Entrepreneurship Exam 2

In situation analysis, you need to consider those who provide the same product or service, otherwise known as

direct competition.

All of the following influence the prices you set for your products EXCEPT

employees

Activities through which cash is obtained from and paid to lenders, owners, and investors are called _____ activities

financing

A method of billing for lawyers in which a fixed amount is paid for a certain task is called

flat fees.

A partnership where all partners are equally and fully responsible for the business's obligations is called a(n)

general partnership.

Leasing a car is an example of a

hybrid good and service combination.

Fred Fike has served as a guide for adventure sports such as kayaking and rock climbing, and is an active climber and a professional bicycle racer. He has decided to venture into the business of high-end bicycles under the banner Super Sports, Inc. Fred needs to explore the idea of location, marketing, and financing. He has a pretty good idea of location, so he concentrates on marketing issues. In developing his marketing plan, Fred should know that _____ should be his first step.

identifying the target market

Someone who uses intellectual property without the permission of the owner is called a(n)

infringer.

What is an extremely low penetration price that discourages competitors from entering a market called?

limit pricing

Unless advised otherwise by your attorney, the best choice for a new small business is a

limited liability company.

The process of dividing the market into groups that have somewhat homogeneous needs for a product or service is called

market segmentation.

Products essentially similar to something already on the market are called

me-too products.

A grant by the U.S. government to an inventor for an idea that is new, useful, and nonobvious, giving the inventor the exclusive right to make, use, or sell his or her idea is called a

patent

Which of the following statements about the maturity phase of the product life cycle is false?

A product can stay in the maturity stage for only a short period of time.

Guerrilla marketing helps a small business address their marketing budget by __________.

Providing a lower-cost approach to marketing through a focus on creativity

__________ is the aspect of your economic model that includes all activities for which you collect money.

Revenue drivers

Which of the following is perhaps the simplest and most important analysis of data?

Sales by customer

Your company currently has fixed costs of $50,000. You sell your product for $45, but each one has a variable cost of $20. What is the breakeven point for your business?

2000

_____ is often used to support the corporate identity and value propositions that are established through _____ efforts.

Advertising; public relations

Limit pricing is:

An extremely low penetration price that discourages competitors from entering a market.

Identify the managerial accounting technique which looks at the fixed and variable costs of a business to arrive at a number of unit sales to maximize profits.

Cost-volume-profit analysis

Which of the following ratios is used to estimate the liquidity of a firm?

Current ratio

Which of these represent the first step of a marketing plan?

Discussing the target market

_____ is a formal, rule-based set of accounting principles and procedures intended for use by outside owners, investors, banks, and regulators.

Financial accounting

A high income is most likely a characteristic of a(n) __________.

Late majority

What is an extremely low penetration price that discourages competitors from entering a market called?

Limit pricing

Which is the strategy whose goal is growth, based on selling more of the firm's product or service to the existing customer base?

Market penetration

_____ questions can help you find new niches and perfect your product or service before you introduce it.

Open-ended

These questions provide data that are more difficult to tabulate and the answers can be difficult to compare.

Open-ended questions

_____ data gives you information on the date and type of contact, since in many sales situations, it can take repeated contacts before a sale is made.

Performance

What is the term for the activities used to establish and promote a favorable opinion by the media?

Press relations

_____ research is research gathered to answer a specific marketing question.

Primary

Which of the following statements about prototypes is true?

The Internet makes it easier to find companies willing to bid on and build prototypes.

Which of the following includes the entire bundle of products and services that you offer?

Total product

A(n) __________ is a consumer good that consumers do not actively seek to purchase.

Unsought good

Going concern is the

accounting concept that implies that a business may continue in business even if it is sold to other owners.

There are two primary causes of float:

availability float and processing float.

A clothing company that divides the market using characteristics of clothing that are practical, stylish, for a particular sport, etc., refers to segmentation by the

benefits sought.

The _____ is a schedule of the amounts and timing of the receipt of cash into a business.

cash receipts budget

The time that is required for a business to acquire resources, convert them into a product, sell the product, and receive cash from the sale refers to:

cash-to-cash cycle.

An inconsistency between experience and belief refers to

cognitive dissonance.

Working at a local university, Tammy's favorite hobby included anything related to crafts. She could spend hours pouring over the craft books to actually working on and talking to people about craft projects. Tammy was great at what she did and liked to do, but lacked the money management skills. So when Tammy opened her business "Tammy's Craft Corner". Her son, a business major, decided to step in and help mom with managing the money side of the business.As Tammy always ended up writing more ch

demand deposit

Tammy is a student at a local university majoring in psychology. She has always been fascinated by toys. So she entered the business area that was her comfort zone - toys. Having done the business plan for Tinker Toys and established the business officially, Tammy is exploring the toy product ideas and its pricing. The first versions of the toy products that Tammy develops in the formal development are called

prototypes

A(n) _____ is a contract by which a new party agrees to perform a duty that one of the original parties to a contract was already legally obligated to perform.

subcontract

To develop a(n) _____, one should try to think of three to five key words that would describe their business to anyone.

succinct message

A _____ is the population segment or segments that are likely to buy your product or service.

target market

According to the IRS, to be an independent contractor

the person must be employed for a distinct term.

Rebates are a great tool for small businesses because

they generate referral businesses.

The difference between an actual and budgeted revenue or cost is called

variance.

Name the electronic equivalent of word-of-mouth advertising, in which the advertiser's message spreads quickly and widely via e-mail, Web site, blogs, and other online tools.

viral marketing