Marketing 1 Chapter 5 Test Review

The price of a gallon of gas increases when what occurs?

Businesses in the private sector produce the same product or group of products.

Competition forces businesses to produce poor-quality products at low prices.

What is the term for the struggle between companies for customers?

creating, growing, manufacturing, improving on goods and services

Demand for consumer goods and services in organizational markets

This term involves buying and reselling ready-made goods.

What types of statements show income from sales and investments as well as cost and expenses?

What occurs when the potential for earning increases?

consumers buying products that are lowest priced

Consumers willingness and ability to buy a product

In an economic system, a company can charge any price without threat from competition

Due to deregulation, the government does not restrict the prices charged by electric companies.

DECA, Red Cross, and Girl Scouts are considered what type of organizations?

military, social, and regulatory agencies

When an ad stresses tradition and quality of workmanship, it is engaged in what?

Businesses stress quality of products, services, and financing in nonprice competition.

Sales and rebates are examples of what strategy?

Residents of the US can buy anything allowed by the law because they have freedom of...?

amount of goods producers are willing to make and sell

When the supply of a product exceeds the demand, businesses usually lower the price.

What is the purpose of most businesses?

obtain goods from manufacturers and resell to organizational users

when supply exceeds demands

The money-management function of a business is called...?

What is the purpose of a licensing agreement?

sole control over a product or the means of producing it

potential for loss or failure