BUSINESS FOUNDATIONS ACTUAL EXAM
SCRIPT 2026 FULL QUESTIONS AND
CORRECT ANSWERS GRADED A+
●● What is the difference between goods and services? Answer: Goods
are tangible (physical); Services are intangible (non-physical).
●● What is GDP? Answer: The total value of all goods and services
produced in a country in one year.
●● Why is GDP important? Answer: It measures the health of the
economy.
●● What is revenue? Answer: Sales (top line).
●● What are expenses? Answer: Costs of operating (COGS + OPEX).
●● What is profit? Answer: Revenue − Expenses.
●● What is a loss? Answer: When expenses are greater than revenue.
●● What are the 4 functions of management? Answer: Planning,
Organizing, Leading, Controlling.
, ●● What are the 4 P's of marketing? Answer: Product, Price, Place,
Promotion.
●● What is economics? Answer: How resources are used to produce
goods and services.
●● What are the factors of production? Answer: Land, Labor, Capital,
Entrepreneurship.
●● What are the 3 main economic systems? Answer: Communism,
Socialism, Capitalism.
●● Who is associated with communism? Answer: Karl Marx.
●● Who is associated with capitalism? Answer: Adam Smith.
●● What is a free market? Answer: A system with little government
intervention where supply and demand set prices.
●● What is demand? Answer: The quantity buyers are willing to
purchase.
●● What is supply? Answer: The quantity sellers are willing to produce.
SCRIPT 2026 FULL QUESTIONS AND
CORRECT ANSWERS GRADED A+
●● What is the difference between goods and services? Answer: Goods
are tangible (physical); Services are intangible (non-physical).
●● What is GDP? Answer: The total value of all goods and services
produced in a country in one year.
●● Why is GDP important? Answer: It measures the health of the
economy.
●● What is revenue? Answer: Sales (top line).
●● What are expenses? Answer: Costs of operating (COGS + OPEX).
●● What is profit? Answer: Revenue − Expenses.
●● What is a loss? Answer: When expenses are greater than revenue.
●● What are the 4 functions of management? Answer: Planning,
Organizing, Leading, Controlling.
, ●● What are the 4 P's of marketing? Answer: Product, Price, Place,
Promotion.
●● What is economics? Answer: How resources are used to produce
goods and services.
●● What are the factors of production? Answer: Land, Labor, Capital,
Entrepreneurship.
●● What are the 3 main economic systems? Answer: Communism,
Socialism, Capitalism.
●● Who is associated with communism? Answer: Karl Marx.
●● Who is associated with capitalism? Answer: Adam Smith.
●● What is a free market? Answer: A system with little government
intervention where supply and demand set prices.
●● What is demand? Answer: The quantity buyers are willing to
purchase.
●● What is supply? Answer: The quantity sellers are willing to produce.
