Intro to Business MCA

The availability of a service must match the demand for that service at a specific time because it is...

Perishable

People who become most successful entrepreneurs most often...

Possess the business skills they need before starting a business

When businesses specialize in producing a specific type of product, a channel of distribution will be needed to adjust differences in...

Quantity

Entrepreneurs are most often...

Self-confident

True or False: The United States imports a large share of the natural resources used by its industries.

True

It is ___________ for entrepreneurs to have failed in other businesses before they succeed.

common

The most expensive but also most effective type of promotion is...

Advertising

True or False: The first step in marketing research is to develop a data collection procedure.

False

True or False: The route a product follows in moving from a producer to a final consumer is known as a marketing plan.

False

A company is planning to sell the rights to its brand name for use in other countries. This is an example of a...

Franchise

When the word age is referred to as a pricing factor it means...

How long a particular product has been offered on the market

The two steps in a marketing strategy are...

Identifying a target market and developing a marketing mix

Money needed for the important resources of a business (such as land, buildings, and equipment) that will last for many years is called...

Long term financing

A nation has a trade surplus if...

The quantity of its exports is greater than the quantity of its imports

In international business transactions, businesses should consider the exchange rate, which is the value of one currency compared with...

The value of currency from a different nation

True or False: A high rate of inflation in a country tends to increase demand for that nation's currency.

True

True or False: An indirect channel of distribution is made up of the producer and buyer of a good or service.

True

True or False: Big businesses have clear advantage when a large number of customers want to buy standard products and prefer low cost and efficient delivery.

True

True or False: Infrastructure is a significant factor that affects the economic development of a country.

True

True or False: Most consumers are willing to pay a higher price for a good or service that they are able to buy conveniently.

True

True or False: Most new products introduced by companies are not totally new but improvements on existing products.

True

True or False: Everyone who owns or manages a business is an entrepreneur.

False

The Small Business Administration considers a business small if it employs fewer than _____?

100

A country that wishes to enhance international trade activities would most likely use...

A common market

True or False: A business plan does not have to be written since the business owner is well aware of the information in the plan.

False

Money provided by large investors to finance new products and new businesses that have a good chance to be very profitable is known as...

Venture Capital

The international organization that settles trade disagreements and enforces free trade agreements is the

WTO

When a country's imports exceed the exports, this is a trade

deficit

The value of a country's currency is likely to decline as a result of

higher inflation

Every business begins with an...

idea

True or False: Most small business owners enjoy being part of a team.

False

Absolute advantage exists when a country is able to produce a good or service...

At a lower cost than other countries

A competitive advantage that small businesses have over larger businesses is...

Attention to unique customer needs

Which of the following conditions will result in a lower rather than a higher price? a. A high customer demand b. A large quantity of available products c. A product that has very few similar competing products d. All would result in lower price

B

Which of the following would be an example of international business? a. A farmer in Iowa using U.S. produced equipment b. A sales staff in South Carolina representing a foreign producer c. A restaurant in Chicago offering Asian menu items d. A retail store in Oregon selling craft items from local artists

B

Which of the following is an example of a rational buying motive? a. Love b. Fear c. Economy d. Self-image

C

Which of the following is not a part of effective communication? a. The sender b. The receiver c. The advertisement d. Information

C

True or False: A nation with a favorable balance of payments sends more money to other nations than it receives from them.

False

True or False: An informal trade barrier is created by government actions.

False

Religion is an element of the _____ component of the international business environment.

Cultural

Each of the following is a common reason for the failure of small business except a. Not controlling operating expenses b. Not producing a good or service anyone wants c. Not keeping adequate records d. Not having enough startup capital

D

Each of the following is a reason that exchanges can be difficult to complete in complex economies except a. Differences in timing between buyers and sellers b. Differences in taxes paid between buyers and sellers c. Differences in quantity between buyers and sellers d. Differences in location between buyers and sellers

D

Which of the following is not one of the reasons small business fail? a. Poor customer credit practices b. The owner does not have adequate experience c. A poor business location d. Not enough employees to do this work

D