FBLA Introduction to Business Procedures (Complete) [States]| | Questions and Answers | 2026 Update | Graded +.
Business ✔️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? ✔️Human resources, material resources, informational resources, and
financial resources.
What do manufacturing businesses do? ✔️They process various materials.
What do service businesses do? ✔️They provide services.
(Used as it is purchased)
(Ex: Haircuts, legal advice, tax preparation, etc.)
What do marketing intermediaries do? ✔️Buy products and resell them (retailers).
Intermediary ✔️Go-between; mediator.
Are businesses that understand customer needs, and work to satisfy those needs successful? ✔️Yes
Profit ✔️The remains after all business expenses have been deducted from sales revenue.
What is the formula for profit? ✔️Sales revenue - expenses
Economics ✔️The study of how wealth is created and distributed.
Microeconomics ✔️The study of the decisions made by individuals and businesses.
Macroeconomics ✔️The study on how the aggregate economy behaves.
(Ex: Inflation, price levels, rate of growth, national income, GDP, and changes in unemployment.)
Economy ✔️The system through which a society creates and distributes wealth.
Capitalism ✔️A system in which individuals own and operate the majority of businesses that provide goods and services.
Socialism ✔️A system in which the government owns and controls the means of production.
Communism ✔️A system where factors of production are owned and directed by the state.
What type of economy is the U.S.? ✔️Capitalist
Why is the U.S. a mixed economy? ✔️They include both capitalism and socialism.
What do businesses purchase after they sell their goods and services? ✔️Factors of production.
Factors of Production ✔️Land, labor, and capital.
What does the government do in exchange for taxes? ✔️They provide public services not provided by businesses.
(Ex: Law Enforcement, Public Education)
Command Economy ✔️An economic system in which the government controls a country's economy.
What type of economies are in command economy? ✔️Socialism and communism.
Competition ✔️Competing on sales for potential customers.
Pure Competition ✔️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? ✔️- It is easy to enter leave the market
- All prices are basically the same
Supply ✔️Quantity of a product producers are willing to sell.
Demand ✔️Quantity of a product buyers are willing to purchase.
Market Price (equilibrium) ✔️The price at which the amount that buyers wish to buy equals the amount that sellers wish to sell.
Monopoly Competition ✔️A one seller market.
What are some characteristics of a monopoly competition? ✔️- No competition
- Great degree of power
- Power of pricing
- Hard to enter and leave the mark
Monopolistic Competition ✔️A large number of small businesses that sell similar products.
What are some characteristics of a monopolistic competition? ✔️- Similar products, different characteristics.
- Good degree of information (not perfect though).
- Most common type of market.
- Easy to enter and leave the market.
Oligopoly ✔️A few large business that sell identical or very similar products.
(Ex: Automobiles, oil industries, tire companies, etc.)
What are some characteristics of a oligopoly competition? ✔️- Sizable investment needed to enter.
- Compete on price and characteristics.
Barter System ✔️A system in which people buy and sell goods by exchanging one item for another; no money is involved.
Domestic System ✔️The manufacture of goods in the household setting; a production system that gave way to the factory system.
Factory System ✔️A method of production that brought many workers and machines together into one place.
Specialization ✔️In production, a system in which each worker performs a single part of an entire process.
Service Economy ✔️An economy in which more effort is devoted to the production of services than to the production of goods.
Ethics ✔️A system of moral principles.
Business Ethics ✔️The application of moral standards to business situations.
Fairness and Honesty ✔️Business people are expected to refrain from knowingly deceiving, misrepresenting, or intimidating others.
Organizational Relationships ✔️Business people should put the welfare of others and the company above their own welfare.
Conflict of Interest ✔️Situation in which an employee must choose between a business's welfare and personal gain.
Communications ✔️Business communications that are false, misleading, or deceptive are both illegal and unethical.
What are some examples of external influence that encourage ethical behavior? ✔️- Governmental
- Trade Association
What are some examples of internal influence that encourage ethical behavior? ✔️- Code of Ethics
, - Employee Training
Whistle-Blowing ✔️Informing the press or government officials about unethical practices within one's organization.
Code of Ethics ✔️A set of guidelines for maintaining ethics in the workplace.
Social Responsibility ✔️The duty to do what is best for the good of society.
Note: Social responsibility costs money, but is also good for business.
Caveat Emptor ✔️"Let the buyer beware."
Why do people think businesses should engage in social responsibility? ✔️- Business is a part of society. Therefore, they cannot ignore social
issues.
- Businesses have the resources to tackle social issues.
- Businesses can create a stable environment for long-term profitability.
- It prevents increased government intervention.
Why don't people think businesses should engage in social responsibility? ✔️- The focus should be on providing a return on investments.
- Business resources should be used to maximize profits, not solve social issues.
- Problems affect society in general, so businesses should not be expected to solve them.
- Social issues are the responsibility of government officials.
The Right to Safety ✔️A product must be safe and should warn us of dangers.
The Right to be Informed ✔️Consumers have access to complete information about a product before they buy it.
The Right to Choose ✔️Consumers should have access to a variety of products and services at competitive prices.
The Right to be Heard ✔️Consumers have the right to complain about a product and to be listened to.
The Right to Consumer Education ✔️The right to be fully informed about their rights as consumers.
The Right to Courteous Service ✔️Consumers are entitled to convenience, courtesy, and responsiveness from manufacturers and sellers.
Minorities ✔️A group of people with physical or cultural traits different from those of the dominant group in the society.
Affirmative Action Programs (AAP) ✔️A program that requires companies doing business with the federal government hire minority, female, and
handicapped employees.
Pollution ✔️Contamination of Earth's land, water, and air.
Environmental Protection Agency (EPA) ✔️A federal agency that enforces laws affecting human and environmental health.
What are some land pollution problems? ✔️- How to restore contaminated land.
- How to protect unpolluted land.
- Shortage of landfill space for waste disposal.
- Incinerators help solve the landfill problem, but produce toxic ash.
- Other causes include strip-mining, cutting of forests, and using agriculture land for housing and industry.
Incinerators ✔️Facilities that burn trash at high temperatures.
What is a noise pollution problem? ✔️Excessive noise due to traffic, aircraft, and machinery.
What are some water pollution problems? ✔️- High levels of pollutants still remain.
Business ✔️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? ✔️Human resources, material resources, informational resources, and
financial resources.
What do manufacturing businesses do? ✔️They process various materials.
What do service businesses do? ✔️They provide services.
(Used as it is purchased)
(Ex: Haircuts, legal advice, tax preparation, etc.)
What do marketing intermediaries do? ✔️Buy products and resell them (retailers).
Intermediary ✔️Go-between; mediator.
Are businesses that understand customer needs, and work to satisfy those needs successful? ✔️Yes
Profit ✔️The remains after all business expenses have been deducted from sales revenue.
What is the formula for profit? ✔️Sales revenue - expenses
Economics ✔️The study of how wealth is created and distributed.
Microeconomics ✔️The study of the decisions made by individuals and businesses.
Macroeconomics ✔️The study on how the aggregate economy behaves.
(Ex: Inflation, price levels, rate of growth, national income, GDP, and changes in unemployment.)
Economy ✔️The system through which a society creates and distributes wealth.
Capitalism ✔️A system in which individuals own and operate the majority of businesses that provide goods and services.
Socialism ✔️A system in which the government owns and controls the means of production.
Communism ✔️A system where factors of production are owned and directed by the state.
What type of economy is the U.S.? ✔️Capitalist
Why is the U.S. a mixed economy? ✔️They include both capitalism and socialism.
What do businesses purchase after they sell their goods and services? ✔️Factors of production.
Factors of Production ✔️Land, labor, and capital.
What does the government do in exchange for taxes? ✔️They provide public services not provided by businesses.
(Ex: Law Enforcement, Public Education)
Command Economy ✔️An economic system in which the government controls a country's economy.
What type of economies are in command economy? ✔️Socialism and communism.
Competition ✔️Competing on sales for potential customers.
Pure Competition ✔️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? ✔️- It is easy to enter leave the market
- All prices are basically the same
Supply ✔️Quantity of a product producers are willing to sell.
Demand ✔️Quantity of a product buyers are willing to purchase.
Market Price (equilibrium) ✔️The price at which the amount that buyers wish to buy equals the amount that sellers wish to sell.
Monopoly Competition ✔️A one seller market.
What are some characteristics of a monopoly competition? ✔️- No competition
- Great degree of power
- Power of pricing
- Hard to enter and leave the mark
Monopolistic Competition ✔️A large number of small businesses that sell similar products.
What are some characteristics of a monopolistic competition? ✔️- Similar products, different characteristics.
- Good degree of information (not perfect though).
- Most common type of market.
- Easy to enter and leave the market.
Oligopoly ✔️A few large business that sell identical or very similar products.
(Ex: Automobiles, oil industries, tire companies, etc.)
What are some characteristics of a oligopoly competition? ✔️- Sizable investment needed to enter.
- Compete on price and characteristics.
Barter System ✔️A system in which people buy and sell goods by exchanging one item for another; no money is involved.
Domestic System ✔️The manufacture of goods in the household setting; a production system that gave way to the factory system.
Factory System ✔️A method of production that brought many workers and machines together into one place.
Specialization ✔️In production, a system in which each worker performs a single part of an entire process.
Service Economy ✔️An economy in which more effort is devoted to the production of services than to the production of goods.
Ethics ✔️A system of moral principles.
Business Ethics ✔️The application of moral standards to business situations.
Fairness and Honesty ✔️Business people are expected to refrain from knowingly deceiving, misrepresenting, or intimidating others.
Organizational Relationships ✔️Business people should put the welfare of others and the company above their own welfare.
Conflict of Interest ✔️Situation in which an employee must choose between a business's welfare and personal gain.
Communications ✔️Business communications that are false, misleading, or deceptive are both illegal and unethical.
What are some examples of external influence that encourage ethical behavior? ✔️- Governmental
- Trade Association
What are some examples of internal influence that encourage ethical behavior? ✔️- Code of Ethics
, - Employee Training
Whistle-Blowing ✔️Informing the press or government officials about unethical practices within one's organization.
Code of Ethics ✔️A set of guidelines for maintaining ethics in the workplace.
Social Responsibility ✔️The duty to do what is best for the good of society.
Note: Social responsibility costs money, but is also good for business.
Caveat Emptor ✔️"Let the buyer beware."
Why do people think businesses should engage in social responsibility? ✔️- Business is a part of society. Therefore, they cannot ignore social
issues.
- Businesses have the resources to tackle social issues.
- Businesses can create a stable environment for long-term profitability.
- It prevents increased government intervention.
Why don't people think businesses should engage in social responsibility? ✔️- The focus should be on providing a return on investments.
- Business resources should be used to maximize profits, not solve social issues.
- Problems affect society in general, so businesses should not be expected to solve them.
- Social issues are the responsibility of government officials.
The Right to Safety ✔️A product must be safe and should warn us of dangers.
The Right to be Informed ✔️Consumers have access to complete information about a product before they buy it.
The Right to Choose ✔️Consumers should have access to a variety of products and services at competitive prices.
The Right to be Heard ✔️Consumers have the right to complain about a product and to be listened to.
The Right to Consumer Education ✔️The right to be fully informed about their rights as consumers.
The Right to Courteous Service ✔️Consumers are entitled to convenience, courtesy, and responsiveness from manufacturers and sellers.
Minorities ✔️A group of people with physical or cultural traits different from those of the dominant group in the society.
Affirmative Action Programs (AAP) ✔️A program that requires companies doing business with the federal government hire minority, female, and
handicapped employees.
Pollution ✔️Contamination of Earth's land, water, and air.
Environmental Protection Agency (EPA) ✔️A federal agency that enforces laws affecting human and environmental health.
What are some land pollution problems? ✔️- How to restore contaminated land.
- How to protect unpolluted land.
- Shortage of landfill space for waste disposal.
- Incinerators help solve the landfill problem, but produce toxic ash.
- Other causes include strip-mining, cutting of forests, and using agriculture land for housing and industry.
Incinerators ✔️Facilities that burn trash at high temperatures.
What is a noise pollution problem? ✔️Excessive noise due to traffic, aircraft, and machinery.
What are some water pollution problems? ✔️- High levels of pollutants still remain.
