BUS 110 Chapters 1-4 Exam Questions with Correct Answers Latest Update 2025/2026
Value - Answers The relationship between the price of a good or a service and the benefits that
it offers its customers.
Business - Answers Any organization or activity that provides goods and services in an effort to
earn a profit
Profit - Answers The money that a business earns in sales, minus expenses, such as the cost of
goods, and the cost of salaries. Revenue-Expenses=Profit
Loss - Answers When a business incurs expenses that are greater than its revenue
Entrepreneurs - Answers People who risk their time, money, and other resources to start and
manage a business
Standard of Living - Answers The quality and quantity of goods and services available to a
population.
Quality of Living - Answers The overall sense of well-being experiences by either an individual or
a group.
The Industrial Revolution - Answers (1700s-1800s) Mass production took hold, huge factories
replaces skilled artisan workships. Resulted in the unprecedented production efficiency but also
a loss of individual ownership and personal pride in the production process.
The Entrepreneurship Era - Answers (2nd Half of 1800s) Built business empires. These
industrial titans created enormous wealth, raising the overall standard of living across the
country. Many dominated their markets, forcing out competitors, manipulating prices, exploiting
workers, and decimating the environment. End of 1800s, government stepped into the business
realm.
The Production Era - Answers (Early 1900s) Major businesses focused on further refining the
production process and creating greater efficiencies. Henry Ford introduced the assembly
line."Hard Sell" emerged, aggressive persuasion designed to separate consumers from their
cash.
The Marketing Era - Answers (Mid 1950s) Balance shifted away from producers and toward
consumers, flooding the market with enticing choices. Business began making different brands
to differentiate themselves. "Marketing Concept" emerged, a consumer focus that permeates
successful companies in every department, at every level.
The Relationship Era - Answers Leading edge firms look beyond each immediate transaction
with a customer and aim to built long term relationships.
Nonprofits - Answers Business-like establishments that employ people and produce goods and
, services with the fundamental goal of contributing to the community rather than generating
financial gain.
Factors of Production - Answers Four fundamental elements - Natural Resources, Capitial,
Human Resources, and Entrepreneurship - that businesses need to achieve their objectives.
Natural Resources - Answers Includes all inputs that offer value in their natural state, such as
land, fresh water, wind, and mineral deposits. The value of all natural resources tends to rise
with high demand, low supply, or both.
Capital - Answers Includes machines, tools, buildings, information, and technology - the
synthetic resources that a business needs to produce goods or services.
Human Resources - Answers Includes the physical, intellectual, and creative contributions of
everyone who works within an economy.
Entrepreneruship - Answers They are the people who take the risk of launching and operating
their own businesses, largely in response to the profit incentive. Tend to see opportunities
where others dont.
Business Environmen - Answers The setting in which business operates. The five key
components are economic environment, competitive environment, technological environment,
social environment, and global environment.
Speed-to-Market - Answers The rate at which a new product moves from conception to
commercialization.
Bleeding Edge Firms - Answers They launch products that fail because they are too far ahead of
the market.
Leading Edge Firms - Answers They offer products just as the market becomes ready to
embrace them.
Business Technology - Answers Any tools - especially computers, telecommunications, and
other digital products - that businesses can use to become more efficient and effective.
World Wide Web - Answers The service that allows computer users to easily access and share
information on the internet in the form of text, graphics, video, apps, and animation.
E-Commerce - Answers Business transactions conducted online, typically via the Internet
Demographics - Answers The measurable characteristics of a population. Demographic factors
include population size and density, as well as specific traits such as age, gender, and race.
Free Trade - Answers An international economic and political movement designed to help goods
and services flow more freely across international bounderies
Value - Answers The relationship between the price of a good or a service and the benefits that
it offers its customers.
Business - Answers Any organization or activity that provides goods and services in an effort to
earn a profit
Profit - Answers The money that a business earns in sales, minus expenses, such as the cost of
goods, and the cost of salaries. Revenue-Expenses=Profit
Loss - Answers When a business incurs expenses that are greater than its revenue
Entrepreneurs - Answers People who risk their time, money, and other resources to start and
manage a business
Standard of Living - Answers The quality and quantity of goods and services available to a
population.
Quality of Living - Answers The overall sense of well-being experiences by either an individual or
a group.
The Industrial Revolution - Answers (1700s-1800s) Mass production took hold, huge factories
replaces skilled artisan workships. Resulted in the unprecedented production efficiency but also
a loss of individual ownership and personal pride in the production process.
The Entrepreneurship Era - Answers (2nd Half of 1800s) Built business empires. These
industrial titans created enormous wealth, raising the overall standard of living across the
country. Many dominated their markets, forcing out competitors, manipulating prices, exploiting
workers, and decimating the environment. End of 1800s, government stepped into the business
realm.
The Production Era - Answers (Early 1900s) Major businesses focused on further refining the
production process and creating greater efficiencies. Henry Ford introduced the assembly
line."Hard Sell" emerged, aggressive persuasion designed to separate consumers from their
cash.
The Marketing Era - Answers (Mid 1950s) Balance shifted away from producers and toward
consumers, flooding the market with enticing choices. Business began making different brands
to differentiate themselves. "Marketing Concept" emerged, a consumer focus that permeates
successful companies in every department, at every level.
The Relationship Era - Answers Leading edge firms look beyond each immediate transaction
with a customer and aim to built long term relationships.
Nonprofits - Answers Business-like establishments that employ people and produce goods and
, services with the fundamental goal of contributing to the community rather than generating
financial gain.
Factors of Production - Answers Four fundamental elements - Natural Resources, Capitial,
Human Resources, and Entrepreneurship - that businesses need to achieve their objectives.
Natural Resources - Answers Includes all inputs that offer value in their natural state, such as
land, fresh water, wind, and mineral deposits. The value of all natural resources tends to rise
with high demand, low supply, or both.
Capital - Answers Includes machines, tools, buildings, information, and technology - the
synthetic resources that a business needs to produce goods or services.
Human Resources - Answers Includes the physical, intellectual, and creative contributions of
everyone who works within an economy.
Entrepreneruship - Answers They are the people who take the risk of launching and operating
their own businesses, largely in response to the profit incentive. Tend to see opportunities
where others dont.
Business Environmen - Answers The setting in which business operates. The five key
components are economic environment, competitive environment, technological environment,
social environment, and global environment.
Speed-to-Market - Answers The rate at which a new product moves from conception to
commercialization.
Bleeding Edge Firms - Answers They launch products that fail because they are too far ahead of
the market.
Leading Edge Firms - Answers They offer products just as the market becomes ready to
embrace them.
Business Technology - Answers Any tools - especially computers, telecommunications, and
other digital products - that businesses can use to become more efficient and effective.
World Wide Web - Answers The service that allows computer users to easily access and share
information on the internet in the form of text, graphics, video, apps, and animation.
E-Commerce - Answers Business transactions conducted online, typically via the Internet
Demographics - Answers The measurable characteristics of a population. Demographic factors
include population size and density, as well as specific traits such as age, gender, and race.
Free Trade - Answers An international economic and political movement designed to help goods
and services flow more freely across international bounderies
