BUS 100 Exam #1 – Chapters 1–5 – Introduction to Business – 2026 – Study and
Practice Guide
Goods - correct answer ✔✔ tangible products
services - correct answer ✔✔ untangle objects
Business - correct answer ✔✔ an activity by providing goods and services while creating profit
revenue - correct answer ✔✔ total amount of money obtained in a certain period
profit - correct answer ✔✔ money earned after expense
loss - correct answer ✔✔ when expense are more that revenue
risk - correct answer ✔✔ the chance an entrepreneur takes of losing time and money on a
business that may not prove profitable
standard of living - correct answer ✔✔ the amount of goods and services people can buy with
the money they have
stakeholders - correct answer ✔✔ All the people who stand to gain or lose by the policies and
activities of a business and whose concerns the business needs to address.
5 factors of production - correct answer ✔✔ land, labor, capital, entrepreneurship, knowledge
effectivesness - correct answer ✔✔ producing the desired results
, Effeciency - correct answer ✔✔ ability to accomplish a task with minimal effort and time
Empowerment - correct answer ✔✔ giving frontline workers the responsibility, authority,
freedom, training, and equipment they need to respond quickly to customer requests
Important changes to the global environment - correct answer ✔✔ 1. Growth of global
competition
2. Increase of free trade among nations
3. Development of efficient distribution systems
4. Advances in communication systems
increasing costs of the global environment - correct answer ✔✔ 1. Wars cost billions of dollars.
2. Tax money is diverted.
3. Cost of security goes up.
4. Cost of insurance goes up.
Service Era - correct answer ✔✔ 1. Make up over 70% of the U.S. economy
2. since mid-1980s service industry generated almost all the increases in employment
3. more high-paying jobs in service industries
Resource Development - correct answer ✔✔ the study of how to increase resources and to
create the conditions that will make better use of those resources
dismal science - correct answer ✔✔ if rich had most of wealth and poor had the most of the
population then resources would run out
Practice Guide
Goods - correct answer ✔✔ tangible products
services - correct answer ✔✔ untangle objects
Business - correct answer ✔✔ an activity by providing goods and services while creating profit
revenue - correct answer ✔✔ total amount of money obtained in a certain period
profit - correct answer ✔✔ money earned after expense
loss - correct answer ✔✔ when expense are more that revenue
risk - correct answer ✔✔ the chance an entrepreneur takes of losing time and money on a
business that may not prove profitable
standard of living - correct answer ✔✔ the amount of goods and services people can buy with
the money they have
stakeholders - correct answer ✔✔ All the people who stand to gain or lose by the policies and
activities of a business and whose concerns the business needs to address.
5 factors of production - correct answer ✔✔ land, labor, capital, entrepreneurship, knowledge
effectivesness - correct answer ✔✔ producing the desired results
, Effeciency - correct answer ✔✔ ability to accomplish a task with minimal effort and time
Empowerment - correct answer ✔✔ giving frontline workers the responsibility, authority,
freedom, training, and equipment they need to respond quickly to customer requests
Important changes to the global environment - correct answer ✔✔ 1. Growth of global
competition
2. Increase of free trade among nations
3. Development of efficient distribution systems
4. Advances in communication systems
increasing costs of the global environment - correct answer ✔✔ 1. Wars cost billions of dollars.
2. Tax money is diverted.
3. Cost of security goes up.
4. Cost of insurance goes up.
Service Era - correct answer ✔✔ 1. Make up over 70% of the U.S. economy
2. since mid-1980s service industry generated almost all the increases in employment
3. more high-paying jobs in service industries
Resource Development - correct answer ✔✔ the study of how to increase resources and to
create the conditions that will make better use of those resources
dismal science - correct answer ✔✔ if rich had most of wealth and poor had the most of the
population then resources would run out
