Midterm Exam Preview

While one definition of the term 'market' involves a physical location where buyers and sellers exchange goods, what is the second definition that can be used for the term 'market'?

• the total number of buyers for a specific product or service

• the process of buying and selling products or services

• the desire to make money or generate profit

• the equal parts into which ownership is divided

Businesses have to operate within the _____ of the countries in which they are located.

• highs and lows

• laws and regulations

• latitudes and longitudes

• climate and weather

Keisha owns a small boutique that sells handmade clothing and purses. She ordered a huge supply of warm winter sweaters, expecting that winter would last several weeks longer. However, when the weather abruptly changed, and it seemed that winter was gone and spring had arrived, Keisha was left with too much of her sweater supply. What might Keisha do to spur demand and sell more sweaters?

• give the sweaters away for free

• put the sweaters on sale

• keep the store temperature very cold

• pray for winter to return

What term refers to a business that acts as an intermediary between a wholesaler and a retailer?

• distributor

• merchandiser

• producer

• extractor

All businesses are required to pay their employees an hourly rate, with some exemptions. This rate is set by federal law and is referred to as what?

• maximum wage

• minimum wage

• annual salary

• inventory

What term best refers to a task or action that is performed for a fee?

• service

• product

• shares

• risk

For a business, _____ sales mean greater revenue.

• lower

• higher

• mediocre

• minimum

No employee will walk in the door knowing exactly how things are done at your business, which means that what is an essential aspect of hiring new employees?

• insuring

• recruiting

• training

• taxing

Saul owns a local shoe store that sells a variety of top shoe brands to his local community. Because Saul does not actually make the shoes at his store and purchases them from a manufacturer, he is considered a(n):

• enterpriser

• producer

• extractor

• merchandiser

There are many online job boards that post vacancies, and these can _____ a portion of the expenses associated with recruiting employees, particularly experienced executives.

• increase

• reduce

• upsurge

• expand