Small Business Management Vocabulary Exam Questions and Answers Latest Update Already Passed

Small Business Management Vocabulary Exam Questions and Answers Latest Update Already Passed Price - Answers The amount of money a business charges for items it offers for sale. Cost - Answers The amount of money the store pays to purchase the merchandise from a supplier. Profit - Answers The total revenue of a business less all expenses over a specific period of time. Margin - Answers The difference between the retail price of an item and the cost of the item to the store. Supply and Demand - Answers The principle that describes the amount of product available to sell and the willingness of customers that buy that product. Market Share - Answers The percentage that a store has of the total sale in trading its area. Markdown - Answers Reduction in price of merchandise to increase sales of product not selling according to projections. Buyer - Answers The person who is responsible for purchasing the merchandise for a store. Open-To-Buy - Answers The amount of money available to a buyer for purchasing items for a store. Vendor - Answers A business from which a buyer purchases merchandise. Inventory - Answers The total amount of goods a business has, including goods in the back room and on the sales floor. Stock - Answers Another term for inventory. Invoice - Answers The Vendor's bill for stoic purchased Inventory Control - Answers The management of the merchandise a store has for sale. Just-in-Time Inventory Control System - Answers A usually computerized method of inventory control that involves linking a store to its supplies through a computer system that purchases new inventory automatically as sales are made. Physical Inventory - Answers An inventory system that makes use of periodic counts of stock to ascertain stock levels. Perpetual Inventory System - Answers An inventory system that keeps track of stock items on a continual basis. Stock Turnover - Answers A tool that measures how often stock is sold during a given a time period. Staffing - Answers The assignment of workers to within a business. Staffing Level - Answers The number of workers assigned to jobs at a particular time. Understaffing - Answers When there is not enough staff to handle the customers. Overstaffing - Answers When there are too many staff members in the store for the customer traffic. Wages - Answers The payments made to employees for the hour that they work. Promotion - Answers The positive communication a business has with its customers. Product Promotion - Answers Promotion of a store's merchandise. Institutional Promotion - Answers Promotion meant to heighten a store's image. Personal Selling - Answers A type of promotion that involves the use of paid sales associates to interact with the store's customers. Sales Promotion - Answers A type of promotion that involves the use of activities meant to encourage customers to make purchases. Advertising - Answers Communication to customers paid for by a business. Public Relations - Answers The use of unpaid references to a business to further a positive impression. Publicity - Answers A form of public relations that involves calling attention to a newsworthy aspect of the business. Promotional Mix - Answers The combination of the types of promotion a business uses. Federal Trade Commission(FTC) - Answers An agency of the federal government that enacts and enforces advertising laws that protect consumers.