Business 101 – Flashcards
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Which of the following circumstances is most likely to reduce one's standard of living? An increase in the cost of some goods such as escalating gasoline prices. A decrease in the cost of some goods such as a decrease in housing prices. Stable prices and an increase in employee wages. Losing your job, but gaining a sizeable inheritance.
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An increase in the cost of some goods such as escalating gasoline prices
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When developing and maintaining good stakeholder relationships, companies find that_______. it's almost always best to continue to keep costs low, even if it means outsourcing most of the production insourcing is always a good trade-off to outsourcing most often, they must balance the needs of the stakeholders with the need to make profits caring for the environment comes before caring for the well-being of employees
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most often, they must balance the needs of the stakeholders with the need to make profits
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Efficiency means _______. producing items using the least amount of resources the amount of output you generate in a given amount of time using high tech equipment to do a job producing as much as you can as fast as you can, regardless of cost
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producing items using the least amount of resources
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At Backstreet Books, Inc., the department manager uses a hand-held scanner to determine the quantity of each best seller the bookstore has on its shelves, how many of each book was sold the past week and the past month, and exactly when the next shipment of these books is expected to arrive. Backstreet Books embraces the strategy of _______. staying ahead of the competition by routinely secret shopping the competition's shelves using technology to stay responsive to customer needs maintaining a low inventory turnover because it will keep costs down changing demographics
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using technology to stay responsive to customer needs
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Lance and Laurie live on three acres of land in North Carolina, with two llamas, five goats, six chickens, and two dogs. The goats provide milk, cheese, yogurt, and even fiber that is woven into yarn; the chickens provide free-range eggs; and the llamas serve as protection for the other animals. Although Lance and Laurie have other professional jobs, their home lifestyle represents _______. a growing trend in the social environment to have more control of the food they eat and where it comes from a need to challenge the competitive environments of big businesses that sell the same products a desire to pay less sales tax on foods and other staple products at the larger stores an aversion to technological advancement leading to a slower and less productive life
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a growing trend in the social environment to have more control of the food they eat and where it comes from
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The famous actor, Robert Redford created The Sundance Film Festival, where talented, young directors and producers can submit their films for review and possible showing. The festival attracts thousands of tourists each year, employs many others at various capacities, and provides important exposure to up and coming artists who may otherwise not be able to get their works noticed. Ultimately, the festival provides social and economic benefit for many. Adam Smith believed that one's self-directed gain would eventually create prosperity for many, and called the process, the ___________. amateur opportunity deliberate intervention opportunistic behavior invisible hand
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invisible hand
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Which of the following best describes a capitalistic nation? Most or all of the factors of production and distribution are privately owned and operated for a profit. The nation-state owns most of the factors of production and distribution, and makes central decisions with respect to the distribution of resources. The nation-state practices state capitalism. It prefers to maintain ownership of certain industries. The political system endorses several hundred entitlement programs. Business taxes support these programs that are restricted to the unemployed.
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Most or all of the factors of production and distribution are privately owned and operated for a profit
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According to the BEA [Bureau of Economic Analysis], during the period between 2007 and 2010, real GDP decreased at an average annual rate of 0.3%. This news would lead you to conclude: unemployment was significantly reduced during this time period. inflation increased by the same amount that GDP decreased. the CPI [consumer price index] reflected no change in all categories. productivity in the U.S. also decreased.
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productivity in the U.S. also decreased.
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The following chart reflects the U.S.'s GDP [Gross Domestic Product] for the past five years. Which of the following statements best reflects the health of the U.S. economy during this time period? 2005 $12.62 trillion 2006 $12.96 trillion 2007 $13.21 trillion 2008 $13.16 trillion 2009 $12.70 trillion 2010 $13.09 trillionThe U.S. economy experienced a robust economy, particularly during the first three years. The U.S. economy fell into recession in 2008 and 2009. The U.S. economy was experiencing recovery in 2007 and 2008. Although the GDP decreased in 2008 and 2009, the decline was not enough for businesses and consumer to feel negative effects
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The U.S. economy fell into recession in 2008 and 2009.
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At Six City Wellness Center, Greg operates a new state-of-the-art MRI scanner that serves approximately 10 patients during his 8-hr. shift. Patients are scheduled for various lengths of time, depending on which part(s) of their body requires scanning. The image quality is significantly superior to what it was on previous scanners, but the number of patients served per day remains the same. This situation attests to the fact that: technological advancements have increased productivity in the service sector. productivity is increased because it is calculated by combining quantity produced + quality produced. hospitals and health clinics are part of the service sector. Productivity is not a concern in this sector. the service sector has seen improvement in quality of service, but productivity remains about the same.
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the service sector has seen improvement in quality of service, but productivity remains about the same.
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The strategic alliance between Coca Cola and Nestle has spanned a period of over 20 years due to the fact that both companies benefit from this arrangement. As a global marketing strategy, an important characteristic of a strategic alliance is _____________. the complete immersion of employees assigned to the alliance, eventually forming a separate company separation of company policies, procedures, and production, but unified financial accountability it must be a long-term venture of 10 or more years participant companies do not share costs or profits
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participant companies do not share costs or profits
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Barkley wants to sell his bicycle horns to the Beijing and Shanghai markets, due to the high volume of bicycles as a common form of transportation in these two heavily populated cities. The exchange rate as of yesterday was $1 U.S. dollar = 6.42 Chinese yuan. Economically speaking, how are his prospects? Pretty good as the U.S. dollar is worth less than the yuan. Good because the Chinese have 6.42 yuan to spend compared to every dollar. Not good. If the horn sold for $3.00, it would take 19.26 yuan to by it. Not good. The Chinese would not see value in a horn.
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Not good. If the horn sold for $3.00, it would take 19.26 yuan to by it.
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During the past five years, the nation of Andolvia began a massive undertaking: teaching farmers how to successfully grow and harvest peanuts. The government subsidized the building of peanut processing plants, where private businesses are now producing peanut butter and other products of nutritional value. Although the Andolvia government has not completely banned the importation of peanuts, it has placed ________________ on the number of peanut products that the nation can import each year, in order to protect Andolvia's young peanut industry. embargoes subsidiaries import quotas counter measures
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import quotas
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______________ has dethroned Germany as the world's largest exporter. The United States China India Brazil
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China
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We refer to the BRIC nations as four economics powers that will likely dominate world trade by 2030. It is predicted that the two that will supply the world with most of the raw materials are ___________. Bolivia and Romania Russia and Bosnia Ireland and China Brazil and Russia
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Brazil and Russia
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The first day on the job waiting tables at a popular restaurant, Ashley noticed that when one member of the wait staff was serving a very large party, the other waiters would help with carrying food to the table(s) and even checking to make sure water glasses were filled and condiments were on the table. Although these actions were not part of the mandatory wait staff training, Ashley perceived that those who were not as attentive to helping out were not viewed as team players by the majority of employees. Ashley was observing an example of the ___________ followed at this organization. integrity-based ethics social order ethics compliance-based ethics actual ethics
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integrity-based ethics
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The last recession changed the way many companies give. Monetary donations _______________. Many firms chose to ______________. increased; give more money because they understood how badly society needed a helping hand increased; pull away from global contributions, but double the contributions in their domestic areas of operation decreased; eliminate all contributions in every way decreased; encourage their employees to volunteer their time
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decreased; encourage their employees to volunteer their time
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A few months ago, Pedro's Pizza House, a large nationwide chain of restaurants, purchased one of its competitors, Italian Stallion Pizza Stations, for $800 million. Italian Stallion stockholders got a very fair deal for their stock: $6.50/share above market value. The event was not without its problems. An ethical issue arose when it was speculated that somehow a member of Pedro's management team mentioned the deal to a person he sat next to on a flight from LA to Seattle. That person called five of his relatives. Three of them quickly bought shares of Italian Stallion and "got on record" before the acquisition. The ethical dilemma that occurred is called _________. moral impropriety insider trading acquisition stalking pro-current procurement
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insider trading
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U.S. companies that operate abroad, particularly those who contract with foreign companies, are now _______________________ human rights and environmental standards followed by U.S. law. free from the concern of asking suppliers to lower their standards to be in compliance with requiring suppliers to stabilize their procedures to be in compliance with separating themselves from suppliers who violate
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separating themselves from suppliers who violate
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Which of the following statements reflects upon the difficulty companies face when requiring international suppliers to follow environmental and human rights standards set by U.S. firms? Multi-national corporations are committed to operating within the legal limits of U.S. law. U.S. law does not require U.S. firms to comply because of competitive advantage concerns. It's the age-old reality: "Out-of-sight, out-of-mind." U.S. companies tend to overlook and forget human rights abuses abroad. U.S. companies follow the lead of consumers, and at this time, there is no evidence of a trend toward concern for better human rights and environmental standards. Both economics and culture enter into the discussion of fairness concerning international suppliers who do business with U.S. firms.
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Both economics and culture enter into the discussion of fairness concerning international suppliers who do business with U.S. firms.
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Unlimited liability means ___________. the business is responsible for the debt it incurs, and filing bankruptcy is out of the question the business is responsible for the debt it incurs. If the business cannot pay its bills, the debt burden transfers to the owner(s), and he/she/they are liable for all debt the business is responsible for the debt. If the business cannot pay, the company files bankruptcy. The debt does not fall on the shoulders of individual owners. They are safe from the liability a concept that is reserved for corporations. Corporations are set up to realize unlimited liability of expenses
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the business is responsible for the debt it incurs. If the business cannot pay its bills, the debt burden transfers to the owner(s), and he/she/they are liable for all debt
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Twenty years ago, your parents invested in Sears. As the years have gone by, the investment has grown. However, if Sears should go out of business, what would happen? Your parents will be responsible for some of the debt of Sears. Your parents will have to go to court to show they have no involvement in the firm. Your parents will only lose the value of their shares. Your parents will have to borrow money to pay for the value of their shares
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Your parents will only lose the value of their shares.
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In his search for a franchised business that would satisfy his passion for the outdoors and also earn him a decent living, Asher noted that the shared profit criterion required of franchisors had significant variance. Some required franchisees to pay 8% of their monthly revenues to the franchisor. Others required 3% of the profits. In business we refer to this obligation as a ______________. royalty fee penalty fee market fee franchise fee
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royalty fee
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Advantages of _________________ include reduced start-up fees and no territory restrictions. well-established, fast-food franchising online franchising international franchising non-food type franchising
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online franchising
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Pam logged onto her Facebook™ account and noted that Sallie "liked" two different websites. Since Sallie is a good friend of Pam's and a reliable source of information, Pam linked into these websites and decided to purchase from one of them. A common strategy for web-based business is _______________. strong-arm marketing strategic alliance marketing dendritic marketing affiliate marketing
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affiliate marketing
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Andre works for a company that promotes an entrepreneurial culture. Employees are encouraged to discuss new ideas. Development time is provided for those ideas that float to the top. Employees who use their creative talents to generate ideas within large companies are _________. brainstormers intrepreneurs analyzers patent holders
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brainstormers
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Why do experts agree that small business management and large business management are similar in practice? Large and small businesses still require several employees. Small businesses and large corporations raise capital in the same manner, and look to the same sources for that capital. Similar to large businesses, small business have concerns about capital and good marketing and management. Successful small businesses and large businesses typically grow at the same rate, and neither has the desire to remain the same size that it is today.
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Similar to large businesses, small business have concerns about capital and good marketing and management.
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Organizations known as _______________ have a significant role in the economic recovery. Some start-up businesses have successfully found sources of capital by going through one of these organizations. CDFIs (Community Development Financial Institutions) ARMs (Adjusted Rate Mortgage lenders) PACs (Personal Asset Collateral funds) Venture Capitalists
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CDFIs (Community Development Financial Institutions)
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A small business advantage is ____________. the ability to quickly adapt to customer needs friends they can tap into for free labor and advice better sources of information. Colleges are more amenable to helping small businesses because they prefer writing about them than their larger counterparts more likely to employ telecommuting
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the ability to quickly adapt to customer needs
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Contemporary managers ___________. closely supervise highly skilled workers who would like to "do their own thing. emphasize teamwork and cooperation, and act as coaches, rather than "bosses" become specialists in one or two functional areas function solely as intermediaries between workers and unions
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emphasize teamwork and cooperation, and act as coaches, rather than "bosses"
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A traditional tool that serves as a way or organizing the company's current situation is called the SWOT Analysis. This is an acronym for ___________. Strategic, Willingness, Octagon, Tactics Say it, Weigh it, Own it, Try it Strategize it, Weight it, Obtain it, Trust it Strengths, Weaknesses, Opportunities, Threats
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Strengths, Weaknesses, Opportunities, Threats
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Ben oversaw the work of six pharmaceutical sales managers in the southeast region of the U.S. Each sales manager managed a team of 8-10 pharmaceutical sales representatives that developed relationships with doctors, clinics, hospital pharmacies, and local drug stores. Ben met regularly with four others in his company whose jobs were similar to his position. How would you describe the level of management Ben has achieved? Middle management Top management First-line management Supervisory management
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Middle management
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Which of the following leadership styles focuses on making decisions without consulting others? Autonomous Participative Team-based Autocratic
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Autonomous
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Dave facilitated a hiring committee for his advertising company. Six employees (including two managers) met together to discuss applicants and select the finalists for a creative writer position in the public relations department. Although the head of public relations would have the final nod on the candidate that would ultimately be hired, the evaluative work of the committee was very important because this group would send forward those persons they believed would be good work colleagues. In setting up this type of hiring process, the head of public relations was utilizing a(n) __________ style of leadership. autocratic free-reign contingent democratic
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free-reign
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The idea behind marketing (known as the marketing concept) is ___________. understanding how to sell each and every product available, in a transactional type environment increasing productivity, by creating innovative products and producing as much as possible, in a short amount of time a mutually beneficial exchange between buyers and sellers, where buyers receive quality products and good service, and sellers realize a profit building satisfying relationships between buyers and sellers, even if some years the seller experiences losses
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a mutually beneficial exchange between buyers and sellers, where buyers receive quality products and good service, and sellers realize a profit
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Focusing on long-term customer loyalty is called ____________. customer linkage marketing promotional marketing customer relationship management customer care process
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customer relationship management
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Mac and Zac want to start their own youth sports academy, to teach baseball skills to young boys. Which of the following steps in the marketing process is a good place to begin? Design the product and service they plan to offer. Create the pricing structure for their new idea. Locate a building that is centrally located. Find out what young baseball players want to achieve.
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Find out what young baseball players want to achieve
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As Mac and Zac explore the possibility of starting a youth sports academy, they collect demographic and lifestyle information about the families who would potentially buy their service. This exercise will help to better identify their ________. target market product offering affinity for the business world ability to become good business persons
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target market
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Which of the following would be considered a convenience good? Candy bar Evening gown Automobile tire Microwave oven
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Candy bar
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Products that the consumer buys only after comparing value, quality, price, and style from a variety of sellers are known as ____________ goods and services. shopping convenience specialty unsought
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shopping
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The purpose of the product life cycle is it serves as a(n) __________. tool that tells the marketing manager if the product market is changing tool that indicates when the product has reached another stage in the cycle, and might require changes in the marketing mix indication of whether price is still greater than expenses for a given product line tool for measuring the forces of competition
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tool that tells the marketing manager if the product market is changing
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Which utility is usually provided by producers rather than intermediaries? Content Form Subject Value
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Form
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A convenience store is open seven days a week and remains open on holidays. The store provides its customers with _________ utility. service place time possession
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time
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Now that so many goods are produced abroad, companies are finding that services such as ___________ provide important utility to the process of successfully processing products through customs and other legal requirements. supply dockets direct marketing mark to marketing web-based trade compliance systems
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web-based trade compliance systems
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Promotion is one of the four Ps of marketing. The promotion mix is __________. the promotional tools marketers use to carry out promotion the media that carries the promotional message advertising and personal selling, but not public relations and sales promotion a sampling of all products that a company offers
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the promotional tools marketers use to carry out promotion
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How do consumers benefit from advertising? They pay more for the product than they would if there was no advertising. They pay less for the product because the different companies that are advertising similar products must lower prices. They receive valuable information, and advertising can even pay for the media that delivers the message. The fact is very few find benefit due to selective perception.
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They receive valuable information, and advertising can even pay for the media that delivers the message.
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Some products and services lend themselves to ______________ better than others. For example, youth in Southeast Asia, youth in Bosnia, youth in Alaska, and youth in Brazil may desire the same products, in the same form. infomercials personal selling global advertising publicity
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global advertising
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A benefit of utilizing social media to deliver advertising messages is ____________. it can reach a much wider audience than television the advertiser can more easily track who has selectively viewed the message and who has passed it along to others it can reach a much wider audience than other media due to the fact that most parents do not let their children view all television and radio messages it is proven to stimulate consumer purchasing better than other media
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the advertiser can more easily track who has selectively viewed the message and who has passed it along to others
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When Marmalade's Cupcake Closet is not jammed with happy customers, one or two of its sales associates stand out front and provide tastes of Marmalade's sumptuous goodies, in the form of miniature-sized treats. The company owners know that ________ is a very powerful form of promotion. incentive selling viral marketing sampling word-of-mouth
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sampling
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A Certified Public Accountant (CPA) is ___________. a government employee who has a degree in accounting an accountant who has met educational requirements and has passed exams established by the American Institute of Certified Public Accountants basically the same as a certified management accountant, having passed the same series of exams. In some countries, the accountant is called a CPA, while in other countries, he/she is called a CMA a professional who has studied financial accounting as opposed to managerial accounting, and who has passed rigorous exams in the financial area, including brokerage exams
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an accountant who has met educational requirements and has passed exams established by the American Institute of Certified Public Accountants
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A Certified Public Accountant (CPA) is ___________. a government employee who has a degree in accounting an accountant who has met educational requirements and has passed exams established by the American Institute of Certified Public Accountants basically the same as a certified management accountant, having passed the same series of exams. In some countries, the accountant is called a CPA, while in other countries, he/she is called a CMA a professional who has studied financial accounting as opposed to managerial accounting, and who has passed rigorous exams in the financial area, including brokerage exams
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an accountant who has met educational requirements and has passed exams established by the American Institute of Certified Public Accountants
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A Certified Public Accountant (CPA) is ___________. a government employee who has a degree in accounting an accountant who has met educational requirements and has passed exams established by the American Institute of Certified Public Accountants basically the same as a certified management accountant, having passed the same series of exams. In some countries, the accountant is called a CPA, while in other countries, he/she is called a CMA a professional who has studied financial accounting as opposed to managerial accounting, and who has passed rigorous exams in the financial area, including brokerage exams
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an accountant who has met educational requirements and has passed exams established by the American Institute of Certified Public Accountants
