Business Unit 1 Test

Question 1

Business

Answer 1

An organization that uses productive resources to produce a good/service to satisfy consumer needs/wants in exchange for value.

Question 2

Good

Answer 2

Something that is tangible and of value.

Question 3

Service

Answer 3

An action performed that is intangible and of value.

Question 4

Need

Answer 4

A necessity for life

Question 5

Want

Answer 5

Something one would like to have.

Question 6

Profit

Answer 6

The net gain obtained by subtracting expenses from revenues.

Question 7

Revenue

Answer 7

The total income that the business receives through the sale of it’s products.

Question 8

For-Profit

Answer 8

A business with the purpose of making a profit for their owners.

Question 9

Expenses

Answer 9

The total cost a business incurs (pays) to operate as a business.

Question 10

Non-Profit

Answer 10

A business formed for religious, charitable, educational, governmental or other purpose. The money doesn’t go to the owners of the business.

Question 11

Scarcity

Answer 11

A basic foundation of the study of economics; our wants are theoretically unlimited, but out resources to meet those wants are limited, or scarce.

Question 12

Market (class definition)

Answer 12

A Market is something that occurs anytime buyers and sellers willingly meet to negotiate and exchange things of value.

Question 13

Economy

Answer 13

The wealth and resources of a country of region, especially the production and consumption of goods/services.

Question 14

Socialized Economy

Question 15

Market Economy

Question 16

Economics

Answer 16

The study of how we deal with scarcity in our worlds.

Question 17

Demand

Answer 17

The quantity of goods and/or services that consumers are willing and able to buy at various prices.

Question 18

Supply

Answer 18

The quantity of goods and/or services that producers are willing and able to sell at various places.

Question 19

Equilibrium

Answer 19

The point at which a supply curve and demand curve meet.

Question 20

Sole Proprietorship

Answer 20

A business with one owner who gains all the benefits of the business and assumes all the risks.

Question 21

Partnership

Answer 21

A business owned and operated by 2 or more people

Question 22

Corporation

Answer 22

A business owned by a legal entity that is separate from it’s owners.

Question 23

Unlimited Liability

Answer 23

The PROBLEM with sole proprietorship is the unlimited personal liability. MEANING: There is no separation between the owner’s personal assets and the business’ assets.

Question 24

Limited Liability

Answer 24

Cooperatives are separate business entities from their members, and so members have limited liability for the losses of the cooperative

Question 25

Public Corporation

Answer 25

A corporation whose shares are bought and sold on a public stock exchange (stock market).

Question 26

Private Corporation

Answer 26

A corporation which does not sell shares on a public stock exchange.

Question 27

Crown Corporation

Answer 27

A corporation created and operated by our Federal Government.

Question 28

Franchise

Answer 28

A type of license that allows a franchise to operate a business using the franchisor's proprietary knowledge, processes, and trademarks.

Question 29

Trade

Answer 29

the voluntary exchange of goods or services for things of value.

Question 30

Opportunity Cost

Answer 30

money or benefits lost by not selecting a particular option during the decision-making process

Question 31

Free Trade

Answer 31

goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange

Question 32

Globalization

Answer 32

The growth in movement across national borders—as people, ideas, products, services, and capital become interconnected

Question 33

Sustainability

Answer 33

doing business without negatively impacting the environment, community, or society as a whole

Question 34

GDP Per Capita

Answer 34

calculated by dividing total GDP of the country by its total population