GENERAL BUSINESS: Business in Our Economy—Study Guide
Page 1 of 3
Name_______________________________________ Test______________
1.
Producers could be identified as:
a._______________________ who take raw materials or grow raw materials
b._______________________ who make raw materials into useable forms
2.
Common marketers are:
a._______________________ who sell to the ultimate consumer
b._______________________ who sell to other businesses such as retailers
3.
When we think of retailers we often think of the brick and mortar type stores. What are some other
examples of retailers?
____________________________________________________________________________________
4.
A type of business that performs activities for others is also known as a _________________ business.
5.
A _________________________ channel of distribution is when middleman or intermediaries are
involved to help move the channel from producer to consumer. The added middleman will generally
increase OR decrease the price of the product.
6.
An example of a _____________________ channel of distribution is a farmer’s market—where the
producer sells their product to the consumer with no middleman involved.
7.
A direct channel of distribution is less common than an indirect channel. Why?
________________________________________________________________________
8.
Another term for middleman is ___________________________. And their purpose is to
_________________________________________.
9.
Match the following business activities with the descriptors below
a.
Generating ideas
e.
Managing human resources
b.
Raising capital
f.
Producing goods and services
c.
Buying goods and services
g.
Keeping records
d.
Marketing goods and services
A.______
Mary’s Coffee Express makes frappes for customers.
B.______
Subway invests in a new soda dispenser.
GENERAL BUSINESS: Business in Our Economy—Study Guide
C.______
Sjolind’s meets with their commercial lender to take a loan for recent expansions.
D.______
Miller’s Supermarket puts a sign in the window to let individuals know that they are
currently hiring.
Employees at Great Scott’s are required to count their cash drawer at the end of each
shift.
Pizza Hut sends coupons to neighborhoods to encourage people to try their new garlic
crust pizza.
State Bank of Cross Plains conducts a 45 day review with a new employee to discuss
employee performance.
An engineer at Ford Motor Company watches industry trends to determine how to
design the 2020 concept car.
E.______
F.______
G.______
H.______
10.
Page 2 of 3
Explain how John Deere could be both a manufacturer and a marketer.
________________________________________________________________________
11.
a.
Identify if the following are traits of:
Sole Proprietorship
b.
Partnership
c.
Corporation
A._____
Accounts for 90% of U.S. sales.
B._____
About 75% of businesses in the U.S.
C._____
Is viewed as its own entity and will continue on in the same form even if an owner dies.
D._____
E._____
A common problem is disagreements and it is highly advised to create a contractual
agreement before going into business.
Has unlimited liability, but yet you do not need to share profits with anyone.
F._____
Profits are sent out as dividends to shareholders.
G._____
H._____
Income is taxed both as income of the business and again as income earned through
dividends—double taxation.
Easiest form to start.
I._____
A major advantage to this structure is limited liability.
J._____
Easier to raise capital due to many potential owners who become shareholders.
K._____
12.
Ran by a board of directors who have highly specialized skills/traits to add to the business
structure.
Which type(s) of business structures are identified with:
A.
Unlimited Liability
_____________________________________________________
B.
Limited Liability
_____________________________________________________
C.
Double Taxation
_____________________________________________________
GENERAL BUSINESS: Business in Our Economy—Study Guide
Page 3 of 3
Answer True or False as it relates to Franchising.
13. True or False A franchisor is the agreement allowing someone to operate in a specified territory.
14. True or False The parent company often provides services such as training, cooperative buying and
paying royalties.
15. True or False Royalty fees are only paid during the initial investment for the franchise.
16. True or False The franchisor is the individual who agrees to allow a franchisee to operate their
business in a specified manner.
17. True or False A major advantage of a franchise business structure is that they will always succeed
because they have succeeded in other marketplace settings.
18. True or False Some popular companies such as McDonald’s could have locations that are “corporate
owned”, while others are “franchise owned”.
19.
How might management functions/activities differ from a large company/corporation vs. a small
enterprise?
____________________________________________________________________________________
20.
The management function that requires management to be able to inspire and motivate their
workforce is ______________________________.
21.
The management function that makes assigns workers to specific tasks is __________________.
22.
_________________ requires managers to find and train new employees.
23.
Comparing last year’s sales with this years projected sales is an example of the __________________
management function.
24.
SWOT analysis is an acronym—meaning each letter “stands for” something. Identify below:
a.
___________________________________________
25.
b.
___________________________________________
c.
___________________________________________
d.
___________________________________________
How/why do managers use SWOT analysis?
_____________________________________________________________________________