Topic 1 Exam Part I-7th Period

The Ansoff Matrix suggests four possible methods of growth. Which of the following is not an option?

• Product Orientation

• Market Penetration

• Market Development

• Diversification

Objectives are

• The purpose of a firm's existence

• What a business wants to achieve

• Long-term goals of an organization

• Qualitative statement of direction

A non-profit that operates in the private sector

• Charity

• Non-Profit Organization

• Non-Governmental

• NPO

The _____________ sector of the economy is owned by individuals. The ____________sector is controlled by the government.

• Private, Public

• Tertiary, Primary

• Public, Private

• Secondary, Primary

The high-risk growth option where firms operate in an unknown market with unfamiliar products is

• Market Orientation

• Market Penetration

• Diversification

• Product Development

Internal stakeholders include

• Creditors

• Competitors

• Shareholders

• Government

Average costs can be lowered if a firm produces a range of related products

• Increase returns to scale

• Diversification

• Economies of Scale

• Diseconomies of Scale

______________ means a company has grown by merger or takeover

• Vision Statement

• Mission Statement

• Organic Growth

• Inorganic Growth

Internal diseconomies of scale can be caused by

• The exercise of control by manager being weakened

• Traffic congestion caused by delays in delivery

• Purchasing stock at a discount

• Advertising costs decrease to global audience

Equipment is an example of which type of factor input?

• Land

• Labor

• Capital

• Enterprise