Principles of Business Chapter 1 Section 2

Business is any commercial activity that seeks ___

• profit

• goods and services

• retail

• money

The reward that motivates businesses to supply goods and services is

• prestige

• employment

• the profit motive

• fees

Companies thrive on

• competition

• limits

• service

• monopoly power

Competition is possible because companies have the freedom to produce the products

they think will be most

• popular

• profitable

• inexpensive

• unusual

For companies to compete successfully in a global market, they must combine quality,

excellent service, and

• market share

• popularity

• choice

• competitive prices

Business success depends on how well key activities are managed, performed, and

• financed

• researched

• coordinated

• publicized

The act of gathering and analyzing information about the wants, needs, and preferences

of consumers in a certain market is called

• being nosy

• planning

• doing your job

• market research

A person who uses goods or services is called

• consumer

• lucky

• an owner

• rich

The decision to stop manufacturing products is often because of decreased

• price

• business size

• demand

• competition

When consumers choose not to purchase a business’s products or services, the business

usually

• succeeds

• wins

• fails

• loses