Business Education 9 - Chapter 6 Test

Question 1

price fixing

Answer 1

competitors agree on the prices they will charge their customers, in an effort to reduce competition

Question 2

bid rigging

Answer 2

an unfair pricing practice in which companies bidding for businesses arrange bids between themselves instead of truly competing

Question 3

tenders

Answer 3

an invitation to bid on a contract and do the necessary work as outlined in “request to tender” document

Question 4

abuse of a dominant position

Answer 4

anti-competitive activites by a dominant firm

Question 5

exclusive dealing

Answer 5

an illegal requirement by a manufacturer that a dealer carry its products exclusively

Question 6

refusal to deal

Answer 6

an illegal practice of refusing to sell products to small retailers, thereby reducing competition

Question 7

merger

Answer 7

one company combines with or takes over the ownership of one or more other companies

Question 8

benefits of competition

Answer 8

• creation of new businesses
• businesses lead to other businesses
• effective way to compete
• productivity

Question 9

productivity

Answer 9

if fewer resources are used per unit produced, productivity increases

Question 10

criminal offences

Answer 10

• price fixing
• bid rigging
• tenders

Question 11

civil law matters

Answer 11

• abuse of a dominant position
• exclusive dealing
• refusal to deal
• merger

Question 12

government regulation

Answer 12

act that governs businesses in Canada and contains both criminal and civil provisions

Question 13

why is competition good for us?

Answer 13

leads to better products and better prices

Question 14

how can a company increase market share?

Answer 14

• increasing size of overall market

- taking away sales from competitors

Question 15

market segment

Answer 15

any part of an overall market that has common characteristics

Question 16

how can consumers be identified?

Answer 16

• demographics

- lifestyle

Question 17

demographics

Answer 17

the study of obvious characters that categorize human beings (age, genderm family life style, income level, ethnicity and culture)

Question 18

gatekeeper

Answer 18

a person who makes buying decisions for others

Question 19

baby-boom group

Answer 19

the large group of people born after WW2, between 1945-1965

Question 20

lifestyle

Answer 20

the way people live, which includes their values, beliefs, and motivations

Question 21

psychographics

Answer 21

the study of lifestyles

Question 22

introverted consumers

Answer 22

interested in their own self-concept (identity, fashion)

Question 23

extroverted consumers

Answer 23

interested in the opinions of others (uses products to reward achievement)

Question 24

competitive market

Answer 24

• specific types of products as well as the companies that produce them
• money spent annually by consumers on the specific product

Question 25

the quest for market share

Answer 25

the % that one business's product takes of the total dollars spent by consumers on similar products

Question 26

service competition

Answer 26

every business provides some type of service

Question 27

value added service

Answer 27

an extra service added to attract or retain customers

Question 28

service

Answer 28

a service is tangible (unable to be touched)

Question 29

the service sector

Answer 29

the part of the economy composed of businesses that provide mainly services

Question 30

competition in the service sector

Answer 30

convenience, degree of service, selection, reputation, price