BUSINESS MANAGEMENT 101 EXAM 1 STUDY GUIDE
1.Business: organization that provides goods or services to earn a profit
2.Profit: difference between a business's revenues and expenses
3.External environment: everything outside an organization's boundaries that might
affect it
4.Economic system: a nation's system for allocating its resources among its citizens
5.Factors of production: resources used in the production of goods and services- labor,
capital, entrepreneurs, physical resources, and information resources
6.Labor (human resources): physical and mental capabilities of people as they contribute
to economic production
7.Capital: funds needed to create and operate a business enterprise
8.Entrepreneur: individual who accepts the risks and opportunities involved in creating
and operating a new business venture
, BUSINESS MANAGEMENT 101 EXAM 1 STUDY GUIDE
9.Intrapreneur: part of a company
10. Planned economy: economy that relies on a centralized government to control all
or most factors of production and to make all or most production and allocation
decisions
11. Communism: political system in which the government owns and operates all
factors of production
12. Market economy: economy in which individuals control production and allocation
decisions through supply and demand
13. Market: mechanism for exchange between buyers and sellers of a particular good
or service
14. Capitalism: system that sanctions the private ownership of the factors of production
and encourages entrepreneurship by offering profits as an incentive.
15. Privatization: process of converting government enterprises into privately owned
companies
, BUSINESS MANAGEMENT 101 EXAM 1 STUDY GUIDE
16. socialism: planned economic system in which the government owns and operates
only selected major sources of production
17. demand: the willingness and ability of buyers to purchase a good or service
18. supply: the willingness and ability of producers to offer a good or service for sale
19. private enterprise: economic system that allows individuals to pursue their own
interests without undue governmental restriction
20. competition: vying among businesses for the same resources or customers
21. perfect competition: market or industry characterized by numerous small firms
producing and identical product
22. monopolistic competition: market or industry characterized by numerous buyers
and relatively numerous sellers trying to differentiate their products from those of
competitors
23 monopoly: market or industry in which there is only one producer that can therefore
set the prices of its products
1.Business: organization that provides goods or services to earn a profit
2.Profit: difference between a business's revenues and expenses
3.External environment: everything outside an organization's boundaries that might
affect it
4.Economic system: a nation's system for allocating its resources among its citizens
5.Factors of production: resources used in the production of goods and services- labor,
capital, entrepreneurs, physical resources, and information resources
6.Labor (human resources): physical and mental capabilities of people as they contribute
to economic production
7.Capital: funds needed to create and operate a business enterprise
8.Entrepreneur: individual who accepts the risks and opportunities involved in creating
and operating a new business venture
, BUSINESS MANAGEMENT 101 EXAM 1 STUDY GUIDE
9.Intrapreneur: part of a company
10. Planned economy: economy that relies on a centralized government to control all
or most factors of production and to make all or most production and allocation
decisions
11. Communism: political system in which the government owns and operates all
factors of production
12. Market economy: economy in which individuals control production and allocation
decisions through supply and demand
13. Market: mechanism for exchange between buyers and sellers of a particular good
or service
14. Capitalism: system that sanctions the private ownership of the factors of production
and encourages entrepreneurship by offering profits as an incentive.
15. Privatization: process of converting government enterprises into privately owned
companies
, BUSINESS MANAGEMENT 101 EXAM 1 STUDY GUIDE
16. socialism: planned economic system in which the government owns and operates
only selected major sources of production
17. demand: the willingness and ability of buyers to purchase a good or service
18. supply: the willingness and ability of producers to offer a good or service for sale
19. private enterprise: economic system that allows individuals to pursue their own
interests without undue governmental restriction
20. competition: vying among businesses for the same resources or customers
21. perfect competition: market or industry characterized by numerous small firms
producing and identical product
22. monopolistic competition: market or industry characterized by numerous buyers
and relatively numerous sellers trying to differentiate their products from those of
competitors
23 monopoly: market or industry in which there is only one producer that can therefore
set the prices of its products
