Entrepreneurship Final (sem 2)

Marco has invested $7,500 in his submarine sandwich shop near a local college Hw wants to earn a 15 percent return on investment (ROI). How much will he need to earn to meet his goal?

$1,250

Missy operates a sunglasses kiosk at the local mall. She buys a certain style of sunglasses for $12.50 a pair. If she adds 40 percent to her wholesale cost what is the retail price for a pair sunglasses?

$17.50

In a corporation, each share of stock is

A unit of ownership in the company

A(n) _______ is a relationship that allows one party to act in a way that legally binds another party.

Agency

The Nike "swoosh" is an example of a product

Brand

Which of the following is NOT an element of a tort?

Capacity

A _____ cannot have anything in it that is illegal or that would result in illegal activities.

Contract

A business that has the legal rights of a person and may have many oweners is a

Corporation

_______ offers customers a reduced price to encourage them to buy.

Discount

______ means that a corporation's profits are taxed as corporate income and again as individual income.

Double taxation

Advertising fees for franchises are paid direcly to the advertisers.

False

Consideration occurs when one party in a contract offers or agrees to do something the other party accepts.

False

Large businesses have an advantage over small businesses because they get to know their customers better.

False

Many businesses mark down items below their cost as a way to make quick profits.

False

Not every product has features

False

Over the past 50 years, the US market has changed from being a consumer-driven market to a product-driven market.

False

Sole proprietorships enable two or more people to be in control of a business.

False

The marketing plan should be separate from your business plan.

False

Your market share rarely depends on the level of competition in your market.

False

Product characteristics that will satisgy customer needs are called _______.

Features

A(n) ________ is the person who purchases a franchise agreement.

Franchisee

An advantage to buying an existing business is that it may have built up ____________, or customer loyalty.

Goodwill

Medium-term goals describe what you want your business to achieve

In the next 2-5 years

Special government protections provide business owners with the exclusive use of _____ in the US.

Intellectual property

_______ pricing strategies include price skimming and penetration pricing.

Introductory

________ refers to the costs of making and marketing a product.

Investment

______ is the process of selling your idea to a company for the development and launch of a new product.

Licensing

A copyright lasts

Life of author plus 70 years

A(n) ___________ is calculated by subtracting a percentage amount from the retail price of an item.

Markdown price

The _______ is a belief that the wants and needs of customers are the most imoprtant consideration when developing any product or marketing effort.

Marketing concept/concept

As part of your ________, you should include performance standards that will help you measure your effectiveness.

Marketing plan

A(n) _____ occurs when a company buys a competing firm.

Merger

Marketing consists of all of the following processes except

Operating

The _________ is a box, container, or wrapper in which the product is placed.

Packaging

A(n) _____ is the grant of a property right to an inventor to exclude others from making, using, or selling his or her invention.

Patent

The different products and services that a business sells are its ________.

Product mix

Which of the following is NOT a discount pricing strategy?

Quality discounts

Which of the following antitrust legislation laws makes it illegal to discriminate by charging different prices to customers?

Robinson-Patman Act

_____ are weekly or monthly payments made by the local owner to the franchise company.

Royalty fees

A business' market _________ will depend on the level of competition in its market.

Share

Which of the following antitrust lefislation laws makes it illegal for competitors to get together and set prices on the products or services they sell?

Sherman Act

A _____ enables one person to be in control of all business aspects.

Sole proprietorship

An advantage of buying an existing business is that

Suppliers are lined up

The FDD contains all of the following information except

The name and address of at least 200 current franchises

The FTC monitors all the folling activities except

The sale of unhealthful foods

A(n) ______ is a wrong against people or organizations for which the law grants a remedy.

Tort

A(n) _____ is a name, symbol, or special mark used to identify a busienss.

Trademark

A disadvantage of buying an existing business is that it may be poorly located.

True

A partnership agreement identifies the type of value of the investment contributed by each partner.

True

During the period a patent is in effect, no business or individual can copy or use the paatented invention without the patent holder's permission.

True

Establishing short-, medium-, and long-term marketing goals ensures that the marketing you do today fits the vision you have for your business tomorrow.

True

In a partnership, any losses the business incurs will be shared by all the partners.

True

The Federal Trade Commission regulates franchises.

True

The brand is the name, symbol, or design used to identify your product.

True

The government exercises very little control over sole proprietorships.

True

The marketing concept for a business is developed by using the primary and secondary data that is gathered through market research.

True

The original, creative work of an artist or inventor is called intellectual property.

True

The price is the actual amount that a customer pays for a product or service.

True

Unlike regulary corporations, an S corporation is not taxed as a business.

True

Which of the following laws requires leanders to inform customers about all costs of credit before an agreement is signed?

Truth-in-lending Act

A(n) _____ is an expert on determining the value of a business.

Valuator

An advantage of a partnership is that

b. it faces very little government regulation

Ownership of a(n) _____ is in the form of shares of stock.

corporation

________ are distributions of corporate profits to the shareholders.

dividends

A disadvantage of a corporation is

double taxation

Businesses should always set their prices

high enough to make a profit

When buying a business, you should do all of the following except

inspect a list of all customers

Frianchisors may offer

management and technical training

The four elements of the _________ are product, price, distribution, and promotion.

marketing mix

Creating an image for a product in the customer's mind is called

positioning

A company can increase market share through all of the following ways except

price discounts

To create a SMART goal you must be...

specific, measurable, attainable, realistic, and time bound