Marketing 1.3

Which of the following best describes the main difference between a for-profit business and a nonprofit organization?

• For-profit businesses are always larger than nonprofit organizations.

• For-profit businesses aim to generate profit, while nonprofit organizations focus on providing a social service or cause.

• Nonprofit organizations sell more products than for-profit businesses.

• For-profit businesses do not have a mission or vision.

Which of the following is an example of promotion in business?

• Hiring new employees

• Advertising a new product on social media

• Designing a new product

• Purchasing raw materials

What is the primary goal of an entrepreneur when starting a business?

• To avoid all risks

• To identify an opportunity and create a solution to a problem

• To work for another company

• To only focus on personal gain

Which of the following best defines the retail industry?

• Businesses that only manufacture goods

• Any store that sells goods or services to end users

• Companies that only provide services to other businesses

• Organizations that do not sell products

What is the main focus of sports marketing?

• Selling only sports equipment

• Marketing and promoting sports teams, events, individuals, and related products or services

• Organizing sports tournaments

• Training athletes

Which of the following is NOT a characteristic of an entrepreneur?

• Avoids all risks

• Strives for constant improvement

• Assumes personal and financial risk

• Starts a business

A nonprofit organization receives tax-exempt status from which government agency?

• The Department of Education

• The Internal Revenue Service (IRS)

• The Department of Commerce

• The Federal Reserve

Which of the following activities would most likely be considered retailing?

• Manufacturing shoes in a factory

• Selling shoes to customers in a mall store

• Designing a new shoe style

• Shipping shoes to a warehouse

Why is generating a profit margin important for a for-profit business?

• To pay taxes only

• To sustain operations, fund growth, and fulfill its mission and vision

• To avoid competition

• To become a nonprofit

Which of the following best illustrates the concept of promotion in marketing?

• Developing a new product

• Informing customers about a product and its benefits

• Hiring new staff

• Opening a new store location