Business Administration
2026 | Study Guide,
Practice Questions,
Answers, Rationales &
Exam Review | Complete
Ethics Study Guide
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
,Common goal of a company Satisfy human needs;
Add value;
How can a business compete with others? A business can compete on 2 levels: quality and quantity.
Input factors of a business Knowledge, HR, Natural resources; Capital and Entrepreneurship
Output factors goods and services
What are some potential negative effects of a business? Generating pollution and waste;
creating health and safety risks;
disrupting communitites;
causing financial instability;
Environmental forces to consider natural and physical;
cultural;
Technological;
social;
Political and legal;
Economic;
What's the economy? The economy is the sum of all economic activities within a given region. It's the
study of how a society uses its resouces to produce godds and services,
Market forces demand and supply
Entrepreneurial spirit The positive, forward-thinking desire to create profitable, sustainable business
enterprises. the continuous passion that pushes the business forward.
Types of Entrepreneurs classic, serial, first mover.
social entrepreneurship the pursuit of social goals while creating a profitable business
stages of an entrepreneurial firm Birth
breakthrough
maturity
, small business an independently owned business that usually has the owner as its manager.
a small business has to: create jobs; introduce new products; meet the needs of
larger organizations; help the economy; take risks; provide specialized goods and
services;
Why small businesses fail Lack of experience, lack of commitment, lack of strategy, lack of expertise; growing
too fast and insufficient financing;
Partnership a business owned by two or more people.
three types of partnership: General, Limited, Limited liability
Corporation A business that is owned by many investors.
S CORPORATION
LIMITES LIABILITY CORPORATION
BENEFIT CORPORATION
Main business functions of a company Entrepreneurial spirit;
Production;
Marketing;
R&D & Innovation;
Accounting and Finance;
Business services;
Organizatio & HR;
Information System collects, create, process, store and distribute seful data;
artificial intelligence a subdiscipline of computer science that attempts to simulate human thinking.
Used for:
Transferring and cross-referencing data;
Understanding the consumers' behaviour;
Detecting fraud;
Personalizing ADV and marketing messaging;
Innovation vs Invention Invention can be defined as the creation of a product or introduction of a process for
the first time. Innovation, on the other hand, occurs if someone improves on or
makes a significant contribution to an existing product, process or service.
Product Development Process 1. idea generation
2. idea screening
3. business analysis
4. prototype development
5. test marketing
6. commercializing
circular view A series of related tasks are completed in succession, the results of the effort are
analyzed, and the insights from that analysis are used to improve quality and
efficiency of the next cycle of the process.
2026 | Study Guide,
Practice Questions,
Answers, Rationales &
Exam Review | Complete
Ethics Study Guide
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
,Common goal of a company Satisfy human needs;
Add value;
How can a business compete with others? A business can compete on 2 levels: quality and quantity.
Input factors of a business Knowledge, HR, Natural resources; Capital and Entrepreneurship
Output factors goods and services
What are some potential negative effects of a business? Generating pollution and waste;
creating health and safety risks;
disrupting communitites;
causing financial instability;
Environmental forces to consider natural and physical;
cultural;
Technological;
social;
Political and legal;
Economic;
What's the economy? The economy is the sum of all economic activities within a given region. It's the
study of how a society uses its resouces to produce godds and services,
Market forces demand and supply
Entrepreneurial spirit The positive, forward-thinking desire to create profitable, sustainable business
enterprises. the continuous passion that pushes the business forward.
Types of Entrepreneurs classic, serial, first mover.
social entrepreneurship the pursuit of social goals while creating a profitable business
stages of an entrepreneurial firm Birth
breakthrough
maturity
, small business an independently owned business that usually has the owner as its manager.
a small business has to: create jobs; introduce new products; meet the needs of
larger organizations; help the economy; take risks; provide specialized goods and
services;
Why small businesses fail Lack of experience, lack of commitment, lack of strategy, lack of expertise; growing
too fast and insufficient financing;
Partnership a business owned by two or more people.
three types of partnership: General, Limited, Limited liability
Corporation A business that is owned by many investors.
S CORPORATION
LIMITES LIABILITY CORPORATION
BENEFIT CORPORATION
Main business functions of a company Entrepreneurial spirit;
Production;
Marketing;
R&D & Innovation;
Accounting and Finance;
Business services;
Organizatio & HR;
Information System collects, create, process, store and distribute seful data;
artificial intelligence a subdiscipline of computer science that attempts to simulate human thinking.
Used for:
Transferring and cross-referencing data;
Understanding the consumers' behaviour;
Detecting fraud;
Personalizing ADV and marketing messaging;
Innovation vs Invention Invention can be defined as the creation of a product or introduction of a process for
the first time. Innovation, on the other hand, occurs if someone improves on or
makes a significant contribution to an existing product, process or service.
Product Development Process 1. idea generation
2. idea screening
3. business analysis
4. prototype development
5. test marketing
6. commercializing
circular view A series of related tasks are completed in succession, the results of the effort are
analyzed, and the insights from that analysis are used to improve quality and
efficiency of the next cycle of the process.
