Business Management Exam |
Questions And Answers | Latest Exam
2026-2027 | Graded A+
cwerBusiness -ANSWER The organized effort of individuals to produce and sell, for a
profit, the goods and services that satisfy society's needs.
What are the four resources a business needs in order to be successful? -ANSWER
Human resources, material resources, informational resources, and financial resources.
What do service businesses do? -ANSWER They provide services.
Ex: Haircuts, legal advice, tax preparation, etc.
Intermediary -ANSWER Go-between; mediator.
Are businesses that understand customer needs, and work to satisfy those needs
successful? -ANSWER Yes
Profit -ANSWER The remains after all business expenses have been deducted from
sales revenue.
What is the formula for profit? -ANSWER Sales revenue - expenses
Economics -ANSWER The study of how wealth is created and distributed.
Economy -ANSWER The system through which a society creates and distributes wealth.
Capitalism -ANSWER A system in which individuals own and operate the majority of
businesses that provide goods and services.
Socialism -ANSWER A system in which the government owns and controls the means of
production.
Communism -ANSWER A system where factors of production are owned and directed by
the state.
What type of economy is the U.S.? -ANSWER Capitalist
Why is the U.S. a mixed economy? -ANSWER They include both capitalism and
socialism.
,What do businesses purchase after they sell their goods and services? -ANSWER
Factors of production.
Factors of Production -ANSWER Land, labor, and capital.
What does the government do in exchange for taxes? -ANSWER They provide public
services not provided by businesses.
Ex: Law Enforcement
Command Economy -ANSWER An economic system in which the government controls a
country's economy.
What type of economies are in command economy? -ANSWER Socialism and
communism.
Competition -ANSWER Competing on sales for potential customers.
Pure Competition -ANSWER Large number of small that businesses that sell the same
type of products with the same characteristics.
What are some characteristics of a pure competition? -ANSWER - It is easy to enter
leave the market
- All prices are basically the same
Supply -ANSWER Quantity of a product producers are willing to sell.
Demand -ANSWER Quantity of a product buyers are willing to purchase.
Market Price (equilibrium) -ANSWER The price at which the amount that buyers wish to
buy equals the amount that sellers wish to sell.
Monopoly Competition -ANSWER A one seller market.
What are some characteristics of a monopoly competition? -ANSWER - No competition
- Great degree of power
- Power of pricing
- Hard to enter and leave the mark
Monopolistic Competition -ANSWER A large number of small businesses that sell similar
products.
What are some characteristics of a monopolistic competition? -ANSWER - Similar
products, different characteristics.
- Good degree of information (not perfect though).
- Most common type of market.
, - Easy to enter and leave the market.
Oligopoly -ANSWER A few large business that sell identical or very similar products.
Ex: Automobiles, oil industries, etc.
What are some characteristics of a oligopoly competition? -ANSWER - Sizable
investment needed to enter.
- Compete on price and characteristics.
Barter System -ANSWER A system in which people buy and sell goods by exchanging
one item for another; no money is involved.
Domestic System -ANSWER The manufacture of goods in the household setting; a
production system that gave way to the factory system.
Factory System -ANSWER A method of production that brought many workers and
machines together into one place.
Specialization -ANSWER In production, a system in which each worker performs a single
part of an entire process.
Service Economy -ANSWER An economy in which more effort is devoted to the
production of services than to the production of goods.
Ethics -ANSWER A system of moral principles.
Business Ethics -ANSWER The application of moral standards to business situations.
Fairness and Honesty -ANSWER Business people are expected to refrain from knowingly
deceiving, misrepresenting, or intimidating others.
Organizational Relationships -ANSWER Business people should put the welfare of others
and the company above their own welfare.
Conflict of Interest -ANSWER Situation in which an employee must choose between a
business's welfare and personal gain.
Communications -ANSWER Business communications that are false, misleading, or
deceptive are both illegal and unethical.
What are some examples of external influence that encourage ethical behavior? -
ANSWER - Governmental
- Trade Association
Questions And Answers | Latest Exam
2026-2027 | Graded A+
cwerBusiness -ANSWER The organized effort of individuals to produce and sell, for a
profit, the goods and services that satisfy society's needs.
What are the four resources a business needs in order to be successful? -ANSWER
Human resources, material resources, informational resources, and financial resources.
What do service businesses do? -ANSWER They provide services.
Ex: Haircuts, legal advice, tax preparation, etc.
Intermediary -ANSWER Go-between; mediator.
Are businesses that understand customer needs, and work to satisfy those needs
successful? -ANSWER Yes
Profit -ANSWER The remains after all business expenses have been deducted from
sales revenue.
What is the formula for profit? -ANSWER Sales revenue - expenses
Economics -ANSWER The study of how wealth is created and distributed.
Economy -ANSWER The system through which a society creates and distributes wealth.
Capitalism -ANSWER A system in which individuals own and operate the majority of
businesses that provide goods and services.
Socialism -ANSWER A system in which the government owns and controls the means of
production.
Communism -ANSWER A system where factors of production are owned and directed by
the state.
What type of economy is the U.S.? -ANSWER Capitalist
Why is the U.S. a mixed economy? -ANSWER They include both capitalism and
socialism.
,What do businesses purchase after they sell their goods and services? -ANSWER
Factors of production.
Factors of Production -ANSWER Land, labor, and capital.
What does the government do in exchange for taxes? -ANSWER They provide public
services not provided by businesses.
Ex: Law Enforcement
Command Economy -ANSWER An economic system in which the government controls a
country's economy.
What type of economies are in command economy? -ANSWER Socialism and
communism.
Competition -ANSWER Competing on sales for potential customers.
Pure Competition -ANSWER Large number of small that businesses that sell the same
type of products with the same characteristics.
What are some characteristics of a pure competition? -ANSWER - It is easy to enter
leave the market
- All prices are basically the same
Supply -ANSWER Quantity of a product producers are willing to sell.
Demand -ANSWER Quantity of a product buyers are willing to purchase.
Market Price (equilibrium) -ANSWER The price at which the amount that buyers wish to
buy equals the amount that sellers wish to sell.
Monopoly Competition -ANSWER A one seller market.
What are some characteristics of a monopoly competition? -ANSWER - No competition
- Great degree of power
- Power of pricing
- Hard to enter and leave the mark
Monopolistic Competition -ANSWER A large number of small businesses that sell similar
products.
What are some characteristics of a monopolistic competition? -ANSWER - Similar
products, different characteristics.
- Good degree of information (not perfect though).
- Most common type of market.
, - Easy to enter and leave the market.
Oligopoly -ANSWER A few large business that sell identical or very similar products.
Ex: Automobiles, oil industries, etc.
What are some characteristics of a oligopoly competition? -ANSWER - Sizable
investment needed to enter.
- Compete on price and characteristics.
Barter System -ANSWER A system in which people buy and sell goods by exchanging
one item for another; no money is involved.
Domestic System -ANSWER The manufacture of goods in the household setting; a
production system that gave way to the factory system.
Factory System -ANSWER A method of production that brought many workers and
machines together into one place.
Specialization -ANSWER In production, a system in which each worker performs a single
part of an entire process.
Service Economy -ANSWER An economy in which more effort is devoted to the
production of services than to the production of goods.
Ethics -ANSWER A system of moral principles.
Business Ethics -ANSWER The application of moral standards to business situations.
Fairness and Honesty -ANSWER Business people are expected to refrain from knowingly
deceiving, misrepresenting, or intimidating others.
Organizational Relationships -ANSWER Business people should put the welfare of others
and the company above their own welfare.
Conflict of Interest -ANSWER Situation in which an employee must choose between a
business's welfare and personal gain.
Communications -ANSWER Business communications that are false, misleading, or
deceptive are both illegal and unethical.
What are some examples of external influence that encourage ethical behavior? -
ANSWER - Governmental
- Trade Association
