Business Essentials Unit 2

A producer is someone who

• sells products.

• makes things

• is very creative

• employs others.

                Rembert works for a grocery store that buys food from producers and sells it to customers. The grocery store is considered a

• trade industry.

• service business.

• raw-goods producer.

• builder.

The two main divisions of the trade industry are

• producers and retailers.

• manufacturers and wholesalers.

• wholesalers and retailers.

• wholesalers and producers.

One way in which many businesses demonstrate their social responsibility toward employees is by providing them with

• free meals.

• a safe, secure working environment.

• regular entertainment.

• a stress-free atmosphere.

One way in which a business can show its social responsibility is by __________ its profits.

• dividing

• maximizing

• reducing

• controlling

What do service businesses sell?

• Retail merchandise

• Raw goods

• Wholesale merchandise

• Intangible activities

Burger King and McDonald’s are examples of

• regulated monopolies.

• unrelated businesses.

• dissimilar firms.

• direct competitors.

An electronics store charges less for a new television than other electronics stores. The store is engaging in __________ competition.

• price

• nonprice

• unethical

• sales

If a consumer chooses to go to the movies rather than to a pizza parlor, then the movie theater and the pizza parlor are

• direct competitors.

• indirect competitors.

• engaged in prospecting.

• engaged in price competition.

   

What type of market structure is most commonly found in a private enterprise economy?

• Perfect competition

• Regulated monopoly

• Oligopoly

• Monopolistic competition