chapter 5 test

Shelly has invested $16,750 in her clothing boutique. She wants to earn a 12 percent return on investment (ROI). How much will she need to earn to meet her goal?

2,010

If the terms of an invoice read "2/10, net 30," this means that

a 2 percent discount may be taken if the invoice is paid within 10 days

The Nike "swoosh" is an example of a product

brand

Medium-term goals describe what you want your business to

next 2-5 years

Which of the following pricing techniques is often used in the introductory stage of a product?

penetration pricing

During late summer, Nordstrom department store offers fall and winter clothing at a discounted price for a short period of time. After that time, the price goes up and is not reduced again until the end-of-season clearance. This is an example of

promotional pricing

Businesses should always set their prices

lower than competitors price

A new computer device that acts as a watch but also lets you surf the internet, text, use voice commands, track your fitness levels, access GPS navigation, and much more has been released. There are people who want the device so badly they are willing to pay any price for it. This device should be priced using

demand based pricing

The branding, packaging, and labeling of your product should accomplish all of the following except

describe companys product mix

A long-term goal might be to

expand by adding second location

Long-term goals describe what you want your business to achieve in the next two or three years.

false

Opening two more restaurants in other locations around the city would be an example of a short-term goal for the owner of a restaurant.

false

The return on investment (ROI) is the amount earned as a result of the investment and is expressed in fractions.

false

When services are combined under one charge, rather than making the customer pay for each individual part of the service, this is called price skimming.

false

With competition-based pricing, the price charged is the same as the price charged by competitors.

false

Which of the following would be a good addition to the product mix for a health club?

fitness apparel

A marketing plan should do all of the following except

identifys owners net worth

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

For many businesses, a small percentage of their product mix often makes up the majority of the sales revenue.

true

Product features include such things as color, size, quality, warranties, delivery, and installation.

true

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

true

The product mix often includes items of convenience for customers even though those products may not be profitable.

true

To determine the market share of a business, the total market for a product must be known.

true