BAM101 MIDTERM questions and
answers rated A+
External Environment - ANS ✔factors beyond an organization boundary that cannot be
controlled
Organizational Boundaries - ANS ✔that which separates the organization from its environment
Standard of living - ANS ✔total quantity & quality of goods and services that a country's citizens
can purchase with their currency
Forms of Business Organizations - ANS ✔-Sole proprietorship
- partnership
-corporation
-cooperative
Two types of partnerships - ANS ✔General and limited partnership
Partnership - ANS ✔two or more people agree to combine their financial, managerial &
technical abilities to run business
Input market - ANS ✔firms buys resources from households
Influences on ethical behaviour - ANS ✔-family
-peers
-experiences
, Triple bottom line reporting - ANS ✔-financial reports
-social audits
-sustainability reports
Define starting up a small business - ANS ✔-buying an already existing business
-taking over a family business
-buying a franchise
Reasons for business failure - ANS ✔-managerial incompetence
-neglect
-weak control systems
-insufficient capital
Reasons for business success - ANS ✔-hard work
-market demand for product
-managerial competence
-luck
Economic stability - ANS ✔condition when the amount of money available and the quantity of
goods and services produced are growing at the same rate
National Debt - ANS ✔-amount of money that a government owes its creditors
-increases/decreases based on the budget deficit/surplus
Output market - ANS ✔households buy goods and services from firms
answers rated A+
External Environment - ANS ✔factors beyond an organization boundary that cannot be
controlled
Organizational Boundaries - ANS ✔that which separates the organization from its environment
Standard of living - ANS ✔total quantity & quality of goods and services that a country's citizens
can purchase with their currency
Forms of Business Organizations - ANS ✔-Sole proprietorship
- partnership
-corporation
-cooperative
Two types of partnerships - ANS ✔General and limited partnership
Partnership - ANS ✔two or more people agree to combine their financial, managerial &
technical abilities to run business
Input market - ANS ✔firms buys resources from households
Influences on ethical behaviour - ANS ✔-family
-peers
-experiences
, Triple bottom line reporting - ANS ✔-financial reports
-social audits
-sustainability reports
Define starting up a small business - ANS ✔-buying an already existing business
-taking over a family business
-buying a franchise
Reasons for business failure - ANS ✔-managerial incompetence
-neglect
-weak control systems
-insufficient capital
Reasons for business success - ANS ✔-hard work
-market demand for product
-managerial competence
-luck
Economic stability - ANS ✔condition when the amount of money available and the quantity of
goods and services produced are growing at the same rate
National Debt - ANS ✔-amount of money that a government owes its creditors
-increases/decreases based on the budget deficit/surplus
Output market - ANS ✔households buy goods and services from firms
