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Foundations of Business EXAM 2

Terms in this set (20)

Disadvantages of Sole Proprietorship
unlimited liability, lack of continuity, lack of money, limited management skills, difficulty in hiring employees
General Partnership
partnership in which partners share equally in both responsibility and liability
limited partnership
A partnership with one or more general partners and one or more limited partners.
General Partner
An owner (partner) who has unlimited liability and is active in managing the firm.
limited partner
an owner who invests money in the business but does not have any management responsibility or liability for losses beyond the investment
Partnership
A business in which two or more persons combine their assets and skills
Agreement
figure 5.3 page 119
Conventional (C) Corporation
a state-chartered legal entity with authority to act and have liability separate from its owners
Disadvantages of a corporations
initial cost, paperwork, size, difficulty in termination, double taxation, and possible conflict with a board of directors
The evolution of marketing
Production Era
Selling Era
Marketing Concept Era
Customer Relationship Era
The marking mix
Product, Price, Place, Promotion
promotion
Consists of all the techniques sellers use to inform people about and motivate them to buy their products or services.
Technological Factors
capture the application of knowledge to create new processes and products
Two different business markets
Consumer market
Business-to-Business market
marketing intermediaries
Organizations that assist in moving goods and services from producers to businesses (B2B) and from businesses to consumers (B2C).
distribution process
All the steps involved in the physical movement or the transfer of ownership of a good or service from the producer to the consumer.
Intermediaries
They add possession utility by doing whatever is necessary to transfer ownership from one party to another, including providing credit.
merchant wholesalers
independently owned firms that take title to the goods they handle
Different merchant wholesalers
Rack Jobbers
Cash and Carry wholesalers
Drop shippers
retail distribution
Intensive, selective, exclusive are three different kinds of categories of retail distribution
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