correct Answers-Failing to follow the terms of a contract.
break-even analysis - Correct Answers-A method of determining what sales
volume must be reached before total revenue equals total costs.
break-even point - Correct Answers-How many sales must occur to reach the
point when revenues equaling expenditures.
broker - Correct Answers-Go-between for buyer and seller.
brokerage firm - Correct Answers-Organization that buys and sells securities.
bundling - Correct Answers-Marketing two or more items in a single package.
bureaucratic control - Correct Answers-Control based on rules and hierarchy.
bureaucratic organization - Correct Answers-Classical management of
authority, records, and separation of management and ownership.
burden rate - Correct Answers-Sum of employer costs over and above salaries.
business - Correct Answers-Profit seeking by providing goods/services.
business law - Correct Answers-Legal code that governs business.
business mission - Correct Answers-Brief description of an organization's
purpose.
business plan - Correct Answers-Written document explaining a venture
(nature of business, market, advantages, and resources).
Revamped Exam Official
Questions and Answers
2025/2026
absolute advantage - Correct Answers-A monopoly on producing a product at a
lesser price.
absolute liability - Correct Answers-Responsibility of a producer of any harm
that is caused by s product (regardless if it was foreseeable).
accountability - Correct Answers-Accepting consequences of actions.
accounting - Correct Answers-The occupation of maintaining and auditing
records and preparing financial reports for a business and the interpretation
thereof.
accounting system - Correct Answers-Computer program for accounting.
accounts payable - Correct Answers-Bills due as part of a normal course of a
business.
accounts receivable - Correct Answers-Debts owed to a business.
accrual-based accounting - Correct Answers-Business accounting, assuming
accounts payable.
accumulated depreciation - Correct Answers-Reduces the accounting value of
assets.
acquisition costs - Correct Answers-Incremental costs involved in a new
customer.
activity based costing - Correct Answers-An accounting framework based on
determining the cost of activities and allocating these costs to products using
activity rates.
actuaries - Correct Answers-Mathematicians predicting future losses based on
history.
,adaptive firm - Correct Answers-Ability to respond to and address changes in
their market, environment, and history.
adventure capital - Correct Answers-Money needed at the earliest stages of the
creation before a product or service is available.
advertising - Correct Answers-Paid communication in selling a product.
affirmative action - Correct Answers-Favored employment for minorities.
agency shop agreement - Correct Answers-Employee must pay union dues.
agent - Correct Answers-One who negotiates, purchases, an/or sells, but no
title to goods.
alternative dispute resolution - Correct Answers-Resolving disputes through
mediation and arbitration.
American Federation of Labor (AFL) - Correct Answers-A national organization
of labor unions founded in 1886 by Samuel Gompers.
analytics - Correct Answers-Process of making decisions based on evidence.
area of job freedom - Correct Answers-area of discretion over job
arbitrator - Correct Answers-A neutral third party chosen to judge and decide a
disputed issue.
articles of incorporation - Correct Answers-Legal document with name and
address of corporation and purpose of company.
artificial intelligence - Correct Answers-Computers mimicking human thought.
asset turnover - Correct Answers-Sales divided by total assets.
assets - Correct Answers-Property owned by a business.
assimilation - Correct Answers-Minority members must learn ways of majority.
assumed similarity - Correct Answers-The assumption that others are like
oneself.
at-risk pay - Correct Answers-Pay not received if employee does not meet
targets.
,attitude - Correct Answers-A frame of mind that predisposes a reaction. (three
components: thoughts, feelings, behavior)
attribution theory - Correct Answers-The theory that we explain someone's
behavior by crediting either the situation or the person's disposition.
attribution - Correct Answers-Judgments on behavior.
attrition - Correct Answers-Gradual and natural reductions.
augmented skills - Correct Answers-Skills helpful to expatriate managers.
authoritarianism - Correct Answers-Power and status exist in an organization.
authority - Correct Answers-The right to tell people what to do.
authorization card - Correct Answers-Statement signed by employee
empowering union to negotiate on their behalf.
autonomy - Correct Answers-Degree to which a job gives freedom,
independence, scheduling and procedures.
balance of payments - Correct Answers-Difference of value in exports/imports.
balance sheet - Correct Answers-Reports financial position at specific date.
baseline information - Correct Answers-Existing operation levels used to
compare.
bases of power - Correct Answers-Sources of power leaders use (personal,
legitimate, expert, reward, and coercive)
back end - Correct Answers-Development section of website.
benchmarking - Correct Answers-Measures products/services/practices
against competitors.
blog - Correct Answers-Online journal.
blue chip stocks - Correct Answers-High quality company stock.
boiled frog phenomenon - Correct Answers-Small changes that are unnoticed.
bond - Correct Answers-Indebtedness contract issued by a corporation or
government that promises future payment.
, boundary spanners - Correct Answers-Employees with strong communication
skills within and outside their group.
bounded rationality - Correct Answers-People only have time to process a
certain amount of information.
brainstorming - Correct Answers-Group encouraging creative and quick
thinking without judgment or evaluation of ideas.
brand - Correct Answers-A name, term, sign, symbol, design, or a combination
of these that identifies the products or services of one seller or group of sellers
and differentiates them from those of competitors
brand equity - Correct Answers-Benefit a brand name brings.
breach of contract - Correct Answers-Failing to follow the terms of a contract.
break-even analysis - Correct Answers-A method of determining what sales
volume must be reached before total revenue equals total costs.
break-even point - Correct Answers-How many sales must occur to reach the
point when revenues equaling expenditures.
broker - Correct Answers-Go-between for buyer and seller.
brokerage firm - Correct Answers-Organization that buys and sells securities.
bundling - Correct Answers-Marketing two or more items in a single package.
bureaucratic control - Correct Answers-Control based on rules and hierarchy.
bureaucratic organization - Correct Answers-Classical management of
authority, records, and separation of management and ownership.
burden rate - Correct Answers-Sum of employer costs over and above salaries.
business - Correct Answers-Profit seeking by providing goods/services.
business law - Correct Answers-Legal code that governs business.
business mission - Correct Answers-Brief description of an organization's
purpose.
business plan - Correct Answers-Written document explaining a venture
(nature of business, market, advantages, and resources).
