Business Final Review Questions and Verified
Answers
Price Correct Answer: Money a customer must pay for a product or service
Markup Correct Answer: Amount added to the cost of a product to set the selling price equal to the
expected gross margin
Markdown Correct Answer: A reduction from the original selling price
Economic Utility Correct Answer: Value added through changes in form, time, place or possession
Inelastic Correct Answer: A price decrease will decrease total revenue
Elastic Correct Answer: A price decrease will increase total revenue
Skimming Price Correct Answer: High price designed to emphasize the quality or uniqueness of the
product
Penetration Price Correct Answer: A very low price designed to increase the quantity sold of a product
by emphasizing the value
Pricing Factors Correct Answer: -Supply and demand
-Uniqueness
-Age
-Season
-Complexity
-Convenience
Retail Sales: Correct Answer: Sales of durable and nondurable goods bought by consumers
Indirect Channel of Distribution: Correct Answer: Includes one or more other businesses between the
producer and the consumer
, Intermediary: Correct Answer: A go-between company in an indirect distribution channel
Direct Channel of Distribution: Correct Answer: When there is no intermediary. products move from
the producer straight to the consumer with no other organizations participating.
Retailers: Correct Answer: The final business organization in an indirect channel of distribution for
consumer products (Department Stores, Discount Stores, Specialty Stores, Super Markets, Convenience
Stores)
Contemporary Retailers: Correct Answer: Specialty Stores, Warehouse Clubs, Factory Outlets,
Superstores, Showroom Retailers.
Channel of Distribution: Correct Answer: Process and means of moving goods from the producer to the
consumer.
Private Enterprise: Correct Answer: All businesses that operate in the non-governmental sector of a free-
market system.
Contemporary: Correct Answer: Current or modern.
Intermediary Business: Correct Answer: Business involved in selling the goods and services of producers
to consumers and other businesses
Service Business: Correct Answer: Carries out activities that are consumed by its customers.
-does not offer products for sale
-fastest growing part of the economy
-more than 60 percent of all U.S. employment
Selling: Correct Answer: Direct communication with a potential customer to determine and satisfy wants
& needs.
Marketing Information Management Correct Answer: Using market information to improve business
decision-making and performance.
Opportunity Cost Correct Answer: EX: The money you forgo making by attending college instead of
getting a full-time job right away.
Consumer Service: Correct Answer: EX: A local restaurant.
Answers
Price Correct Answer: Money a customer must pay for a product or service
Markup Correct Answer: Amount added to the cost of a product to set the selling price equal to the
expected gross margin
Markdown Correct Answer: A reduction from the original selling price
Economic Utility Correct Answer: Value added through changes in form, time, place or possession
Inelastic Correct Answer: A price decrease will decrease total revenue
Elastic Correct Answer: A price decrease will increase total revenue
Skimming Price Correct Answer: High price designed to emphasize the quality or uniqueness of the
product
Penetration Price Correct Answer: A very low price designed to increase the quantity sold of a product
by emphasizing the value
Pricing Factors Correct Answer: -Supply and demand
-Uniqueness
-Age
-Season
-Complexity
-Convenience
Retail Sales: Correct Answer: Sales of durable and nondurable goods bought by consumers
Indirect Channel of Distribution: Correct Answer: Includes one or more other businesses between the
producer and the consumer
, Intermediary: Correct Answer: A go-between company in an indirect distribution channel
Direct Channel of Distribution: Correct Answer: When there is no intermediary. products move from
the producer straight to the consumer with no other organizations participating.
Retailers: Correct Answer: The final business organization in an indirect channel of distribution for
consumer products (Department Stores, Discount Stores, Specialty Stores, Super Markets, Convenience
Stores)
Contemporary Retailers: Correct Answer: Specialty Stores, Warehouse Clubs, Factory Outlets,
Superstores, Showroom Retailers.
Channel of Distribution: Correct Answer: Process and means of moving goods from the producer to the
consumer.
Private Enterprise: Correct Answer: All businesses that operate in the non-governmental sector of a free-
market system.
Contemporary: Correct Answer: Current or modern.
Intermediary Business: Correct Answer: Business involved in selling the goods and services of producers
to consumers and other businesses
Service Business: Correct Answer: Carries out activities that are consumed by its customers.
-does not offer products for sale
-fastest growing part of the economy
-more than 60 percent of all U.S. employment
Selling: Correct Answer: Direct communication with a potential customer to determine and satisfy wants
& needs.
Marketing Information Management Correct Answer: Using market information to improve business
decision-making and performance.
Opportunity Cost Correct Answer: EX: The money you forgo making by attending college instead of
getting a full-time job right away.
Consumer Service: Correct Answer: EX: A local restaurant.
