Business Studies Final Exam 2026 – Questions and Correct Answer.

Business Studies Final Exam 2026 – Questions and Correct Answer. business Any activity that seeks to provide goods and services to others while operating at a profit. profit The amount of money a business earns above and beyond what it spends for salaries and other expenses. entrepreneur A person who risks time and money to start and manage a business. revenue The total amount of money a business takes in during a given period by selling goods and services. loss When a business's expenses are more than its revenues. risk The chance an entrepreneur takes of losing time and money on a business that may not prove profitable. Standard Of Living The amount of goods and services people can buy with money they have. Quality Of Life The general well-being of a society in terms of political freedom, a clean natural environment, education, health care, safety, free time, and everything else that leads to satisfaction and joy. stakeholders All the people who stand to gain or lose by the policies and activities of a business. Nonprofit Organization An organization whose goals do not include making a personal profit for its owners or organizers. Factors Of Production The resources used to create wealth: land, labor, capital, entrepreneurship, and knowledge. Business Environment The surrounding factors that either help or hinder the development of business. technology Everything from phones and copiers to computers, medical imaging devices, personal digital assistants, and the various software programs that make business processes more efficient and productive. productivity The amount of output you generate given the amount of input (e.g., hours worked). e-commerce The buying and selling of goods over the internet. database An electronic storage file where information is kept; one use of databases is to store vast amounts of information about consumers. empowerment Giving frontline workers the responsibility, and freedom to respond quickly to customer requests. demography The statistical study of the human population with regard to its size, density, and other characteristics such as age, race, gender, and income. goods Tangible products such as computers, food, clothing, cars, and appliances. services Intangible products (i.e., products that can't be held in your hand) such as education, health care, insurance, recreation, and travel and tourism. outsourcing assigning various functions, such as accounting, production, security, maintenance, and legal work to outside organizations Climate Change the movement of the temperature of the planet up or down over time Greening The trend toward saving energy and producing products that cause less harm to the environment Identity Theft the obtaining of individuals' personal information, such as Social Security and credit card numbers, for illegal purposes Economics The study of how society chooses to employ resources to produce goods and services and distribute them for consumption amoung various competing groups and individuals Resource development The study of how to increase resources and to create the conditions that will make better use of those resources Invisible hand A phrase coined by Adam Smith to describe the process that turns self-directed gain into social economic benefits for all Capitalism An economic system in which all or most of the factors of production and distribution are privately owned and operated for profit a Business cycles The periodic rises and falls that occur in economies over time Recession Two or more consecutive quarters of decline in the GDP Depression A severe recession, usually accompanied by inflation Fiscal policy The federal governments efforts to keep the economy stable by increasing or decreasing taxes or government spending Keynesian economic theory The theory that a government policy of increasing spending and cutting taxes could stimulate the economy in a recession Monetary policy The management of the money supply and interest rates by the Federal Reserve importing buying products from oanoter country exporting selling products to another country free trade the movement of goods and services among nations without political or economic barriers comparative advantage theory theory that states that a country should sell to tother countries those products that it produces most effectviely and efficiently and buy from other countries those products that it cannot produce as effectively/efficiently absolute advantage the advantage that exists when a country has a monopoly on producing a specific product or is able to produce it more effciently than all other countries balance of trade the total value of a nation's exports compared to its imports measured over a particular period trade surplus a favorable balance of trade, occurs when the value of a country's exports that of its imports trade deficit an unfavorable balance of trade, occurs when the value of a country's imports exceeds that of its exports balance of payments difference between money coming into a country (from exports) and money leaving the country (from imports) plus money flows from other factors such as tourism, foreign aid, military expenditures, and foreign investment dumping selling products in a foregin country at lower prices than those charged in the producing country licensing a global strategy in which a firm (the licensor) allows a foreign company (the licensee) to produce its product in exchange for a fee (royalty) contract manufacturing foreign country's production of a private label goods to which a domestic company then attaches its brand name or trademark, part of the broad category of outsourcing joint venture a partnership in which two or more companies (often from different countries) join to undertake a major project strategic alliance long term partnership between two or more companies established to help each company build competitive market advantages foreign direct investment (FDI) buying of permanent property and businesses in foreign nations foreign subsidiary company owned in a foreign country by another company, called the parent company multinational corportation an organization that manufactures and markets products in many countries and has multinational stock ownership and multinational management sovereign wealth funds (SWFs) investment funds controlled by governments holding large stakes in foreign companies exchange rate value of one nation's currency relative to the currencies of other countries devaluation lowering the value of a nation's currency relative to other currencies countertrading a complex form of bartering in which several countries may be involved, each trading goods for goods or services for services trade protectionism the use of government regulations to limit the import of goods and services tariff a tax imposed on imports import quota a limit on the number of products in certain categories taht a nation can import embargo a complete ban on the import or export of a certain product, or stopping of all trade with a particular country General agreement on tariffs and trade (GATT) 1948 agreement that established an international forum for negotiating mutual reductions in trade restrictions World trade organization (WTO) international organization that replaced the GATT and was assigned te duty to mediate trade disputes among nations common market regional group of countries that have common external tariff, no internal tariffs, and a coordination of laws to facilitate exchange, also called a trading bloc. (European Union) North American free trade agreement (NAFTA) agreement that created free trade area among US, Canada, and Mexico