Intro to Business (NCTI) Exam Questions and
Answers 100% Correct
Business - Correct Answer ✔️✔️-organization that provides goods or services to earn
profits
Profits - Correct Answer ✔️✔️-difference between a busi-ness's revenues and its
expenses
External Environment - Correct Answer ✔️✔️-everything outside an organization's
boundaries that might affect it
Domestic Business Environment - Correct Answer ✔️✔️-the environment in which a firm
conducts its operations and derives its revenues
Global Business Environment - Correct Answer ✔️✔️-the international forces that affect a
business. include international trade agreements, international economic conditions,
political unrest, and so forth.
Technological Environment - Correct Answer ✔️✔️-all the ways by which firms create
value for their constituents. Includes human knowledge, work methods, physical
equipment, electronics and telecommunications, and various processing systems
Political-Legal Environment - Correct Answer ✔️✔️-the relationship between business
and government. government regulation of business
,Sociocultural Environment - Correct Answer ✔️✔️-the customs, mores, values, and
demo-graphic characteristics of the society in which an organization functions. includes
the customs, mores, values, and demographic characteristics of the society
Economic Environment - Correct Answer ✔️✔️-relevant conditions that exist in the
economic system in which a company operates.
Economic System - Correct Answer ✔️✔️-a nation's system
for allocating its resources among its citizens
Factors of Production - Correct Answer ✔️✔️-resources used in the production of goods
and services—labor, capital, entrepreneurs, physical resources, and information
resources
Labor (Human Resources) - Correct Answer ✔️✔️-physical and mental capabilities of
people as they contribute to economic production. human resources or human capital
Capital - Correct Answer ✔️✔️-funds needed to create and operate a business enterprise
Entrepreneur - Correct Answer ✔️✔️-individual who accepts the risks and opportunities
involved in creating and operating a new business venture
Physical Resources - Correct Answer ✔️✔️-tangible items that organizations use in the
conduct of their businesses
Information Resources - Correct Answer ✔️✔️-data and other information used by
businesses
Planned Economy - Correct Answer ✔️✔️-economy that relies on a centralized
government to control all or most factors of production and to make all or most
production and allocation decisions
, Market Economy - Correct Answer ✔️✔️-economy in which individuals control production
and allocation decisions through supply and demand
Communism - Correct Answer ✔️✔️-political system in which the government owns and
operates all factors of production
Market - Correct Answer ✔️✔️-mechanism for exchange between buyers and sellers of a
particular good or service
Capitalism - Correct Answer ✔️✔️-system that sanctions the private ownership of the
factors of production and encourages entrepreneur-ship by offering profits as an
incentive
Mixed Market Economy - Correct Answer ✔️✔️-economic system featuring
characteristics of both planned and market economies
Privatization - Correct Answer ✔️✔️-process of converting government enterprises into
privately owned companies
Socialism - Correct Answer ✔️✔️-planned economic system in which the government
owns and operates only selected major sources of production
Demand - Correct Answer ✔️✔️-the willingness and ability of buyers to purchase a good
or service
Supply - Correct Answer ✔️✔️-the willingness and ability of producers to offer a good or
service for sale
Law of Demand - Correct Answer ✔️✔️-principle that buyers will purchase (demand)
more of a product as its price drops and less as its price increases
Answers 100% Correct
Business - Correct Answer ✔️✔️-organization that provides goods or services to earn
profits
Profits - Correct Answer ✔️✔️-difference between a busi-ness's revenues and its
expenses
External Environment - Correct Answer ✔️✔️-everything outside an organization's
boundaries that might affect it
Domestic Business Environment - Correct Answer ✔️✔️-the environment in which a firm
conducts its operations and derives its revenues
Global Business Environment - Correct Answer ✔️✔️-the international forces that affect a
business. include international trade agreements, international economic conditions,
political unrest, and so forth.
Technological Environment - Correct Answer ✔️✔️-all the ways by which firms create
value for their constituents. Includes human knowledge, work methods, physical
equipment, electronics and telecommunications, and various processing systems
Political-Legal Environment - Correct Answer ✔️✔️-the relationship between business
and government. government regulation of business
,Sociocultural Environment - Correct Answer ✔️✔️-the customs, mores, values, and
demo-graphic characteristics of the society in which an organization functions. includes
the customs, mores, values, and demographic characteristics of the society
Economic Environment - Correct Answer ✔️✔️-relevant conditions that exist in the
economic system in which a company operates.
Economic System - Correct Answer ✔️✔️-a nation's system
for allocating its resources among its citizens
Factors of Production - Correct Answer ✔️✔️-resources used in the production of goods
and services—labor, capital, entrepreneurs, physical resources, and information
resources
Labor (Human Resources) - Correct Answer ✔️✔️-physical and mental capabilities of
people as they contribute to economic production. human resources or human capital
Capital - Correct Answer ✔️✔️-funds needed to create and operate a business enterprise
Entrepreneur - Correct Answer ✔️✔️-individual who accepts the risks and opportunities
involved in creating and operating a new business venture
Physical Resources - Correct Answer ✔️✔️-tangible items that organizations use in the
conduct of their businesses
Information Resources - Correct Answer ✔️✔️-data and other information used by
businesses
Planned Economy - Correct Answer ✔️✔️-economy that relies on a centralized
government to control all or most factors of production and to make all or most
production and allocation decisions
, Market Economy - Correct Answer ✔️✔️-economy in which individuals control production
and allocation decisions through supply and demand
Communism - Correct Answer ✔️✔️-political system in which the government owns and
operates all factors of production
Market - Correct Answer ✔️✔️-mechanism for exchange between buyers and sellers of a
particular good or service
Capitalism - Correct Answer ✔️✔️-system that sanctions the private ownership of the
factors of production and encourages entrepreneur-ship by offering profits as an
incentive
Mixed Market Economy - Correct Answer ✔️✔️-economic system featuring
characteristics of both planned and market economies
Privatization - Correct Answer ✔️✔️-process of converting government enterprises into
privately owned companies
Socialism - Correct Answer ✔️✔️-planned economic system in which the government
owns and operates only selected major sources of production
Demand - Correct Answer ✔️✔️-the willingness and ability of buyers to purchase a good
or service
Supply - Correct Answer ✔️✔️-the willingness and ability of producers to offer a good or
service for sale
Law of Demand - Correct Answer ✔️✔️-principle that buyers will purchase (demand)
more of a product as its price drops and less as its price increases
