3rd Six Weeks

Question 1

The buying process that companies lead customers through when purchasing products.

Answer 1

Sales Funnel

Question 2

The rivalry between companies selling similar products and services with the goal of achieving revenue, profit, and market share growth.

Answer 2

Competition

Question 3

A structured and long-term marketing effort which provides incentives to repeat customers who demonstrate loyal buying behavior.

Answer 3

Loyalty Program

Question 4

A type of license that a party acquires to allow them to have access to a business’s proprietary knowledge, processes, and trademarks in order to allow the party to sell a product or provide a service under the business’s name.

Answer 4

Franchise Model

Question 5

Earnings derived from a rental property, limited partnership or other enterprise in which a person is not actively involved.

Answer 5

Passive Income

Question 6

A graphical depiction of the organizational structure of a company.

Answer 6

Organizational Chart

Question 7

The most common type of organizational chart with higher ranking individuals situated atop the chart and lower ranking persons found below them.

Answer 7

Hierarchical Structure

Question 8

Also known as a horizontal chart, depicts individuals along the same level, not placing greater importance to an individual’s title by placing them above any other individual.

Answer 8

Flat Structure

Question 9

A structure with individuals grouped by their common skill-sets and also by the groups in which they work and people they may report to, usually interconnecting employees and teams with more than one manager that they would report to.

Answer 9

Matrix Structure

Question 10

Also called the profit and loss statement or P&L, summarizes your company’s revenue and expenses.

Answer 10

Income Statement

Question 11

This chart shows your company’s assets and liabilities.

Answer 11

Balance Sheet

Question 12

This chart sums you expect to be coming into and going out of your business in a given time frame.

Answer 12

Cash Flow Statement

Question 13

Relationships determined from a company’s financial information and used for comparison purposes.

Answer 13

Financial Ratio

Question 14

When a small company decides to market existing products within the same market it has been using.

Answer 14

Market Penetration

Question 15

When a company sells current products in a new market.

Answer 15

Market Expansion

Question 16

When a company adds to its product line or adds new features to increase its sales and profits.

Answer 16

Product Expansion

Question 17

Where a small company will sell new products to new markets.

Answer 17

Diversification Strategies

Question 18

When a company purchases another company to expand its operations.

Answer 18

Acquisition Strategies

Question 19

Closing a business, selling off assets, repaying creditors, and keeping the rest.

Answer 19

Liquidation

Question 20

Finding another business that wants to buy yours and selling your business to them.

Answer 20

Acquisition

Question 21

This credit does not have monthly payments of a set figure, but instead is due all at once in a lump sum payment of the full amount owed.

Answer 21

Noninstallment Credit

Question 22

This kind of credit allows the consumer to receive a certain amount of credit to purchase one item or a few goods. One example of this is a car loan.

Answer 22

Installment Closed-End Credit

Question 23

With this kind of credit, the consumer has a specified amount of credit she can use or not use at her leisure. Then, the consumer must pay off part of the credit she uses at the end of a period, normally a month.

Answer 23

Revolving Open-End Credit

Question 24

The practice of strategically driving the development, market launch, and continual support and improvement of a company’s products.

Answer 24

Product Management

Question 25

The connected network of individuals, organizations, resources, activities, and technologies involved in the manufacture and sale of a product or service.

Answer 25

Supply Chain

Question 26

1st characteristic of product mix: the number of product lines the company sells.

Answer 26

Width of Product Mix

Question 27

2nd characteristic of product mix: the total number of products or items in your company’s product mix.

Answer 27

Length of Product Mix

Question 28

3rd characteristic of product mix: the total number of variations for each product. Variations can include size, flavor and any other distinguishing characteristic.

Answer 28

Depth of Product Mix

Question 29

4th characteristic of product mix: how closely related product lines are to one another–in terms of use, production and distribution.

Answer 29

Consistency of Product Mix

Question 30

5th characteristic of product mix: usually starting out with a product mix limited in width, depth and length; and have a high level of consistency.

Answer 30

Strategy of Product Mix

Question 31

What underlies the pricing process for a product, and it should reflect a company’s marketing, financial, strategic and product goals, as well as consumer price expectations and the levels of available stock and production resources.

Answer 31

Pricing Objective

Question 32

Used when introducing a new product that has distinct competitive advantages over similar products.

Answer 32

Premium Pricing

Question 33

Sets prices at the bare minimum to make a small profit. The key to this is to sell a high volume of products and services at low prices.

Answer 33

Economy Pricing

Question 34

Pricing that encourages consumer to buy products based on emotions rather than on common-sense logic. The best example is when a company prices its product at $199 instead of $200.

Answer 34

Psychological Pricing

Question 35

Selling multiple products together for a lower price than if they were purchased separately. This is an effective strategy to move unsold items that are simply taking up space.

Answer 35

Bundle Pricing