BUSINESS 101 CHAPTER 1,2,3 TEST
QUESTIONS AND ADVANCED DETAILED
CORRECT ANSWERS
Any organization or activity that provides goods and services in an effort to earn a profit. - answer ✔✔-
Define Business:
Revenue - Expenses = Profit - answer ✔✔-What is the equation for profit?
When a business incurs expenses that are greater than its revenue. - answer ✔✔-When would you see a
lost in profit?
People who risk their time, money and other resources to start and manage a business. (RISK
TAKER/INNOVATOR) - answer ✔✔-Define entrepreneur:
Business like establishments that employ people produce goods and services with the fundamental goal
of contributing to the community. - answer ✔✔-What is a non profit organization?
Always in the business of doing good, meets a social need and use surplus funds. - answer ✔✔-What is
the role of non for profit organizations?
Natural Resources
Capital
Human Resources
Entrepreneurship - answer ✔✔-List four factors of production:
All inputs that offers value in their natural state, such as land, fresh water, wind, and mineral deposits. -
answer ✔✔-Define Natural Resources a factor of production?
, This factor includes machines, tools, buildings, information, not necessarily money. - answer ✔✔-Define
Capital a factor of production?
This factor includes the physical, intellectual, and creative contributions of everyone who works within
an economy. - answer ✔✔-Define Human Resources a factor of production?
People who take risk in launching their own company. - answer ✔✔-Define Entrepreneurship a factor of
production?
The setting in which business operates. - answer ✔✔-What is business environment:
Economic environment
Competitive environment
Technological environment
Social environment
Global environment - answer ✔✔-What are the 5 components of business environment?
Economy plunges into deep financial crisis leaving unprecedented steps to encourage a turnaround. -
answer ✔✔-Describe the Economic Environment:
As global competition intensifies, leading edge companies have focused on long term customer
sanctification as never before. - answer ✔✔-Describe the Competitive Environment:
The recent digital technology boom has transformed business, establishing new industries and burying
others. - answer ✔✔-Describe the Technological Environment:
The U.S. population continues to diversify. Customers are gaining power, and society has higher
standards for business behavior. - answer ✔✔-Describe the Social Environment:
The worldwide recession has dampened short term opportunities. - answer ✔✔-Describe the Global
Environment:
QUESTIONS AND ADVANCED DETAILED
CORRECT ANSWERS
Any organization or activity that provides goods and services in an effort to earn a profit. - answer ✔✔-
Define Business:
Revenue - Expenses = Profit - answer ✔✔-What is the equation for profit?
When a business incurs expenses that are greater than its revenue. - answer ✔✔-When would you see a
lost in profit?
People who risk their time, money and other resources to start and manage a business. (RISK
TAKER/INNOVATOR) - answer ✔✔-Define entrepreneur:
Business like establishments that employ people produce goods and services with the fundamental goal
of contributing to the community. - answer ✔✔-What is a non profit organization?
Always in the business of doing good, meets a social need and use surplus funds. - answer ✔✔-What is
the role of non for profit organizations?
Natural Resources
Capital
Human Resources
Entrepreneurship - answer ✔✔-List four factors of production:
All inputs that offers value in their natural state, such as land, fresh water, wind, and mineral deposits. -
answer ✔✔-Define Natural Resources a factor of production?
, This factor includes machines, tools, buildings, information, not necessarily money. - answer ✔✔-Define
Capital a factor of production?
This factor includes the physical, intellectual, and creative contributions of everyone who works within
an economy. - answer ✔✔-Define Human Resources a factor of production?
People who take risk in launching their own company. - answer ✔✔-Define Entrepreneurship a factor of
production?
The setting in which business operates. - answer ✔✔-What is business environment:
Economic environment
Competitive environment
Technological environment
Social environment
Global environment - answer ✔✔-What are the 5 components of business environment?
Economy plunges into deep financial crisis leaving unprecedented steps to encourage a turnaround. -
answer ✔✔-Describe the Economic Environment:
As global competition intensifies, leading edge companies have focused on long term customer
sanctification as never before. - answer ✔✔-Describe the Competitive Environment:
The recent digital technology boom has transformed business, establishing new industries and burying
others. - answer ✔✔-Describe the Technological Environment:
The U.S. population continues to diversify. Customers are gaining power, and society has higher
standards for business behavior. - answer ✔✔-Describe the Social Environment:
The worldwide recession has dampened short term opportunities. - answer ✔✔-Describe the Global
Environment:
