MGG 150: Business and Society Exam
#1 questions well answered 2025/2026
Free enterprise
Individuals are free to - correct answer ✔✔decide what to produce, how to produce it, at what
price to sell it
Why Study Business? - correct answer ✔✔For help in choosing a career, To be a successful
employee, To improve your management skills, To start your own business, To become a better
informed consumer
and investor
What Is Business? - correct answer ✔✔The organized effort of individuals to produce and sell,
for a profit, the goods and services that satisfy society's needs
Classification of Businesses - correct answer ✔✔Service and Manufacturing businesses and
marketing intermediaries
Service Businesses - correct answer ✔✔Produce services, such as haircuts, legal advice, or tax
preparation (Ex. H&R Block)
Manufacturing businesses - correct answer ✔✔Process various materials into tangible goods
(Ex. Intel)
Marketing intermediaries - correct answer ✔✔Buy products from manufacturers and then resell
them (Ex. sony)
,What is e-Business? - correct answer ✔✔The organized effort of individuals to produce and sell
for a profit, the goods and services that satisfy society's needs through the facilities available on
the Internet
e-business has become? - correct answer ✔✔An accepted method for conducting business and
a way for businesses to increase sales and profit and reduce expense.
Profit - correct answer ✔✔remains after all business expenses have been deducted from sales
revenue
Expense - correct answer ✔✔Money owed/spent
negative profit - correct answer ✔✔when a firm's expenses are greater than its revenues
Function of profit - correct answer ✔✔Reward for producing goods and services that people
want
Compensation for assuming the risk of ownership - correct answer ✔✔Risk of not receiving
payment, Risk of losing investment
Stakeholders - correct answer ✔✔different people or groups of people who are affected by the
policies and decisions made by an organization
Stakeholders include? - correct answer ✔✔Consumers, Marketing, intermediaries,
Stockholders, Employees
Economics - correct answer ✔✔the study of how wealth (anything of value) is created and
distributed
,Microeconomics - correct answer ✔✔the study of the decisions made by individuals and
businesses
Macroeconomics - correct answer ✔✔the study of the national and global economies
Factors of production - correct answer ✔✔are the resources used to produce goods and
services
Land and natural resource - correct answer ✔✔elements that can be used in the production
process
Labor - correct answer ✔✔time and effort used to produce goods and services
Capital - correct answer ✔✔money, facilities, equipment, and machines used in the operation
of organizations
Entrepreneurship - correct answer ✔✔activity that organizes land and natural resources, labor,
and capital
entrepreneur - correct answer ✔✔a person who risks his or her time, effort, and money to start
and operate a business
Capitalism - correct answer ✔✔an economic system in which individuals own and operate the
majority of businesses that provide goods and services
Invisible Hand - correct answer ✔✔A term created by Adam Smith to describe how an
individual's own personal gain benefits others and a nation's economy
, Laissez-faire - correct answer ✔✔Smith's capitalistic system implies that there should be no
government interference in the economy, means "let them do" (as they see fit), based on the
concept of a market economy
market economy - correct answer ✔✔economic system in which businesses and individuals
decide what to produce and buy and the market determines prices and quantities sold
Mixed economy - correct answer ✔✔one that exhibits elements of both capitalism and
socialism and the four basic economic questions (what, how, for whom, and who) are answered
through the interaction of:
Households
Businesses
Governments
In a mixed economy, the four basic economic questions (what, how, for whom, and who) are
answered through the interaction of - correct answer ✔✔Households, Businesses,
Governments
Households interactions in a mixed economy - correct answer ✔✔Consume goods and services,
Own resources of some factors of production and Consumer products
Consumer products - correct answer ✔✔goods and services purchased by individuals for
personal consumption
Businesses interactions in a mixed economy - correct answer ✔✔Produce goods and services to
exchange for revenues (money), Use revenues to purchase factors of production
Government interactions in a mixed economy - correct answer ✔✔Provides public services in
exchange for taxes
#1 questions well answered 2025/2026
Free enterprise
Individuals are free to - correct answer ✔✔decide what to produce, how to produce it, at what
price to sell it
Why Study Business? - correct answer ✔✔For help in choosing a career, To be a successful
employee, To improve your management skills, To start your own business, To become a better
informed consumer
and investor
What Is Business? - correct answer ✔✔The organized effort of individuals to produce and sell,
for a profit, the goods and services that satisfy society's needs
Classification of Businesses - correct answer ✔✔Service and Manufacturing businesses and
marketing intermediaries
Service Businesses - correct answer ✔✔Produce services, such as haircuts, legal advice, or tax
preparation (Ex. H&R Block)
Manufacturing businesses - correct answer ✔✔Process various materials into tangible goods
(Ex. Intel)
Marketing intermediaries - correct answer ✔✔Buy products from manufacturers and then resell
them (Ex. sony)
,What is e-Business? - correct answer ✔✔The organized effort of individuals to produce and sell
for a profit, the goods and services that satisfy society's needs through the facilities available on
the Internet
e-business has become? - correct answer ✔✔An accepted method for conducting business and
a way for businesses to increase sales and profit and reduce expense.
Profit - correct answer ✔✔remains after all business expenses have been deducted from sales
revenue
Expense - correct answer ✔✔Money owed/spent
negative profit - correct answer ✔✔when a firm's expenses are greater than its revenues
Function of profit - correct answer ✔✔Reward for producing goods and services that people
want
Compensation for assuming the risk of ownership - correct answer ✔✔Risk of not receiving
payment, Risk of losing investment
Stakeholders - correct answer ✔✔different people or groups of people who are affected by the
policies and decisions made by an organization
Stakeholders include? - correct answer ✔✔Consumers, Marketing, intermediaries,
Stockholders, Employees
Economics - correct answer ✔✔the study of how wealth (anything of value) is created and
distributed
,Microeconomics - correct answer ✔✔the study of the decisions made by individuals and
businesses
Macroeconomics - correct answer ✔✔the study of the national and global economies
Factors of production - correct answer ✔✔are the resources used to produce goods and
services
Land and natural resource - correct answer ✔✔elements that can be used in the production
process
Labor - correct answer ✔✔time and effort used to produce goods and services
Capital - correct answer ✔✔money, facilities, equipment, and machines used in the operation
of organizations
Entrepreneurship - correct answer ✔✔activity that organizes land and natural resources, labor,
and capital
entrepreneur - correct answer ✔✔a person who risks his or her time, effort, and money to start
and operate a business
Capitalism - correct answer ✔✔an economic system in which individuals own and operate the
majority of businesses that provide goods and services
Invisible Hand - correct answer ✔✔A term created by Adam Smith to describe how an
individual's own personal gain benefits others and a nation's economy
, Laissez-faire - correct answer ✔✔Smith's capitalistic system implies that there should be no
government interference in the economy, means "let them do" (as they see fit), based on the
concept of a market economy
market economy - correct answer ✔✔economic system in which businesses and individuals
decide what to produce and buy and the market determines prices and quantities sold
Mixed economy - correct answer ✔✔one that exhibits elements of both capitalism and
socialism and the four basic economic questions (what, how, for whom, and who) are answered
through the interaction of:
Households
Businesses
Governments
In a mixed economy, the four basic economic questions (what, how, for whom, and who) are
answered through the interaction of - correct answer ✔✔Households, Businesses,
Governments
Households interactions in a mixed economy - correct answer ✔✔Consume goods and services,
Own resources of some factors of production and Consumer products
Consumer products - correct answer ✔✔goods and services purchased by individuals for
personal consumption
Businesses interactions in a mixed economy - correct answer ✔✔Produce goods and services to
exchange for revenues (money), Use revenues to purchase factors of production
Government interactions in a mixed economy - correct answer ✔✔Provides public services in
exchange for taxes
