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Intro to Business Flashcards | StudBud
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Intro to Business
Intro to Business
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Principles of Business, Marketing, and Finance Chapter 1
Flashcards
23 cards
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Practice quiz
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Questions
23
Answers
1
What is the main reason a business operates?
To offer services
To sell goods
To pay interest on tax fees
To earn a profit
2
What are the four functions of business?
Supply, Demand, Business, Management
Production, Finance, Marketing, Management
Exchange, Services, Wages, Profits
Service, Finance, Market, Products
3
In a command economy individuals are free to make their own economic decisions.
True
False
4
Capitalism is a characteristic of a market economy.
False
True
5
Buying some new airmax instead of buying a jacket is considered my ________.
Profit Motive
Trade-off
Opportunity Cost
Scarcity
6
A Barbershop employee giving a haircut is considered a GOOD?
False
True
7
What is profit?
The money earned from a business before expenses are taken out.
The difference between the income earned and the expenses incurred by a bus
A main component of the consumer market.
When a company sells goods and services.
8
What is the term used for all the activities involved with developing and exchanging goods?
Production Facility
Business
Stock Market
Service Industry
9
How do we define product?
Earning wages
The trade off in the decision making process
When we start our own business
Anything that can be bought or sold.
10
What are three economic benefits that businesses create?
Profit, taxes, services
Goods, services, wages
Profit, wages, standard of living
Standard of living, wages, labor
11
Management is a function of a business that controls and makes decisions about a business.
False
True
12
What is the best description of a market?
Where entrepreneurs go to provide services
Where entrepreneurs go to make a profit
A place where buyers and sellers meet to buy and sell goods and services.
Where you get groceries
13
When demand is greater than the supply we have a shortage.
False
True
14
A Popeye's Chicken sandwich is a NEED?
False
True
15
What is the best description of the consumer market?
When the demand is higher than available resources.
A business that purchases goods with the purpose of selling to others
Consumers sell services at a lower price
A customer who purchases goods and services for themselves.
16
What is the action taken by two or more businesses attempting to attract the same customers?
The profit motive
Surplus
Trade-off
Competition
17
What are the four factors of production?
Wages, Land, Capital, Workers
Surplus, Shortage, Wage, Capital
Land, Labor, Capital, Entrepreneurship
Workers, Land, Shortage, Capital
18
Scarcity develops when demand is higher than available resources.
False
True
19
What is a customer?
An individual or group who buys products
The manufacturer
The leader in the market
Any business that is open
20
What is one reason that people start or expand businesses?
Land
Wages
Capital
Profit Motive
21
When demand is less than supply we have a surplus.
True
False
22
What is the best definition of trade off?
The value of the next best option
When something is given up in order to gain something else.
The willingness and ability to start a new business
All tools, machinery, and equipment used to produce goods
23
What is the basic economic problem?
We have unlimited wants that can't be fulfilled by limited resources
We have unlimited wants and needs
We have limited resources
Unlimited needs are filled with unlimited resources
