Business Essentials Part 1

The two main divisions of the trade industry are:

• producers and retailers.

• wholesalers and producers.

• wholesalers and retailers.

• manufacturers and wholesalers.

New Gear studied trends in the marketplace to price their jerseys. There was an abundance of jerseys remaining after meeting the demand creating which market condition?

• equilibrium

• rationing

• shortage

• surplus

To prepare for effective decision-making that ensures the efficient delivery of products to the marketplace, one should study:

• marketing

• economics

• job outlooks

• supply chains

Economic resources that help people be more productive are:

• human resources.

• 
  natural resources.

• capital goods resources

• non-renewable resources

The economic resource where people work to produce goods or services are:

• capital goods

• human resources

• natural resources

• non-economic goods

What is the economic basis for the private enterprise economic system?

• competition

• the marketplace

• the motive of profit

• manufacturer supply chain

Competition helps create a healthy society by:

• creating new jobs

• increasing the money supply

• making new government relations

• replacing small businesses with large businesses

A business that buys goods or services and sells them to the ultimate consumer is a:

• manufacturer

• producer

• retailer

• wholesaler

A characteristic of a seller’s market is:

• lower profits

• higher prices

• larger supply

• smaller demand

A business decides against opening a store in the next town because its research shows the location will be unprofitable. What form of risk management is this?

• avoidance

• reduction

• retention

• transfer