Chapter 3

Question 1

5 Forces To Focus (Environmental Scanning)

Answer 1

Economic
Technological
Regulatory
Social
Competition

Question 2

Decline in buying power when price levels rise faster than income.

Answer 2

Inflation

Economic (5 Forces To Focus Environmental Scanning)

Question 3

The total amount of money earned in a year.

Answer 3

Consumer Income= Gross Income

Economics (5 Forces To Focus Environmental Scanning)

Question 4

The amount of money a consumer has left got food, clothing, etc. after paying taxes.

Answer 4

Disposable Income

Economics (5 Forces To Focus Environmental Scanning)

Question 5

The amount of money the consumer uses for entertainment, recreation of luxuries.

Answer 5

Discretionary Income

Economics (5 Forces To Focus Environmental Scanning)

Question 6

Refers to the innovations or inventions.

Answer 6

Technology

5 Forces To Focus Environmental Scanning

Question 7

Oversight

Answer 7

Regulatory

5 Forces To Focus Environmental Scanning

Question 8

250 Million born between 1946-1964

Answer 8

Baby Boomer

Question 9

What is the fastest growing household units are?

Answer 9

Single parents and unrelated people living together.

Question 10

The percentage of women in nursing has ________ while the percentage of women going into medicine has_______.

Answer 10

Declined, Increased

Question 11

Every company has the same product.

Answer 11

Pure competition

Question 12

Many sellers compete and have substitutable products.

Answer 12

Monopolistic Competiton

Question 13

Few companies control the majority of the business.

Answer 13

Oligopoly

Question 14

Only one firm that sells a product.

Answer 14

Monopoly

Question 15

Prohibits contracts that restrain trade.

Answer 15

Sherman Antitrust Acts

Question 16

Prohibits mergers that create monopoly.

Answer 16

Clayton Act

Question 17

Broadened the power of Federal Government to prevent inter-corporate acquisitions that reduced competition.

Answer 17

Anti-merger Act

Question 18

Makes it illegal to discriminate in prices between different buyer of the same product.

Answer 18

Robinson-Patman Act

Question 19

Provides for the registration of a company’s trademark.

Answer 19

Lanham Act

Question 20

Grants a company trademark protection prior to use.

Answer 20

Trademark Law Revision Act

Question 21

Buyer is required to handle only the products of one manufacture but not a competitor.

Answer 21

Exclusive Dealing

Question 22

Buyer is required to purchase all or part of its needs for a product from one seller for a defined period of time.

Answer 22

Requirement Contacts

Question 23

Where the seller of a product requires that the purchaser also buy another item.

Answer 23

Tying Arrangements

Question 24

Prohibits physicians referrals to entities in which they hold financial interest.

Answer 24

Stark II Law

Question 25

Prohibits deceptive or misleading advertising and unfair business practices.

Answer 25

Federal Trade Commission Act of 1914

Question 26

Means of Communicating in which the company must correct mini pressing formed in the marketplace.

Answer 26

Corrective Advertising

Question 27

Use of info about events, trends, and relationships in an organizations external environment.

Answer 27

Environmental Scanning