In the United States,the Basic Objective of the Market-Directed Economic

question 27

Multiple Choice

In the United States,the basic objective of the market-directed economic system has been to

• A)ensure the survival of business firms.
• B)find a reasonable balance between consumer satisfaction and business profits.
• C)reduce the cost of marketing activities.
• D)satisfy consumer needs as the consumers themselves see them.
• E)satisfy consumer needs as seen by marketing managers.

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Definitions:

Raw Materials

The basic materials and components used in the production processes of manufacturing goods.

Finished Goods Inventory

The completed products that are ready for sale but have not yet been sold.

Cash Collections

The process of gathering all monies owed to a company by its customers, reflecting inflow of cash.

Master Budget

An integrated set of financial plans that outlines a company’s financial and operational goals for a specific period, including various component budgets like sales, production, and cash budgets.