BUS 100 Midterm Exam with Answers
What is the definition of business? - ✔✔Business is the organized effort of individuals to
produce and sell, for a profit, the goods and services that satisfy society's needs.
What are the three activities a business must perform to be successful? - ✔✔A business must
be organized, satisfy needs, and earn a profit.
What are the four types of resources a business must combine? - ✔✔Material, human,
financial, and informational resources.
What is market capitalization? - ✔✔Market capitalization is the current market value for a
share of a company's stock multiplied by the total number of shares that have been issued.
Why is market capitalization important? - ✔✔It shows how much a company is worth in the
stock market, helping investors gauge its size, stability, and risk level.
What is the definition of productivity? - ✔✔Productivity is the average level of output per
worker per hour.
How does an increase in productivity affect the economy? - ✔✔It allows fewer workers to
produce more goods and services, reducing costs and potentially increasing profits.
What is Gross Domestic Product (GDP)? - ✔✔GDP is the total dollar value of all goods and
services produced by all people within a country during a specified time period, usually one
year.
What is the GDP growth rate? - ✔✔It compares the GDP of one nation over several different
time periods.
, What are the advantages of sole proprietorships? - ✔✔Advantages include ease of start-up and
closure, pride of ownership, retention of all profits, no special taxes, and flexibility.
What is a disadvantage of sole proprietorships? - ✔✔They are at risk for failure if the owner has
few management skills or limited financial resources.
What is an example of a service business? - ✔✔Businesses that provide services such as
haircuts, legal advice, or tax preparation.
What is an example of a manufacturing business? - ✔✔Businesses that process material
resources into tangible goods, such as Intel producing computer chips.
What is an example of a marketing intermediary? - ✔✔Retailers like Best Buy and Walmart that
buy products from manufacturers and resell them.
What is e-business? - ✔✔The organized effort of individuals to produce and sell for a profit
goods and services through the internet.
What is the impact of increased productivity on employment? - ✔✔It can lead to lower salary
expenses for employers and higher unemployment rates for workers.
What is inflation? - ✔✔A general rise in the level of prices.
What is deflation? - ✔✔A general decrease in the level of prices.
What are the key factors for improving productivity? - ✔✔Reducing costs and enabling
employees to work more efficiently.
What is the definition of business? - ✔✔Business is the organized effort of individuals to
produce and sell, for a profit, the goods and services that satisfy society's needs.
What are the three activities a business must perform to be successful? - ✔✔A business must
be organized, satisfy needs, and earn a profit.
What are the four types of resources a business must combine? - ✔✔Material, human,
financial, and informational resources.
What is market capitalization? - ✔✔Market capitalization is the current market value for a
share of a company's stock multiplied by the total number of shares that have been issued.
Why is market capitalization important? - ✔✔It shows how much a company is worth in the
stock market, helping investors gauge its size, stability, and risk level.
What is the definition of productivity? - ✔✔Productivity is the average level of output per
worker per hour.
How does an increase in productivity affect the economy? - ✔✔It allows fewer workers to
produce more goods and services, reducing costs and potentially increasing profits.
What is Gross Domestic Product (GDP)? - ✔✔GDP is the total dollar value of all goods and
services produced by all people within a country during a specified time period, usually one
year.
What is the GDP growth rate? - ✔✔It compares the GDP of one nation over several different
time periods.
, What are the advantages of sole proprietorships? - ✔✔Advantages include ease of start-up and
closure, pride of ownership, retention of all profits, no special taxes, and flexibility.
What is a disadvantage of sole proprietorships? - ✔✔They are at risk for failure if the owner has
few management skills or limited financial resources.
What is an example of a service business? - ✔✔Businesses that provide services such as
haircuts, legal advice, or tax preparation.
What is an example of a manufacturing business? - ✔✔Businesses that process material
resources into tangible goods, such as Intel producing computer chips.
What is an example of a marketing intermediary? - ✔✔Retailers like Best Buy and Walmart that
buy products from manufacturers and resell them.
What is e-business? - ✔✔The organized effort of individuals to produce and sell for a profit
goods and services through the internet.
What is the impact of increased productivity on employment? - ✔✔It can lead to lower salary
expenses for employers and higher unemployment rates for workers.
What is inflation? - ✔✔A general rise in the level of prices.
What is deflation? - ✔✔A general decrease in the level of prices.
What are the key factors for improving productivity? - ✔✔Reducing costs and enabling
employees to work more efficiently.
