Business Administration Exam 1 with
Correct Answers
Entrepreneurship - correct answer-People who own, operate, and assume the risk of a
business venture; trying to meet a need in the market
Fixed Cost - correct answer-A cost that does not change with an increase or decrease
in the amount of goods or services produced or sold
Aptitude - correct answer-A natural ability to do something
Marginal Benefit - correct answer-The additional satisfaction or utility that a person
receives from consuming an additional unit of a good or service
Consensus - correct answer-A general agreement
Productivity - correct answer-The effectiveness of productive effort, especially in
industry, as measured in terms of the rate of output per unit of input
Brainstorming - correct answer-The process of of producing an idea or way of solving a
problem by holding a spontaneous group discussion
Profit - correct answer-A financial gain, especially the difference between the amount
earned and the amount spent in buying, operating, or producing something
Demand - correct answer-An insistent and peremptory request, made as if by right
Opportunity Cost - correct answer-The loss of potential gain from other alternatives
when on alternative is chosen
Scarcity - correct answer-The state of being scarce or in short supply
Equilibrium - correct answer-A state in which opposing forces or influences are
balanced
Liabilities - correct answer-The state of being responsible for something, especially by
law
Equity Capital - correct answer-Capital (as stock or surplus earnings) that is free of debt
Correct Answers
Entrepreneurship - correct answer-People who own, operate, and assume the risk of a
business venture; trying to meet a need in the market
Fixed Cost - correct answer-A cost that does not change with an increase or decrease
in the amount of goods or services produced or sold
Aptitude - correct answer-A natural ability to do something
Marginal Benefit - correct answer-The additional satisfaction or utility that a person
receives from consuming an additional unit of a good or service
Consensus - correct answer-A general agreement
Productivity - correct answer-The effectiveness of productive effort, especially in
industry, as measured in terms of the rate of output per unit of input
Brainstorming - correct answer-The process of of producing an idea or way of solving a
problem by holding a spontaneous group discussion
Profit - correct answer-A financial gain, especially the difference between the amount
earned and the amount spent in buying, operating, or producing something
Demand - correct answer-An insistent and peremptory request, made as if by right
Opportunity Cost - correct answer-The loss of potential gain from other alternatives
when on alternative is chosen
Scarcity - correct answer-The state of being scarce or in short supply
Equilibrium - correct answer-A state in which opposing forces or influences are
balanced
Liabilities - correct answer-The state of being responsible for something, especially by
law
Equity Capital - correct answer-Capital (as stock or surplus earnings) that is free of debt
