BA EXAM 1 QUESTIONS AND ANSWERS LATEST UPDATE 2025/2026
Profit - Answers Revenue minus expenses
Stakeholders - Answers Groups affected by company decisions: employees, customers,
suppliers, society, environment
Shareholders - Answers Stock owners; focused on financial return
PESTEL - Answers Political, Economic, Sociocultural, Technological, Environmental, Legal
framework
Business Cycle - Answers Expansion → Peak → Recession (2+ quarters GDP decline) →
Recovery
Aggregate Output - Answers Total goods and services produced in an economy
GDP (Gross Domestic Product) - Answers Total value of goods/services within a country
GNP (Gross National Product) - Answers Total value produced by residents including income
earned abroad
GDP per capita - Answers GDP divided by population
Nominal GDP - Answers GDP measured at current market prices, not adjusted for inflation
Purchasing Power Parity (PPP) - Answers Adjusts GDP for what money can buy in different
countries
Balance of Trade - Answers Exports minus imports
Consumer Price Index (CPI) - Answers Tracks cost of a typical consumer basket of
goods/services
Recession - Answers Two consecutive quarters of GDP decline
Fiscal Policy - Answers Government decisions on taxation and spending
Monetary Policy - Answers Federal Reserve decisions on money supply and interest rates
Stabilization Policy - Answers Use of fiscal and monetary policy to smooth business cycles
Globalization - Answers Integration of world markets
NAFTA/USMCA - Answers Trade agreement between US, Mexico, Canada
WTO - Answers World Trade Organization; enforces international trade rules
Offshoring - Answers Moving jobs abroad to lower wage countries
, Licensing Agreement - Answers Firm allows another to produce/market for royalties
Strategic Alliance - Answers Firms share resources for mutual goals
Joint Venture - Answers Firms share a business project
Quota - Answers Import limit
Protectionism - Answers Policy shielding domestic industries from imports
Cartel - Answers Producers coordinating prices/production
CSR (Corporate Social Responsibility) - Answers Responsibility to environment, employees,
investors, society
ESG - Answers Environmental, Social, Governance reporting framework
Circular Economy - Answers Reuse, recycle, regenerate resources as long as possible
Green Growth - Answers Economic growth that is environmentally sustainable
Degrowth - Answers Movement reducing consumption/production to protect environment
Greenwashing - Answers Misleading claims about environmental practices
CSR Obstructionist stance - Answers Do as little as possible
CSR Defensive stance - Answers Meet only legal minimums
CSR Accommodative stance - Answers Exceed legal minimums when asked
CSR Proactive stance - Answers Actively contribute to social responsibility
Sole Proprietorship - Answers One owner, unlimited liability, tax breaks
General Partnership - Answers All partners share management and unlimited liability
Limited Partnership - Answers At least one general partner, others have limited liability
Corporation - Answers Legal entity, limited liability, double taxation, continuity
Closely Held Corporation - Answers Corporation with stock owned by few (family)
Public Corporation - Answers Stock widely traded
S Corporation - Answers Avoids double taxation, limited shareholders
LLC - Answers Hybrid: limited liability + partnership taxation
Professional Corporation - Answers Provides liability shield for business, professionals still
Profit - Answers Revenue minus expenses
Stakeholders - Answers Groups affected by company decisions: employees, customers,
suppliers, society, environment
Shareholders - Answers Stock owners; focused on financial return
PESTEL - Answers Political, Economic, Sociocultural, Technological, Environmental, Legal
framework
Business Cycle - Answers Expansion → Peak → Recession (2+ quarters GDP decline) →
Recovery
Aggregate Output - Answers Total goods and services produced in an economy
GDP (Gross Domestic Product) - Answers Total value of goods/services within a country
GNP (Gross National Product) - Answers Total value produced by residents including income
earned abroad
GDP per capita - Answers GDP divided by population
Nominal GDP - Answers GDP measured at current market prices, not adjusted for inflation
Purchasing Power Parity (PPP) - Answers Adjusts GDP for what money can buy in different
countries
Balance of Trade - Answers Exports minus imports
Consumer Price Index (CPI) - Answers Tracks cost of a typical consumer basket of
goods/services
Recession - Answers Two consecutive quarters of GDP decline
Fiscal Policy - Answers Government decisions on taxation and spending
Monetary Policy - Answers Federal Reserve decisions on money supply and interest rates
Stabilization Policy - Answers Use of fiscal and monetary policy to smooth business cycles
Globalization - Answers Integration of world markets
NAFTA/USMCA - Answers Trade agreement between US, Mexico, Canada
WTO - Answers World Trade Organization; enforces international trade rules
Offshoring - Answers Moving jobs abroad to lower wage countries
, Licensing Agreement - Answers Firm allows another to produce/market for royalties
Strategic Alliance - Answers Firms share resources for mutual goals
Joint Venture - Answers Firms share a business project
Quota - Answers Import limit
Protectionism - Answers Policy shielding domestic industries from imports
Cartel - Answers Producers coordinating prices/production
CSR (Corporate Social Responsibility) - Answers Responsibility to environment, employees,
investors, society
ESG - Answers Environmental, Social, Governance reporting framework
Circular Economy - Answers Reuse, recycle, regenerate resources as long as possible
Green Growth - Answers Economic growth that is environmentally sustainable
Degrowth - Answers Movement reducing consumption/production to protect environment
Greenwashing - Answers Misleading claims about environmental practices
CSR Obstructionist stance - Answers Do as little as possible
CSR Defensive stance - Answers Meet only legal minimums
CSR Accommodative stance - Answers Exceed legal minimums when asked
CSR Proactive stance - Answers Actively contribute to social responsibility
Sole Proprietorship - Answers One owner, unlimited liability, tax breaks
General Partnership - Answers All partners share management and unlimited liability
Limited Partnership - Answers At least one general partner, others have limited liability
Corporation - Answers Legal entity, limited liability, double taxation, continuity
Closely Held Corporation - Answers Corporation with stock owned by few (family)
Public Corporation - Answers Stock widely traded
S Corporation - Answers Avoids double taxation, limited shareholders
LLC - Answers Hybrid: limited liability + partnership taxation
Professional Corporation - Answers Provides liability shield for business, professionals still
