SAYLOR ACADEMY BUS 101 EXAM 2025/2026 QUESTIONS WITH
SOLUTIONS GRADED A+
✔✔CPI - ✔✔Consumer Price Index: Reported monthly by the BLS (Bureau of Labor
Statistics) and measures the change in cost of a representative basket of goods and
services that would be used by a typical urban consumer, such as food, energy,
housing, clothing, transportation, medical care, entertainment, and education. The cost
of the basket in any given year is compared to the cost of the basket in the base
yearOften referred to as Cost of Living Index. One of the most often used statistics for
identifying periods of inflation or deflation. Large rises in CPI during a short period of
time typically denote periods of inflation, and large drops in CPI during a short period of
time typically denote periods of deflation.
✔✔Purchasing Power - ✔✔The amount of goods and services that can be bought with
a unit of currency or by consumers.
✔✔Consumer Confidence - ✔✔An economic indicator measuring the degree of
optimism that consumers feel about the overall state of the economy and their personal
financial situation.
✔✔Sole Proprietorship - ✔✔A business owned and operated by a single individual; the
most common form of business structure in the U.S. Advantages include ease and cost
of formation (the owner simply has to announce they are in business and request any
licenses and permits they may need), use of profits (all profits from the business belong
exclusively to the owner), flexibility and control (owner makes all the decisions and
directs the entire business operations), few government regulations, secrecy, and ease
of ending the business. Disadvantages include unlimited liability (all business debts are
personal debts, meaning the owner could lose everything they own if the business fails
or loses a major lawsuit), limited financing sources (based on owner's creditworthiness),
limited skills (owner must be part manager, marketer, accountant, etc.
✔✔Partnership - ✔✔A business owned and operated by two or more people; the least
used form of business organization in the U.S. The two basic forms of partnerships are
general and limited. In a general partnership, all partners have unlimited liability. In a
limited partnership, at least one partner's liability is limited only to his or her investment
while at least one other partner has full liability. Most states require "Articles of
Partnership," a legal document that delineates the details of each partner's investment
and role in the company. Advantages of a partnership include ease of organization,
combined knowledge and skills, greater availability of financing; and very little
government regulations. Disadvantages include unlimited liability, reconciling partner
disagreements, sharing of profits, and each partner being responsible for the actions of
all the others.
✔✔Private Corporation - ✔✔A business that is a legal entity created by the state whose
assets and liabilities are separate from its owners. Most small businesses are (or at
least start as) private corporations. Owned by a small group of people who are typically
, involved in managing the business. Formation requires developing a legal document
called the "Articles of Incorporation" and submitting it to the state in which the
corporation wishes to reside. Advantages include limited liability (an owner/stockholder
can only lose up to the amount they invested), unlimited lifespan (charted to last forever
unless its articles of incorporation state otherwise), great sources of funding, and ease
of transfer of ownership. Disadvantages include double taxation — the corporation, as a
legal entity, must pay taxes, and then shareholders also pay taxes on any dividends
received.
✔✔S Corporation - ✔✔A form of ownership that is the best of both partnerships and
corporations. Owners have limited liability, greater credibility (for obtaining financing),
and no double taxation as all profits pass directly to the owners and the corporation
pays no taxes. There are, however, restrictions on the number and type of
shareholders.
✔✔LLC - ✔✔Limited Liability Company: A form of ownership growing in popularity in the
U.S. that provides limited liability and is taxed as a partnership or sole proprietorship
depending on the number of members. This type of business formation is formed by
submitting articles of organization to the state and growing rapidly because it is flexible,
simple to run, and does not require all the paperwork of corporations.
✔✔Business Plan - ✔✔Summary of how an owner, manager, or entrepreneur intends to
organize an entrepreneurial endeavor and implement activities necessary and sufficient
for the venture to succeed. Establishes goals and objections allowing the leadership to
assess how well a company is doing based on its established goals and objections. A
critical vehicle for communicating both internally and externally how a company intends
to conduct business. Sections of a good business plan may include an EXECUTIVE
SUMMARY, COMPANY DESCRIPTION, MARKET ANALYSIS, ORGANIZATION AND
MANAGEMENT, SERVICE AND PRODUCT LINE, MARKETING AND SALES,
FUNDING REQUEST, FINANCIAL PROJECTION, APPENDIX (OPTIONAL)
✔✔Business Plan - Executive Summary - ✔✔A snapshot of a business plan as a whole
that touches on company profile and goals. Summarizes in such a way that readers can
rapidly become acquainted with a large body of material without having to read it all.
✔✔Business Plan - Financial Plan/Projection - ✔✔Part of a business plan providing
information on the proposed spending and revenues of a company. If funding is
required this section details the expected cash flows and other critical financial
projections to allow potential investors to understand the risks and returns they can
expect.
✔✔Business Plan - Market Analysis - ✔✔Part of a business plan that provides the
specific industry, market, and competitive analysis information needed to understand
where and how the company is positioned in the overall market.
SOLUTIONS GRADED A+
✔✔CPI - ✔✔Consumer Price Index: Reported monthly by the BLS (Bureau of Labor
Statistics) and measures the change in cost of a representative basket of goods and
services that would be used by a typical urban consumer, such as food, energy,
housing, clothing, transportation, medical care, entertainment, and education. The cost
of the basket in any given year is compared to the cost of the basket in the base
yearOften referred to as Cost of Living Index. One of the most often used statistics for
identifying periods of inflation or deflation. Large rises in CPI during a short period of
time typically denote periods of inflation, and large drops in CPI during a short period of
time typically denote periods of deflation.
✔✔Purchasing Power - ✔✔The amount of goods and services that can be bought with
a unit of currency or by consumers.
✔✔Consumer Confidence - ✔✔An economic indicator measuring the degree of
optimism that consumers feel about the overall state of the economy and their personal
financial situation.
✔✔Sole Proprietorship - ✔✔A business owned and operated by a single individual; the
most common form of business structure in the U.S. Advantages include ease and cost
of formation (the owner simply has to announce they are in business and request any
licenses and permits they may need), use of profits (all profits from the business belong
exclusively to the owner), flexibility and control (owner makes all the decisions and
directs the entire business operations), few government regulations, secrecy, and ease
of ending the business. Disadvantages include unlimited liability (all business debts are
personal debts, meaning the owner could lose everything they own if the business fails
or loses a major lawsuit), limited financing sources (based on owner's creditworthiness),
limited skills (owner must be part manager, marketer, accountant, etc.
✔✔Partnership - ✔✔A business owned and operated by two or more people; the least
used form of business organization in the U.S. The two basic forms of partnerships are
general and limited. In a general partnership, all partners have unlimited liability. In a
limited partnership, at least one partner's liability is limited only to his or her investment
while at least one other partner has full liability. Most states require "Articles of
Partnership," a legal document that delineates the details of each partner's investment
and role in the company. Advantages of a partnership include ease of organization,
combined knowledge and skills, greater availability of financing; and very little
government regulations. Disadvantages include unlimited liability, reconciling partner
disagreements, sharing of profits, and each partner being responsible for the actions of
all the others.
✔✔Private Corporation - ✔✔A business that is a legal entity created by the state whose
assets and liabilities are separate from its owners. Most small businesses are (or at
least start as) private corporations. Owned by a small group of people who are typically
, involved in managing the business. Formation requires developing a legal document
called the "Articles of Incorporation" and submitting it to the state in which the
corporation wishes to reside. Advantages include limited liability (an owner/stockholder
can only lose up to the amount they invested), unlimited lifespan (charted to last forever
unless its articles of incorporation state otherwise), great sources of funding, and ease
of transfer of ownership. Disadvantages include double taxation — the corporation, as a
legal entity, must pay taxes, and then shareholders also pay taxes on any dividends
received.
✔✔S Corporation - ✔✔A form of ownership that is the best of both partnerships and
corporations. Owners have limited liability, greater credibility (for obtaining financing),
and no double taxation as all profits pass directly to the owners and the corporation
pays no taxes. There are, however, restrictions on the number and type of
shareholders.
✔✔LLC - ✔✔Limited Liability Company: A form of ownership growing in popularity in the
U.S. that provides limited liability and is taxed as a partnership or sole proprietorship
depending on the number of members. This type of business formation is formed by
submitting articles of organization to the state and growing rapidly because it is flexible,
simple to run, and does not require all the paperwork of corporations.
✔✔Business Plan - ✔✔Summary of how an owner, manager, or entrepreneur intends to
organize an entrepreneurial endeavor and implement activities necessary and sufficient
for the venture to succeed. Establishes goals and objections allowing the leadership to
assess how well a company is doing based on its established goals and objections. A
critical vehicle for communicating both internally and externally how a company intends
to conduct business. Sections of a good business plan may include an EXECUTIVE
SUMMARY, COMPANY DESCRIPTION, MARKET ANALYSIS, ORGANIZATION AND
MANAGEMENT, SERVICE AND PRODUCT LINE, MARKETING AND SALES,
FUNDING REQUEST, FINANCIAL PROJECTION, APPENDIX (OPTIONAL)
✔✔Business Plan - Executive Summary - ✔✔A snapshot of a business plan as a whole
that touches on company profile and goals. Summarizes in such a way that readers can
rapidly become acquainted with a large body of material without having to read it all.
✔✔Business Plan - Financial Plan/Projection - ✔✔Part of a business plan providing
information on the proposed spending and revenues of a company. If funding is
required this section details the expected cash flows and other critical financial
projections to allow potential investors to understand the risks and returns they can
expect.
✔✔Business Plan - Market Analysis - ✔✔Part of a business plan that provides the
specific industry, market, and competitive analysis information needed to understand
where and how the company is positioned in the overall market.
