Business Administration Exam
questions and answers graded A+
Advertising vs publicity - ANS✅✅Advertising is making contact with the consumer (PAID) while
Publicity is managing reputation and maintaining relations
Four P's of Marketing - ANS✅✅Product, Price, Place, Promotion
Market Orientation - ANS✅✅The tendency of a business to focus on costumer needs and wants,
Coca-Cola, a market oriented company, invests heavily in market research and analysis to
understand their market.
Market Segmentation - ANS✅✅the process of dividing a market into meaningful, relatively similar,
and identifiable segments or groups
market research - ANS✅✅The activity of gathering information about consumers' needs and
preferences.
Accounting - ANS✅✅planning, recording, analyzing, and interpreting financial information
financing - ANS✅✅Using business accounts and records as well as the overall business's finances
to strategize and execute successful decisions
Accounting Equation - ANS✅✅Assets = Liabilities + Owner's Equity
Accounts Payable - ANS✅✅Amounts to be paid in the future for goods or services already
acquired
Accounts Receivable - ANS✅✅Amounts to be received in the future due to the sale of goods or
services
Assets vs. Liabilities - ANS✅✅What you own vs what you owe
, Audit - ANS✅✅to check the accuracy of financial accounts and records
Balance Sheet - ANS✅✅A financial statement that reports assets, liabilities, and owner's equity on
a specific date. (Accounting Equation)
Cash Flow - ANS✅✅Movement of the money you receive and the money you spend.
Dividends vs. Retained Earnings - ANS✅✅Retained Earnings are the overall profit that the business
makes, while dividends are the share of the retained earnings that the owner or investor receives if
retained earnings are not completely invested into the business
Income Statement - ANS✅✅A financial statement that reports a company's revenues and
expenses and resulting net income or net loss for a specific period of time.
Net Income - ANS✅✅the difference between total revenue and total expenses (expenses include
taxes) when total revenue is greater
Owner's Equity - ANS✅✅the amount of the business that belongs to the owners minus any
liabilities owed by the business
Revenue - ANS✅✅Any increase in Owner's Equity, includes but is not the same as sales, as it
includes all form of gain of money
Sales - ANS✅✅The total amount of money earned from business operations, before sales cost
Profit - ANS✅✅The total amount of money earned from business operations minus business
expenses
Start-up Capital - ANS✅✅The finance needed by a new business to pay for essential fixed and
current assets before it can begin trading.
articles of partnership - ANS✅✅a partnership agreement that spells out each partner's rights and
responsibilities
questions and answers graded A+
Advertising vs publicity - ANS✅✅Advertising is making contact with the consumer (PAID) while
Publicity is managing reputation and maintaining relations
Four P's of Marketing - ANS✅✅Product, Price, Place, Promotion
Market Orientation - ANS✅✅The tendency of a business to focus on costumer needs and wants,
Coca-Cola, a market oriented company, invests heavily in market research and analysis to
understand their market.
Market Segmentation - ANS✅✅the process of dividing a market into meaningful, relatively similar,
and identifiable segments or groups
market research - ANS✅✅The activity of gathering information about consumers' needs and
preferences.
Accounting - ANS✅✅planning, recording, analyzing, and interpreting financial information
financing - ANS✅✅Using business accounts and records as well as the overall business's finances
to strategize and execute successful decisions
Accounting Equation - ANS✅✅Assets = Liabilities + Owner's Equity
Accounts Payable - ANS✅✅Amounts to be paid in the future for goods or services already
acquired
Accounts Receivable - ANS✅✅Amounts to be received in the future due to the sale of goods or
services
Assets vs. Liabilities - ANS✅✅What you own vs what you owe
, Audit - ANS✅✅to check the accuracy of financial accounts and records
Balance Sheet - ANS✅✅A financial statement that reports assets, liabilities, and owner's equity on
a specific date. (Accounting Equation)
Cash Flow - ANS✅✅Movement of the money you receive and the money you spend.
Dividends vs. Retained Earnings - ANS✅✅Retained Earnings are the overall profit that the business
makes, while dividends are the share of the retained earnings that the owner or investor receives if
retained earnings are not completely invested into the business
Income Statement - ANS✅✅A financial statement that reports a company's revenues and
expenses and resulting net income or net loss for a specific period of time.
Net Income - ANS✅✅the difference between total revenue and total expenses (expenses include
taxes) when total revenue is greater
Owner's Equity - ANS✅✅the amount of the business that belongs to the owners minus any
liabilities owed by the business
Revenue - ANS✅✅Any increase in Owner's Equity, includes but is not the same as sales, as it
includes all form of gain of money
Sales - ANS✅✅The total amount of money earned from business operations, before sales cost
Profit - ANS✅✅The total amount of money earned from business operations minus business
expenses
Start-up Capital - ANS✅✅The finance needed by a new business to pay for essential fixed and
current assets before it can begin trading.
articles of partnership - ANS✅✅a partnership agreement that spells out each partner's rights and
responsibilities
