Page 35 - Business Principles and Management

C HAPTER 1 A SSESSMENT
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CHAPTER CONCEPTS

• Industrial businesses produce goods used by other businesses or orga-
nizations to make things. Commercial businesses engage in marketing,
in finance, and in providing services. Every business engages in at least
three major activities: production, marketing, and finance.

• The increased global competition of recent years has required firms to
become more efficient and effective at providing goods and services of
high quality at low prices to customers around the world. Innovations
such as computer technology and the Internet have changed the way
businesses run.
• A country’s economic growth is seen in a continuously expanding
GDP and the variety of goods and services that people are able to
afford. The ease of starting a small business has allowed many people
to become either entrepreneurs or intrapreneurs. Although many small
firms fail, many others are highly successful as independent enterprises,
franchisees, or large international firms.

REVIEW TERMS AND CONCEPTS

Write the letter of the term that matches each definition. Some terms will
not be used.
1. Businesses that produce goods used by other businesses or organi-
zations to make things
2. Organization that produces or distributes a good or service for profit
3. Producing products and services quickly, at low cost, without wasting
a. business time and materials
b. commercial businesses 4. Something entirely new
c. downsize 5. Businesses that use mostly labor to offer mostly intangible prod-
d. efficiency ucts to satisfy consumer needs
e. entrepreneur
f. foreign goods 6. Activity that involves making a product or providing a service
g. franchisee 7. Ability of businesses from one country to compete with similar
h. franchisor businesses in other countries
i. global competition 8. Parent company of a franchise agreement that provides the prod-
j. gross domestic product uct or service
(GDP)
k. industrial businesses 9. Quantity produced within a given time
l. industry 10. All businesses within a category doing similar work
m. innovation 11. Total market value of all goods and services produced in a country
n. output in a year
o. production 12. Products made by firms in other countries
p. productivity
q. service businesses 13. Someone who starts, manages, and owns a business
14. To reduce the amount and variety of goods and services produced
and the number of employees needed to produce them

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