Chapter 9
What is it called when a country sells (exports) more goods than it buys (imports)?
Trade surplus
According to the AMA, what business activity creates, communicates, and delivers offerings of value?
Marketing
Electronic devices that connect to the Internet and share data with each other are known as the:
Internet of Things (IoT)
What is accounting frequently called because it measures and communicates business activities?
The language of business
Which pricing strategy sets prices based on what consumers are willing to pay, and then subtracts a desired profit to determine manufacturing cost limits?
Target costing
What is a tax on imported goods called?
Tariff
What term describes a specific group of customers who have access, interest, and the means to buy your product?
Target market
What technology uses small tags attached to inventory items to provide real-time tracking data?
RFID
Which fundamental equation anchors the balance sheet?
Assets = Liabilities + Owner's Equity
Why must formal financial statements be prepared in a strict, specific order?
Because their numbers interlock and flow into one another
What trade control involves government cash payments given to domestic industries, like farming, to help them stay competitive?
Subsidies
What segmentation variable divides a consumer market based on lifestyle, activities, interests, and values?
Psychographic segmentation
What short-term pricing strategy starts with a low price to quickly grab market share and keep competition out?
Penetration approach
What type of business costs do not change when the volume of goods sold changes (such as monthly rent or salaries)?
Fixed costs
Which strategy explicitly relies on a brand asking customers for permission to send marketing materials instead of using interruption techniques?
Permission marketing
Which major regional trading bloc includes 27 member nations that share a single currency (the Euro) and allow free travel and work?
The European Union (EU)
What pricing strategy sets a high price specifically to convey an image of luxury and high product quality?
Prestige pricing
What traditional marketing approach relies heavily on billboards, direct mail, and TV commercials rather than digital content?
Product marketing
In what strict order must formal financial statements be prepared because their numbers interlock?
Income Statement > Statement of Owner's Equity > Balance Sheet
What economic concept is used to explain why a country specializes in a product even if another country can make more of it using fewer resources?
Opportunity cost
What kind of advantage does a country have if it is the absolute sole source of a product or can make it using fewer resources?
Absolute Advantage
In the product life cycle, during which stage do sales grow rapidly, but advertising costs also go up to capture more market share?
Growth stage
What term describes extremely large collections of customer data that computers analyze to reveal buying habits and profiles?
Big Data
What financial report provides a summary of cash flowing in and out of a business over a specific period?
Statement of Cash Flows
What is the main risk of using a price skimming strategy for a new product launch?
It invites competition