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Question 1

It is a place where buyers and sellers can meet to facilitate the exchange or transaction of goods and services.

Answer 1

Market

Question 2

Identify and enumerate.

What information is transmitted between buyers and sellers in the market?

Answer 2

a. goods and services desired by customer
b. price of goods and services

Question 3

Whose doctrine states that the market is a free market where the producers and consumers act in accordance to their own interest.

Answer 3

Adam Smith

Question 4

What was Adam Smith’s doctrine named as?

Answer 4

Laissez Faire

Question 5

It is a basic economic concept involving the buying and selling of goods and services.

Answer 5

Trade

Question 6

It is the exchange of goods and services, especially on a large scale.

Answer 6

Commerce

Question 7

It includes legal, economic, political, social, cultural, and technological systems that operate in a country or in international trade.

Answer 7

Commerce

Question 8

Complete the sentence.

In the economic sense, “commerce” refers to the () among economic agents.

Answer 8

conduct of trade

Question 9

Idenitfy the role of business in economy provided the description below.

Businesses bring specialized people, equipment, and other resources together and coordinate the production of goods and services.

Answer 9

Product or Service Specialization

Question 10

Idenitfy the role of business in economy provided the description below.

When more units of a good or service can be produced on a larger scale, yet with (on average) less cost input, this is achieved.

Answer 10

Economies of Scale

Question 11

Idenitfy the role of business in economy provided the description below.

What do you call a benefit or cost which is enjoyed or suffered by a third party, such as society, rather than the producer or consumer of a good or service?

Answer 11

Externality
(under positive and negative externalities)

Question 12

Identify whether it is positive or negative externality and explain why.

Factories that are efficient in production, however they pollute water and land

Answer 12

Negative Externality
(Companies enjoy the first hand benefit of higher rates of production, yet society and the environment suffer the consequences of pollution)

Question 12

Identify whether it is positive or negative externality and explain why.

Companies benefit from hiring employees who are educated because they are knowledgeable.

Answer 12

Positive Externality
(This benefits employers because a better-educated workforce requires less investment in employee training and development costs.)

Question 13

Identify whether it is positive or negative externality and explain why.

Walking to work or taking a bicycle reduces congestion.

Answer 13

Positive Externality
(Walking and riding a bicycle is personally exhausting, but it also reduces both automobile congestion and pollution)

Question 14

Enumerate.

What are the three business opportunities?

Answer 14

• Distributorship
• Rack Jobbing
• Vending Machine Routes

Question 15

What do you call a packaged business investment that allows the buyer to begin a business?

Answer 15

Business Opportunity

Question 16

Identify the type of business opportunity being described.

It involves entering into an agreement to offer and sell the product of another, without being entitled to use the manufacturer’s trade name as part of the agent’s trade name.

Answer 16

Distributorship

Question 17

Identify the type of business opportunity being described.

In this business, the agent or buyer enters into an agreement with the parent company to market their goods to various stores by means of strategically-located store racks.

Answer 17

Rack Jobbing

Question 18

Identify the type of business opportunity being described.

• the businessperson must buy the machines as well as the merchandise being sold in them
• the operator usually pays the location owner a percentage, based on sales

Answer 18

Vending Machine Routes

Question 19

Explain.

What is a business model?

Answer 19

• It is a description of how your business makes money.
• Moreover, it identifies the products or services the business plans to sell, its identified target market, and any anticipated expenses.

Question 20

Provide what is asked.

Business models can be broken down into three parts, what are these?

Answer 20

• What to produce?
• How to produce?
• How much to produce?

Question 21

Enumerate.

What are the seven kinds of business models?

Answer 21

- Advertising
- Affiliate
- Brokerage
- Franchise
- Marketplaces
- Pay-as-you-go
- Leasing

Question 22

Identify the kind of business model described below.

Revolves around creating content that people want to read or watch; involves hiring people to display your content or brand

Answer 22

Advertising

Question 23

Identify the kind of business model described below.

Companies pay an entity to promote a good, and that entity often receives compensation in exchange for their promotion. That compensation may be a fixed payment, a percentage of sales derived from their promotion, or both.

Answer 23

Affiliate

Question 24

Identify the kind of business model described below.

• connects buyers and sellers without directly selling a good themselves

Answer 24

Brokerage

Question 25

Identify the kind of business model described below.

• leverages existing business plans to expand and reproduce a company at a different location.
• one sells access to their brand and support services to “branch” out

Answer 25

Franchise

Question 26

Identify the kind of business model described below.

• In exchange for hosting a platform for business to be conducted, these settings receive compensation

Answer 26

Marketplaces

Question 27

Identify the kind of business model described below.

• A customer needs to return the product that was lent to them.

Answer 27

Leasing

Question 28

Identify the kind of business model described below.

Instead of pre-purchasing, you get charged for the actual usage at the end of a billing period.

Answer 28

Pay-as-you-go