Business Administration Exam
quizzes and answers graded A+
Stakeholders - ANS✅✅groups that have a stake in the success and outcomes of a business
(customers, employees, investors, government regulators, and the community)
Why are profits important? - ANS✅✅1. expand facilities
2. create new jobs
3. pay taxes
4. support social institutions
5. reward for risks that businesses take in providing products
business - ANS✅✅individuals or organizations who try to earn a profit by providing products that
satisfy peoples needs.
communism - ANS✅✅a society in which the people own all the nation's resources. the people
(through government) own and operate all business and operate all factors of production. central
government planning determines what goods and services satisfies citizens needs, how they are
produced and how they are distributed.
socialism - ANS✅✅the Gov owns and operates basic industries, but individuals own most
businesses. central planning determines what basic goods and services are produced. how they are
produced, and how they are distributed. individuals and small businesses provide other good based
on demand and the availability of resources.
capitalism/free enterprise - ANS✅✅individuals own and operate the majority of businesses that
provide goods and services. competition, supply and demand determine which goods and services
are produced, how they're produced, and how theyre distributed.
pure capitalism/free market system - ANS✅✅all economic decisions are made wo Gov
intervention.
modified capitalism - ANS✅✅the gov intervenes and regulates business to some extent
, tangible products - ANS✅✅physical items, things that can be touched.
Intangible products - ANS✅✅products that do not have physical nature, anything in digital form
and deliverable on the internet.
Economics - ANS✅✅the study of how resources are distributed for the production of goods and
services within a social system
Gross Domestic Product - ANS✅✅the sum of all good and services produced in a country during a
year.
economic expansion - ANS✅✅an economyis growing and people are spending money. their
purchases stimulate production, which stimulates employment. high standards of living.
Inflation - ANS✅✅a continuing rise in prices. can be harmful if incomes do not increase at the
same rate.
economic contraction - ANS✅✅a slowdown of the economy bc of a decline in spending. les
production, so people are laid off.
Recession - ANS✅✅a decline in production, employment and income
Deflation - ANS✅✅prices going downward, caused by less demand bc of unemployment. can
result in consumers delaying purschases, which can cause a recession.
Business Ethics - ANS✅✅the principles and standards that determine acceptable conduct by
individuals, groups, and business organizations.
How to encourage ethical behavior - ANS✅✅1. lead by example. maintain high ethical standards.
be honest and trustworthy.
2. separate personal financial interests from business dealings.
Foreign Corrupt Practices Act - ANS✅✅illegal to corrupt actions of foreign officials, politicians or
candidates for office. outlaws making payments to any person when the payments could be used to
quizzes and answers graded A+
Stakeholders - ANS✅✅groups that have a stake in the success and outcomes of a business
(customers, employees, investors, government regulators, and the community)
Why are profits important? - ANS✅✅1. expand facilities
2. create new jobs
3. pay taxes
4. support social institutions
5. reward for risks that businesses take in providing products
business - ANS✅✅individuals or organizations who try to earn a profit by providing products that
satisfy peoples needs.
communism - ANS✅✅a society in which the people own all the nation's resources. the people
(through government) own and operate all business and operate all factors of production. central
government planning determines what goods and services satisfies citizens needs, how they are
produced and how they are distributed.
socialism - ANS✅✅the Gov owns and operates basic industries, but individuals own most
businesses. central planning determines what basic goods and services are produced. how they are
produced, and how they are distributed. individuals and small businesses provide other good based
on demand and the availability of resources.
capitalism/free enterprise - ANS✅✅individuals own and operate the majority of businesses that
provide goods and services. competition, supply and demand determine which goods and services
are produced, how they're produced, and how theyre distributed.
pure capitalism/free market system - ANS✅✅all economic decisions are made wo Gov
intervention.
modified capitalism - ANS✅✅the gov intervenes and regulates business to some extent
, tangible products - ANS✅✅physical items, things that can be touched.
Intangible products - ANS✅✅products that do not have physical nature, anything in digital form
and deliverable on the internet.
Economics - ANS✅✅the study of how resources are distributed for the production of goods and
services within a social system
Gross Domestic Product - ANS✅✅the sum of all good and services produced in a country during a
year.
economic expansion - ANS✅✅an economyis growing and people are spending money. their
purchases stimulate production, which stimulates employment. high standards of living.
Inflation - ANS✅✅a continuing rise in prices. can be harmful if incomes do not increase at the
same rate.
economic contraction - ANS✅✅a slowdown of the economy bc of a decline in spending. les
production, so people are laid off.
Recession - ANS✅✅a decline in production, employment and income
Deflation - ANS✅✅prices going downward, caused by less demand bc of unemployment. can
result in consumers delaying purschases, which can cause a recession.
Business Ethics - ANS✅✅the principles and standards that determine acceptable conduct by
individuals, groups, and business organizations.
How to encourage ethical behavior - ANS✅✅1. lead by example. maintain high ethical standards.
be honest and trustworthy.
2. separate personal financial interests from business dealings.
Foreign Corrupt Practices Act - ANS✅✅illegal to corrupt actions of foreign officials, politicians or
candidates for office. outlaws making payments to any person when the payments could be used to
