BUS 1100 Exam 1 questions well
answered graded A+ 2025/2026 passed
The Concept of Business -CORRECT ANSWER ✔✔Organization that provides goods or services
(products) to earn profits
Business exists to fulfill some desire based on consumer wants and needs
The Concept of Profit -CORRECT ANSWER ✔✔Difference between a business's revenues and its
expenses
Businesses almost always exist to produce a profit
Profit=Revenue-Expenses
Many Benefits of Business -CORRECT ANSWER ✔✔1. Produce most goods and services we
consume
2. Employ most working people
3. Create most new innovations
4. Taxes support government at all levels
5. Support local communities and charities
Many other benefits
External Environment -CORRECT ANSWER ✔✔Everything outside an organization's boundaries
that might affect it
6 dimensions-domestic, global, technological, political/legal, socio cultural, and economical
Domestic (External Environment) -CORRECT ANSWER ✔✔When they operate-close to supplier
,Global (External Environment) -CORRECT ANSWER ✔✔initial forces to control with
-trade agreements, political unnest, cultural differences, currency.
Technological (External Environment) -CORRECT ANSWER ✔✔Human knowledge, work
methods (formulas), physical equipment, electronics
Political/ Legal (External Environment) -CORRECT ANSWER ✔✔Government regulations
-zoning, product labeling, advertising regulations
Socio cultural (External Environment) -CORRECT ANSWER ✔✔Customs, values
- avoid offensive products
Ex. Nova
Economic (External Environment) -CORRECT ANSWER ✔✔Wages, jobs, benefits
- ⬆️
during boom, ⬇️
during recession
Economic system -CORRECT ANSWER ✔✔A nation's system for allocating its resources among
its citizens, both individuals and organizations
Factors of production -CORRECT ANSWER ✔✔
Economic System -CORRECT ANSWER ✔✔A nation's system for allocating its resources among
its citizens, both individuals and organizations
Factors of Production -CORRECT ANSWER ✔✔The allocated resources that a country's
businesses use to produce goods and services
, Labor (Factor of Production) -CORRECT ANSWER ✔✔human resources- people who worl for a
firm (workers, managers, financial experts, quality control, buyers)
Capital (Factor of Production) -CORRECT ANSWER ✔✔Financial resources needed to pay
workers, buy materials & equip (cash, loans, stock sales)
Entrepreneurs (Factor of Production) -CORRECT ANSWER ✔✔those who accept risk and
opportunity to start a new business
Physical Resources (Factor of Production) -CORRECT ANSWER ✔✔(touchable)- raw material,
officess, buildings, supplies, storage, and equipment
Informational Resources (Factor of Production) -CORRECT ANSWER ✔✔Data used for forecasts
& projections
Types of Economic Systems -CORRECT ANSWER ✔✔Planned economy, market economy, mixed
market economy, and privatization.
Planned Economy -CORRECT ANSWER ✔✔Economy that relies on a centralized government to
control all or most factors of production and to make all or most production and allocation
decisions
-Communism, socialism (gov owns/operates select major industries)
Market Economy -CORRECT ANSWER ✔✔Individual producers and consumers control
production and allocation by creating combinations of supply and demand
-Exchange between buyers and sellers (rely on capitalism and free enterprise to create an
environment to buy/sell what they choose)
Mixed Market Economy -CORRECT ANSWER ✔✔Features characteristics of both planned and
market economies
answered graded A+ 2025/2026 passed
The Concept of Business -CORRECT ANSWER ✔✔Organization that provides goods or services
(products) to earn profits
Business exists to fulfill some desire based on consumer wants and needs
The Concept of Profit -CORRECT ANSWER ✔✔Difference between a business's revenues and its
expenses
Businesses almost always exist to produce a profit
Profit=Revenue-Expenses
Many Benefits of Business -CORRECT ANSWER ✔✔1. Produce most goods and services we
consume
2. Employ most working people
3. Create most new innovations
4. Taxes support government at all levels
5. Support local communities and charities
Many other benefits
External Environment -CORRECT ANSWER ✔✔Everything outside an organization's boundaries
that might affect it
6 dimensions-domestic, global, technological, political/legal, socio cultural, and economical
Domestic (External Environment) -CORRECT ANSWER ✔✔When they operate-close to supplier
,Global (External Environment) -CORRECT ANSWER ✔✔initial forces to control with
-trade agreements, political unnest, cultural differences, currency.
Technological (External Environment) -CORRECT ANSWER ✔✔Human knowledge, work
methods (formulas), physical equipment, electronics
Political/ Legal (External Environment) -CORRECT ANSWER ✔✔Government regulations
-zoning, product labeling, advertising regulations
Socio cultural (External Environment) -CORRECT ANSWER ✔✔Customs, values
- avoid offensive products
Ex. Nova
Economic (External Environment) -CORRECT ANSWER ✔✔Wages, jobs, benefits
- ⬆️
during boom, ⬇️
during recession
Economic system -CORRECT ANSWER ✔✔A nation's system for allocating its resources among
its citizens, both individuals and organizations
Factors of production -CORRECT ANSWER ✔✔
Economic System -CORRECT ANSWER ✔✔A nation's system for allocating its resources among
its citizens, both individuals and organizations
Factors of Production -CORRECT ANSWER ✔✔The allocated resources that a country's
businesses use to produce goods and services
, Labor (Factor of Production) -CORRECT ANSWER ✔✔human resources- people who worl for a
firm (workers, managers, financial experts, quality control, buyers)
Capital (Factor of Production) -CORRECT ANSWER ✔✔Financial resources needed to pay
workers, buy materials & equip (cash, loans, stock sales)
Entrepreneurs (Factor of Production) -CORRECT ANSWER ✔✔those who accept risk and
opportunity to start a new business
Physical Resources (Factor of Production) -CORRECT ANSWER ✔✔(touchable)- raw material,
officess, buildings, supplies, storage, and equipment
Informational Resources (Factor of Production) -CORRECT ANSWER ✔✔Data used for forecasts
& projections
Types of Economic Systems -CORRECT ANSWER ✔✔Planned economy, market economy, mixed
market economy, and privatization.
Planned Economy -CORRECT ANSWER ✔✔Economy that relies on a centralized government to
control all or most factors of production and to make all or most production and allocation
decisions
-Communism, socialism (gov owns/operates select major industries)
Market Economy -CORRECT ANSWER ✔✔Individual producers and consumers control
production and allocation by creating combinations of supply and demand
-Exchange between buyers and sellers (rely on capitalism and free enterprise to create an
environment to buy/sell what they choose)
Mixed Market Economy -CORRECT ANSWER ✔✔Features characteristics of both planned and
market economies
