Business Exam Review Practice Test.
the term for all the activities involved in developing and exchanging products - CORRECT ANSWER business
the customer of a service is often called a - CORRECT ANSWER client
anything that is bought or sold is called a - CORRECT ANSWER product
custom...
Business Exam Review Practice Test.
the term for all the activities involved in developing and exchanging products - CORRECT ANSWER
business
the customer of a service is often called a - CORRECT ANSWER client
anything that is bought or sold is called a - CORRECT ANSWER product
customers who purchase goods and services for their own use are called - CORRECT ANSWER
consumers
____ utility is added when a business changes the form of a good or a service to make it more useful -
CORRECT ANSWER form
a ___ is anywhere buyers and sellers can meet to buy and sell goods and services - CORRECT ANSWER
market
the difference between the income earned and the expenses incurred by a business during a specific
period of time is called _____ - CORRECT ANSWER profit
a science that examines how goods and services are produced, sold and used is called ____ - CORRECT
ANSWER economics
a ____ economy is one in which economic decisions are based on society's values, culture, and customs -
CORRECT ANSWER traditional
the law of ____ says that the price of a product is determined by the relationship of the supply of the
product and the demand for the product - CORRECT ANSWER supply and demand
____ is the market value of all final products produces in a country during a specific time period -
CORRECT ANSWER GDP; gross domestic product
,the four components of GDP are consumer spending, business investment, government spending and
____ - CORRECT ANSWER net exports
the ___- rate is the rate of change in prices calculated on a monthly or yearly basis - CORRECT ANSWER
inflation
____ is the general decline in prices throughout the economy - CORRECT ANSWER deflation
the ____ represents the cost of a loan and is expressed as a percent of the amount borrowed - CORRECT
ANSWER interest rate
____ competition is a competitive advantage based on factors other than price - CORRECT ANSWER
nonprice
the activities involved in buying and selling goods on a large scale is ____ - CORRECT ANSWER
commerce
the total money circulating at any one time in a country is the ____ - CORRECT ANSWER money supply
fiscal policy is the tax spending decisions made by the president and _____ - CORRECT ANSWER
congress
when two or more businesses work together to remove their competition, set prices, and control
distribution is called ____ - CORRECT ANSWER collusion
a ___ is a legal binding agreement between two or more people or businesses - CORRECT ANSWER
contract
a(n) ____ is a proposal to provide a good or a service - CORRECT ANSWER offer
something of value promised in a contract is called ___ - CORRECT ANSWER consideration
, ___ means that a person is legally able to enter into a binding agreement - CORRECT ANSWER capacity
promoting the welfare of others is called - CORRECT ANSWER philanthropy
a(n) ____ is a contract to rent something - CORRECT ANSWER lease
when one or more parties do not follow the agreed terms of a contract without have a legitimate reason
___ occurs - CORRECT ANSWER breach of contract
a(n) ___ contract lists the products or the services provided by a business and the price a customer pays
in exchange - CORRECT ANSWER sales and service
principles that help define appropriate behavior in a business setting are ____ - CORRECT ANSWER
business ethics
a ____ is a document the dictates how businesses should be conducted - CORRECT ANSWER code of
ethics
a(n) ___ business is an organization that generates revenue - CORRECT ANSWER for-profit business
a(n) ____ exists to serve some public purpose - CORRECT ANSWER not-for-profit organizations
___are businesses that use supplies from other producers to make products - CORRECT ANSWER
manufacturers
a business that purchases large quantities of products directly from producers and sells the products in
smaller quantities to retailers is a _____ - CORRECT ANSWER wholesaler
in a private enterprise system, ______ directly provide consumers with products that meet their needs
and wants - CORRECT ANSWER retailers
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