What is the term for the struggle between companies for customers?

• profit

• promotion

• surplus

• competition

Sales and rebates are examples of what market strategy?

• price competition

• low fares

• competitive edge

• roll backs

What is the function of a licensing agreement?

• allows hairdressers and barbers to perform their services

• protects corporations from deceptive investors

• protects businesses and individuals from unauthorized copying

• allows businesses to operate in areas previously zoned as residential

In business, when does the potential for profit increase?

• as the competition increases

• as the risk increases

• as taxes decrease

• as the marketing expenditure decreases

What is the group that decides whether or not a business will survive?

• the consumers

• the owners or board of directors

• the government

• the competing businesses

Which statement best describes free enterprise?

• A system that encourages people to start and operate their own businesses

• A system where the marketplace determines prices

• A system where people are free to own personal property

• All of the above

What is an advantage of free enterprise?

• Freedom to do as you want with no legal restrictions

• Possibility of making profits

• No restrictions on business

• No competition

The functions of business are

• Production, marketing, management, and finance

• Marketing and finance

• For-profit and nonprofit

• None of the above

What are the “rights” of merchandising?

• The right goods

• The right time and place

• The right price and the right amount

• All of the above

What is a nonprofit organization?

• An organization that cannot make a profit

• An organization that cannot generate income

• An organization that has no employee on payroll

• An organization that functions like a business, but reinvests the money it makes in the cause it supports