BUS 101 – Exam 1 (Chapters 1–5), 2026 – Study guide and practice material
tangible products - correct answer ✔✔ goods (ex. shoes, vegetables, phones)
intangible products - correct answer ✔✔ services (ex. health care, education)
mission statement - correct answer ✔✔ powerful, short description of a business's purpose;
broadly focused to ensure endurance, and must be flexible
vision statement - correct answer ✔✔ company's "road map"; points to future and where
business is trying to go
stakeholders - correct answer ✔✔ All the people who stand to gain or lose by the policies and
activities of a business
primary stakeholders - correct answer ✔✔ owners, employees, customers
scarce - correct answer ✔✔ too few goods & resources to satisfy the wants of all individuals
factors of production - correct answer ✔✔ land, labor, capital, & entrepreneurial ability (all
scarce; limited in supply)
opportunity cost - correct answer ✔✔ benefit, profit, value of something that must be given up
to acquire/achieve something else
(ex. 60k/yr job offer vs. starting own company - 60k is the opportunity cost)
positive incentive - correct answer ✔✔ increases the benefit of making a decision, making the
choice more likely (ex. lowering a price)
, negative incentive - correct answer ✔✔ an incentive that either increases costs or reduces
benefits, making choice less likely (ex. a tax)
marginal - correct answer ✔✔ what will be added to what was there before (ex. marginal
revenue is the additional $$ made by producing one more unit of a good/service)
positive sum game - correct answer ✔✔ trading a good or service; creates new wealth; buyer &
seller are better off
framing - correct answer ✔✔ the way a choice is posed to customer/decision-maker; can
significantly affect decisions and judgments.
SWOT analysis - correct answer ✔✔ strengths, weaknesses, opportunities, threats
information technology - correct answer ✔✔ systems, processes, & tools that enable
organizations to collect, store, retrieve, analyze, & share data/the info obtained from it
cookie - correct answer ✔✔ file that a website you visit sends to your browser (collects info)
big data - correct answer ✔✔ describes customer purchasing habit data & their analysis; the
amount of data they contain & how quickly this data is gathered
cloud - correct answer ✔✔ form of data storage & computing that is accessed via Internet
business analytics*** - correct answer ✔✔ used to convert massive data amounts into info that
can be used to meet customer needs more fully; involves building analysis models + stimulants
to create scenarios, predict future states, & understand realities
tangible products - correct answer ✔✔ goods (ex. shoes, vegetables, phones)
intangible products - correct answer ✔✔ services (ex. health care, education)
mission statement - correct answer ✔✔ powerful, short description of a business's purpose;
broadly focused to ensure endurance, and must be flexible
vision statement - correct answer ✔✔ company's "road map"; points to future and where
business is trying to go
stakeholders - correct answer ✔✔ All the people who stand to gain or lose by the policies and
activities of a business
primary stakeholders - correct answer ✔✔ owners, employees, customers
scarce - correct answer ✔✔ too few goods & resources to satisfy the wants of all individuals
factors of production - correct answer ✔✔ land, labor, capital, & entrepreneurial ability (all
scarce; limited in supply)
opportunity cost - correct answer ✔✔ benefit, profit, value of something that must be given up
to acquire/achieve something else
(ex. 60k/yr job offer vs. starting own company - 60k is the opportunity cost)
positive incentive - correct answer ✔✔ increases the benefit of making a decision, making the
choice more likely (ex. lowering a price)
, negative incentive - correct answer ✔✔ an incentive that either increases costs or reduces
benefits, making choice less likely (ex. a tax)
marginal - correct answer ✔✔ what will be added to what was there before (ex. marginal
revenue is the additional $$ made by producing one more unit of a good/service)
positive sum game - correct answer ✔✔ trading a good or service; creates new wealth; buyer &
seller are better off
framing - correct answer ✔✔ the way a choice is posed to customer/decision-maker; can
significantly affect decisions and judgments.
SWOT analysis - correct answer ✔✔ strengths, weaknesses, opportunities, threats
information technology - correct answer ✔✔ systems, processes, & tools that enable
organizations to collect, store, retrieve, analyze, & share data/the info obtained from it
cookie - correct answer ✔✔ file that a website you visit sends to your browser (collects info)
big data - correct answer ✔✔ describes customer purchasing habit data & their analysis; the
amount of data they contain & how quickly this data is gathered
cloud - correct answer ✔✔ form of data storage & computing that is accessed via Internet
business analytics*** - correct answer ✔✔ used to convert massive data amounts into info that
can be used to meet customer needs more fully; involves building analysis models + stimulants
to create scenarios, predict future states, & understand realities
