ELE quiz 3 (Ch 7-8)

Before writing the business plan an entrepreneur should conduct an objective self-assessment of his or her abilities which includes areas such as planning and sales skills. T/F

True

Marketing information that already exists is called secondary data. T/F

True

To determine the figures in the budget, the entrepreneur should identify benchmarks or norms in the industry. T/F

True

An assessment of external uncontrollable variables that may impact the business plan is known as: an executive summary. a description of the venture. an environmental analysis. a trend analysis.

an environmental analysis.

All of the following would be an operations information need except: equipment. raw materials. labor skills. break even numbers.

break even numbers.

Marketing research begins with: ******** -collecting a list of primary and secondary sources of information. -definition of objectives or purpose. -setting the advertising budget. -identifying direct marketing strategy.

definition of objectives or purpose.

The _________ element of the marketing mix involves decisions as to what is the most appropriate channel. price promotion distribution product

distribution

Market segmentation is the process of: exploring new market opportunities. presenting future opportunities. dividing the market into smaller homogeneous groups. describing market conditions.

dividing the market into smaller homogeneous groups.

The section of the business plan in which the entrepreneur identifies changes occurring on the national and international level is the: description of the venture. executive summary. environmental and industry analysis. merchandising plan.

environmental and industry analysis.

When evaluating business plans _________ are primarily concerned with the four Cs of credit. lenders vendors employees investors

lenders

Observation, interviewing, and focus groups are examples of collecting: primary data. secondary data. target data. marketing data.

primary data.

The marketing mix consists of: product, price, distribution, and promotion. product, price, research, and promotion. product, research, distribution, and promotion. product, price, distribution, and research.

product, price, distribution, and promotion.

If the new venture is a manufacturing operation a(n) __________ in the business plan is necessary. ownership plan partnership agreement production plan quality control plan

production plan

The business plan presentation for potential investors: -should provide the entrepreneur's own perspective. -should contain no negative projections. -should enable the entrepreneur to "sell" his or her business concept in a designated period of time. -should be presented only in writing.

should enable the entrepreneur to "sell" his or her business concept in a designated period of time.

The depth and detail of a business plan depend on: the size and scope of the new venture the amount of capital needed. the target audience. the experience of the entrepreneur.

the size and scope of the new venture

Which form of promotion is too expensive for most entrepreneurs to use? Radio Print Ads TV Webpage

TV

___________ is not one of the main perspectives an entrepreneur should consider when writing the business plan. The employee's perspective The investor's perspective The marketing perspective The entrepreneurs own perspective

The employee's perspective

Which of the following is not true about the operations plan portion of the business plan? -The role of technology in the business transaction process is discussed. -An operations plan describes the flow of goods and services from production to customer. -Only service businesses need an operations plan. -The shipping process and inventory control process can be discussed in this section.

-Only service businesses need an operations plan.

Business-to-business marketing involves: -selling products and services through certified representatives. -a more direct channel of distribution than consumer markets. -selling products such as household furniture. -sales to households for personal consumption.

-a more direct channel of distribution than consumer markets.

Which of the following is not a common reason why business plans fail? ********* -no customer need was established -the entrepreneur has no experience in the planned business -the promotional strategy was not taken seriously -objectives are not measurable

-the promotional strategy was not taken seriously

A focus group should consist of: ********** 14-16 potential customers 18-20 potential customers 10-12 potential customers 6-8 potential customers

10-12 potential customers

_______ identifies potential hazards and alternative strategies to meet business plan goals and objectives. ********* Assessment of risk Financial planning Alternative planning analysis The financial plan

Assessment of risk

Which is the first step in preparing a marketing plan? Defining the business situation Defining the target market Identifying strengths and weaknesses Establishing goals and objectives

Defining the business situation

Which of the following is(are) not a key element in the pricing strategy? Margin or markup Cost Competition Distribution

Distribution

The business plan addresses only short term decision making. T/F

False

The management team and the venture's company mission are examples of external environmental factors. T/F

False

Which of the following is an internal environmental variable? Technology Industry demand Financial resources The economy

Financial resources

Which of the following statements is(are) not true? -Industry analysis needs to be conducted using only primary research data. -Industry analysis begins with the broadest-based assessment of environmental and industry trends. -Primary focus of an industry analysis is to provide sufficient knowledge of the environment that can affect marketing strategy decision-making. -The information-seeking process of industry analysis is known as an upside-down pyramid.

Industry analysis needs to be conducted using only primary research data.

Distribution, pricing, and promotion of the product are discussed in which section of the plan? Marketing Merchandising Production Organization

Marketing

_____ is the process of gathering information in order to determine who will buy the product and what is the most appropriate distribution channel. Market mixing Marketing research Market segmentation Marketing planning

Marketing research