MIE 201 Exam 1 2026 Questions and
Answers
business - Correct answer-any profit-seeking organization that provides goods and
service designed to satisfy customers needs
revenue - Correct answer-money a company brings in through the sales of goods
and services
business model - Correct answer-a clearly stated outline of how the business
intends to generate revenue
profit - Correct answer-money left over after all the costs involved in doing
business have been deducted from revenue
competition gives customers - Correct answer-a wider range of options, it tends to
increase quality, improve customer service and lower prices
competition advantage - Correct answer-some aspect of a product or company that
makes it more appealing to target customers
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,linking of risk and reward is important because - Correct answer-businesses
wouldn't have incentives to take risks without rewards and to encourage smart and
responsible decision making
moral hazard - Correct answer-irresponsible and unethical behavior
not-for-profit organizations - Correct answer-organizations that provide good and
services without having a profit motive
good-producing business - Correct answer-create value by making things, most of
which are tangible
service business - Correct answer-companies that create value by performing
activities that deliver some benefit to customers
barrier to entry - Correct answer-any resource or capability a company must have
before it can start competing in a given market
ex) money, gov't approval, limited supplies
business contributes to society by - Correct answer-offering good and services,
providing employment, paying taxes, contributing to national growth, stability and
security
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, negative effects of business in society - Correct answer-generating pollution and
creating waste, creating health and safety risks, disrupting communities and
causing financial instability
social entrepreneurs - Correct answer-people who apply entrepreneurial strategies
to enable large-scale social change
social environment - Correct answer-trends and forces in society at large
stakeholders - Correct answer-internal and external groups affected by a company's
decisions and activies
technological environment - Correct answer-forces resulting from the practical
applications of science to innovations, products and processes
-disruptive technologies are those who change the nature of an industry
economic environment - Correct answer-the conditions and forces that affect the
cost and availability of good, services, labor and thereby shape the behavior of
buyers and sellers
legal and regulatory environment - Correct answer-laws and regulations at local
state and national and international level
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Answers
business - Correct answer-any profit-seeking organization that provides goods and
service designed to satisfy customers needs
revenue - Correct answer-money a company brings in through the sales of goods
and services
business model - Correct answer-a clearly stated outline of how the business
intends to generate revenue
profit - Correct answer-money left over after all the costs involved in doing
business have been deducted from revenue
competition gives customers - Correct answer-a wider range of options, it tends to
increase quality, improve customer service and lower prices
competition advantage - Correct answer-some aspect of a product or company that
makes it more appealing to target customers
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,linking of risk and reward is important because - Correct answer-businesses
wouldn't have incentives to take risks without rewards and to encourage smart and
responsible decision making
moral hazard - Correct answer-irresponsible and unethical behavior
not-for-profit organizations - Correct answer-organizations that provide good and
services without having a profit motive
good-producing business - Correct answer-create value by making things, most of
which are tangible
service business - Correct answer-companies that create value by performing
activities that deliver some benefit to customers
barrier to entry - Correct answer-any resource or capability a company must have
before it can start competing in a given market
ex) money, gov't approval, limited supplies
business contributes to society by - Correct answer-offering good and services,
providing employment, paying taxes, contributing to national growth, stability and
security
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, negative effects of business in society - Correct answer-generating pollution and
creating waste, creating health and safety risks, disrupting communities and
causing financial instability
social entrepreneurs - Correct answer-people who apply entrepreneurial strategies
to enable large-scale social change
social environment - Correct answer-trends and forces in society at large
stakeholders - Correct answer-internal and external groups affected by a company's
decisions and activies
technological environment - Correct answer-forces resulting from the practical
applications of science to innovations, products and processes
-disruptive technologies are those who change the nature of an industry
economic environment - Correct answer-the conditions and forces that affect the
cost and availability of good, services, labor and thereby shape the behavior of
buyers and sellers
legal and regulatory environment - Correct answer-laws and regulations at local
state and national and international level
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
