Exam Prep
Introduction to Business
(2026-2027)
Complete Questions with 100%
Correct Answers | Verified
Guaranteed Pass | Grade A+
,Business The organized effort of individuals to produce and sell, for a profit, the goods and
services that satisfy society's needs.
What are the four resources a business needs in order to Human resources, material resources, informational resources, and financial
be successful? resources.
What do manufacturing businesses do? They process various materials.
What do service businesses do? They provide services.
Ex: Haircuts, legal advice, tax preparation, etc.
What do marketing intermediaries do? Buy products and resell them (retailers).
Intermediary Go-between; mediator.
Are businesses that understand customer needs, and Yes
work to satisfy those needs successful?
Profit The remains after all business expenses have been deducted from sales
revenue.
What is the formula for profit? Sales revenue - expenses
Economics The study of how wealth is created and distributed.
Microeconomics The study of the decisions made by individuals and businesses.
Macroeconomics The study on how the aggregate economy behaves.
Ex: Inflation, price levels, rate of growth, national income, GDP, and changes in
unemployment.
Economy The system through which a society creates and distributes wealth.
Capitalism A system in which individuals own and operate the majority of businesses that
provide goods and services.
Socialism A system in which the government owns and controls the means of production.
Communism A system where factors of production are owned and directed by the state.
, What type of economy is the U.S.? Capitalist
Why is the U.S. a mixed economy? They include both capitalism and socialism.
What do businesses purchase after they sell their goods Factors of production.
and services?
Factors of Production Land, labor, and capital.
What does the government do in exchange for taxes? They provide public services not provided by businesses.
Ex: Law Enforcement
Command Economy An economic system in which the government controls a country's economy.
What type of economies are in command economy? Socialism and communism.
Competition Competing on sales for potential customers.
Pure Competition Large number of small that businesses that sell the same type of products with
the same characteristics.
What are some characteristics of a pure competition? - It is easy to enter leave the market
- All prices are basically the same
Supply Quantity of a product producers are willing to sell.
Demand Quantity of a product buyers are willing to purchase.
Market Price (equilibrium) The price at which the amount that buyers wish to buy equals the amount that
sellers wish to sell.
Monopoly Competition A one seller market.
What are some characteristics of a monopoly - No competition
competition? - Great degree of power
- Power of pricing
- Hard to enter and leave the mark
Monopolistic Competition A large number of small businesses that sell similar products.
Introduction to Business
(2026-2027)
Complete Questions with 100%
Correct Answers | Verified
Guaranteed Pass | Grade A+
,Business The organized effort of individuals to produce and sell, for a profit, the goods and
services that satisfy society's needs.
What are the four resources a business needs in order to Human resources, material resources, informational resources, and financial
be successful? resources.
What do manufacturing businesses do? They process various materials.
What do service businesses do? They provide services.
Ex: Haircuts, legal advice, tax preparation, etc.
What do marketing intermediaries do? Buy products and resell them (retailers).
Intermediary Go-between; mediator.
Are businesses that understand customer needs, and Yes
work to satisfy those needs successful?
Profit The remains after all business expenses have been deducted from sales
revenue.
What is the formula for profit? Sales revenue - expenses
Economics The study of how wealth is created and distributed.
Microeconomics The study of the decisions made by individuals and businesses.
Macroeconomics The study on how the aggregate economy behaves.
Ex: Inflation, price levels, rate of growth, national income, GDP, and changes in
unemployment.
Economy The system through which a society creates and distributes wealth.
Capitalism A system in which individuals own and operate the majority of businesses that
provide goods and services.
Socialism A system in which the government owns and controls the means of production.
Communism A system where factors of production are owned and directed by the state.
, What type of economy is the U.S.? Capitalist
Why is the U.S. a mixed economy? They include both capitalism and socialism.
What do businesses purchase after they sell their goods Factors of production.
and services?
Factors of Production Land, labor, and capital.
What does the government do in exchange for taxes? They provide public services not provided by businesses.
Ex: Law Enforcement
Command Economy An economic system in which the government controls a country's economy.
What type of economies are in command economy? Socialism and communism.
Competition Competing on sales for potential customers.
Pure Competition Large number of small that businesses that sell the same type of products with
the same characteristics.
What are some characteristics of a pure competition? - It is easy to enter leave the market
- All prices are basically the same
Supply Quantity of a product producers are willing to sell.
Demand Quantity of a product buyers are willing to purchase.
Market Price (equilibrium) The price at which the amount that buyers wish to buy equals the amount that
sellers wish to sell.
Monopoly Competition A one seller market.
What are some characteristics of a monopoly - No competition
competition? - Great degree of power
- Power of pricing
- Hard to enter and leave the mark
Monopolistic Competition A large number of small businesses that sell similar products.
