Exam 2 Business Exam Questions And Answers

Federal Trade Commission Act (1914) {Ans: Established the Federal Trade Commission to monitor business practices, false advertising, and dishonest labeling}How many Porters Fundamental Forces are there {Ans: 4. a. Threat to new entrants b. Intensity of rivalry among direct competitors c. Pressure of substitute product d. Bargaining power of buyers and suppliers}Product Positioning {Ans: Considers the buyers view of a companies offering relative to its competitors. "natural growth of market segmentation"}What are 5 external factors {Ans: - social (demographics, culture, subcultures) - economic (currency fluctuation) - political and legal - technology - competition}Pressure of substitute products {Ans: aluminum + price = steel - production is going up and gaining ground in steel industry}4 Dimensions of Segmentation {Ans: - demographics (age, occupation, education, gender, race) - geographic (religion, city, climate) - psychographic (lifestyle) (activities, interests, opinion) - behavior/usage (rates/status, occasions, benefits)}