Quiz 2A
Direct Competitors
Companies that sell products or services identical or very similar to the ones you sell, Ex. Starbucks vs. Dunkin' Donuts, Wendy's vs. McDonald's
One way that competition helps to build a prosperous society is by
Creating new jobs, allowing more people to work
A popular product is said to be
Demand
Most companies put their best competitive effort up against their..
Direct Competitors
Private enterprise is based on the idea that
Everyone should set their own goals!
Which of the following are qualities of monopolies:
High Prices and Low production
Which activities are likely to increase a firm's profit?
Increase sales and decrease expenses
One way that competition benefits business is by encouraging the creation of
New Companies
Disadvantage of private enterprise:
Periods of Unemployment, Careless use of Resources, Unequal Distribution of Income
private property
Private property is anything of value that people own. Guitars, Cars, ETC
If expenses are greater than income, there's no
Reward for starting your own business
Gross profit shows business owners the difference between what you have
Spent and Recieved
Why are entrepreneurs important in a private enterprise system?
They encourage the development of new products
Each purchase strengthens the economy by encouraging
Trade
Private enterprise system is the freedom to choose
Where you will work
nonprice competition
a way to attract customers through style, service, or location, but not a lower price