Principle of business

The largest number of U.S. businesses have no employees other than the owner.

• true
• false

The difference between income earned and expenses incurred by a business is called

• Sales

• Money

• Profit

• Time

Which of the following is NOT one of the six basic activities that all businesses perform?

• raising capital
• buying goods and services
• conserving resources
• generating ideas

Which of the following is NOT one of the six basic activities that all businesses perform?

• raising capital
• buying goods and services
• conserving resources
• generating ideas

Your needs and wants never end.

• True

• False

Product costs + operating expenses + profit =

• markup

• selling price

• gross cost

• markdown

Which marketing function involves communicating directly with potential customers to determine their needs?

• financial analysis

• pricing

• product and service management

• selling

What is gross margin?

• the amount of money available after all costs and expenses have been paid

• a reduction from the original selling price

• all expenses of operating a business that are associated with a product

• difference between the selling price and the product costs

A key difference between advertising and publicity is that advertising is paid communication and publicity is non-paid.

• True

• False

What are the four elements of a marketing mix?

• cost, location, time, and advertising

• demographics, income, supply, and demand

• product, distribution, price, and promotion

• consumers, manufacturers, retailers, and distributors