Business Management exam
questions and answers graded A+
Sales tax - ANS✅✅A percent of the price of an item that goes to a state or local government.
Capacity - ANS✅✅Means that you are legally able to enter into a binding agreement.
Contract - ANS✅✅A binding legal agreement o promise to do something.
Food and Drug Administration - ANS✅✅Federal agency that monitors product safety for items
such as cosmetics, food, sun block, etc.
Fair Labor Standards Act. - ANS✅✅Law that established a minimum wage and maximum working
hours.
Warranty of merchantability - ANS✅✅A warranty that assures the buyer that the product
purchased is of at least average quality and fit for the purpose for which it was intended.
Equal Pay Act. - ANS✅✅Act that says that requires all employers to pay men and women the same
wage for the same work.
Consumer Credit Protection Act. - ANS✅✅Act that requires those who give credit to reveal all the
terms and conditions of their credit agreement.
Public Domain - ANS✅✅Intellectual property whose protection has expired.
Lease - ANS✅✅A contract to use a facility or equipment for a specified period of time.
EEOC - ANS✅✅Agency that protects the rights of employees.
Patent - ANS✅✅This gives an inventor the exclusive right to produce and sell an invention.
,Lessee - ANS✅✅A person who is leasing equipment or a building.
Bait-and-switch advertising - ANS✅✅Advertising tactic that presents a bargain-priced item to lure
potential customers into a store.
Patent pending - ANS✅✅The status of an invention between the time a patent application has
been filed and when it is issued or rejected.
Intellectual property - ANS✅✅Creative works such as books, music, etc.
Copyright - ANS✅✅A legal device that protects original works of authors.
Trademark - ANS✅✅A word, symbol, design, or color that a business uses to identify itself or
something it sells.
Service mark - ANS✅✅A word, symbol, design, or color that describes a service business.
Permit - ANS✅✅A legal document giving official permission to run a business.
License - ANS✅✅A certificate that show you have the necessary education and training to do a
job.
Agreement - ANS✅✅Occurs when one party to a contract makes an offer or promises to do
something or refrain from doing something.
Consideration - ANS✅✅What is exchanged for the promise in a contract.
Legality - ANS✅✅The contract cannot have any provisions that are illegal or that would result in
illegal activities.
Global Economy - ANS✅✅The interconnected economies of the nations of the world.
Exporting - ANS✅✅The selling and shipping of goods to another country.
,Importing - ANS✅✅Buying or bringing in goods from other countries to sell.
Trade barrier - ANS✅✅A restriction on goods entering or leaving a country.
Tariff - ANS✅✅A kind of trade barrier--taxes imposed by a government on imported or exported
goods.
Gross domestic product (GDP) - ANS✅✅The total value of all goods produced during the year.
Interpreter - ANS✅✅One who translates another person's language into English,
Standard Industrial Trade Classification (SITC) codes - ANS✅✅Used to learn what kinds of products
are traded in specific countries.
International Business Exchange (IBEX) - ANS✅✅Electronic system of the U.S,. Chamber of
Commerce that lets you sell products and services online anywhere in the world.
Trade missions - ANS✅✅Opportunities offered by the U.S. government and private agencies that
let small business owners meet and talk with foreign agents, distributors, or potential business
partners.
"Best prospect" list - ANS✅✅The government's list of products that other countries are looking to
purchase.
Disposable income - ANS✅✅The money people have to spend after paying for necessary
expenses.
Trade intermediary - ANS✅✅An agency that serves as a distributor in a foreign country.
Foreign joint venture - ANS✅✅An alliance between an American small business and a company in
another nation.
, Export management company - ANS✅✅A business that handles all the tasks related to exporting
for a manufacturer.
Freight forwarder - ANS✅✅A business that handles overseas shipments for a fee.
business concept - ANS✅✅A clear and concise description of an opportunity.
four elements of business concept - ANS✅✅Product or service, the customer, the benefit, and the
distribution.
feature - ANS✅✅A distinctive aspect, quality, or characteristic of a product or service.
benefit - ANS✅✅Something that promotes or enhances the value of the product or service to the
customer.
feasibility analysis - ANS✅✅The process used to test a business concept. It helps the entrepreneur
decide whether a new business concept has potential.
industry - ANS✅✅A group of businesses with a common interest such as telecommunications,
computers, retail, and grocery.
target customers - ANS✅✅Those customers most likely to buy your products or services.
prototype - ANS✅✅A working model of a new product.
competitive grid - ANS✅✅A tool for organizing important information about the competition.
items to include on a competitive grid - ANS✅✅Competitor, customer, benefits, distribution,
strengths/weaknesses
business model - ANS✅✅Describes how you intend to make money with your business concept.
questions and answers graded A+
Sales tax - ANS✅✅A percent of the price of an item that goes to a state or local government.
Capacity - ANS✅✅Means that you are legally able to enter into a binding agreement.
Contract - ANS✅✅A binding legal agreement o promise to do something.
Food and Drug Administration - ANS✅✅Federal agency that monitors product safety for items
such as cosmetics, food, sun block, etc.
Fair Labor Standards Act. - ANS✅✅Law that established a minimum wage and maximum working
hours.
Warranty of merchantability - ANS✅✅A warranty that assures the buyer that the product
purchased is of at least average quality and fit for the purpose for which it was intended.
Equal Pay Act. - ANS✅✅Act that says that requires all employers to pay men and women the same
wage for the same work.
Consumer Credit Protection Act. - ANS✅✅Act that requires those who give credit to reveal all the
terms and conditions of their credit agreement.
Public Domain - ANS✅✅Intellectual property whose protection has expired.
Lease - ANS✅✅A contract to use a facility or equipment for a specified period of time.
EEOC - ANS✅✅Agency that protects the rights of employees.
Patent - ANS✅✅This gives an inventor the exclusive right to produce and sell an invention.
,Lessee - ANS✅✅A person who is leasing equipment or a building.
Bait-and-switch advertising - ANS✅✅Advertising tactic that presents a bargain-priced item to lure
potential customers into a store.
Patent pending - ANS✅✅The status of an invention between the time a patent application has
been filed and when it is issued or rejected.
Intellectual property - ANS✅✅Creative works such as books, music, etc.
Copyright - ANS✅✅A legal device that protects original works of authors.
Trademark - ANS✅✅A word, symbol, design, or color that a business uses to identify itself or
something it sells.
Service mark - ANS✅✅A word, symbol, design, or color that describes a service business.
Permit - ANS✅✅A legal document giving official permission to run a business.
License - ANS✅✅A certificate that show you have the necessary education and training to do a
job.
Agreement - ANS✅✅Occurs when one party to a contract makes an offer or promises to do
something or refrain from doing something.
Consideration - ANS✅✅What is exchanged for the promise in a contract.
Legality - ANS✅✅The contract cannot have any provisions that are illegal or that would result in
illegal activities.
Global Economy - ANS✅✅The interconnected economies of the nations of the world.
Exporting - ANS✅✅The selling and shipping of goods to another country.
,Importing - ANS✅✅Buying or bringing in goods from other countries to sell.
Trade barrier - ANS✅✅A restriction on goods entering or leaving a country.
Tariff - ANS✅✅A kind of trade barrier--taxes imposed by a government on imported or exported
goods.
Gross domestic product (GDP) - ANS✅✅The total value of all goods produced during the year.
Interpreter - ANS✅✅One who translates another person's language into English,
Standard Industrial Trade Classification (SITC) codes - ANS✅✅Used to learn what kinds of products
are traded in specific countries.
International Business Exchange (IBEX) - ANS✅✅Electronic system of the U.S,. Chamber of
Commerce that lets you sell products and services online anywhere in the world.
Trade missions - ANS✅✅Opportunities offered by the U.S. government and private agencies that
let small business owners meet and talk with foreign agents, distributors, or potential business
partners.
"Best prospect" list - ANS✅✅The government's list of products that other countries are looking to
purchase.
Disposable income - ANS✅✅The money people have to spend after paying for necessary
expenses.
Trade intermediary - ANS✅✅An agency that serves as a distributor in a foreign country.
Foreign joint venture - ANS✅✅An alliance between an American small business and a company in
another nation.
, Export management company - ANS✅✅A business that handles all the tasks related to exporting
for a manufacturer.
Freight forwarder - ANS✅✅A business that handles overseas shipments for a fee.
business concept - ANS✅✅A clear and concise description of an opportunity.
four elements of business concept - ANS✅✅Product or service, the customer, the benefit, and the
distribution.
feature - ANS✅✅A distinctive aspect, quality, or characteristic of a product or service.
benefit - ANS✅✅Something that promotes or enhances the value of the product or service to the
customer.
feasibility analysis - ANS✅✅The process used to test a business concept. It helps the entrepreneur
decide whether a new business concept has potential.
industry - ANS✅✅A group of businesses with a common interest such as telecommunications,
computers, retail, and grocery.
target customers - ANS✅✅Those customers most likely to buy your products or services.
prototype - ANS✅✅A working model of a new product.
competitive grid - ANS✅✅A tool for organizing important information about the competition.
items to include on a competitive grid - ANS✅✅Competitor, customer, benefits, distribution,
strengths/weaknesses
business model - ANS✅✅Describes how you intend to make money with your business concept.
