BUS 101 EXAM #1 - CHAPTERS 1-5 QUESTIONS WITH VERIFIED ANSWERS LATEST UPDATE 2026
tangible products - Answers goods (ex. shoes, vegetables, phones)
intangible products - Answers services (ex. health care, education)
mission statement - Answers powerful, short description of a business's purpose; broadly focused to
ensure endurance, and must be flexible
vision statement - Answers company's "road map"; points to future and where business is trying to
go
stakeholders - Answers All the people who stand to gain or lose by the policies and activities of a
business
primary stakeholders - Answers owners, employees, customers
scarce - Answers too few goods & resources to satisfy the wants of all individuals
factors of production - Answers land, labor, capital, & entrepreneurial ability (all scarce; limited in
supply)
opportunity cost - Answers benefit, profit, value of something that must be given up to
acquire/achieve something else
(ex. 60k/yr job offer vs. starting own company - 60k is the opportunity cost)
positive incentive - Answers increases the benefit of making a decision, making the choice more likely
(ex. lowering a price)
negative incentive - Answers an incentive that either increases costs or reduces benefits, making
choice less likely (ex. a tax)
marginal - Answers what will be added to what was there before (ex. marginal revenue is the
additional $$ made by producing one more unit of a good/service)
positive sum game - Answers trading a good or service; creates new wealth; buyer & seller are better
off
framing - Answers the way a choice is posed to customer/decision-maker; can significantly affect
decisions and judgments.
SWOT analysis - Answers strengths, weaknesses, opportunities, threats
information technology - Answers systems, processes, & tools that enable organizations to collect,
store, retrieve, analyze, & share data/the info obtained from it
cookie - Answers file that a website you visit sends to your browser (collects info)
big data - Answers describes customer purchasing habit data & their analysis; the amount of data
they contain & how quickly this data is gathered
cloud - Answers form of data storage & computing that is accessed via Internet
business analytics*** - Answers used to convert massive data amounts into info that can be used to
meet customer needs more fully; involves building analysis models + stimulants to create scenarios,
predict future states, & understand realities
cybersecurity*** - Answers actions organizations take to protect data + info from hackers (3 MILLION
JOBS)
e-commerce - Answers selling products electronically online
telecommute - Answers work from home by accessing the internet
learning management systems - Answers online platforms that enable two-way communication;
delivers content to students, allow students to submit stuff + view grades
personal brand - Answers thinking of yourself as a brand
internet of things*** - Answers connections of a variety of devices to the Internet
virtual private network (VPN) - Answers encrypts any data that the user sends
voice over internet protocol - Answers technology to place phone calls using internet
offshoring - Answers locating production facilities in other countries
organizational culture - Answers system of shared assumptions, values, & beliefs that govern how
people behave within an organization
corporate strategy - Answers direction an organization takes with the objective of achieving business
success
core competency - Answers source of firm's competitive advantage
concentration strategy - Answers focus on a single business and compete in a single industry
forward vertical integration - Answers selling products themselves (ex. Apple, chain of retail stores)
backward vertical integration - Answers manufacturing own products (ex. Rolex)
shirking - Answers maximizing personal gains
tangible products - Answers goods (ex. shoes, vegetables, phones)
intangible products - Answers services (ex. health care, education)
mission statement - Answers powerful, short description of a business's purpose; broadly focused to
ensure endurance, and must be flexible
vision statement - Answers company's "road map"; points to future and where business is trying to
go
stakeholders - Answers All the people who stand to gain or lose by the policies and activities of a
business
primary stakeholders - Answers owners, employees, customers
scarce - Answers too few goods & resources to satisfy the wants of all individuals
factors of production - Answers land, labor, capital, & entrepreneurial ability (all scarce; limited in
supply)
opportunity cost - Answers benefit, profit, value of something that must be given up to
acquire/achieve something else
(ex. 60k/yr job offer vs. starting own company - 60k is the opportunity cost)
positive incentive - Answers increases the benefit of making a decision, making the choice more likely
(ex. lowering a price)
negative incentive - Answers an incentive that either increases costs or reduces benefits, making
choice less likely (ex. a tax)
marginal - Answers what will be added to what was there before (ex. marginal revenue is the
additional $$ made by producing one more unit of a good/service)
positive sum game - Answers trading a good or service; creates new wealth; buyer & seller are better
off
framing - Answers the way a choice is posed to customer/decision-maker; can significantly affect
decisions and judgments.
SWOT analysis - Answers strengths, weaknesses, opportunities, threats
information technology - Answers systems, processes, & tools that enable organizations to collect,
store, retrieve, analyze, & share data/the info obtained from it
cookie - Answers file that a website you visit sends to your browser (collects info)
big data - Answers describes customer purchasing habit data & their analysis; the amount of data
they contain & how quickly this data is gathered
cloud - Answers form of data storage & computing that is accessed via Internet
business analytics*** - Answers used to convert massive data amounts into info that can be used to
meet customer needs more fully; involves building analysis models + stimulants to create scenarios,
predict future states, & understand realities
cybersecurity*** - Answers actions organizations take to protect data + info from hackers (3 MILLION
JOBS)
e-commerce - Answers selling products electronically online
telecommute - Answers work from home by accessing the internet
learning management systems - Answers online platforms that enable two-way communication;
delivers content to students, allow students to submit stuff + view grades
personal brand - Answers thinking of yourself as a brand
internet of things*** - Answers connections of a variety of devices to the Internet
virtual private network (VPN) - Answers encrypts any data that the user sends
voice over internet protocol - Answers technology to place phone calls using internet
offshoring - Answers locating production facilities in other countries
organizational culture - Answers system of shared assumptions, values, & beliefs that govern how
people behave within an organization
corporate strategy - Answers direction an organization takes with the objective of achieving business
success
core competency - Answers source of firm's competitive advantage
concentration strategy - Answers focus on a single business and compete in a single industry
forward vertical integration - Answers selling products themselves (ex. Apple, chain of retail stores)
backward vertical integration - Answers manufacturing own products (ex. Rolex)
shirking - Answers maximizing personal gains
