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Intro to Business Final

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A "buy" decision that involves non-objective factors and can lead to "irrational" decisions based on....
emotional motives
...goods are inexpensive products that are purchased often and with little expenditure of time or effort.
convenience
...goods are expensive and rarely purchased. The consumer is usually unwilling to consider alternatives.
specialty
The group of products that a company makes available for sale, whether consumer, industrial or both, is known as the company's product...
mix
group of similar products intended for a group of similar buyers
product line
a company's percentage of the total market sales for a specific product type.
market share
pricing above the market plays on the common assumption that...
higher price means higher quality
if a firm's goal were to place a new product into the hands of as many consumers as quickly as possible, then the best pricing strategy would be .....
penetration training
pricing a product at a lower price in a foreign market than in its home market
dumping
technique used to sell a product.
promotion
paid, nonpersonal communication used by an identified sponsor to inform an audience about a product.
advertising
The sending of fliers or other types of printed advertisements to consumer's homes
direct mail
an arrangement of advertisements in selected media to reach targeted audiences.
advertising campaign
an independent company that provides some or all of a client firm's advertising needs.
advertising agency
An employee who detects and tries to put an end to a company's unethical, illegal, and/or socially irresponsible actions by publicizing them is referred to as a(n)
whistle-blower
occurs when someone uses confidential information to gain from the purchase or sale of stocks
insider-trading
describe how an organization will achieve their purpose in the environments in which they conduct their business.
mission Statements
study of consumer needs and wants, and the ways in which sellers can best meet them
marketing Research
a market research technique using a questionnaire that is either mailed to individuals or used as the basis for telephone or personal interviews.
survey
The difference between revenues and expenses
profits
provides for the private ownership of the factors of production and also encourages entrepreneurship by offering profits as an incentive?
capitalism
The process of converting government enterprises into privately owned companies
privatization
The willingness and ability of buyers to purchase a product, good, or service
demand
refers to the willingness and ability of producers to offer a good or service for sale.
supply
"Buyers will purchase (demand) more of a product as its price drops and less of a product as its price increases." This is referred to as...
the law of demand
The concept that producers will offer more of a product for sale as its price increases and less as its price decreases is known as...
the law of supply
occurs when the quantity supplied exceeds the quantity demanded
surplus
Exists when an industry or market has only one producer
monopoly
philosophy that says that the government should not interfere in the economy, but should instead let business function without regulation according to its own "natural" laws
Laissez-faire
introduced the moving assembly line and ushered in the production era
Henry Ford
the pattern of short-term ups and downs in an economy
business cycle
results when a country exports more than it imports
Trade deficit
the amount of money that the government owes its creditors
national debt
the economic condition characterized by widespread increased prices without increased purchasing power.
inflation
a prolonged and deep recession
depression
form of business is owned and usually operated by one person who is responsible for its debts
sole proprietorship
a business with two or more owners who share in the operation of the firm and are financially responsible for its debts
general partnership
has stock that is widely held and available for sale to the general public
public corporation
owners of a corporation are
stockholders
elected by stockholders to oversee corporate management
the board of directors
Top managers hired by the board of directors to run the corporation on a day-to-day basis are called
corporate officers
Corporations sell shares in the business called
stock
Profits are distributed to stockholders in the form of
dividends
The governing body of a corporation is its
Board of Directors
The person responsible for the firm's overall performance is the
CEO (Chief Executive Officer)
As more and more firms engage in international business, the world economy is fast becoming a single interdependent system; a process called
globalization
products made or grown abroad and sold in the U.S. are called
imports
products made or grown in the U.S. and shipped for sale abroad are called
exports
The total economic value of all products that a nation imports minus the total economic value of all products that it exports is called a country's
balance of trade
When a country's imports exceed its exports, the nation has a
Trade Deficit
When a country's exports exceed its imports, the nation has a
Trade surplus
The rate at which the currency of one nation can be exchanged for that of another is called
Exchange rate
The United States government forbids the importation of cigars from Cuba into the United States. This government order is known as a(n)
Embargo
tax on imported goods or products
tariff
refers to ethical or unethical behaviors by a manager or employee of an organization
business ethics
After Hurricane Andrew devastated South Florida, some retailers charged over $100 per sheet for plywood. This was an example of
Price gouging
Written commitments wherein companies formally acknowledge their intent to do business in an ethical manner are called
Codes of Ethics
The way in which a business tries to balance its commitments to groups and individuals in its social environment is called
Social responsibility
what is a recession?
-unemployment increase
-standard of living decrease
advantages to franchising
-access to financial & managerial help
-reduce chance of failure
disadvantages to franchising
-large set-up cost
-percentage of income goes to parent company.
why might a company decide not to conduct business internationally?
-no international demand for product
-government regulations
-product can't be adapted to fit means of market
how can companies promote ethical behavior?
-have a written code of ethics
-ethics training programs
-have an ethical hotline
-promote whistle-blowers
identify the four market segmentation
-demographic
-geographic
-psychographic
-behavioral
what are the 4 elements of the market mix?
-price
-place
-product
-promotion