The first two digits of a NAICS classification code designate a(n):

The first two digits of a NAICS classification code designate a(n):

a. industry, such as wheat farming.
b. subdivision of an industry, such as bread making.
c. major economic sector, such as agriculture.
d. industry group, such as grain farming.


Answer: c. major economic sector, such as agriculture.

The demand for two or more items used together in a single product is called ________.

The demand for two or more items used together in a single product is called ________.

a. joint demand
b. elastic demand
c. inelastic demand
d. derived demand


Answer: a. joint demand

Finished items ready for assembly or items that need very little processing to become part of another product are called ________.

Finished items ready for assembly or items that need very little processing to become part of another product are called ________.

a. supplies
b. processed materials
c. component parts
d. raw materials


Answer: c. component parts

Organizations that buy business goods and incorporate them into the products they produce for eventual sale are known as ________.

Organizations that buy business goods and incorporate them into the products they produce for eventual sale are known as ________.

a. buying centers
b. original equipment manufacturers
c. resellers
d. intermediaries


Answer: b. original equipment manufacturers

The practice where business purchasers choose to buy from their own customers is called ________.

The practice where business purchasers choose to buy from their own customers is called ________.

a. countertrading
b. joint demand
c. reciprocity
d. bartering


Answer: c. reciprocity

In the context of measuring online success, ________ relates to the fact that customers who haven't purchased for a while are less likely to purchase again than those who purchased a short while ago.

In the context of measuring online success, ________ relates to the fact that customers who haven't purchased for a while are less likely to purchase again than those who purchased a short while ago.

a. recency
b. stickiness
c. conversion rate
d. frequency


Answer: a. recency

In the context of business products, ________ are goods, such as portable tools, that are less expensive and shorter-lived than installations.

In the context of business products, ________ are goods, such as portable tools, that are less expensive and shorter-lived than installations.

a. component parts
b. processed materials
c. accessory equipment
d. major equipment


Answer: c. accessory equipment

Which of the following is true of component parts marketed to original equipment manufacturers (OEMs)?

Which of the following is true of component parts marketed to original equipment manufacturers (OEMs)?

a. The difference between their unit costs and selling prices is small.
b. Their availability has little effect on an OEM's ability to meet production deadlines.
c. Their profits are poor due to the limited volume of buying.
d. OEMs tend to behave like consumer markets when purchasing component parts.


Answer: a. The difference between their unit costs and selling prices is small.

_______ are consumable items that do not become part of the final product.

_______ are consumable items that do not become part of the final product.

a. Installations
b. Supplies
c. Raw materials
d. Processed materials


Answer: b. Supplies

In the context of business products, ________ includes capital goods such as large or expensive machines, mainframe computers, generators, and buildings.

In the context of business products, ________ includes capital goods such as large or expensive machines, mainframe computers, generators, and buildings.

a. major equipment
b. processed materials
c. supplies
d. accessory equipment


Answer: a. major equipment

In the context of measuring online success, ________ refers to the data that help identify regular purchasers who are likely to repeat their purchasing behavior in the future.

In the context of measuring online success, ________ refers to the data that help identify regular purchasers who are likely to repeat their purchasing behavior in the future.

a. recency
b. frequency
c. conversion rate
d. site reach


Answer: b. frequency

_______ are expense items that do not become part of a final product.

_______ are expense items that do not become part of a final product.

a. Processed materials
b. Supplies
c. Installations
d. Business services


Answer: d. Business services

In the context of measuring online success, ________ is defined as a ratio of the number of people who visited the site to the number of people who went on to complete the desired action.

In the context of measuring online success, ________ is defined as a ratio of the number of people who visited the site to the number of people who went on to complete the desired action.

a. conversion rate
b. average order value
c. site reach
d. frequency


Answer: a. conversion rate

A(n) ________ is defined as a cooperative agreement between business firms.

A(n) ________ is defined as a cooperative agreement between business firms.

a. business acquisition
b. golden handshake
c. strategic partnership
d. golden handshake


Answer: c. strategic partnership

The main impact of the multiplier effect is that it creates a(n) ________ for new plants or equipment in the business markets.

The main impact of the multiplier effect is that it creates a(n) ________ for new plants or equipment in the business markets.

a. inelastic demand
b. fluctuating demand
c. elastic demand
d. joint demand


Answer: b. fluctuating demand

In the context of business relationships in Japan, which of the following best defines keiretsu?

In the context of business relationships in Japan, which of the following best defines keiretsu?

a. It is the lack of economic competition in the market.
b. It is the legal consolidation of two companies into a single entity.
c. It is a network of interlocking corporate affiliates.
d. It is the legal consolidation of two companies into a single entity.


Answer: c. It is a network of interlocking corporate affiliates.

The use of the Internet to facilitate the exchange of goods, services, and information between business organizations is known as ________.

The use of the Internet to facilitate the exchange of goods, services, and information between business organizations is known as ________.

a. B2C e-commerce
b. C2B e-commerce
c. C2B e-commerce
d. B2B e-commerce


Answer: d. B2B e-commerce

In the context of business products, which of the following is true of major equipment?

In the context of business products, which of the following is true of major equipment?

a. Major equipment is charged as an expense in the year it is purchased.
b. Local distributors and wholesalers play a major role in marketing major equipment.
c. Local distributors and wholesalers play a major role in marketing major equipment.
d. Major equipment is depreciated over time over its useful life.


Answer: d. Major equipment is depreciated over time over its useful life.

The ________ is a detailed numbering system that classifies business establishments by their main production processes.

The ________ is a detailed numbering system that classifies business establishments by their main production processes.

a. ISCO
b. TARIC code
c. TARIC code
d. NAICS


Answer: d. NAICS

In the context of business products, which of the following is true of accessory equipment?

In the context of business products, which of the following is true of accessory equipment?

a. It is often custom designed for each customer separately.
b. It is purchased directly from the producer, eliminating the role of the distributor.
c. It is purchased by a widely dispersed range of customers.
d. It is usually depreciated over its useful life.


Answer: c. It is purchased by a widely dispersed range of customers.