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
