Business Foundations Final Exam

Definition: form of institutional advertising that promotes a specific viewpoint on a public issue as a way to influence public opinion and the legislative process.

• public relations

• brand equity

• cause advertising

• time utility

Definition: money invested in a business by another business firm or group of individuals in exchange for an ownership share.

• equity financing

• venture capital

• share capital

• angel Investors

Definition: Project initiated by a company employee who conceives the idea, convinces top management of its potential, and then recruits human and other resources from within the firm to turn it into a commercial project.

• franchise

• research centers

• skunkworks

• business incubator

Definition: Measures a firm's ability to meet debt payments on short notice (1:1 is satisfactory; (assets-inventory)/liabilities).

• current ratio

• debt-to-equity ratio

• continuous flow

• acid-test ratio

Definition: Prevailing market price at which you can buy an item.

• equilibrium price

• price elasticity

• consumer price index

• perfect price

Definition: Manufacturing technique that carries the product on a conveyor system past several workstations where workers perform specialized tasks.

• product advertising

• batch

• assembly line

• continuous flow

Definition: Unique combination of organizational abilities, products, and approaches that sets a company apart from competitors in the minds of customers.

• relationship management

• market segmentation

• consumer orientation

• competitive differentiation

How much in sales each dollar invested in assets generates (sales/average total assets).

• consumer price index

• gross profit rate

• quick ratio

• total asset turnover

Definition: name, term, sign, symbol, design, or some combination that identifies the products of one firm and differentiates them from competitors' offerings.

• brand

• marketing

• trademark

• retailer

Definition: economic system that rewards firms for their ability to identify and serve the needs and demands of customers.

• competitive differentiation

• private enterprise system

• supply curve

• relationship management