DECA TTDM Exam Review II

An economic system which allows its citizens to go into business for themselves, produce goods and services of their own choosing, and market their products as they desire is called A. sole proprietorship. B. communism. C. socialism. D. private enterprise.

Private enterprise. This is an economic system in which individuals and groups, rather than government, own or control the means of production.

Credit is often used as a selling tool because it helps to create __________ utility. A. possession B. exchange C. place D. form

A possesion utility

strategic alliance

A strategic alliance, sometimes called a joint venture, is an arrangement that involves two or more businesses entering into a relationship by combining complementary resources such as technology, skills, capital, or distribution channels, for the benefit of all parties. The relationship is usually short-term or for a single project or transaction.

A manufacturer is a type of business that A. sells raw goods for their producers. B. turns raw goods into useful products. C. does not make use of raw goods. D. keeps raw goods in their original forms.

B. Turns raw goods into useful products. The manufacturer changes the shapes or forms of raw goods so that they will be useful to consumers. Manufacturers buy raw goods from their producers and sell finished products.

2. Requiring businesses to control pollution and to dispose of hazardous waste properly are some of the main functions of __________ regulations. A. workplace B. environmental C. personnel D. geological

B. environmental

A business that fails to protect its employees from unnecessary risk or health hazards on the job may be sued for A. incompetence. B. misrepresentation. C. libel. D. negligence.

D. negligence

3. 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 A. host franchise. B. strategic alliance. C. master licensee. D. piggyback franchise.

D. piggyback franchise

Indirect Distribution

Indirect distribution refers to goods/services offered through an intermediary, such as a tour wholesaler.

intensive distribution

Intensive distribution is a strategy that involves using as many outlets as possible to sell products.

Socialism

Socialism is characterized by government ownership of major industries, private ownership of some smaller businesses, limited competition, and an emphasis on citizen welfare, rather than on profit-making.

The Wholeseller

The wholesaler puts together a package and sells/distributes to other channels, such as travel agencies.

communism

Communism is characterized by government ownership and control of all businesses and economic activities, with no freedom of choice for individuals.

An amusement park offers a special Labor Day package that can be purchased only through the park. This is an example of __________ distribution. A. indirect B. direct C. wholesale D. intensive

Direct. The package is offered only by the amusement park.

Form utility

Form utility is usefulness created by altering or changing the form or shape of a good to make it more useful to the consumer.

master licensee

Master licensee refers to a person or firm who helps franchisors find franchisees in a particular region or territory.

personnel regulations

Personnel regulations are intended to promote equal opportunity in the workplace. Geological is not a type of regulation.

piggyback franchising

Piggyback franchising is a form of ownership in which a retail franchise operates within the facilities of another store. The host is the retailer that allows the franchise to operate within its facilities. The host does not necessarily have to be a franchised retailer.

Place utility

Place utility is the usefulness that results from offering products at a place that is convenient for the customer. Exchange is a form of transfer, not a type of utility.

soleproprietorship

Sole proprietorship, in which one person owns and manages the business, is a type of business ownership found in a private enterprise economy.

work-place regulations

Workplace regulations are intended to make the work environment safe for employees.

misrepresentation

involves making unrealistic claims about products.

libel

making false statements that harm an individual's reputation.