WorksheetsMarketing Chapter 5: The Free Enterprise System
Total questions: 25
Worksheet time: 13mins
What is the term for the struggle between companies for customers?
profit
promotion
surplus
competition
Sales and rebates are examples of what market strategy?
price competition
low fares
competitive edge
roll backs
What is the function of a licensing agreement?
allows hairdressers and barbers to perform their services
protects corporations from deceptive investors
protects businesses and individuals from unauthorized copying
allows businesses to operate in areas previously zoned as residential
In business, when does the potential for profit increase?
as the competition increases
as the risk increases
as taxes decrease
as the marketing expenditure decreases
What is the group that decides whether or not a business will survive?
the consumers
the owners or board of directors
the government
the competing businesses
Which statement best describes free enterprise?
A system that encourages people to start and operate their own businesses
A system where the marketplace determines prices
A system where people are free to own personal property
All of the above
What is an advantage of free enterprise?
Freedom to do as you want with no legal restrictions
Possibility of making profits
No restrictions on business
No competition
The functions of business are
Production, marketing, management, and finance
Marketing and finance
For-profit and nonprofit
None of the above
What are the “rights” of merchandising?
The right goods
The right time and place
The right price and the right amount
All of the above
What is a nonprofit organization?
An organization that cannot make a profit
An organization that cannot generate income
An organization that has no employee on payroll
An organization that functions like a business, but reinvests the money it makes in the cause it supports
The Bookworm is a successful children’s bookstore. The store’s owners provide literature seminars to parent and teacher groups, and they create recommended reading lists for classroom use. The Bookworm’s books cost about 15 percent more than the same books at the local discount chain bookstore. The Bookworm’s owners engage in _________ competition.
price
nonprice
quality
nonquality
Because they prevent competition, __________ are prohibited in a free enterprise system.
monopolies
oligolipies
surpluses
marketing strategies
The term __________ involves buying and reselling goods that have already been produced.
procurement
competition
domestic business
trademark
The price of a gallon of gas continues to rise due to oil __________ in the Mid-East.
shortages
overages
systems
production
The Red Cross, National Public Radio, and the Boy Scouts of America are all considered __________ organizations.
nonprofit
profit
monopolistic
price competition
Residents of the U.S. have the ability to buy whatever items are legally available. This ability is a basic free enterprise principle called freedom of __________.
risk
competition
speech
ownership
The function of business that involves money management is called __________.
management
finance
marketing
procurement
The Sleepytime Mattress Company advertises that it is "never undersold." The company is engaging in __________ competition.
price
nonprice
quality
nonquality
Statements that reflect income from sales revenue and investments as well as cost and expenses of doing business are known as __________ statements.
production and procurement
profit and loss
finance and accounting
SWOT Analysis
The possibility of financial loss is referred to as __________.
finance
competition
business risk
derived demand
According to the laws of supply and demand, businesses lower a product’s price when the supply of the product exceeds the demand for it.
True
False
Without competition nothing can stop a company from acting without regard for the customer.
True
False
Providing information utility for their products would be important for businesses engaging in nonprice competition.
True
False
Because of deregulation of the utility companies, the United States government no longer restricts the prices that gas and electric companies charge.
True
False
According to the U.S. Department of Labor, the private sector is primarily engaged in producing the same product or group of products.
True
False
