mgmt 440 final

Skimming is setting prices at such a low level that products are sold at a loss.

false

The freemium model requires new and exciting content each month to build a long-term relationship with fee-paying customers.

false

Weaknesses in small, closely held businesses do not call for careful analysis of the business being valued.

false

Sometimes consumers associate a higher price with Select one: a.supply interruptions. b.product complexity. c.discounted cash flows. d.higher product quality.

higher product quality

A business valuation is not usually essential when Select one: a.giving a gift of stock. b.going public. c.hiring a new director of operations. d.selling a business division.

hiring a new director of operations.

Copyrights can be placed on all of the following except Select one: a.books. b.music. c.ideas. d.lectures.

ideas

Copyrights may be expressed in all of the following except Select one: a.motion pictures. b.ideas. c.books. d.computer programs.

ideas

When comparing and contrasting major competitors along core competitive dimensions, you should include Select one: a.employees, suppliers, and competitors. b.profits, price, and product. c.profits, sales, and operating ratios. d.product, technology, and distribution.

product, technology, and distribution.

The real value of any venture is its potential earning power.

true

Which of the following is the first step in the traditional pricing formula? Select one: a.Estimate potential annual earnings of the buyer. b.Determine the adjusted tangible net worth. c.Discount future earnings. d.Determine the average annual net earnings.

Determine the adjusted tangible net worth.

Which of the following statements about conventional marketing is not true? Select one: a.In conventional marketing, the role of a marketer is that of internal and external change agent. b.In conventional marketing, customers are viewed as sources of intelligence and feedback. c.In conventional marketing, marketing is seen as an objective, dispassionate science. d.In terms of risk perspective, conventional marketers seek risk minimization.

In conventional marketing, the role of a marketer is that of internal and external change agent.

Which of the following is a psychological characteristic of consumers? Select one: a.family influence b.aspiration c.social class d.income

aspiration

The successful Entrepreneur should do all the following EXCEPT Select one: a. All of these are correct b. Keen eye for recognizing unmet needs c. Market trends d. Potential business opportunities

All of these are correct

Your niche market you are aiming for must have some kind of bound with your own __________________. Select one: a. goals b. All of these are required. c. business understanding d. personal vision

All of these are required.

You have chosen your Niche and your keywords, based on the _________________ you'll be able to figure out if you are going to move forward with your niche idea. Select one: a. Availability b. All of these are correct c. Competitive test d. Cost

Competitive test

A B corporation's legal structure expands corporate accountability to encompass all of the following except Select one: a.higher legal accountability standards. b.comprehensive and transparent Internet standards. c.society's greater good. d.comprehensive and transparent social performance standards.

comprehensive and transparent social performance standards.

Attorney-hopping is the best way to keep legal fees to a minimum.

false

Business owners normally prefer Chapter 7 bankruptcy over any other form of bankruptcy.

false

Knowing a venture's pre-money valuation is not possible.

false

Most firms generally gather primary data and then see if there are secondary data to supplement it.

false

Only major strategic decisions need to be supported through marketing research.

false

Pricing procedures are the same for all types of ventures.

false

After you are aware of the opportunity which your niche is able to give to your startup it is the time to think about the uniqueness of your niche.

true

An example of a trademark is a motto.

true

At present, the courts have held that the unauthorized use of another's mark in a domain name may constitute trademark infringement.

true

Avoiding start-up costs is a factor to consider when valuing a business.

true

Increasing market share by acquiring a firm in the company's industry is one reason for the acquisition.

true

Marketing planning is the process of determining a clear, comprehensive approach to the creation of customers.

true

Marketing research involves the gathering of information about a particular market, followed by analysis of the information.

true

Entrepreneurs should try to be as objective as possible in determining the fair market value of their enterprise.

true

Which of the followings venture valuation methods is the most effective if the business being valued needs to generate a return greater than investment? Select one: a.replacement value b.price/earnings c.adjusted tangible assets d.discounted future earnings

discounted future earnings

The price/earnings ratio is determined by Select one: a.dividing market price of common stock by earnings per share. b.dividing market price of bonds by earnings per share. c.multiplying market price of common stock by earnings per share. d.dividing the average product price by overall earnings.

dividing market price of common stock by earnings per share.

Secondary data consist of Select one: a.newly developed primary research. b.internal data only. c.existing information. d.external data only.

existing information

The process of trademark registration is Select one: a.one that must be handled by a lawyer. b.inexpensive. c.impossible. d.expensive.

expensive

A firm's pricing structure dictates almost no knowledge to customers.

false

An entrepreneur does not need to know how to calculate the value of a competitor's operation.

false

Copying the latest social media craze is an indication of not having realistic goals.

false

Design patents last for 20 years.

false

Effective marketing is based on three key elements: marketing philosophy, market segmentation, and consumer philosophy.

false

In the marketing shift from the 4Ps to the 4Cs, price shifts to choice and promotion shifts to communities.

false

Insufficient controls are a strength for a small business and should be considered when the business is being valued.

false

When a trademark becomes the name of a general group of products or services, the trademark protection may be lost because of Select one: a.a cleaning-out procedure. b.abandonment. c.generic meaning. d.cancellation proceedings.

generic meaning

All of the following factors affect pricing strategies except Select one: a.changes in demand. b.government mandates. c.degree of competitive pressure. d.distribution costs.

government mandates

Items that can qualify for patent protection include all of the following except Select one: a.ideas. b.processes. c.products. d.machines.

ideas

Which of the following is recognized as a disadvantage of partnerships? Select one: a.direct rewards b.ease of formation c.lack of continuity d.possible tax advantage

lack of continuity

Skimming is setting the price to Select one: a.match the competition. b.maximize market share. c.maximize profit. d.switch customers to new product line

maximize profit

Some buyers are willing to pay more for a business than what valuation methods determine its worth to be to avoid Select one: a.legal fees. b.start-up costs. c.earlier losses. d.previous profits.

start up costs

Which of the following does a post-money valuation include that a pre-money valuation does not? Select one: a.excess earnings b.venture capital investment c.market value d.replacement value

venture capital investment

When considering sales and distribution, the entrepreneur should be concerned about Select one: a.how many sales are internal. b.how sales vary with social demographics. c.how many distributors are necessary. d.whether any sales are made on consignment.

whether any sales are made on consignment.

The price/earnings ratio is determined by dividing the market price of common stock by retained earnings.

false

The role of the customer in social media marketing is as an external source of intelligence and feedback.

false

A market is a Select one: a.segment of the economy. b.way of gaining consumer data. c.group of known purchasers. d.group of consumers who have purchasing power and unsatisfied needs.

group of consumers who have purchasing power and unsatisfied needs.

The purpose of marketing research is to Select one: a.identify customers. b.fulfill customer needs. c.gain customers. d.develop new products.

identify customers

The primary advantage of the price/earnings approach to valuation is that it Select one: a.is simple to use. b.pays off assets and sells liabilities. c.assumes business begins operations. d.reflects "top value" of the firm.

is simple to use

Patents that are not design patents have _____ years of protection. Select one: a.25 b.22 c.l5 d.20

20

Many closely held ventures are undercapitalized, which often indicates Select one: a.insufficient controls. b.lack of management depth. c.divergent goals. d.a high level of debt

a high level of debt

Closely held ventures usually suffer from which of the following shortcomings? Select one: a.insufficient controls b.overcapitalization c.a lack of management depth d.internal conflict

a lack of management depth

The part of a patent application that defines and limits the patented invention is known as the Select one: a.concept. b.illustration. c.specification. d.claim.

claim

Legal protection is granted to computer programs in which of the following forms? Select one: a.service mark b.trademark c.copyright d.patent

copyright

The owner of a copyright may do all of the following except Select one: a.deduct the intrinsic value of the rights from one's taxes. b.perform the work publicly. c.reproduce the work. d.display the work publicly

deduct the intrinsic value of the rights from one's taxes.

Which of the following is not a trademark? Select one: a.symbol b.logo c.description d.name

description

If cash flow is deemed to be the most important consideration in buying a business, which of the following valuation methods is likely to be used? Select one: a.high equity/low debt b.discounted future earnings c.price/earnings d.adjusted tangible assets

discounted future earnings

Inhibitors to marketing research include all of the following except Select one: a.irrelevancy. b.complexity. c.distribution. d.cost.

distribution.

There are _____ steps for an entrepreneur to consider when creating a structured approach to a market plan. Select one: a.three b.five c.four d.seven

five

Which of the following is a reason for buyers to keep projections in perspective? Select one: a.start-up costs b.vague histories c.fluctuating markets d.certain environments

fluctuating markets

When developing a survey, you should consider Select one: a.the personality of the respondents. b.giving concise but incomplete instructions. c.including only questions pertaining to the study. d.asking leading and biased questions.

including only questions pertaining to the study.

An infringement budget deals with Select one: a.advertising expenditures. b.government bribes. c.legal battles. d.claims.

legal battles

Specific forms of partnership include _____ and _____. Select one: a.limited partnerships; S partnerships b.S partnerships; limited liability companies c.limited partnerships; limited liability companies d.limited partnerships; limited liability partnerships

limited partnerships; limited liability partnerships

Which of the following provides an absolute bottom line value of a firm? Select one: a.liquidation value b.price/earnings ratio c.market value d.return on investment

liquidation value

Which of the following survey methods has the lowest response rate? Select one: a.phone interviews b.personal interviews, door to door c.Internet surveys d.mail surveys

mail surveys

The business plan provides the details of the _____ potential of a business. Select one: a.market b.financial growth c.entrepreneurial d.product growth

market

Which of the following methods of valuation was developed by the U.S. Treasury to determine a firm's intangible assets? Select one: a.excess earnings b.replacement value c.market value d.multiple of earnings

market value

The key to marketing analysis is Select one: a.marketing research. b.psychographic information. c.secondary data. d.marketing response data.

marketing research

To establish a sole proprietorship, a person needs to Select one: a.legalize financial documents. b.obtain owner stock. c.obtain whatever local and state licenses are necessary. d.carefully assume their shares in the profits.

obtain whatever local and state licenses are necessary.

A typical symptom of impending bankruptcy is when Select one: a.other firms seem to be selling products that are a generation ahead. b.retailers always seem to be understocked. c.the entrepreneur seeks to exit the market. d.new competition exits the market.

other firms seem to be selling products that are a generation ahead.

____________ is the best tool to "Kill" competition! Select one: a. Money b. Hard Work c. Passion d. All of these are correct

passion

Which of the following survey methods is the most expensive to conduct? Select one: a.phone surveys b.group surveys c.personal interviews d.mail surveys

personal interviews

The textbook discusses all of the following aspects that distinguish social media marketing from traditional marketing except Select one: a.relevancy. b.trust building. c.control versus contributions. d.two-way communication.

relevancy

if a business plan/venture is turned down the first time, the entrepreneur should Select one: a.take it personally. b.revise, rework, and improve the plan. c.change careers. d.feel defeated.

revise, rework, and improve the plan.

A candy bar that is purchased at the checkout lane is an example of a _____ good. Select one: a.specialty b.generic c.convenience d.shopping

shopping

An S corporation takes its name from Select one: a.Subchapter S. b.state law. c.S Lab. d.Uniform Commercial Code.

subchapter s

Goodwill, patents, deferred financing costs, and other intangible assets are considered when computing Select one: a.capitalized earnings. b.the fixed price value. c.inventory value. d.the adjusted tangible book value.

the adjusted tangible book value.

The determination of fair use of copyrighted material is based on Select one: a.specific legal guidelines set forth by OSHA. b.the time period involved. c.the effect of use on the potential market for the work. d.the GAD doctrine.

the effect of use on the potential market for the work.

A drawback to the price/earnings ratio method is that Select one: a.the stock of a private company is publicly traded. b.the stated net income of a private company may not truly reflect its actual earning power. c.it is relatively easy to find a truly comparable publicly held company, even in the same industry. d.it distorts profits earned. Feedback

the stated net income of a private company may not truly reflect its actual earning power.

Works created after January 1, 1978, have a copyright for the life of the author plus Select one: a.14 years. b.10 months. c.70 years. d.50 years.

70 years.

When selecting your domain name it should fit your ________________ perfectly if possible. Select one: a. Overall goals and expectations b. Keyword (s) c. Financial resources

Keyword (s)

What is meant by product life cycle pricing? Select one: a.The pricing needs to be adjusted at each stage in a product's life cycle. b.The pricing of new products needs to start out low and end high. c.The pricing needs to be increased at each stage in a product's life cycle. d.The pricing of new products needs to start out high and end low.

The pricing needs to be adjusted at each stage in a product's life cycle.

The discounted earnings method of valuation establishes Select one: a.an appropriate rate for replacement. b.expectancy of the business expenses. c.potential earning power. d.future profits. Feedback

potential earning power.

Three primary legal forms of organization are the sole proprietorship, the partnership, and the corporation.

true

When choosing a Niche market you should choose a type of market. Which of these are NOT a market for online companies? Select one: a. Resegmented b. All of these are markets available for your Niche c. New Market d. Existing

b. All of these are markets available for your Niche

The two parts of a patent application are specification and claims.

true

When considering employees, the entrepreneur should be concerned about Select one: a.the total number of female employees. b.the total number of single employees. c.employee productivity. d.the total number of employees by function.

the total number of employees by function.

Babies and career are indicative of the priorities that shape the buying decisions of persons in the nest-building stage of the family life cycle.

true

Business valuation is essential when attempting to buy out a partner.

true

Which of the following explains how death affects the duration of a corporation? Select one: a.A corporation is affected by the death of a shareholder. b.A corporation is usually unaffected by the death of a shareholder unless a general partner dies. c.A corporation is unaffected by the death of a shareholder. d.A corporation usually terminates on the death of a founding shareholder. Feedback

A corporation is unaffected by the death of a shareholder.

Because corporate law makes it difficult for businesses to consider employee, community, and environmental interests in their decision making, the B corporation has been introduced.

true

If infringement can be proven in court, a monetary award may be given to the trademark holder.

true

One of the most common reasons for acquiring a business is developing more growth-phase products.

true

One of the principal advantages of a corporation is that the stockholder's liability (the most money a person can lose) is limited to an individual's investment.

true

Shopping goods are products that consumers take time to examine carefully and compare for quality and price.

true