BUS 100 Exam – Chapters 1–4 – Introduction to Business – 2026 – Study and
Practice Guide
A business tries to earn a profit by providing ___________ and ___________ that satisfy
people's needs and wants. - correct answer ✔✔ goods, services
A product that is tangible and can be touched or held in your hand is: - correct answer ✔✔ a
good
An example of a service is: - correct answer ✔✔ a physical exam
Services can be defined as: - correct answer ✔✔ intangible products
An ___________ is a person who risks time and money to start and manage a business. - correct
answer ✔✔ entrepreneur
Whether a business makes a profit or loss is determined by the difference between the total
amount of money a business takes in from sales, known as its ___________, and the money
needed to operate it, known as ___________. - correct answer ✔✔ revenue, expenses
The total amount of money a business takes in during a given period of time by selling goods
and services is its: - correct answer ✔✔ revenue
When a business's expenses are greater than its revenues: - correct answer ✔✔ a loss occurs
An entrepreneur risks both ___________ and ___________ in the hope of earning a profit. -
correct answer ✔✔ time, money
,Businesses are part of a country's ___________ system that distributes its resources and
contributes to the standard of living and quality of life of its citizens. - correct answer ✔✔
economic
Among the benefits businesses provide to their communities are: - correct answer ✔✔ tax
payments, jobs, goods and services
What is the definition of standard of living? - correct answer ✔✔ The amount of goods and
services people can buy with the money they have
The elements of a country's quality of life include: - correct answer ✔✔ political freedom,
natural environment, education, safety, health, and amount of leisure
Groups that have a strong interest in the success and outcomes of a business, such as
employees, neighbors, or government regulators, are called ___________. - correct answer ✔✔
stakeholders
When a company contracts with another, sometimes in another country, to do some of its
functions, such as production or accounting, it is known as ___________. - correct answer ✔✔
outsourcing
Organizations such as the Red Cross, public school systems, and the United Way are examples of
___________ organizations. - correct answer ✔✔ nonprofit
An organization whose functions is to serve a societal need rather than make a profit for its
owners is a(n) ___________ organization. - correct answer ✔✔ nonprofit
Economic well-being and the quality of life improve when businesses create more jobs because:
- correct answer ✔✔ more people can purchase more goods and services
,Skills such as information management, leadership, marketing, and financial management are
needed to manage: - correct answer ✔✔ profit and nonprofit organizations
The five ___________ of ___________ are land, labor, capital, entrepreneurship, and
knowledge. - correct answer ✔✔ factors, production
Having a plentiful supply of any one factor of production such as labor isn't as important today
as a combination of ___________ and ___________. - correct answer ✔✔ entrepreneurship,
knowledge
Businesses aren't usually able to control the elements of their environment, but they can
___________ and ___________ to it. - correct answer ✔✔ monitor, adapt
One government policy that helps to reduce the risks for businesses is: - correct answer ✔✔ to
pass laws that enable businesspeople to write enforceable contracts
As a result of changes in ___________ we are able to communicate with people are the world
instantaneously. - correct answer ✔✔ technology
Equipment such as phones, fax machines, and computers are all examples of which elements of
the business environment? - correct answer ✔✔ Technological
Smartphones and social media are technological tools that have completely changed the way
people ___________. - correct answer ✔✔ communicate
The amount of output you generate for the amount of input is ___________. - correct answer
✔✔ productivity
The buying and selling of goods over the Internet is known as ___________. - correct answer
✔✔ e-commerce
, Businesses can be more successful by responding to their customers needs and wants they track
using: - correct answer ✔✔ databases that track a customer's specific choices, databases that
use bar codes to track customer's purchases, databases of customer buying preferences
Giving front-line employees the training, authority, responsibility, and equipment they need to
respond quickly to customer needs is known as ___________. - correct answer ✔✔
empowerment
The statistical description of a population using characteristics such as age, gender, and income
is ___________. - correct answer ✔✔ demography
Dealing with a diverse workforce requires managers to: - correct answer ✔✔ be sensitive to
workers and cultures around the world
The increase in the older population by the year 2030 will ... - correct answer ✔✔ create many
new markets for goods and services
A benefit of globalization is that living standards have improved in many countries such as China
and India. A cost of globalization is that ... - correct answer ✔✔ those countries have become
strong competitors to U.S. companies
The result of advances in communication and efficient distribution systems using new
technologies has been: - correct answer ✔✔ globalization of trade
Expenditures on the ___________, especially during an economic downturn creates much
debate in the country because people prefer to have the money used to stimulate the economy
at home. - correct answer ✔✔ military
Practice Guide
A business tries to earn a profit by providing ___________ and ___________ that satisfy
people's needs and wants. - correct answer ✔✔ goods, services
A product that is tangible and can be touched or held in your hand is: - correct answer ✔✔ a
good
An example of a service is: - correct answer ✔✔ a physical exam
Services can be defined as: - correct answer ✔✔ intangible products
An ___________ is a person who risks time and money to start and manage a business. - correct
answer ✔✔ entrepreneur
Whether a business makes a profit or loss is determined by the difference between the total
amount of money a business takes in from sales, known as its ___________, and the money
needed to operate it, known as ___________. - correct answer ✔✔ revenue, expenses
The total amount of money a business takes in during a given period of time by selling goods
and services is its: - correct answer ✔✔ revenue
When a business's expenses are greater than its revenues: - correct answer ✔✔ a loss occurs
An entrepreneur risks both ___________ and ___________ in the hope of earning a profit. -
correct answer ✔✔ time, money
,Businesses are part of a country's ___________ system that distributes its resources and
contributes to the standard of living and quality of life of its citizens. - correct answer ✔✔
economic
Among the benefits businesses provide to their communities are: - correct answer ✔✔ tax
payments, jobs, goods and services
What is the definition of standard of living? - correct answer ✔✔ The amount of goods and
services people can buy with the money they have
The elements of a country's quality of life include: - correct answer ✔✔ political freedom,
natural environment, education, safety, health, and amount of leisure
Groups that have a strong interest in the success and outcomes of a business, such as
employees, neighbors, or government regulators, are called ___________. - correct answer ✔✔
stakeholders
When a company contracts with another, sometimes in another country, to do some of its
functions, such as production or accounting, it is known as ___________. - correct answer ✔✔
outsourcing
Organizations such as the Red Cross, public school systems, and the United Way are examples of
___________ organizations. - correct answer ✔✔ nonprofit
An organization whose functions is to serve a societal need rather than make a profit for its
owners is a(n) ___________ organization. - correct answer ✔✔ nonprofit
Economic well-being and the quality of life improve when businesses create more jobs because:
- correct answer ✔✔ more people can purchase more goods and services
,Skills such as information management, leadership, marketing, and financial management are
needed to manage: - correct answer ✔✔ profit and nonprofit organizations
The five ___________ of ___________ are land, labor, capital, entrepreneurship, and
knowledge. - correct answer ✔✔ factors, production
Having a plentiful supply of any one factor of production such as labor isn't as important today
as a combination of ___________ and ___________. - correct answer ✔✔ entrepreneurship,
knowledge
Businesses aren't usually able to control the elements of their environment, but they can
___________ and ___________ to it. - correct answer ✔✔ monitor, adapt
One government policy that helps to reduce the risks for businesses is: - correct answer ✔✔ to
pass laws that enable businesspeople to write enforceable contracts
As a result of changes in ___________ we are able to communicate with people are the world
instantaneously. - correct answer ✔✔ technology
Equipment such as phones, fax machines, and computers are all examples of which elements of
the business environment? - correct answer ✔✔ Technological
Smartphones and social media are technological tools that have completely changed the way
people ___________. - correct answer ✔✔ communicate
The amount of output you generate for the amount of input is ___________. - correct answer
✔✔ productivity
The buying and selling of goods over the Internet is known as ___________. - correct answer
✔✔ e-commerce
, Businesses can be more successful by responding to their customers needs and wants they track
using: - correct answer ✔✔ databases that track a customer's specific choices, databases that
use bar codes to track customer's purchases, databases of customer buying preferences
Giving front-line employees the training, authority, responsibility, and equipment they need to
respond quickly to customer needs is known as ___________. - correct answer ✔✔
empowerment
The statistical description of a population using characteristics such as age, gender, and income
is ___________. - correct answer ✔✔ demography
Dealing with a diverse workforce requires managers to: - correct answer ✔✔ be sensitive to
workers and cultures around the world
The increase in the older population by the year 2030 will ... - correct answer ✔✔ create many
new markets for goods and services
A benefit of globalization is that living standards have improved in many countries such as China
and India. A cost of globalization is that ... - correct answer ✔✔ those countries have become
strong competitors to U.S. companies
The result of advances in communication and efficient distribution systems using new
technologies has been: - correct answer ✔✔ globalization of trade
Expenditures on the ___________, especially during an economic downturn creates much
debate in the country because people prefer to have the money used to stimulate the economy
at home. - correct answer ✔✔ military
