Entrepreneurship Semester Exam Review

The type of business that buys and sells goods.

• Manufacturing

• Merchandising

• Finance

• Infrastructure

• Service

These are goods purchased that remains unsold at the end of the accounting period.

• Supplies

• Inventory

• Stock

• Raw materials

A business that buys and resells merchandise to retail merchandising businesses is called

• wholesale merchandising business

• vendor

• special business

• partnership

A business from which merchandise is purchased or supplies or other assets are bought is called

• vendor

• customer

• purchase business

• special business

A business in which two or more persons combine their assets and skills is called

• partnership

• partner

• merchandising business

• retail business

Goods that a merchandising business purchases to sell are called

• merchandise

• markups

• vendors

• purchases

Which statement best describes "Price"?

• The cost of producing items

• The amount customers are charged for items

• The profit earned from selling items

What is Loss Leader pricing?

• A product is sold at production cost price

• A product is sold at less than cost price

• A product is sold to make a small profit

What is Promotional pricing?

• When a business offers different prices to different customers

• When a business reduces price to below production cost to clear stock

• When a business offers a short term special offer such as buy one get one free to gain interest and increase sales

Organizational chart is

• a picture on the wall of the business

• a diagrammatic representation of the structure and reporting relationships in the organization

• a chain of command

• determining which which employee will be promoted the next hierarchical position