Semester 3 Test Entrepreneurship

The owner of a landscaping business is developing a cash flow budget for the coming month. If the beginning cash balance is $1,500, what will be the ending cash balance? $2,350 $3,450 $6,500 $3,350

$3,350

A welder has arranged for a loan from a family member in the amount of $10,000 with an annual simple interest rate of 6%. The loan is due in 12 months. What is the amount of simple interest due at the end of the 12-month loan period? $599 $605 $600 $700

$600

__________ attracts existing and new customers and promotes the overall image of the company. Market Share Buyer Power Advertising Networking

Advertising

Which of the following is an example of an intermediate-term loan? Houses IOUs Credit Automobiles

Automobiles

Promotion does NOT include decisions about which of the following? Branding Advertising Public relations Personal selling

Branding

After a self-assessment, a potential entrepreneur has learned that she has a very low risk tolerance. Based upon this finding, which approach might be less stressful for the entrepreneur to have her own business? buy an existing business that is already successful Start a business with help of other entrepreneurs Start her own business from scratch

Buy an existing business that is already successful

Which of the following is an example of a strength? Access to cheap raw materials Few competitors Rising income of target market Cheaper prices than competitors

Cheaper prices than competitors

Which of the following is NOT a factor determining competition? Climate of Locations Technology Price of Products Advertising Methods

Climate of Locations

Type of industry causes competition to be higher when __________. Companies have a varying level of product quality Companies all offer products of equal quality

Companies all offer products of equal quality

__________ decreases when there are many competitors whose products and services are equally attractive to customers. Competitive Rivalry Threat of Regression Threat of New Entry Threat of Substitution

Competitive Rivalry

Which of the following is a term for a condition in which a company operates at a more efficient or higher quality level than a competitor? Competitive advantage Opportunity Strategy Core competency

Competitive advantage

A borrower's interest rate can be determined using which of the following? Repayment schedules Credit scores Loan terms Loan amounts

Credit scores

The marketing mix must be which of the following? Driven by the economy Profit-driven Customer-driven Driven by the industry

Customer-driven

Learning about competitors' internal operations does NOT include which of the following? Customers' needs and wants Financial resources Products and services Marketing efforts

Customers' needs and wants

Which of the following is NOT a type of credit? Debit Cards Revolving Credit Accounts Loans Credit Cards

Debit Cards

When using credit, the purchase amount becomes what once the payment agreement is made? Mortgage IOU Loan Debt

Debt

Which of the following is NOT a basic pricing decision? Producing price bundles Determining suggested retail price Creating volume discounts Determining packaging

Determining packaging

Which of the following is NOT one of the recommended methods of learning about competitors? Experiencing competitors firsthand Searching directories and business reports for competitors Discussing a possible joint venture or merger with competitors Reading publications featuring articles about competitors

Discussing a possible joint venture or merger with competitors

Target return pricing is pricing to cover all costs and which of the following? A specific dollar return A percentage return A target return Either a percentage return or a specific dollar return, which are two ways of measuring target returns

Either a percentage return or a specific dollar return, which are two ways of measuring target returns

The Sherman Antitrust Act of 1890 did which of the following? Eliminated price discrimination Eliminated price fixing Allowed pricing options Allowed pricing discrimination

Eliminated price fixing

The penetration price policy is a good strategy when which of the following markets is small? Price sensitive Elite Upper class Upper middle class

Elite

Age is a factor in someone's FICO score. True False

False

An annual fee is an amount paid to you by the credit card company for using their service each year. True False

False

Borrowers have five FICO scores — one for each of the credit bureaus. Correct Choice

False

Corruption among competitors would be considered a weakness. Correct Choice

False

Credit agreements are not legally binding.

False

Credit is free.

False

Lenders do not check a person's likelihood to repay before accepting a credit agreement. True False

False

The most accurate and complete way to learn about competitors is by talking to customers. True False

False

Which of the following is NOT part of the analysis for the creditworthiness of borrowers? Risk assessment worksheets Judgment Family interviews Formal credit scoring models

Family interviews

Which of the following is NOT a price level policy? Penetration price policy Flexible price policy Skimming price policy Introductory price dealing

Flexible price policy

Which of the following is NOT a pricing objective? Sales oriented Profit oriented Goal oriented Status quo oriented

Goal oriented

Buyer power __________ when there are fewer buyers. Increase Decline Is unaffected Decrease

Increase

Which of the following is NOT a goal of pricing? Making a return on investment Increasing market share Meeting competition Increasing business from competitors

Increasing business from competitors

Porter's Five Forces is a concept which helps companies analyze their __________. Employees Management Style Industry Strengths and Weaknesses

Industry

Which of the following is true of bait pricing? Is setting prices high to attract elite customers Is considered deceptive to the FTC It is considered extremely aggressive Is a conservative manner

It is considered extremely aggressive

A basic published or advertised price, often subject to discount, describes which of the following? List price Cash discount Sale price Seasonal discount

List price

Which of the following is a step in the product life cycle? Market reintroduction Sales peak Market maturity Market shrinkage

Market maturity

Demand-backward pricing is also known as which of the following? Supply forward pricing Prestige pricing Market plus pricing Market minus pricing

Market minus pricing

___________ pertains to the percentage of a firm's total sales in relation to the industry as a whole. Market share Supplier power Competitive advantage Target market

Market share

Which of the following describes one price policies? Offers the same product and quantities to different customers at different prices A popular strategy to obtain a specified share of a market Offers the same price to all customers who purchase products under essentially the same conditions and the same quantities Attempts to sell to top of the market at a high price before targeting more price-sensitive customers

Offers the same price to all customers who purchase products under essentially the same conditions and the same quantities

What is the example for companies passing on extra costs to customers used in the presentation in regard to declining profit margins? Hotels Taxis Cosmetics Oil

Oil

Competitive advantage occurs when a company __________ compared to competitors. Sells products at higher prices Has more employees Invests more in advertising Operates more efficiently

Operates more efficiently

Which of the following are considered positive external factors beyond the control of a business? Opportunities Strengths Threats Weaknesses

Opportunities

Which of the following is sometimes referred to as the "fifth P"? Profit Passion People Publicity

People

Which of the 4 Ps relates to warehouse inventory? Place Price Promotion Product

Place

Manufacturers use break-even point calculations to help do what with a product? Discount Distribute Price Product

Price

Which of the 4 Ps would include offering credit arrangements? Place Promotion Price Product

Price

Which of the following is NOT an advantage of one price policies? Customer goodwill Administrative convenience Making pricing easier Price adjustments by salespeople

Price adjustments by salespeople

Which of the 4 Ps relates to packaging? Place Product Price Promotion

Product

Which of the 4 Ps includes creating a 50-percent-off coupon? Price Place Product Promotion

Promotion

Which of the following is NOT a basic place decision? Repairs and support Distribution channels Warehousing Inventory management

Repairs and support

Which of the following is an example of a threat? Lack of morale among employees Higher prices than competitors Poor product design Rising costs of raw materials

Rising costs of raw materials

Which government regulation strengthened provisions of the Clayton Act? Minimum Price Laws Consumer Goods Pricing Act Robinson-Patman Act Sherman Antitrust Act

Robinson-Patman Act

Which of the following is a true statement about profit-oriented objectives? Is designed to make little profit Means higher prices for consumers Sets out to make as much profit as possible Other firms will try different avenues if a company is earning a large profit

Sets out to make as much profit as possible

Which of the following is often used for operating expenses? Intermediate-term loans Short-term loans Lump loans Large loans

Short-term loans

Status quo-oriented objectives can help with which of the following? Increasing the amount of hard decisions Lagging competition Encouraging price competition Stabilizing prices

Stabilizing prices

Which of the following are considered positive internal factors controlled within a business? Strengths Weaknesses Opportunities Threats

Strengths

SWOT stands for which of the following? Segmentation, workflow, orientation, targeting Selling, web presence, overcoming objections, telemarketing Strategy, work ethic, optimism, tolerance Strengths, weaknesses, opportunities, threats

Strengths, weaknesses, opportunities, threats

SWOT stands for which of the following? Selling, web presence, overcoming objections, telemarketing Strategy, work ethic, optimism, tolerance Strengths, weaknesses, opportunities, threats Segmentation, workflow, orientation, targeting

Strengths, weaknesses, opportunities, threats

Which term is used to describe a specific group of consumers to whom a company aims the selling of its products and/or services? Target Market Distribution Channel Network Audience

Target market

Successful entrepreneurs typically possess which three characteristics? Branding Marketing Assistance Tenacious, Adaptable, Responsible Profitable Operations to avoid lawsuits

Tenacious, Adaptable, Responsible

Leveraging the full power of __________ may be a key business strategy. A target market Social status Publicity The internet

The internet

Which of the following is NOT one of Porter's Five Forces? Threat of Regression Threat of New Entry Competitive Rivalry Threat of Substitution

Threat of Regression

The ability and likelihood of customers finding another way to get products or services a company offers is known as which of the following? Threat of New Entry Threat of Substitution Threat of Regression Competitive Rivalry

Threat of Substitution

What are negative or unfavorable external factors affecting organizations and businesses which should be avoided or eliminated? Opportunities Weaknesses Threats Strengths

Threats

Which of the following are considered negative external factors beyond the control of a business? Threats Weaknesses Strengths Opportunities

Threats

A SWOT analysis can be used for marketing and product development planning. Correct Choice

True

A grace period is a free period that allows you to avoid finance charges by paying your balance in full before the due date. True False

True

Borrowers can use comprehensive financial records to speed up the evaluation process. True False

True

Credit allows for purchases without cash. True False

True

If learning about competitors by speaking with them directly, you should reveal you are a competitor. True False

True

Opportunities are considered external factors beyond the control of the organization. True False

True

Pricing is only considered a competitive advantage when quality is high enough to support high prices. True False

True

USP stands for which of the following? Undeniable strong points Universally shared products Users' selection process Unique selling proposition

Unique selling proposition

Which of the following are considered negative internal factors controlled within a business? Strengths Threats Opportunities Weaknesses

Weaknesses

When do companies begin to make a profit? When supply and demand are at equilibrium When profit margins decline When consumers begin purchasing products When the break-even point is reached

When the break-even point is reached

You have a small business, your first-year financials are the following: Startup cost: $60,800 Gross Sales: $65,800 Total Expenses: $28,500 Income Taxes: $6,370 What is the return on investment (ROI) for your business? 61% 1.96% 51% 92%

1.96%

Which of the following is an example of value-in-use pricing? A drugstore cosmetics company claims its product is as good as competitors' because of a special ingredient used A car company advertises their pricing to save money in the long term because their new system cuts labor costs A car company advertises their new hybrid car to help reduce effects on the environment, giving it a higher price value A prestige cosmetics company compares their product to a drug store cosmetics product and claims it is better because it costs more

A car company advertises their pricing to save money in the long term because their new system cuts labor costs

The idea of prestige pricing suggests which of the following? Prices are higher to disguise standard products as higher quality products Only rich people will buy higher-priced items A higher price suggests higher quality People will always pay more to get a name-brand product

A higher price suggests higher quality