SEM - Chpt 3 - Review

An activity that will produce money is called a(n) ___.

• revenue stream

• possession utility

• economic utility

• profit motive

The major reason for being in business is ___.

• the challenge

• the profit motive

• the tax write off

• the lack of competition

Tickets to the Super Bowl or World Cup are a scarce resource,

• so demand for the tickets is very high

• so demand for the tickets is very low

• so these events are never sold out

• but this does not affect demand for the tickets

The amount of satisfaction that people believe they receive from the entertainment is referred to as ___.

• form utility

• economic utility

• place utility

• time utility

Forecasting involves ___.

• purchasing and promotion

• pricing and ticket sales

• predicting costs and revenue

• planning, distribution, price, and advertising

Bringing a new professional team to a major city is an example of a(n) ___.

• speculative risk

• controllable risk

• insurable risk

• uncontrollable risk

___ is the possibility of financial gain, loss, or personal injury.

• Profit

• Risk

• Insurance

• Utility

Risk retention involves ___.

• buying insurance

• assuming the cost of an uninsurable risk

• stopping the activity that involves risk of loss

• the possibility of loss or gain

When a business is legally responsible for losses suffered by an injured person, it is said to be ___.

• liable

• ethical

• avoiding risk

• risk averse

Ethical behavior involves ___.

• making easy routine decisions

• always making decisions that produce the greatest financial profits

• deciding between right and wrong in a reasoned and impartial manner

• all of these