Mixed Review & Applications
This is the difference between the cost of making a product and the price it is sold for.
What is profit margin?
These are the goals or targets set by a business to guide its decisions and actions.
What are objectives?
The "S" in SMART objectives stands for this.
What is Specific?
I help move goods from producers to consumers. I can be a wholesaler, retailer, or agent. Who am I?
What is an intermediary?
True or False: A company can advertise for a "salesman" only.
False. Job adverts must be gender-neutral.
This is the point where total revenue equals total costs.
What is break-even point?
This type of objective is focused on money, such as profit, sales, or market share.
What is a financial objective?
The "T" in SMART objectives stands for this.
What is Time-bound? (or Timed)
I connect buyers and sellers but never take ownership of the products. Who am I?
What is an agent?
True or False: Promoting a man because "women are too emotional" is legal.
False. This is gender discrimination and illegal.
When a market has too many products and it becomes hard to grow sales, it is called this.
What is saturated?
A bakery owner wants the freedom to close early on Fridays to spend time with family. This is this type of objective.
What is a non-financial objective?
A new law requires restaurants to display calorie counts. This is an example of this reason why objectives change.
What is legislation?
I am a system of training young workers that combines on-the-job experience with classroom learning. Who am I?
What is an apprenticeship?
True or False: A business that pays above minimum wage will likely have lower staff turnover.
True. Higher pay increases retention.
A new business is most likely to have this as its top priority in its first year.
What is survival?
This term describes making enough profit to satisfy the needs of the owner, rather than maximizing it.
What is profit satisficing?
A smartphone company loses customers to a new competitor and changes its objective to survival. This is this reason for change.
What is market conditions?
I am the shares of profit paid to shareholders of a company. Who am I?
What are dividends?
True or False: A Question Mark product should always be immediately discontinued.
False. A Question Mark has high potential and may be worth investing in.
A business that grows sales by 40% but sees profits fall because they cut prices too much might change their objective to focus on this.
What is profitability? (or profit maximization)
An entrepreneur starts a business because they enjoy the challenge of solving difficult problems. This is this type of objective.
What is a non-financial objective? (or challenge/personal satisfaction)
A founder retires and her daughter takes over, changing objectives from "steady profits" to "rapid expansion." This is this reason for change.
What is internal reasons? (or change in ownership/management)
I am the use of computers and machines instead of people to do a job. Who am I?
What is automation?
True or False: Setting a very high price for a new, innovative product is called penetration pricing.
False. This is called skimming.