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SEM Chapter 3 Review

Total questions: 38

Worksheet time: 22mins

Name
Class
Date
1.
Form utility results from changes in the tangible parts of a product or service. 
a)
True
b)
False
2.
A business that schedules its hours to better meet consumer needs provides place utility. 
a)
True
b)
False
3.
Offering auto leases rather than requiring customers to pay the full purchase price provides possession utility. 
a)
True
b)
False
4.
Convenience stores open 24 hours a day usually provide both time and place utility. 
a)
True
b)
False
5.
Improving products through analyzing economic utility supports the marketing concept. 
a)
True
b)
False
6.
The amount of satisfaction a consumer receives from the consumption of a particular product or service is
a)
form utility
b)
possession utility
c)
time utility
d)
economic utility
7.
Packaging milk into smaller containers to meet the demand of people who live alone is an example of
a)
form utility
b)
possession utility
c)
time utility
d)
place utility
8.
When economic utility is improved
a)
prices charged by businesses will increase
b)
consumers will have fewer choices
c)
customers satisfaction improves as well
d)
competition will be greater
9.

An economic impact is the effect produced by decisions made by consumers and businesses.

a)

True

b)

False

10.

When a business does not make enough revenue to cover expenses, it operates at a profit.

a)

True

b)

False

11.

The study of how goods and services are produced, distributed, and consumed is called marketing.

a)

True

b)

False

12.

The study of how goods and services are produced, distributed, and consumed is called economics.

a)

True

b)

False

13.

Building a company without outside assistance is often referred to as crowd sourcing.

a)

True

b)

False

14.

Venture capital is financing provided to start a company in return for owning part of the company.

a)

True

b)

False

15.

Risk cannot be controlled and must always be covered by purchasing insurance.

a)

True

b)

False

16.

Because people have limited time and money to spend on entertainment, they must make decisions about how to spend their limited resources.

a)

True

b)

False

17.

When the physical characteristics of a product or service are improved, it is called possession utility.

a)

True

b)

False

18.

Risks can be classified as controllable, insurable, and involving gain or loss.

a)

True

b)

False

19.

Risk retention means purchasing insurance to cover possible losses.

a)

True

b)

False

20.

A perception exists among the general public that sports and entertainment celebrities no longer value ethics.

a)

True

b)

False

21.

The best entertainment decisions are both effective and ethical.

a)

True

b)

False

22.

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

a)

revenue stream

b)

possession utility

c)

economic utility

d)

profit motive

23.

Profit is

a)

the amount of money remaining after income is paid

b)

revenue plus expenses

c)

the amount of money remaining from revenues after all expenses are paid

d)

none of the above

24.

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

a)

form utility

b)

economic utility

c)

place utility

d)

time utility

25.

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

a)

speculative risk

b)

controllable risk

c)

insurable risk

d)

uncontrollable risk

26.

Ethical behavior involves

a)

making easy routine decisions

b)

always making decisions that produce the greatest financial profits

c)

acting in a mature, responsible manner

d)

all of the above

27.

Forecasting involves

a)

purchasing and promotion

b)

pricing and ticket sales

c)

predicting costs and revenue

d)

planning, distribution, price and advertising

28.

Costs of sports and entertainment events include

a)

high salaries

b)

facilities

c)

promotion for events

d)

all of the above

29.

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

a)

Profit

b)

Risk

c)

Insurance

d)

Utility

30.

Risk retention involves

a)

buying insurance

b)

assuming the cost of an uninsurable risk

c)

Insurance

d)

the possibility of loss or gain

31.

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

a)

liable

b)

ethical

c)

avoiding risk

d)

risk averse

32.

The greatest reason for being in business is

a)

the challenge

b)

the profit motive

c)

the tax write off

d)

the lack of competition

33.

The __________ shows assets, liabilities, and net worth.

a)

balance sheet

b)

income statement

c)

check register

d)

purchases journal

34.

Pure loss risks

a)

involve the possibility for gain

b)

involve no possibility for gain

c)

are never insurable

d)

are speculative in nature

35.

Sources of revenue for NFL teams include

a)

budgets, editing, and talk shows

b)

first downs, field goals, and passes completed

c)

TV, partners, sponsorship, and ticket sales

d)

all of the above

36.
Total Revenue - Total Costs
a)
Revenue
b)
Profit
37.

This chapter has been over

a)

Money and Banking

b)

Risk Management

c)

Marketing

d)

Business Management

38.

Strategies for managing risk include

a)

risk avoidance and risk acceptance

b)

risk transfer and risk retention

c)

risk acceptance and risk denial

d)

risk avoidance, risk transfer, risk retention