ETR401 - Chapter 11

A _____ is having just enough product on your shelves to meet the immediate purchases; this usually requires frequent shipment from your supplier. A. macroinventory B. in-process inventory C. microinventory D. just-in-time inventory

d

A middleman business which sells to consumers or end-users of a product is called a(n) A. manufacturer. B. agent. C. wholesaler. D. retailer.

d

All of the following are examples of low customer contact businesses EXCEPT A. industrial parks. B. business incubators. C. empowerment zones. D. retail establishments.

d

All of the following are examples of using middlemen for indirect exporting EXPECT A. export management companies. B. agents. C. export trading companies. D. fulfillment centers.

d

Firms specializing in arranging international shipments—packaging, transportation, and paperwork are called A. born internationals. B. e-tailers. C. direct exporters. D. freight forwarders.

d

Exporting using middlemen such as agents or export management companies is referred to as A. indirect exporting. B. freight forwarding. C. e-tailers. D. high credit risk exporting.

a

For small business location issues, there are two basic "where" questions to be considered A. Where are my customers? Where should I be? B. Where are my customers? Where are my suppliers? C. Where are the raw materials? Where are the finished products? D. Where are the sales? Where are the profits?

a

Identify the layout by which most assembly manufacturing is done. A. Production line B. Process C. Grid D. Free-form

a

Knowing the market of professors at other universities well, Jessica has decided to approach them for her product sales. This method can be described as A. direct marketing. B. going international. C. using middlemen. D. wholesaling.

a

The distribution channel of manufacturers to the consumer is referred to as A. wholesaler marketing. B. direct marketing. C. middlemen sales. D. agent-buyer relationship.

b

One method of spreading information about one's business through the comments friends and customers make to other potential customers is called A. word-of-mouth. B. guerilla marketing. C. telemarketing. D. direct sales.

a

One suggestion for finding out which distribution channel is correct for your product is to A. start at the end and work your way up by asking each link from whom they buy. B. ask the competitors. C. explore what regulations are required from the small businesses. D. ask the customers who do they prefer buying the products from.

a

Other businesses that bring customers to the area are called A. traffic generators. B. competitors. C. nonprofit organizations. D. local government agencies.

a

The end user of a product or service is called a(n) A. consumer. B. agent. C. wholesaler. D. retailer.

a

When an existing firm with the correct manufacturing capabilities makes your product for you, it is called A. contract manufacturing. B. sheltered workshops. C. e-tailing. D. freight forwarding.

a

Which of the following can be exercised only when presented with specified shipping documents? A. Documentary drafts B. Letter of credit C. Airway bill D. Bill of lading

a

Which of the following direct response advertising forms allows for specific geographic segmentation? A. Newspapers B. Magazines C. National television D. Home shopping networks

a

Which of the following is the cheapest form of direct response advertising? A. Billboard B. Radio, 30-second spot C. Magazine newsweekly, 4-color page D. Newspaper daily, 1/3 black and white page

a

Who can afford to take a chance on unknown firms or products due to low overheads and unlimited shelf space? A. E-tailers B. Wholesalers C. Retailers D. Fulfillment centers

a

_____ is a concession which covers the time while you prepare your location prior to opening. A. Rent-free use period B. Leasehold improvement C. Construction allowance D. Tenant improvement allowance

a

"Tenant improvement allowances" or "construction allowances" are rent dollars typically A. $1 to $10 a square foot. B. $5 to $25 a square foot. C. $10 to $50 a square foot. D. $15 to $75 a square foot.

b

A(n) _____ is a document issued by a bank that guarantees a buyer's payment for a specified period of time upon compliance with specified terms. A. documentary draft B. letter of credit C. import document D. freight document

b

Identify the term for any form that assists in getting your product to your end customer. A. Electronic malls B. Intermediaries C. Born internationals D. Traffic generators

b

Identify this type of service in which face-to-face meetings with the client are infrequent. A. Mutually accessible location B. Remote location C. Client's location D. Competitor's location

b

In the _____ layout, material flows in on one side of the operation and continues to the other end of the operation. A. grid B. production line C. free-form D. process

b

Restaurants and barbershops are examples of which of the following locations for services? A. Client's location B. Mutually accessible location C. Your firm's location D. Competitor's location

b

Some of Jessica's students suggested that she create a Web site for her product and company. Being a new company immediately starting a Web site, her company can be called A. freight forwarders. B. born international. C. a middleman. D. an exporter.

b

The use of creative and relatively inexpensive ways to reach your customers with techniques such as door-knob hangers and flyers under windshield wipers is called A. multichannel marketing. B. guerilla marketing. C. direct sales. D. direct mail.

b

This form of marketing allows your customers to contact you in the way they feel the most comfortable. A. Guerilla marketing B. Multichannel marketing C. Internet marketing D. Direct sales

b

What form of direct response advertising provides both geographic and demographic segmentation, though the audience for this medium is generally highly distracted? A. Television B. Radio C. Magazines D. Newspapers

b

Which of the following are more modern forms of direct mail? A. Catalogs and e-mailing B. Direct faxing and e-mailing C. Sales letters and e-mailing D. Postcards and direct faxing

b

Which of the following is NOT a method of direct selling? A. Vending machine B. Word-of-mouth C. Leasing space at a craft fair D. Industrial sales

b

Which of the following is NOT a requirement of the national law related to e-mailing? A. Do not in any way falsely misrepresent who you are. B. For direct e-mailing, sender must use harvested e-mail addresses. C. All emails should allow recipient the opportunity to "opt-out." D. Do not in any way falsely misrepresent where the e-mail is from.

b

Which of the following is a disadvantage of leasing? A. It is costly and slow B. You are usually limited in the renovations you can do C. Any remodeling that needs to be done may overshadow any time or money savings D. It is an option with a considerably high initial cash outlay

b

Which of the following is an example of a high customer contact form of business? A. Manufacturing businesses B. Legal offices C. Headquarters of client location-based services D. Remote location services

b

Which of the following is the most expensive form of direct marketing? A. E-mail B. Telemarketing C. Brochures D. Leaflets

b

Which of the following statements about HVAC is false? A. It can be the most expensive type of repair. B. For any type of equipment, you want the landlord to at least guarantee the first six months of operation. C. It is one of the types most likely to go wrong. D. If the location has a central air system so everyone shares the same air conditioner and heating equipment, it is the landlord's responsibility.

b

Which of the following statements about catalogs is true? A. Typically, the number of catalogs you will have to order is 10,000 at a minimum. B. Creating and disseminating a catalog online saves you the cost of printing and mailing. C. Most full-time entrepreneurs typically try to get their products into existing catalogs. D. Depending on the size and quality of the catalog, costs for print versions start at around $2 each.

b

_____ is a form of direct response advertising that reaches local people but does not permit a lot of details. A. Radio B. Billboard C. Magazine D. Newspaper

b

A _____ is a set of goods or services that consists of only one or a few items. A. customer-managed inventory B. vendor-managed inventory C. microinventory D. just-in-time inventory

c

A company that will warehouse your products and fill your customers' orders for you is called A. a retailer. B. the U.S. Postal Service. C. fulfillment center. D. a wholesaler.

c

A middleman business which buys and sells to businesses rather than consumers is called a(n) A. manufacturer. B. agent. C. wholesaler. D. retailer.

c

A middleman business which represents a manufacturer's products or services to other business-to-business middleman firms is called a(n) A. retailer. B. wholesaler. C. agent. D. supplier.

c

A new firm that opens a Web site immediately, thus being exposed to customers around the world is called A. freight forwarders. B. indirect exporters. C. born internationals. D. e-tailers.

c

Contact via telephone for the express purpose of selling a product or service is called A. direct response advertising. B. guerilla marketing. C. telemarketing. D. multichannel marketing

c

For high customer contact businesses, which of the following is NOT a critical site selection consideration? A. Traffic B. Customer ease C. Cost potential D. Competition

c

For many entrepreneurs, their hometown is their first choice for the location of their business because of all of the following EXCEPT A. convenience and a familiar setting. B. elimination of a lot of possible family issues. C. local government offering subsidized locations to local businesses. D. their knowledge about the market or potential customers.

c

Given that Jessica has a very limited budget, which of the following forms of direct mail might be least expensive? A. Brochures B. Sales letters C. E-mailing D. Post-cards

c

The use of several different channels to reach your customers, for example, a Web site, direct mail, and traditional retailing is called A. guerilla marketing. B. Internet marketing. C. multichannel marketing. D. direct sales.

c

These can be used to perform light manufacturing or assembly sort of business. A. Contract manufacturing B. E-tailing C. Sheltered workshops D. Freight forwarding

c

This form of layout has aisles running from the front of the store to the back like the typical grocery. A. Production line B. Process C. Grid D. Free-form

c

What is perhaps the greatest challenge of the direct mail approach? A. The need for adequate preparation before selling B. The need for writing and photography skills C. The need to find the right market for your offering D. A way to get customers' attention

c

Which of the following direct sales methods offer the flexibility of having your product available around the clock and at convenient locations? A. Leasing space at a craft fair B. Farmers' markets C. Vending machines D. Door-to-door sales

c

Which of the following is a nonprofit organization or institution that provides business services by using handicapped or rehabilitated workers? A. Contract manufacturing B. E-tailing C. Sheltered workshops D. Freight forwarding

c

Which of the following layouts is more typically found in upscale department stores? A. Grid layout B. Production line C. Free-form layout D. Process layout

c

Which of the following statements about handling an early termination is false? A. The bailout clause lets you out of the lease if sales do not meet an agreed-to level. B. If your business falters, you are obligated to continue paying your monthly rent and fees for the duration of the lease. C. In terms of a three-year lease, with a one-year cap you are obligated to pay one year's more rent. D. In terms of a three-year lease, if you close down after only six months, you are obligated to pay 30 more months' rent.

c

With direct marketing, one option to consider when you are doing quantity shipping is A. the retailer. B. the U.S. Postal Service. C. a fulfillment center. D. the wholesaler.

c

_____ are permanent changes made to the location to fit your business's needs. A. Build-ins B. Improvements to buildings C. Leasehold improvements D. Improvements to land

c

_____ is usually the first technique an entrepreneur uses to get customers. A. Internet B. Guerilla marketing C. Word-of-mouth D. Telemarketing

c

If Jessica places an advertisement in "Chronicle of Higher Education," a leading publication for University professors about her product with her e-mail and contact information, it can be described as A. guerilla marketing. B. telemarketing. C. direct sales. D. direct response advertising.

d

In _____, you place an ad in a magazine, newspaper, radio, billboard, or television that includes a phone number, e-mail, or snail-mail address, and wait for the orders to come in. A. telemarketing B. direct mail sales C. guerilla marketing D. direct response advertising

d

Putting together an export strategy involves answering all of the following questions EXCEPT A. where should we go? B. whom do we contact over there? C. are we ready? D. which employees do we send?

d

Telemarketing can either be _____ or _____. A. in person; on the phone B. by fax; e-mail C. door-to-door; direct response advertising D. inbound; outbound

d

What is the term used for the layout of a store that is laid out in sections with aisles that angle or meander through the store? A. Production line B. Process C. Grid D. Free-form

d

Which form of direct response advertising allows for very specific targeting and offers an appropriate place for direct response advertising for business-to-business selling? A. Television B. Radio C. Newspaper D. Magazines

d

Which of the following formats is much more appropriate for low-volume, flexible manufacturing? A. Grid layout B. Production line C. Free-form layout D. Process layout

d

Which of the following is NOT a form of direct mail? A. Catalogs B. E-mails C. Faxes D. Vending machines

d

Which of the following is NOT a form of direct marketing? A. Word-of-mouth B. Telemarketing C. Guerilla marketing D. Wholesalers

d

Which of the following is the least expensive form of direct mail? A. Catalogs B. Videos C. Direct faxing D. E-mail

d

A store that exists only on the Internet is called a(n) A. wholesaler. B. e-tailer. C. agent. D. electronic manufacturer.

e