Marketing Chapter 5

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

• True

• False

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

• True

• False

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

• True

• False

What is the purpose of a license agreement?

• allows doctors to treat agreement?

• protects corporations from fraud

• protects an originator from unauthorized copying of name and products.

• allows businesses to operate in areas previously zoned as residential.

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

• profit

• promotion

• surplus

• competition

In an economic system that allows ___, a company can charge any price without threat from a competing company.

• profit and loss

• ownership

• shortages

• monopolies

DECA, FBLA, the Red Cross and the Girl Scouts of America are considered ___ organizations.

• procurement

• nonprofit

• finance

• nonprice

Mercedes Benz automobiles are considered luxury cars. In the company's ads, retail prices are not highlighted. Instead, the ads stress tradition and quality of workmanship. These ads engage in ___ competition.

• nonprice

• price

• profit and loss

• ownership

The term ___ involves buying and reselling ready-made goods.

• shortage

• ownership

• monopoly

• procurement

Residents of the United States can buy anything allowed by the law because they have freedom of ___.

• speach

• ownership

• procurement

• monopoly