1. List five staple convenience goods that you or your household buys on a regular basis. (You do not need to use complete sentences. 2.5 points)

Question

2. List three impulse convenience goods that you or someone you know has purchased. (You do not need to use complete sentences. 2.5 points)


3. Describe a shopping good that you or someone you know purchased. What kind of research did you or that person do before buying the product? (1-5 sentences. 3.0 points)

4. Choose an example of a company you could start, and decide which business structure would make the most sense for that type of company (sole proprietorship, partnership, LLC, C corporation, S corporation, or nonprofit corporation). Explain why this structure would be good for this type of company. Give at least 3 reasons. (3-6 sentences. 6.0 points)

5. If you were starting a new business, describe at least three departments to the company that you would need right away. Why are these departments so important? (1-5 sentences. 3.0 points)

6. Describe a product that you think has saturated its market. What makes you think it has saturated its market? (1-5 sentences. 3.0 points)

Answer 1

1. Staple convenience goods:

   • Milk
   • Bread
   • Eggs
   • Toilet paper
   • Laundry detergent

2. Impulse convenience goods:

   • Candy bars
   • Magazines
   • Snacks (e.g., chips)

3. Shopping good: A new laptop was purchased. The person researched different brands, compared specifications, read customer reviews online, and checked prices across several retailers before making the decision.

4. Example company and business structure: A local organic grocery store could be started as an LLC (Limited Liability Company). This structure would be beneficial because:

   • It offers limited liability protection, meaning personal assets are shielded from business debts.
   • An LLC provides flexibility in management and tax options, allowing for easier profit distribution.
   • It requires less formal structure and paperwork than a corporation, making it easier for a small business owner to operate and manage efficiently.

5. Three departments needed right away:

   • Sales and Marketing Department: This is crucial for attracting customers and driving revenue, helping to establish the brand in the market.
   • Operations Department: Necessary for managing daily activities and inventory, ensuring that the business runs smoothly and efficiently.
   • Finance Department: Essential for tracking expenses, revenues, and managing budgets, as financial health is key to sustainability and growth.

6. Saturated market product: The smartphone market is an example of a product that has saturated its market. Many consumers already own smartphones, and the differentiation between new models has diminished, leading to a plateau in sales growth. This saturation is indicated by slower sales growth rates and an increase in the frequency of upgrades rather than new purchases.