Chapters One & Two, Exam One – Flashcards
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Products have tangible attributes only.. True or False?
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FALSE, Products can also be a service which has intangible attributes
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If a business is to be successful in the long run, it must treat its customers, employees, and community with social: A. meetings. B. agendas. C. insight. D. interests. E. responsibility.
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E) Stakeholders have a stake in the success and outcomes of businesses, therefore a business must act responsibly with its stakeholders.
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Owners have little responsibility to provide funds for the operation of the business. True or False?
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FALSE, The primary responsibility of the owners is to provide financial resources of the business.
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Advertising, personal selling, coupons, and sweepstakes are forms of A. promotion. B. publicity. C. marketing research. D. management activities. E. the marketing mix.
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A., Marketers use promotion to communicate the benefits of their products to consumers.
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Socialism is an economic system in which the government owns and operates basic industries while individuals own most other businesses. A. True B. False
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TRUE, Socialism is an economic system in which the government owns and operates basic industries while individuals own most other businesses.
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Factors of production are A. resources used to produce goods and services. B. fixed resources. C. taxes. D. seldom in demand. E. free.
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A. Factors of production are natural, human and financial resources
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An oligopoly exists when there are many small businesses selling one standardized product. A. True B. False
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B. FALSE, An oligopoly exists when there are very few businesses selling a product.
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Suppliers are generally willing to A. lower prices below costs. B. supply more at a higher price. C. demand more at a higher price. D. determine equilibrium price. E. supply more at a lower price.
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B, The potential for profits is higher when businesses sell goods at a higher price.
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A continuing rise in prices over a period of time refers to A. inflation. B. economic expansion. C. a recession. D. economic contraction. E. stagflation.
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A, When economies expand rapidly, prices may as well.
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Trends have gradually changed the U.S. to a(n) _____ economy focused on making life easier for busy consumers. A. manufacturing B. service C. agriculture D. technology E. marketing
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B, As consumers get busier, they need others to do tasks such as house cleaning, laundry and landscaping
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Business ethics refers to principles and standards that define acceptable conduct in business organizations. A. True B. False
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True, Business ethics are principles and standards that define acceptable behavior for individuals within an organization as well as the organization at large
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An ethical issue is an identifiable problem, situation, or opportunity that requires a person or organization to choose from among several actions that may be evaluated as ethical or unethical. A. True B. False
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True, In business, this choice usually involves weighing monetary gain against what a person considers appropriate conduct.
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Without a code of ethics or formal policy on ethics, employees are likely to base their decisions on how their peers and superiors behave. A. True B. False
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True, A code of ethics ensures all employees, including senior level executives, are clear on what ethical standards are expected of them
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Being profitable relates to which social responsibility dimension? A. Economic B. Voluntary C. Ethical D. Legal E. Corporate citizenship
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A, Economic responsibility refers to earning a profit which is the foundation of a company.
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One way companies are helping consumers contribute to social causes is through offering some products at higher prices, the extra money going to global charities. A. True B. False
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True, Dell and Microsoft created the Product Red line in which red colored products profits go to fight AIDS, tuberculosis and malaria
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Factors of production are:
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natural, human and financial resources
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Marketers use promotion to
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communicate the benefits of their products to consumers.
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The primary responsibility of the owners is to
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provide financial resources of the business.
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An oligopoly exists when there are
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very few businesses selling a product.
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Business ethics are
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principles and standards that define acceptable behavior for individuals within an organization as well as the organization at large
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The potential for profits is higher when
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businesses sell goods at a higher price.
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When economies expand rapidly
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prices may as well.
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A code of ethics ensures all employees, including senior level executives, are
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clear on what ethical standards are expected of them
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Economic responsibility refers to
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earning a profit which is the foundation of a company.
