BUAD Final – Flashcards
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Publicity is unpaid media coverage that has the power to influence consumer perceptions about a product or service.
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True
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Marketers have more control over publicity than they do over advertising.
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False
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In promotion, a successful big idea must be meaningful, distinctive, and believable.
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True
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Advertising is paid, non-personal communication designed to influence consumer purchases.
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True
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Samples, coupons, Point of Purchase Displays, and rebates are all examples of consumer promotion tools.
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True
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Promotional strategy is one of the Marketing Mix strategies.
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True
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Television is often a tool used for advertising promotional communication.
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True
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The study of economics focuses on how people, businesses, and governments choose to allocate resources.
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True
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Broad economic trends in employment, inflation, and economic growth provide a context that has an important impact on businesses throughout the economy.
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True
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Fiscal policy is the government's effort to influence the economy through taxation and spending decisions to encourage growth and boost employment while curbing inflation.
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True
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Capitalism is based on private ownership, economic freedom, and fair competition.
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True
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Market equilibrium indentifies the price at which quantity supplied is equal to quantity demanded.
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True
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The federal government experiences a budget deficit when its revenue from taxes is higher than its expenditures.
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False
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The price paid for goods and services will rise when the quantity demanded is exceeds quantity supplied.
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True
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An advantage for a business to expand into international markets is that it can increase the businesses market size ( more potential customers).
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True
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Cultural differences NEVER cause problems with international businesses.
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False
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Currency exchange rates can impact international business success.
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True
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Free trade zones restrict the movement of goods and services across borders.
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False
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One strategy for reaching global markets is to engage in Franchising.
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True
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Selling domestically made products to consumers in foreign countries is called exporting.
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True
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The North American Free Trade Agreement (NAFTA) creates a free trade zone between the United States, Mexico, and China.
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False
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A corporation is the most common type of business organization in the US.
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False
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A sole proprietorship is a business that is owned, and usually managed, by a single individual.
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True
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One advantage of a sole proprietorship is that as a separate legal entity, the owner is not personally responsible for the debt and obligations of the company.
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False
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In a general partnership, all owners have unlimited liability for the debts and obligations of their firm.
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True
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A business format franchise is a broad franchise agreement in which the Franchisee pays for the right to use the name, trademark, and the business and production methods of the franchisor.
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True
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There are attractive advantages and no significant drawbacks to starting a sole proprietorship.
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False
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A corporation is a form of business ownership in which the business is considered a legal entity separate and distinct from its owners.
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True
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Accounting is a system for recognizing, recording, organizing, analyzing, summarizing, and reporting information about the financial transactions that effect an organiztion.
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True
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The accounting profession is seldom concerned with the interpretation of financial info.
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False
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Current liabilities are debts that will come due within a year of the date on the balanced sheet,
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True
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Expenses are listed on the asset side of a balanced sheet.
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False
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The process of dividing an overall market into groups of customers who are similar to each other but differ from everyone else is known as market aggregation.
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False
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Conviniece products are goods and services that reduce the work consumers must do and make their lifemore convenient. Examples include household cleaning services and lawn care.
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False
