Entrepreneurship Final Exam Review

A business bought 144 items at $6.50 each and 120 items at $3.75 each. With a 10% off-season discount, the total cost to the business is A. 1119.27 B. 1206.93 C. 1247.4 D. 1386

1247.4

What is the break-even point in units for a business whose total fixed costs are $325,000, selling price per unit is $18, and variable cost per unit is $15.50? A. 120250 B. 130000 C. 150500 D. 180550

130000

Which of the following is an appropriate selling price for a product with total costs of $10.00 and a gross margin of $5.00: A. 7.5 B. 15 C. 10 D. 5

15

Calculate the break-even point in dollars if a business has total fixed costs of $875,000; the unit selling price is $1,200; and the variable cost per unit is $700. A. 2700000 B. 1500000 C. 1200000 D. 2100000

2100000

Clyde rented an ice-cream truck in order to earn money for college in the fall. His truck rental is $200 per week and has a yearly license fee of $52. It costs him $200 for 500 ice-cream bars that he plans to sell for $1.10 each. How many ice-cream bars must Clyde sell each week in order to reach the break-even point? A. 360 B. 252 C. 201 D. 288

288

What is the final cost to the business of a product priced at $40 with a 20% trade discount? A. 35 B. 25 C. 22 D. 32

32

Establish a selling price from the following information: cost, $8.45; operation expenses, $.50; and profit, $.80 A. 9.25 B. 8.95 C. 9.75 D. 7.15

9.75

Which of the following is often included in a marketing plan's situation analysis: A. A SWOT analysis chart B. Performance standards for implementing the plan C. A list of the proposed strategies and programs D. A list of the company's marketing objectives

A SWOT analysis chart

Which of the following situations presents a business threat to a company: A. A competitor obtains a bank loan for expansion. B. A competitor recalls a defective product. C. The government reduces interest rates. D. Sales for a specific product increase.

A competitor obtains a bank loan for expansion.

Which of the following products would likely use an exclusive distribution pattern: A. A silk necktie B. A gallon of milk C. A home-decoration magazine D. A large piece of farm machinery

A large piece of farm machinery

Which of the following items might be included in a marketing plan's appendix: A. The organization's mission statement B. A list of marketing objectives C. A product photograph D. A SWOT analysis chart

A product photograph

Which of the following is an important advantage for the corporate form of business ownership? A. Ease of making major policy changes B. Relatively little government regulation C. Ability to raise large amounts of capital D. Ease of starting and dissolving

Ability to raise large amounts of capital

Which of the following is a way that a business can determine if a product will fulfill its target market's needs: A. Observe workers B. Distribute promotional materials. C. Ask the customers D. Develop a prospect list

Ask the customers

Which of the following is a benefit to businesses of offering customized services to their customers: A. Businesses charge higher prices for customized services, which can lead to higher profit margins. B. Businesses save time by offering customized services to their customers. C. Customized services are also considered to be standardized services. D. By customizing their services, businesses deliver more consistent products to their customers.

Businesses charge higher prices for customized services, which can lead to higher profit margins.

Regan is deciding if she is willing to give up a secure position with a well-known company so she can start a home-based business. Which of the following risks is Regan assessing: A. Career B. Social C. Physical D. Financial

Career

Which of the following is a consideration in the place element of marketing: A. Offering warranties or guarantees B. Choosing distribution channels C. Using sales promotion D. Extending credit to customers

Choosing distribution channels

Which of the following is an example of a company's using brand extension: A. Coca-Cola adding Caffeine-Free Diet Coke B. Winn-Dixie installing an ATM machine in its stores C. Tyson packaging smaller portions of chicken for the elderly D. Kroger adding Blue Bell ice cream to its frozen foods section

Coca-Cola adding Caffeine-Free Diet Coke

Which of the following sources of start-up information would you recommend to an entrepreneur looking for information about the average start-up and operation costs for a self-serve laundromat: A. Service Corps of Retired Executives B. Coin laundry trade association C. Local chamber of commerce D. Small business administration

Coin laundry trade association

What do businesses often take into consideration when forecasting sales for marketing plans? A. Competitors' market share B. Quotas for salespeople C. Location of regional territories D. Company's profit goals

Competitors' market share

Which of the following is a characteristic of a well-conducted feasibility study: A. Subjective B. Abbreviated C. General D. Complete

Complete

Sandy opened a small business that carries a very wide variety of products of varying qualities at many different prices. Sandy is losing customers who are disappointed with the selection, quality, and quantity of items. What is lacking in Sandy's product mix? A. Consistency B. Breadth C. Depth D. Width

Consistency

What primary factors do business owners consider when determining the ceiling prices of their products? A. Service fees and competition B. Promotional efforts and cost C. Interest rates and supply D. Consumer perceptions and demand

Consumer perceptions and demand

When conducting an environmental scan, which of the following is an economic factor that a business should consider: A. Consumer spending habits B. Global trade regulations C. Local demographics D. Restricted sales territories

Consumer spending habits

Which of the following processes helps aspiring entrepreneurs generate venture ideas: A. Financial planning B. Decision making C. Goal setting D. Creative thinking

Creative thinking

Which of the following is an example of a measurable objective that a business might include in its promotional plan: A. Distribute 500 flyers by March 1 B. Design a new flyer C. Tell people about the business D. Run an ad in several newspapers

Distribute 500 flyers by March 1

Which of the following is a characteristic of a pure services: A. Uses plain, inexpensive packaging B. Most often uses product bundling strategies C. Does not include a tangible product D. Does not include product guarantees

Does not include a tangible product

For a prospective entrepreneur, what is necessary to determine the existence of goods and services? A. Demographic changes B. Product standards C. Entrepreneurial discovery D. Raw materials

Entrepreneurial discovery

Which of the following individuals would a business be most likely to ask for a prediction of next year's sales: A. Financial planner B. Inventory specialist C. Accounting clerk D. Experienced salesperson

Experienced salesperson

Which of the following statements is true regarding the use of group creative-thinking techniques to facilitate the idea-generation process: A. The brainstorming technique usually generates the best ideas. B. Groups are usually more effective when each member uses mind-mapping techniques. C. Group members most often generate new ideas by altering or building upon another idea. D. The Six Thinking Hats technique is generally the most effective idea-generation technique.

Group members most often generate new ideas by altering or building upon another idea.

What is a potential threat a manager might identify in a SWOT analysis? A. Growing government regulation B. Economy rebounding C. Weak market image D. Cost advantages

Growing government regulation

A business is extending its operating hours to accommodate its customers. Which of the following is a business cost associated with this service? A. Higher payroll expenses B. Increased sales volume C. Higher profit margins D. Increased customer satisfaction

Higher payroll expenses

Ben is conducting a feasibility study for a new venture idea. Which of the following questions should Ben answer in terms of the venture's financial considerations: A. How will the business obtain the money it needs? B. What regulations is the business likely to encounter? C. Is there a real demand for the idea, good, or service? D. How will the business communicate information about its products?

How will the business obtain the money it needs?

Before producing and selling a product, which of the following should marketers do first: A. Set up a promotional plan B. Select a channel of distribution C. Identify the market for the product D. Determine the product's price

Identify the market for the product

Which of the following is an example of an effective marketing objective that a business might set: A. Identify new local vendors B. Hire additional salespeople C. Decrease the level of spending D. Increase profit by 6% next year

Increase profit by 6% next year

Which of the following is an example of a demographic trend that has encouraged entrepreneurial discovery: A. Interest rate fluctuations B. Increased cultural diversity C. Industry deregulation D. Technological advancements

Increased cultural diversity

In which of the following situations should a business lower its sales forecast for the coming year: A. Population will increase by 5%. B. Major competitor will leave the market. C. Prices of raw materials will remain steady. D. Inflation rate is expected to rise 2%.

Inflation rate is expected to rise 2%.

Which of the following is a use of product promotion: A. Highlighting social or environmental issues B. Informing consumers about product features C. Recruiting new employees D. Changing attitudes toward the company

Informing consumers about product features

Which of the following is a true statement about a business's environment: A. It can be avoided. B. It is always changing. C. It consists of the economy and technology. D. It may not affect the business, depending on the industry.

It is always changing.

Which of the following statements is true about entrepreneurial discovery: A. It ensures that start-up businesses have continuous funding. B. It's an ongoing process that facilitates a business's success rate. C. It provides entrepreneurs with professional development training. D. It's a way to determine the long-term profit that a start-up company can generate.

It's an ongoing process that facilitates a business's success rate.

Why is it important for businesses to include specific time frames when setting marketing goals and objectives? A. Allows the business to identify the market B. Helps the business predict the future C. Guides the business in hiring more staff D. Keeps the business focused on the goal

Keeps the business focused on the goal

Which of the following is a global trend that might encourage an entrepreneur to consider international business opportunities: A. Higher allowances B. Lower tariffs C. Enforceable trade agreements D. Flexible currency rates

Lower tariffs

Which of the following is an example of a business using a flexible pricing policy: A. Establishing prices that are competitive B. Lowering prices during bad economic times C. Setting prices as low as possible D. Charing prices that consumers expect to pay

Lowering prices during bad economic times

Which of the following statements is true about entrepreneurship and small business growth: A. Trade regulations have very little effect on small-business growth. B. Many people start entrepreneurial ventures during times of economic recession. C. Small business start-ups are taxed at a higher rate than multinational companies. D. Consumer spending is a primary factor that influences entrepreneurial success.

Many people start entrepreneurial ventures during times of economic recession.

Where in a marketing plan would a business discuss how it plans to communicate with its customers? A. Marketing objectives B. Marketing strategies and programs C. Situation analysis D. Executive summary

Marketing strategies and programs

During which stage of the product life cycle is a business likely to try to stabilize a product's price? A. Expansion B. Introductory C. Obsolescence D. Maturity

Maturity

Which of the following characteristics is descriptive of a meaningful company objective: A. Measurable B. Vague C. General D. Unlimited

Measurable

What are the primary elements that businesses should include in a comprehensive promotional plan? A. Media placement specifications and costs B. Sales quotas and advertisement run dates C. Product pricing policies and industry analysis D. Competitor analysis and international advertising objectives

Media placement specifications and costs

Which of the following is an activity that a business performs when conducting a competitive analysis: A. Sets productivity goals B. Monitors rivals' marketing strategies C. Calculates income data D. Develops selling procedures

Monitors rivals' marketing strategies

Which of the following locations would be most appropriate for a small business selling convenience products such as groceries that customers purchase on a regular basis A. Downtown shopping area B. Neighborhood shopping area C. Regional shopping center D. Super-regional shopping center

Neighborhood shopping area

Can any brand name be selected and used by a business? A. No, the name must be legally available for use. B. Yes, brand names cannot be owned by a business. C. Yes, a business can use any name it wants to use. D. No, the name must be registered before it can be used.

No, the name must be legally available for use.

Small businesses have a positive effect on the local community because they: A. reduce competition. B. pay taxes. C. limit job growth. D. charge interest.

Pay Taxes

What section of the marketing plan includes information about expected results? A. Appendix B. Performance and implementation C. Situation analysis D. Desired target market

Performance and implementation

An ad for Kleenex tissue in Ladies Home Journal is an example of what type of advertising? A. Trade B. Institutional C. Product D. Business

Product

Which of the following are internal factors that affect the way a business uses promotional tools: A. Demand and product B. Price and competition C. Product and price D. Place and demand

Product and price

Which of the following is an operational issue that entrepreneurs must consider when planning their businesses: A. Source of financing B. Target market C. Production process D. Direct competitors

Production process

The MSV Company developed a sales forecast by considering the opinions of industry experts. This is an example of which of the following sales-forecasting methods: A. Industrial B. Conditional C. Qualitative D. Quantitative

Qualitative

Which of the following is an external threat that a company might identify while conducting a situation analysis: A. Declining unemployment B. Failing interest rates C. Increasing GDP D. Raising inflation rates

Raising inflation rates

Which of the following statements is most likely to have a negative effect on domestic small-business growth: A. Involuntary tax reductions B. Restrictive loan policies C. Low interest rates D. Slow inflation

Restrictive loan policies

Which of the following is a tool that an entrepreneur develops to project sales for a new business venture: A. Marketing objectives B. Sales forecast C. Promotional budget D. Inventory report

Sales forecast

The primary purpose of a feasibility study is to answer which of the following questions: A. What are the opportunity costs of this project? B. What technology will be needed for this project? C. Should we proceed with this project? D. Is this business plan valid?

Should we proceed with this project?

Which of the following factors helps a business to determine its product mix: A. Merchandise breadth and depth B. Size and target market C. Staple goods and regular goods D. Seasonal goods and convenience goods

Size and target market

Which of the following is a factor that businesses often consider when conducting a market analysis: A. Location of test market B. Size of the market next year C. Safety of the research process D. Design of the questionnaire

Size of the market next year

Which of the following broadcast media is growing at the fastest rate in terms of its use as an advertising medium? A. Direct mail B. Transit C. Newspaper D. Television

Television

Which of the following is an example of a demographic trend: A. The aging of the population B. Shifting political climates C. Rising interest rates D. A concern for fitness and health

The aging of the population

Which of the following examples illustrates how environmental factors are interrelated: A. The economy affects what competitors are doing. B. New legislation will be written in the future. C. Low investor confidence heavily impacts financial planners. D. The economy affects banking institutions.

The economy affects what competitors are doing.

Which of the following should be included in a marketing plan's executive summary: A. The organization's mission statement B. A description of the target market(s) C. The names and numbers of marketing team members D. A SWOT analysis chart

The organization's mission statement

Which of the following is an example of an external change that could affect a business's sales forecast: A. A new sales rep has been hired to develop the company's territory in Texas. B. The population of a town increases when a new hospital opens in the community. C. The company plans to modify its approach to mailing catalogs to customers. D. A company plans to raise prices on its products.

The population of a town increases when a new hospital opens in the community.

What is one of the main reasons why small businesses are strongly promoted and supported by local government? A. They serve only their local communities. B. They are owned by one person. C. They may become a big business. D. They are important to the economy.

They are important to the economy

Which of the following is an important benefit of marketing plans: A. They ensure a yearly profit. B. They develop exciting products. C. They help recruit quality employees. D. They can help obtain funding.

They can help obtain funding.

Which of the following does effective product/service management help businesses to do: A. To barter B. To prospect C. To compete D. To recruit

To compete

Why do some new companies set their selling prices as low as they can? A. To get market share as fast as possible B. To eliminate all possible competition C. To earn a high return on investment D. To quickly make a large profit

To get market share as fast as possible

Which of the following is a reason why managers develop company objectives: A. To identify business purposes B. To forecast sales potential C. To solve operating problems D. To communicate with employees

To identify business purposes

What is the purpose of sales-oriented pricing objectives? A. To increase the total amount of sales income B. To create profits for the business C. To increase the return on investment D. To guarantee the survival of the business

To increase the total amount of sales income

Why do businesses with excessive debts often file Chapter 7 bankruptcy? A. To liquidate B. To consolidate C. To refinance D. To reorganize

To liquidate

Why would a manager of a local business keep track of the prices that similar businesses in the area are charging? A. To remain competitive B. To improve advertising C. To promote image D. To offer new services

To remain competitive

Which of the following is a benefit of channels of distribution: A. Producers must spend more money. B. We can easily obtain products from all over the world. C. Retailers must spend more money. D. We spend more time looking for products we want.

We can easily obtain products from all over the world.

Which of the following is the most effective mission statement? A. We own the most well-known, popular amusement parks and resort hotels in the world. B. We create happiness by providing the finest entertainment for people of all ages, everywhere. C. We sell toys, clothing, jewelry, housewares, books, movies, and much, much more! D. We want to become a $100 billion corporation by the end of the 21st century.

We create happiness by providing the finest entertainment for people of all ages, everywhere.

Which of the following is a question that a business should answer about its target market while conducting a situational analysis: A. How are our financing methods affecting our company's growth? B. What are our customers buying? C. Are we operating at peak efficiency? D. Which shipping companies are we using?

What are our customers buying?

Which of the following is a question that a business might ask when it wants to evaluate its weaknesses: A. What resources do we lack? B. What is our competition doing? C. What markets have our competitors missed? D. What obstacles do we face?

What resources do we lack?

Which of the following questions is it important to ask to determine the business's strengths when conducting a SWOT analysis: A. What economic trends are beneficial to us? B. What are our competitors doing? C. Where are we making money? D. What obstacles do we face?

Where are we making money?

When a business selects a target market, the most useful or desirable market segments to the business are those that are measurable and A. accessible. B. undifferentiated. C. concentrated. D. inflexible.

accessible.

A marketing plan should outline the specific activities that the business will use to A. evaluate its sales policies. B. increase its buying power. C. meet the needs of its employees. D. achieve its marketing objectives.

achieve its marketing objectives.

Marketing strategies are designed and implemented for the overall purpose of A. changing the image of the business. B. improving management techniques. C. achieving planned goals D. increasing business profits immediately.

achieving planned goals

104. One way for a business to expand its product mix is by A. monitoring its product's life cycles. B. acquiring another company. C. increasing sales quotas. D. analyzing product width decisions.

acquiring another company.

When a business conducts a customer analysis and identifies territories, determines the possible buyers in the territories, and estimates the buyers' purchases, it is evaluating the A. segment's psychographics. B. area's market potential. C. potential media exposure. D. competitors' market share.

area's market potential.

Identifying new product opportunities usually requires a person to be A. decisive. B. emotional. C. aware. D. indifferent.

aware

Radio commercials are a form of advertising that is transmitted through __________ media. A. print B. broadcast C. web-based D. out-of-home

broadcast

Businesses receive positive feedback about the effectiveness of their promotional messages when consumers A. see their advertisements. B. ask specific questions. C. visit their competitors. D. buy their products.

buy their products.

When identifying which promotional approaches to use, a business should: A. try to use every approach possible. B. select a target market. C. copy what the competition is doing. D. choose those that match its image.

choose those that match its image.

The primary goal during the brainstorming process is to: A. come up with as many ideas as possible. B. analyze each idea as it is presented. C. rate each idea in relation to one another. D. come up with a set number of ideas within a certain time.

come up with as many ideas as possible.

Companies have been forced to pay more attention to the specific needs of consumers because of A. merchandising. B. advertising. C. automation. D. competition.

competition.

When determining venture-creation opportunities, entrepreneurs must first A. obtain financing. B. conduct research. C. identify staffing needs. D. select a location.

conduct research.

A primary reason for establishing a marketing budget is that it helps a business to A. reduce tax liability. B. monitor fixed assets. C. manage depreciation. D. control spending.

control spending.

When a business offers a service that saves time for a customer, its benefit to the customer is A. price. B. convenience. C. consistency. D. quantity.

convenience.

An effective mission statement should effectively reflect the business's A. touch points. B. specific goals. C. ethics policies. D. core values.

core values.

The form of business ownership that can raise money easily is the A. partnership B. corporation C. sole proprietorship D. limited partnership

corporation

The form of business ownership that can raise money easily is the A. partnership. B. corporation. C. sole proprietorship. D. limited partnership.

corporation.

What does a business need to consider when developing a marketing budget? A. costs of performing marketing activities B. Forecasts of future sales figures C. Value of spending money on advertising D. Expense associated with offering credit

costs of performing marketing activities

Businesses should set their selling prices at a level that will A. be lower than that of the competitors. B. cover expected markdowns and expenses. C. be equal to the cost of the goods. D. ensure a high percent of profit.

cover expected markdowns and expenses.

One of the main goals of promotion in marketing is to A. select media. B. develop a message. C. create desire. D. monitor feedback.

create desire.

One of the purposes of conducting a market analysis is to develop a(n) A. operating budget. B. distribution plan. C. customer profile. D. management team.

customer profile.

Marketers often condense USPs into short slogans because A. a successful USP is always very short. B. all work team members must memorize them. C. there cannot be product differentiation through any other means. D. customers tend to remember just one thing from an advertisement.

customers tend to remember just one thing from an advertisement.

When beginning to develop a promotional plan, it is important for a business to A. compile a list of activities. B. decide on its promotional strategy. C. become an active networker. D. define its promotional goals.

define its promotional goals.

Text-message advertising is the most likely to be successful when the ads are A. sent anonymously. B. delivered to the cell-phone numbers of people interested in the product. C. randomly sent to a mass audience of cell-phone subscribers. D. lengthy in nature.

delivered to the cell-phone numbers of people interested in the product.

The plan to increase production by 10% over a two-year period is an example of which management activity: A. developing objectives. B. assigning job tasks. C. controlling expenses. D. directing employees.

developing objectives.

A major advantage of a sole proprietorship is A. availability of capital B. ease of start-up. C. probability of success. D. sharing decision making.

ease of start-up.

A major advantage of a sole proprietorship is A. availability of capital. B. ease of start-up. C. probability of success. D. sharing of decision making.

ease of start-up.

One way a national business chain can make sure that customers will remember its name is to develop a brand name that is A. long and complicated. B. easy to read and pronounce. C. similar to those used by competitors. D. associated with a specific period of time.

easy to read and pronounce.

When considering the services to offer customers, a business should determine if a specific service would A. enhance customer-satisfaction levels. B. increase the number of products possibly returned by customers. C. offend the business's existing competitors. D. stabilize variable interest rates.

enhance customer-satisfaction levels.

One reason why it is often important for businesses to conduct a competitive analysis is to identify A. external threats. B. potential vendors. C. economic conditions. D. future employees.

external threats.

When do businesses usually set the marketing budget? A. Before segmenting customers B. Before analyzing markets C. After identifying standards D. After determining objectives

fter determining objectives

A business identifies a market that shares common characteristics on the basis of where people live and work, which is an example of market identification by _____________ segmentation. A. demographic B. geographic C. ethnicity D. values

geographic

Which of the following statements is true about business start-up requirements: A. Equipment is the least expensive requirement for start-up business. B. New business owners usually need to register for patent protection. C. Purchasing a franchise is usually easy and inexpensive for start-up business owners. D. The financial needs to start a new business depend on the nature of the venture.

he financial needs to start a new business depend on the nature of the venture.

Marketers determine distribution intensity so they can achieve A. ideal market exposure. B. complete market coverage. C. perfect market balance. D. total market saturation.

ideal market exposure.

One-time start-up costs often include _____________ fees. A. shipping and postage B. incorporation C. trade association D. website maintenance

incorporation

The marketing objectives that a business develops for its marketing plan should lead to a(n) A. increase in sales. B. increase in prices. C. decrease in costs. D. decrease in taxes.

increase in sales.

When the costs of raw materials increase considerably, a business is likely to A. maintain similar profit margins as its competitors. B. implement a long-term markup pricing policy. C. continue following the same marketing strategies. D. increase the selling price of a product.

increase the selling price of a product.

A large car manufacturer purchases materials that it will use to create parts for automobiles. The car manufacturer is a(n) A. retailer. B. wholesaler. C. industrial user. D. agent.

industrial user.

An important objective of promotion is to _____________ buyers. A. intimidate B. inform C. deceive D. delude

inform

When a business places a new product on the market, each element of the promotional mix should be designed to A. inform consumers about the existence of the product. B. point out differences among competing products. C. remind customers about the benefits of the product. D. reinforce the company's image.

inform consumers about the existence of the product.

A company produces an advertisement that informs consumers about its commitment to recycling materials and controlling pollution. This is an example of A. institutional promotion B. product promotion. C. cooperative advertising. D. personal selling.

institutional promotion

A disadvantage of a general partnership is that each partner A. is liable for the business's losses. B. invests the same amount of capital. C. performs limited management duties. D. has responsibility for preparing the annual report.

is liable for the business's losses.

One reason why the target market of a business affects its pricing is because consumers in each target market A. monitor the industry standard. B. expect a large product mix. C. prefer products in the growth stage. D. judge the value of products differently.

judge the value of products differently.

The primary responsibility of the facilitator of a product idea brainstorming session are to compile all of the ideas and A. keep the group on task. B. judge the bad ideas. C. select the best idea. D. evaluate the group's creativity.

keep the group on task.

One factor that an entrepreneur should consider while assessing a venture opportunity is whether it will: A. lead to more opportunities. B. require employee loyalty. C. involve complicated paperwork. D. satisfy vendors' needs.

lead to more opportunities.

In order for a business to generate a profit, its operating costs must be ___________ the gross margin. A. equal to B. greater than C. less than D. identical to

less than

Businesses that segment the market based on psychographics are grouping people according to their A. education. B. lifestyles. C. marital status. D. occupation.

lifestyles

To appeal to a target market with slightly different needs, a business decides to add a group of related items to its product mix. This is called a A. service expansion. B. product replacement. C. line extension. D. product enhancement.

line extension.

A business determines the final cost of a product purchased for resale by subtracting allowed discounts and transportation charges from the A. list price. B. net profit. C. operation expenses. D. accounts receivable.

list price.

Indirect channels of distribution are usually of which attribute than direct channels? A. longer B. shorter C. cheaper D. more efficient

longer

If your company cannot fulfill its USP, it will A. go bankrupt. B. spend more money. C. lose credibility. D. gain business.

lose credibility.

Emotional risks that many entrepreneurs face include: A. marital tensions and family problems. B. unemployment and uncertain income. C. competition and difficult suppliers. D. inflation and slow market acceptance.

marital tensions and family problems.

The first factor that a business should consider when it is deciding if it should sell a product is the: A. promotional strategy. B. taxation rate. C. storage space. D. market demand.

market demand.

The entrepreneurial discovery process requires knowledge and the recognition of a(n) A. economic crisis. B. preventable accident. C. market need. D. creative observation.

market need.

Product/service management is a marketing function that involves obtaining, developing, maintaining, and improving a product or service mix in response to A. government oversight. B. competitors only. C. market opportunities. D. CEO wishes.

market opportunities.

When using mind mapping to generate product ideas, you begin by writing down the main problem or: A. market opportunity. B. supporting facts. C. primary associations. D. situation analysis.

market opportunity.

Businesses often select marketing metrics that will help them compare current market share with A. market potential. B. inventory turnover. C. brand recognition. D. transaction size.

market potential.

Proctor and Gamble's decision to offer different types of soaps in a wide range of prices is an example of: A. direct marketing. B. market segmentation. C. geographic segmentation. D. industrial marketing.

market segmentation.

Identifying market segments helps a business to develop appropriate A. marketing strategies. B. economic forecasts. C. organizational records. D. leadership styles.

marketing strategies.

When the Green company selected its target market, it decided to ignore the segment differences and generate appeal with one offer. The company is using ____________ marketing. A. isolated B. niche C. individual D. mass

mass

When sellers offer one-size-fits-all products that will appeal to most buyers, they are using: A. market segmentation B. mass marketing. C. mass production. D. demographic segmentation.

mass marketing.

One reason why businesses select marketing metrics is to use them as a(n) A. measurement tool. B. operating strategy. C. promotional activity. D. selling procedure.

measurement tool.

Alaina needs advice and assistance in starting her new business venture, so she contacted the Service Corps of Retired Executives (SCORE). Jack, a SCORE volunteer, agreed to act as Alaina's guide in the business start-up process. Jack is serving as Alaina's A. intermediary B. apprentice C. entrepreneur D. mentor

mentor

When a business expands its product mix, its goal is to appeal to A. fewer market segments with fewer product options. B. more market segments with a wider variety of options. C. existing market segments with a wider variety of options. D. select market segments using less promotion.

more market segments with a wider variety of options.

A business that fails to protect its employees for unnecessary risk or health hazards on the job may be sued for A. incompetence B. misrepresentation C. libel D. negligence

negligence

A business that fails to protect its employees from unnecessary risk or health hazards on the job may be sued for A. incompetence. B. misrepresentation. C. libel. D. negligence.

negligence.

Selecting a target market based on very specific criteria that limit the audience to a well-defined segment is an example of A. target auditing. B. market planning. C. income segmenting. D. niche marketing.

niche marketing.

Public-service promotions often are used to inform consumers about __________ issues. A. questionable B. controversial C. noncontroversial D. negative

noncontroversial

Which of the following types of laws protects a business's inventions or written works from the unauthorized use by others: A. Income tax B. Intellectual property C. Consumer protection D. Product liability

ntellectual property

The marketing metrics that businesses select should relate directly to the __________ of the marketing plan. A. demographics B. organization C. objectives D. environment

objectives

Repeated exposure to the largest, most diverse population of people is a benefit of ________ advertising. A. out-of-home B. newspaper C. directory D. radio

out-of-home

The costs of operating a business are often called __________ expenses. A. fixed B. overhead C. variable D. markdown

overhead

Managers use the broad objectives they develop for a business as the basis for setting A. benefit levels. B. performance targets. C. salary ranges. D. recruitment quotas.

performance targets.

A channel task should be performed by the channel member who A. performs it best. B. has the least money. C. has the most money. D. wants to perform it.

performs it best.

Jessica's hobby is making jewelry. There is potential to sell her bracelets and earrings on eBay. This is an example of identifying a product opportunity by considering A. demographic changes. B. business processes. C. consumer attitudes. D. personal experiences.

personal experiences.

An entrepreneur considers venture location and financial needs during the _____________ process. A. distribution B. controlling C. implementation D. planning

planning

A hairstylist cutting a client's hair is an example of a __________ distribution channel. A. producer to agent to consumer B. producer to consumer C. producer to retailer to consumer D. producer to wholesaler to consumer

producer to consumer

A business that identifies products to sell that fill customer needs is making which decision: A. line extension B. product mix C. customer service D. quality control

product mix

Variable expenses increase in direct proportion to the increases rate of A. competition. B. production. C. automation. D. motivation.

production.

Metrics that gauge the market's buying habits and attitudes relate to the A. brand. B. customer. C. pricing. D. profitability.

profitability.

When planning for her new business, Janine allocates two percent of the company's estimated annual sales to web and newspaper advertising. Janine is developing a A. promotional budget. B. sales report. C. competitive analysis. D. publicity plan.

promotional budget.

The primary reason that governments regulate business activities is to A. encourage businesses to expand their operations. B. limit the level of competition in the marketplace. C. protect the well-being of individuals and businesses. D. change international trade initiatives.

protect the well-being of individuals and businesses.

Newspapers and magazines are categorized as ___________ media. A. time B. broadcast C. publications D. direct

publications

The local newspaper ran a story about Amy's Shoe Store and its donation of 100 pairs of shoes to those in need. This act by the local newspaper is an example of A. personal selling. B. sales promotion. C. advertising. D. publicity.

publicity.

Channel members should share an equal commitment to the product's A. name. B. price. C. quality. D. packaging.

quality.

Costs of sales for a new manufacturing venture typically include A. trade show attendance, raw materials, and equipment. B. raw materials, equipment, and product inventory. C. trade show attendance, product inventory, and internet access. D. internet access, attorney fees, and sales lead lists.

raw materials, equipment, and product inventory.

To guard your USP from competitors, you should A. repeat it as much as possible. B. print it in a foreign language. C. make it difficult to understand. D. avoid letting it become public.

repeat it as much as possible.

One way that a business can learn about its competitors' activities is by A. developing product specifications. B. evaluation intranet efficiencies. C. reviewing secondary data. D. identifying communication barriers.

reviewing secondary data.

The use of samples or cents-off coupons on grocery items is an example of A. publicity. B. personal selling. C. advertising. D. sales promotion.

sales promotion.

Entrepreneurial discovery is an important process in a free-enterprise economic system because an entrepreneur or small-business owner can A. satisfy an unmet demand. B. form a technological monopoly. C. improve economic sanctions. D. change legal requirements.

satisfy an unmet demand.

The first decision that marketers must make when managing channels is: A. setting channel objectives. B. determining distribution patterns. C. selecting channel members. D. determining channel responsibilities.

setting channel objectives.

After a Korean auto manufacturer built a plant in Ames, Iowa, Kwan noticed a substantial growth of Korean residents in the area, many of whom were relocated to Ames to work for the plant. Kwan decided to import Korean goods and sell them in a small Korean specialty store near town. This is an example of a product opportunity resulting from A. advancements in technology. B. changes in travel habits. C. differences in priority. D. shifts in popularity ethnicity.

shifts in popularity ethnicity

When generating new ideas for new businesses, entrepreneurs often look for ways to A. rationalize spending. B. increase liability. C. solve problems. D. control outcomes.

solve problems.

Forecasting sales for market plans is important because the forecast is used as a A. type of research. B. standard of measurement. C. method of communication. D. compilation of data.

standard of measurement.

A business might take an existing product and alter it to fulfill a specific need for a different A. medium. B. product mix. C. utility. D. target market.

target market.

When considering a new product for your company, you decide to introduce the product in only three states for a six-month period. This is known as A. product development. B. feasibility analysis. C. commercialization. D. test marketing.

test marketing.

A reliable source of general business start-up information is A. Wikipedia (www.wikipedia.org/wiki/Entrepreneurship). B. the Project Management Institute (www.pmi.org). C. the Small Business Administration (www.sba.gov). D. the National Retail Federation (www.nrf.com).

the Small Business Administration (www.sba.gov).

When Kate selects a name and obtains a web address for her new catering business, she needs to make sure that the name of the business is: A. unique and available. B. catchy and copyrighted. C. specific and patented. D. abstract and formal.

unique and available.

The product mix that a business decides to offer customers helps to project the business's A. display themes. B. sales goals. C. service style D. unique image.

unique image.

When a business allocates a certain amount of money in relation to the amount of goods and services that it sold the previous year, it is setting its marketing budget by A. using the percentage-of-sales method. B. reviewing industry standards. C. considering its competitors' activities D. obtaining bids for various marketing activities.

using the percentage-of-sales method.

By setting marketing objectives, businesses are specifying A. what they want to achieve. B. how they intend to make a profit. C. what price they plan to charge. D. how they intend to advertise.

what they want to achieve.

The price function often influences the place function by determining A. when the product is made. B. why the product is shipped. C. how the product is advertised. D. where the product is sold.

where the product is sold.

Due to lackluster sales, the Elba Corporation has decided to eliminate several of its product lines. Elba's executives hope that by focusing on fewer product lines, they will see more profit. The Elba Corporation is planning to adjust the _________ of its product mix. A. depth B. length C. width D. height

width

Before identifying your company's USP, ask yourself if A. you really need one to be successful. B. you can afford the advertising costs. C. you already have one without realizing it. D. there are many successful ones you can copy.

you already have one without realizing it.