PI Concepts
Name 3 types of business ownership (BL:003)
Corporation, sole proprietorship, partnership
This European capital is known as the “City of Light"
Paris
This term refers to the total income a business earns before expenses are subtracted
Revenue
Before introducing a new product, businesses must first decide if it will be
A. profitable. C. franchised.
B. guaranteed. D. intangible.
A: Profitable
Before a new product is introduced, companies must determine if there is a market for the product and if there will be sufficient demand for it to generate a profit.
A franchise is a contractual agreement between a parent company and a franchisee to distribute goods and services.
A guarantee is a promise made by the seller to the consumer that the seller will refund the consumer's purchase price if the product does not perform as expected.
Intangible means not capable of being detected through touch.
This ocean is the largest on Earth
Pacific Ocean
Law of diminishing returns (EC:023)
Principle stating that profits or benefits gained from something will represent a proportionally smaller gain as more money or energy is invested in it
Wellington is the capital of this island nation in the South Pacific
New Zealand
A brief analysis that identifies a company’s strengths, weaknesses, opportunities, and threats
SWOT analysis
19. A gas station sells close to the same amount of gas every month, even if the price of gasoline goes up or down. This is because demand for gasoline is
A. inessential. B. elastic.
C. discretionary. D. inelastic.
D: Inelastic
Inelastic demand exists if the demand for a good or service is constant, even if the product's price changes. Some products are considered necessities that consumers must purchase regardless of their cost. For most consumers, gasoline is a necessity because they need to drive their cars.
Elasticdemand changes when prices change.
Discretionary and inessential are not terms commonly used to describe demand.
The author of Romeo and Juliet is this famous playwright
William Shakespeare
Name a method to protect intellectual property (BL:051)
Copyrights, patents, trademarks, etc.
This European capital was once divided by a famous wall
Berlin
This buzzword describes the unique benefit that makes a company stand out from competitors
value proposition
90. A popular hotel gives all of its guests a goodie bag that includes pens and a coffee cup with its logo and address on them. Most likely, the hotel is using these promotional materials to
A. inform customers. B. remind customers.
C. get customer feedback. D. identify customers.
B: Remind customers
Reminder promotions seek to reinforce a favorable company image that is already present in customers' minds. Because the guest is already staying at the hotel and the promotional materials do not include unknown information, the hotel would NOT be using the materials to inform. These specific promotional materials are not being used to collect feedback or identify customers.
This U.S. state is known as the “Sunshine State”
Florida
Explain concept of supply chain (OP:443)
Entire system of producing and delivering a product or service, from the very beginning stage of sourcing the raw materials to the final delivery of the product or service to end-users
What is the capital of Australia
Canberra
A financial term meaning the point at which total revenue equals total costs
break-even point
When Kara reviews an invoice from one of her suppliers, she notices an error in the discount amount for the order. Which of the following is the most appropriate action for Kara to take:
A. File a complaint with the supply company's president
B. Pay the invoice now and notify the supplier about the problem later
C. Contact the supplier to resolve the discrepancy
D. Generate a new invoice with the corrected information
C: Contact the supplier
Businesses monitor and track their suppliers' invoices to make sure they are billed correctly. If the business finds a discrepancy (e.g., incorrect discount amount) on the invoice, the business should contact the supplier to make necessary adjustments. In many situations, the supplier will send the business a revised invoice with the correct information. By paying an invoice that is higher than stated in the original purchase order, Kara is tying up funds that the business can use for other things. If the supplier does not take steps to correct the invoicing error, it might be appropriate to send a complaint to the supply company's president; however, Kara should begin the process by contacting the appropriate supply-company employee (e.g., salesperson). The supplier needs to generate a corrected invoice, not the business itself.
This treaty, signed in 1919, officially ended World War I
Treaty of Versailles
7 marketing functions (MK:002)
Marketing Information Management, Product/Service Management, Pricing, Promotion, Distribution, Selling, and Financing
This capital city sits along the River Thames
London
This business term refers to the strategy of increasing profits by encouraging customers to purchase higher-priced or additional items
upselling
1. A company that is being sued is given the opportunity to present evidence to defend itself. This is an aspect of:
A. legal procedure. C. personal rights.
B. legislative history. D. business rules.
A: legal procedure
Procedural law controls the workings of courts and the method by which rights are enforced. Legal procedure means that rights must be enforced in court, so the business is guaranteed an opportunity to present evidence to defend itself. This is not because of legislative history, personal rights, or business rules
This author wrote 1984 and Animal Farm
George Orwell