Study Guide and Quiz Answers

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What does a wholesaling company do?

A
Sell products to individual consumers
B
Sell products to companies that plan to resell them
C
Manufacture products and sell them to retail companies
D
Transform land into capital
4

A company that builds houses and a company that makes cars are part of the __________ industry.

A
Retailing
B
Extractive
C
Wholesaling
D
Manufacturing
5

Eggs, toilet paper, and candy bars are examples of __________.

A
Specialty goods
B
Convenience goods
C
Shopping goods
D
Unsought goods
7

Which of the following describes a saturated market?

A
The prices of competitors are very high.
B
Many people want this product and haven't purchased it yet.
C
Most potential buyers have not heard of the product and don't know it exists.
D
Most potential buyers already have a product that satisfies this need or want.
8

Which of the following business ownership structures offers the best liability protection but higher taxes?

A
A nonprofit corporation
B
A C corporation
C
A partnership
D
A sole proprietorship
11

A corn farm, a coal mine, and a fishing company are all part of the _________ industry.

A
Manufacturing
B
Service
C
Extractive
D
Retailing
12

A company that is organized by function will group its employees into teams based on what?

A
The type of work they do
B
The product they make
C
The location or branch they work at
D
The type of customer they serve
13

A company is usually unable to take advantage of economies of scale during the __________ stage of the product life cycle.

A
Saturation
B
Introduction
C
Growth
D
Maturity
14

Which of the following describes a saturated market?

A
The prices of competitors are very high.
B
Many people want this product and haven't purchased it yet.
C
Most potential buyers have not heard of the product and don't know it exists.
D
Most potential buyers already have a product that satisfies this need or want.
15

Your company manufactures children's toys, and you want to keep the prices as low as possible for individual consumers. Which of the following things could you do to keep prices low?

A
Add subcontractors to the manufacturing process.
B
Hire tradespeople.
C
Keep the distribution chain short.
D
Add companies to the distribution chain.
16

Eggs, toilet paper, and candy bars are examples of __________.

A
Specialty goods
B
Convenience goods
C
Shopping goods
D
Unsought goods
17

Which of the following business ownership structures offers the best liability protection but higher taxes?

A
A nonprofit corporation
B
A C corporation
C
A partnership
D
A sole proprietorship
18

What does a wholesaling company do?

A
Sell products to individual consumers
B
Sell products to companies that plan to resell them
C
Manufacture products and sell them to retail companies
D
Transform land into capital
19

A company that is organized by both product and function is using ________ organization.

A
Flat
B
Hierarchical
C
Market
D
Matrix
20

What does a company's customer service department do?

A
Promote the company to new groups of potential customers.
B
Interact with customers after they have purchased the product.
C
Receive payments from customers and handle the company's money.
D
Handle employee-related procedures.

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