Business Management Midterm

What are the 4 economic activities?

1. Consumption 2. Production 3. Exchange 4. Distribution

What are communication barriers?

1. Language 2. Environment 3. Bad Timing 4. Information Overload

What are the 3 basic economic questions?

1. What will be produced? 2. How will it be produced? 3. How will the products be allocated?

What condition must a channel be in for it to be effective?

A channel needs to be properly managed

Which of the following is an example of an industrial user

A hairstylist buying scissors to perform haircuts

Which of the following is an example of an ultimate consumer

A teenager buying their first car

What is expansion?

A time of economic growth and prosperity

Jake wanted to run his own business but was unsure that he had adequate business skills to be successful. Which type of business would give Jake the help he needs?

Business-format franchise

What is the third phase of Business cycles?

Contraction

The Scott Company decided to sell stock to raise capital. Under what form of business organization does the company operate?

Corporation

What is Contraction?

Economic activity is diminished; Some contractions become recessions/depressions

What is the first phase of Business cycles?

Expansion

Business cycles are predictable. True or False?

False

Wendy's sells the right to operate its restaurants to individuals who meet the company's criteria. The arrangement between Wendy's and these individuals is an example of

Franchising

Where does a channel of distribution begin

From the producer

What is distribution?

How income is divided among resource owners and producers

Which of the following statements is true regarding joint ventures:

Joint-venture arrangements are usually short-term relationships.

Olivia runs a home-based business that distributes high-quality, handmade baskets. She sells the products and earns commissions on the baskets sold by four other basket representatives. This is an example of

Multi Level Marketing

The American Red Cross is an example of a(n) ___________ corporation.

Nonprofit

What is the second phase of Business cycles?

Peak

What are human resources?

People who work to produce goods and services

What do business owners consider when they select a business ownership structure?

Personal circumstances, type of business, financial needs

What are the external factors of Business cycles?

Political changes climatic changes international relations discoveries and innovation psychological changes

What type of corporation may be owned by just a few people and does not offer its shares for sale to the general public?

Private

What distribution channel is used when the producer does not have its own sales force and the consumer is the industrial consumer?

Producer-->industrial distributor--> consumer

What type of corporation sells millions of shares and must furnish complete information about its earnings, assets, and debts?

Public

Illegally run organizations that emphasize the collection of high fees from potential product distributors are often referred to as

Pyramid Scheme

"To form my business, I used all of my savings, borrowed from the bank, and I'm personally liable for all of the debts." This is an example of which of the following forms of business ownership:

Sole proprietorship

What is Real Gross Domestic Product? (GDP)

The monetary value of all the finished goods and services produced within a country's borders in a specific time period

What is Economics?

The study of scarcity

What is aggregate demand?

Total demand for an economies products

What is money supply?

Total quantity of money which exists at one time in a nation

What is the final phase of Business cycles?

Trough

Which of the following is a benefit of channels of distribution

We can more easily obtain products from all around the world

What is a peak?

When economic prosperity reaches it's highest point

Which of the following products would likely use an exclusive distribution pattern

a gallon of milk

What are benefits?

advantages employees receive

What is demand pull inflation?

aggregate demand exceeds available supply

A retailer buys a variety of toys from a number of producers for sale in the same place. The retailer is reducing the discrepancy of

assortment

What is compliance?

complying with applicable laws and regulations (e. g. minimum wage) keeping employees safe and healthy protecting interviewee's rights administering contracts

Retailers perform an important channel activity by negotiating with consumers on issues such as

delivery

The first decision that marketers must make when managing channels is

determining distribution patterns

What does HR Management staffing include?

determining need determining job descriptions and specifications recruiting the right number of candidates selecting candidates to interview interviewing candidates extending and negotiating job offers overseeing orientation

Producers who eliminate all middlemen are known as to be using a

direct channel

What are business cycles?

economic fluctuations (ups and downs in the economy)

Producers are able to match their production to the needs of consumers because intermediaries

enable producers to promote goods

What does training and development entail?

ensuring that employees are knowledgeable and productive determining training needs assessing available resources overseeing performance management and improvement

The goal of distribution channels is to get from the producer to the

final consumers

If all of the individuals who own a business share unlimited liability for the business's losses, these individuals are part of a(n)

general partnership.

Channels of distribution benefit the producers by

getting their products to consumers more efficiently

What does managing employee relations include?

handling complaints mediating conflicts running employee assistance programs assisting in labor relations

When marketers are trying to reach anyone, this is called an

intensive distribution pattern

ABC Specialty Wear is the only company that has written permission to use a national football team's logo on its sportswear. This is an example of a

licensing agreement

What is a trough?

low point of economic activity but a sign of recovery

Channels of distribution benefit consumers by

making a variety of products available to consumers

John, Robert, and Charles were college friends who wanted to start a business. John has creative ability, Robert's expertise is selling, and Charles' expertise is management. However, each has limited capital. The ideal business ownership for these young men is a

partnership

What is compensation?

pay for work completed

Channel members add value to a product by

performing certain channel activities expertly

Jane is the owner of a pizza shop associated with a national chain of pizza restaurants. She established her business in a regional supermarket. The pizza shop is referred to as a

piggyback franchise

What is exchange?

producers, consumers, and resource owners exchange money payments

What is production?

producing goods/services + transforming resources into more valuable goods/services

Channels of distribution allow channel members to share

profits or risk

Channel members should share an equal commitment to a product's

quality

A wholesaler breaks down a shipment of a product and sells portions of it to retailers. The wholesaler is reducing discrepancy of

quantity

The government restricts flow of money by...?

raising taxes raising interest rates buying less

The costs of promoting products are often

shared by channel members

The government increases amount of money in circulation by...?

spending more lowering interest rates lowering taxes

What are HR management functions?

staffing compensation and benefits training and development compliance employee relations

The total numbers of members in a channel is called

the channel length

The use of intermedaries enables producers to make larger profits because

the intermediaries sell more than the producer could on its own

An intermediary function that makes goods available to consumers where they are wanted and needed is

transporting and storing

producer to agent to consumer

travel planning

What is consumption?

using goods/services

A producers feels that a retailer is not selling their product aggressively enough. This is an example of:

vertical conflict

An advantage for producers in a producer to wholesaler to retailer to consumer channel is that

wholesalers usually buy in large quantities

A state-chartered corporation that was developed to help small businesses by taxing them as individuals in a partnership is a(n) __________ corporation.

"S"/ Subchapter