Entrepreneurship exam study guide

Which of the following is not a pricing objective? a. To maximize sales b. To increase profits c. To attract customers d. To decrease expenses

D to decrease expenses

To successfully use the marketing concept, a business must do which of the following? a. Identify what will satisfy the customers' needs and wants b. Develop and market products or services that customers consider better than other choices c. Operate profitably d.All of the Above

D. all the above

GEOGRAPHIC DATA

Data that helps you determine where your potential customers live and how far they will travel to do business with you are

SERVICE

Jackson hewitt tax service is an example of a _________ business

publicity

a non paid form communication that causes attention to your business thorough media coverage

advertising

a paid form of communication sent out by a business about a product or a service

business plan

a written document that describes all the steps necessary for opening and operating a successful business.

A new cellular phone that lets you watch television, surf the Internet, send and receive email, take pictures, and listen to music has just been released. There are people who want this device so badly they are willing to pay any price for it. This telephone should be priced using a.Demand-based pricing b.Cost-based pricing c.Competition-based pricing d. Time-based pricing

a. demand based pricing

Which channel of distribution would be best for someone who makes and sells pottery at his or her home? a. Manufacturer to consumer b. Manufacturer to retailer to consumer c. Manufacturer to wholesaler to retailer to consumer d. Manufacturer to agent to wholesaler to retailer to consumer

a. manufacturer to consumer

Which of the following pricing techniques is often used when introducing a new product into the market with the goal of developing a strong customer base while discouraging competition? a. Price skimming b. Penetration pricing c. Prestige pricing d. Price lining

b. penetration pricing

Which of the following types of business is least likely to distribute its product or services directly to consumers? a. Retail business b. Service business c. Manufacturing business d None of the above directly distribute products to consumers

c manufacturing business

An online ad that changes the background of the page being viewed is a a. A banner ad b. Floating Ad c. Wallpaper Ad d. Tick banner

c wallpaper ad

SERVICE

A beauty salon is an example of a __________ business

COMPETITION

A business plan is not intended for your what

67

According to the Small Business Administration's Office of Advocacy only _______ percent of new businesses survive for at least two years (MULT CHOICE)

For a contract to be legally binding, it must have which of the following elements when it is created? Agreement, cooperation, capacity, legality Agreement, consideration, capacity, legality Agreement, consideration, cooperation, and legality Amendment, consideration, capacity, and legality

Agreement, consideration, capacity, legality

Which of the following would be a good addition to the product mix for a health club? a. Diamond rings b. Chocolate- chip cookies c. Fitness apparel d. Photo Print Service

C fitness apparel

private property freedom of choice Profit competition

List the four basic principles of the US economic system

What goods and services will be produced How will they be produced For whom will they be produced

List the three basic economic questions countries must answer

RETAIL

Walmart is an example of a _________ business

16.24 Heres a quick way to figure it out. If its a markup you mult 1. Whatever it is 14 X 1.45 =20.30 20.30 X .80 (20%) 16.24

You own an office supply shop. You purchase a desk lamp at a wholesale cost of 14 dollars. You use a markup of 45% to determine the retail price. At the end of the season, you offer a discount price using a markdown of 20% of the retail price. The discounted price for the desk lamp is

sole proprietorship

a business owned by one person

partnership

a business owned by two or more people

Corporation

a business that has a legal rights of a person but is independent of its owners

pro forma financial statements

a financial statement based on projected revenues and expenses

cover letter

a letter that introduces and explains an accompanying document or a set of documents. (in our case a business plan)

product mix

all products that an organization sells

demand

an individual's need or desire for a product or service at a given price.

The branding, packaging, and labeling of your product should accomplish all of the following except a. Identify your product b. Describe the company's product mix c. Differentiate your product from others on the market d. Provide information about the product

b. Describe the company's product mix

demand based pricing

based pricing-pricing that is determined by how much customers are willing to pay for a product or service

If you have a local business that offers a service to consumers in your neighborhood, which of the following would be the best way for you to advertise? a. A commercial aired during the super bowl b. An advertisement on satellite radio c. An advertisement in the local newspaper d. Billboard on a major interstate highway

c. An advertisement in the local newspaper

During late summer, Nordstorm's Department Store offers fall and winter clothes at a discounted price for a short period of time. After that time, the price of this clothing goes up and is not reduced again until the end-of-season clearance. This is an example of a. Prestige pricing b. Price Lining c. Promotional pricing d. Multiple- unit pricing

c. promotional pricing

Which of the following is not an advantage of buying an existing business? Existing customer base Prior records are available Seller can provide training Capital is required

capital is required

Which of the following is the least important in the sales process? Customers's needs Customer's issues Customers' concerns Customer's income

customers income

Examples of promotion include a. Advertising b. Publicity c. Sales promotion d. All of the above.

d. all the above

demographics

data that describes a group of people in terms of their age, marital status, fam size, ethnicity, gender, profession, education, and income

psychographics

data that describes a group of people in terms of their tastes, opinions, personality traits, and lifestyle habits

Which of the following would be the best way for you to promote your pressure-washing business? Free sample Discount coupon Contest Gift with purchase

discount coupon

True or False? A franchise is an inexpensive way to get into business quickly.

false

True or False? A patent grants property rights to an inventor for 70 years.

false

True or False? Agents and wholesalers are intermediaries that facilitate the flow of goods through direct channels of distribution.

false

Competitive analysis

identifying and examining the characteristics of a competing firm. when you identify and examine the characteristics of a competing firm.

FRIENDSHIP

is an example of a noneconomic want

SURVEY

is an example of a primary research

CARWASH

is an example of a service

Intellectual property rights can be protected by all of the following except a Copyright License Patent Trademark

license

A salesperson who approaches all customers the same way is leaving out which important part of the sales process? Needs assessment Product Knowledge Rational buying decision None of the above

needs assessment

trade associations

organizations made up of professionals in specific industries

Entrepreneurship

people who own, operate, and take the risk of a business venture.

employees

people who work for someone else

competition based pricing

pricing that is determined by considering what competitors charge for the same product or service

cost based pricing

pricing that is determined by using the wholesale costs of an item as the bases for the price charge

You and several other business owners in your area agree to raise the price of the paint you sell. You are in violation of the Sherman Act Balyton Act Robinson-Patman Act Wheeler-Lea Act

sherman act

The legal form of business that is the simplest to establish is the Sole proprietorship Partnership S corporation Limited liability company

sole proprietorship

trade shows

special meetings where companies of the same or related industries display their products.

aptitude

the ability to learn a particular kind of job

return on investment

the amount earned as the result of the investment, usually expressed as a percentage

marketing mix

the blend of the product, price, distribution, and promotion used to reach a target market.

profit

the difference between he revenues taken in by a business and the cost of operating the business

capaitalism

the private ownership of resources by individuals rather than by the government.

wants

things that make a person's life more enjoyable, but they do not need it to live.

needs

things that people must have for their safety, security, and health.

You want to advertise a special price on a product that you do not have just to get customer traffic into your store. If you do so, you will be in violation of the Sherman Act Clayton Act Robinson-Patman Act Wheeler-Lea Act

wheeler-lea act

target market

individuals or companies that are interested in a particular product or service and are willing to pay for it.

WHOLESALE

Sams is an example of a __________ business

equilibrium price and quantity

The price at which supply equals demand

True or 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 new restaurant.

false

True or False? Publicity is always good for a business.

false

True or False? The U.S Justice Department administers all of the laws dealing with fair competition.

false

True or False? The board of directors of a corporation is responsible for the day-to-day management of the corporation

false

supply

how much of good or service a producer is willing to produce at different prices.