S/E Marketing Chapter 3

What does the profit motive encourage businesses to do?

• Avoid advertising

• Improve products and services

• Limit customer choices

• Increase competition unfairly

Which of the following is an example of a revenue stream for a professional sports team?

• Stadium construction

• Player contracts

• Ticket sales

• Road maintenance

Which economic utility is created when a concert is held on a holiday weekend when more fans are available to attend?

• Place

• Time

• Possession

• Form

What is scarcity in economics?

• Overproduction of goods

• Unlimited access to resources

• Limited supply and unlimited demand

• Decreasing consumer interest

What type of utility is created when sports gear is manufactured in a form ready to be used by athletes?

• Place

• Possession

• Form

• Time

Which utility is improved when a product is available at the stadium instead of only online?

• Time

• Form

• Possession

• Place

What does a forecast help businesses do?

• Reduce taxes

• Plan for future events and sales

• Create contracts

• Pay employees

A business invests $100,000 in an ad campaign and earns $150,000. What does this demonstrate?

• Venture capital

• Scarcity

• Return on investment

• Budget loss

Which of the following best describes venture capital?

• Government grant

• Low-risk bank loan

• Personal savings

• High-risk funding for startups

A team allocates money for salaries, advertising, and equipment. What are they creating?

• Forecast

• Contingency plan

• Budget

• Liability plan