Chapter 5 & 6 Review

Front

Businesses stress quality of products, services, and financing when engaging in nonprice competition.

Back

True

Front

Competition forces businesses to produce poor-quality products at low prices.

Back

False

Front

When the supply of a product exceeds the demand for it, businesses usually lower the product’s price.

Back

True

Front

Businesses in the private sector produce the same product or group of products.

Back

False

Front

The Federal Trade Commission assists businesses in establishing trade relations with other countries.

Back

False

Front

The U.S. government serves as a regulator, protecting consumers, workers, investors, and the environment.

Back

True

Front

In business, ethics are guidelines for good behavior.

Back

True

Front

As a socially responsible company, Ben and Jerry's contributes part of its pre-tax income to charitable and environmental causes.

Back

True

Front

Sales and rebates are examples of what strategy?

Back

price competition

Front

What occurs when the potential for earning increases?

Back

risk increases