Chapter 5 Marketing Essentials

According to the free enterprise system concept who decides whether or not a business will survive?

• the consumers
• the owners
• the government
• the competitors

Businesses stress quality products, services, & financing when engaged in non-price competition.

• True
• False

Sales and rebates are examples of what strategy?

• Price Competition
• Low Fares
• Competitive Edge
• Roll Backs

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

• True
• False

What occurs when the potential for earning increases?

• Competition increases
• Risk increases
• Taxes decrease
• The marketing expenditure decreases

What is the purpose of most businesses?

• To produce products
• To serve as a board of directors
• To compete
• To provide government services

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

• True
• False

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

• Profit
• Promotion
• Surplus
• Competition

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

• True
• False

DECA, the Red Cross, and the Girl Scouts of America are considered ____________organizations.

• Profit
• Non-profit
• Non-price 
• Price