MGT 100 Midterm Review Questions with Correct Answers Latest Update 2025/2026
Competitive Differentiation - Answers unique combination of organizational abilities, products,
and approaches that sets a company apart from competitors in the minds of customers
Business - Answers Profit-seeking enterprises that provide goods and services
Profit - Answers Rewards for business who takes the risks involved to offer goods and services
(Revenue-Expense)
Not-for-Profit Organization - Answers Organizations whose primary aims are public service, not
returning a profit to owners (can be private or public-sector)
Factors of production - Answers natural resources, capital, human resources, and
entrepreneurship
Private Enterprise System (aka. Capitalism, Market Economy) - Answers an economic system
that rewards firms for their ability to identify and serve the needs and demands of customers
Communism - Answers Government owns and operates all industries
Socialism - Answers Government owns and operates major sources of production
Privatization - Answers The transfer of activities from the government to the private sector.
Deregulation - Answers A reduction in the number of laws affecting business activity.
Gross Domestic Product (GDP) - Answers the total value of all finished goods and services
produced within a country during a specific time period, often annually
Productivity - Answers a measure of economic growth that compares how much a system
produces with the resources needed to produce it
Consumer Price Index (CPI) - Answers measurement of the monthly average change in prices of
goods and services
Fiscal policies - Answers Policies whereby governments collect and spend revenues.
Budget deficit - Answers Government expenses > Government Revenue
National debt - Answers The total amount of money that a country owes its creditors
Limited Liability Partnership (LLP) - Answers A partnership that limits partners' risk of losing
their personal assets to only their own acts (mistakes), and to the acts of people under them
Public corporation - Answers 上市公司 Corporation that issues shares to the public, listed on a
stock exchange
Competitive Differentiation - Answers unique combination of organizational abilities, products,
and approaches that sets a company apart from competitors in the minds of customers
Business - Answers Profit-seeking enterprises that provide goods and services
Profit - Answers Rewards for business who takes the risks involved to offer goods and services
(Revenue-Expense)
Not-for-Profit Organization - Answers Organizations whose primary aims are public service, not
returning a profit to owners (can be private or public-sector)
Factors of production - Answers natural resources, capital, human resources, and
entrepreneurship
Private Enterprise System (aka. Capitalism, Market Economy) - Answers an economic system
that rewards firms for their ability to identify and serve the needs and demands of customers
Communism - Answers Government owns and operates all industries
Socialism - Answers Government owns and operates major sources of production
Privatization - Answers The transfer of activities from the government to the private sector.
Deregulation - Answers A reduction in the number of laws affecting business activity.
Gross Domestic Product (GDP) - Answers the total value of all finished goods and services
produced within a country during a specific time period, often annually
Productivity - Answers a measure of economic growth that compares how much a system
produces with the resources needed to produce it
Consumer Price Index (CPI) - Answers measurement of the monthly average change in prices of
goods and services
Fiscal policies - Answers Policies whereby governments collect and spend revenues.
Budget deficit - Answers Government expenses > Government Revenue
National debt - Answers The total amount of money that a country owes its creditors
Limited Liability Partnership (LLP) - Answers A partnership that limits partners' risk of losing
their personal assets to only their own acts (mistakes), and to the acts of people under them
Public corporation - Answers 上市公司 Corporation that issues shares to the public, listed on a
stock exchange
