Please enter something

Exam Review- Principles of Business and Marketing

question

needs
answer

things we need to survive; ex- food, shelter
question

wants
answer

something that adds pleasure to our lives but is not necessary to survive
question

goods
answer

things you can see and touch
question

services
answer

wants that are satisfied through the efforts of other people or by equipment; ex- hair stylist
question

economic resources
answer

the means through which goods and services are produced
question

factors of production
answer

another name for economic resources: means through which goods and services are produced
question

natural resources
answer

raw materials supplied by nature
question

human resources
answer

the people who work to produce goods and services
question

labor
answer

another name for human resources
question

capital resources
answer

tools, equipment, and buildings that are used to produce goods and services
question

capital
answer

money that is needed to run a business
question

basic economic problem
answer

the conflict between unlimited wants and limited resources
question

scarcity
answer

another name for the basic economic problem
question

economic system
answer

a nation’s plan for answering the key economic questions
question

custom-based economy
answer

goods are produced the way they have always been produced
question

direct economy
answer

resources are owned and controlled by the government
question

marketplace
answer

any place where buyers and sellers exchange goods, services, and some form of money
question

capitalism
answer

means that economic resources are usually privatelyowned by individuals rather than by the government
question

free or private enterprise system
answer

freedom of the individual to choose what to produce
question

voluntary exchange
answer

buyers and sellers make their own economic decisions to determine what the price will be for goods and services produced and sold
question

demand
answer

the quantity of a product or service that consumers are willing and able to buy at a particular price
question

supply
answer

the quantity of a product or service that businesses are willing and able to provide at a particular price
question

standard of living
answer

a measure of how well people in a country live; the quality and quantity of wants and needs that are satisfied
question

labor productivity
answer

the quantity of a good an average worker produces in one hour
question

public goods
answer

things that are needed and provided by a community and are equall accessible to everyone
question

worker
answer

wants to increase his productivity to increase your earnings
question

consumer
answer

buy goods and services
question

citizen
answer

job is to pay taxes, vote, help the community
question

gross domestic product
answer

the total value of all final goods and services produced in one year
question

base year
answer

the year chosen to compare an item, such as price, to the same item in another year
question

gross domestic product per capita
answer

the GDP divided by the total population of a country
question

business cycle
answer

the movement of an economy from one condition to another and back again
question

prosperity
answer

a phase fo the businesss cycle when most people who want ot work are working and businesses produce goods and services in record numbers
question

recession
answer

a period where demand begins to decrease, businesses lower production of goods and services, unemployment begins to rise, and GDP growht slows for several quarters
question

depression
answer

a phase marked by high unemployment, weak sales of goods and services, and business failures
question

recovery
answer

a phase of the business cycle in which unemplyment begins to decrease, demand for godds and services increases, and GDP begins to rise again
question

inflation
answer

an increase in the general price level; money is worth less
question

deflation
answer

a decrease in the general price level; money is worth more
question

extractor
answer

a business that grows products or takes raw materials from nature
question

manufacturer
answer

a business that takes an extractor’s products or raw materials and changes them into a form that consumers can use
question

custom manufacturing
answer

building a specific and unique product to meet the needs of one customer
question

mass production
answer

a large number of identical products are assembled using a continuous, efficient procedure
question

processing
answer

changing the form of materials so them can be consumed or used to manufacture other products
question

marketer
answer

a business involved with moving goods from producers to consumers
question

service business
answer

a business that does things for you instead fo making products
question

sole proprietorship
answer

a business owned by one person
question

partnership
answer

an association of two or more people operating a business as co-owners and sharing profits or losses according to a written agreement
question

corporation
answer

a business made up of a number of owners but authorized by law to act as a single person
question

certificate of incorporation
answer

a document, generally issued by a state government, giving permission to start a corporation
question

shareholders
answer

people who own stock in a corporation
question

board of directors
answer

a group of people elected by shareholders to guide a corporation
question

dividend
answer

The part of the profits of a corporation that each shareholder receives
question

franchise
answer

A written contract granting permission to sell someone else’s product or service in a prescribed manner, over a certain period of time, and in a specified area
question

franchisee
answer

The person or group of people who have received permission from a parent company to sell its products or services
question

franchisor
answer

the parent company that grants permission to a person or group to sell its products or services
question

leadership
answer

the ability to influence individuals and groups to accomplish important goals
question

human relations
answer

the way people get along with each other
question

position influence
answer

the ability to get others to accomplish tasks because fo the position the leader holds
question

reward influence
answer

Results from the leader’s ability to give or withhold rewards
question

expert influence
answer

arises when group members recognize that the leader has special expertise in an area
question

identity influence
answer

stems from personal trust and respect members have for the leader
question

leadership style
answer

the way a manager treats and directs employees
question

tactical management
answer

a leadership style where the manager is more directive and controlling
question

strategic management
answer

a leadership style where managers are less directive and involve emplyees in decision making
question

mixed management
answer

the combined use fo tactical and strategic management
question

marketing functions
answer

groups of marketing activities
question

marketing concept
answer

directing all marketing activities at profitably satisfying customer needs
question

marketing strategy
answer

a two-step process for successfully planning and marketing products and services
question

target market
answer

a group of consumers with very similar needs to whom a company can sell its products
question

marketing mix
answer

the blending of four marketing elements to satisfy a target market
question

product
answer

anything offered to the target market to satisfy needs including physical products and services
question

place
answer

teh locations where products are sold and the ways they are made available to customers
question

price
answer

what customers pay and the method of payment
question

promotion
answer

the methods and info communicated to customers to encourage purchases and increase their satisfaction
question

buying motives
answer

the reasons for making a purchase
question

channel of distribution
answer

the path that a product travels from producer to consumer
question

wholesaler
answer

a middle firm that assists with distribution activities between businesses
question

retailer
answer

a business firm that sells directly to the consumer
question

social responsibility
answer

the obligation of a business to contribute to the well-being of a community
question

non-renewable resource
answer

a natural resource, such as gas, coal, copper, and iron ore, that cannot be replaced one used up
question

business ethics
answer

rules about how businesses and their employees ought to behave
question

code of ethics
answer

a statement of values and rules that guides the behavior of employees or members of an organization
question

conservation
answer

the preservation and careful management of the environment and of natural resources
question

pollution
answer

undesirable state of the natural environment being contaminated with harmful substances as a consequence of human activities
question

workplace diversity
answer

differences among coworkers including culture, race, age, gender, economic status, and religion among other things
question

safety
answer

a state of being free of danger and injury
question

employee wellness
answer

programs are offered by employers to maintain a healthy workforce
question

international business
answer

the business activities necessary for creating, shipping,a nd selling goods adn services across national borders
question

imports
answer

goods and services bought from another country
question

exports
answer

goods and services sold to another country
question

exchange rate
answer

the value fo the money of one country expressed in terms of the money of another country
question

barriers to trade
answer

include tariffs, quotas and embargoes
question

quota
answer

a limit on the quantity of a product that may be imported and exported within a given period of time
question

tariff
answer

a tax that a government places on certain imported products
question

embargo
answer

stopping the importing or exporting of a certain product or service
question

balance of trade
answer

the difference between a country’s total imports and total exprots of goods
question

interstate commerce
answer

business transactions involving companies in more than one state
question

intrastate commerce
answer

business transactions involving companies that do business only in one state
question

contract
answer

an agreement to exchange goods or services for something of value
question

patent
answer

the exclusive right given to a person to make, use, or sell an invention for a period of 17 years
question

copyright
answer

protection of the work of authors, composers, and artists
question

trademark
answer

a word, letter, or symbol associated with a specific product or company
question

public utility
answer

a business that supplies a service or product vital to all people; the price charge for the service is determined by government regulation rather than by competition
question

monopoly
answer

a business that has complete control of the market for a product or service
question

antitrust laws
answer

laws designed to promote competition and fairness to prevent monopolies
question

revenue
answer

business or government income
question

business plan
answer

a written description of the business idea and how it will be carried out including all major business operations
question

entrepreneur
answer

someone who takes a risk in starting a business to earn a profit