Small Business Test #2
Which of the following does the accounting equation state?
Assets= Liabilities = Owners' equity.
A clothing company that divides its market using characteristics of clothing such as practical, stylish, or for a particular sport, etc. is segmenting the market ________.
By benefits sought.
Dividing the market into different segments by income, age, or religion constitutes segmenting the market ______.
Demographically
refers to a method of selling in which catalogs, brochures, letters, videos, and other pieces of marketing materials are shipped straight to customers from which they can mail, call, or email an order:
Direct mail.
Door to door sales and party sales are examples of:
Direct sales.
A manufacturing company is planning to test market its new product, a shampoo. It has tied up with a retailer to research on the product's packaging. The retailer has hired students as interns to observe customers' reactions toward the new shampoo in its stores. All of the research is conducted without directly interacting with the customers. This is a typical example of _____.
Ethnographic research.
Myro Labs, Inc. has organized for a formal discussion between 12 potential customers to test a new drug product's packaging and pricing. The company's marketing head has been carefully questioning the participants in order to effectively bring out their reactions toward the new product. This is a typical example of a(n) _____.
Focus group research.
Which of the following is true of managerial accounting?
It is looking forward in nature.
Legal obligations to give up things of value in the future are known as_________.
Liabilities
Which of the following terms refer to a rule of thumb about how many prospective customers it takes to find one who will actually make it a purchase?
Market Funneling
Skygull, Inc. is planning to launch a new generation of cell phones. Being the first entrant in this market makes it difficult for the company to decide the means to reach its potential customers, the advertising medium to use, and the optimum price for each cell phone. Skygull, Inc. can best tackle this problem by conducting a(n) ____
Market research
A __________ systematically articulates a business's product, price, distribution, and promotion strategy, and it also clearly identifies the business's target market and competition.
Marketing Plan
________ is money from selling part of a business to people who are not and will not be involved in the management of the business.
Outside equity.
The amount that revenues exceed expenses is termed_______.
Profit
Identify the type of service location in which face to face meetings with clients are infrequent.
Remote location
Danielle, a graduate in fashion technology, always found it tough to find clothes for her as she belonged to the category of plus-size. Hence, she launched her clothing brand "Taurus Trends" that catered to the needs of plus-size and extremely tall women. If Danielle had to collect data already existing on the Internet, such as the number of stores catering to the clothing needs of plus-size women and their pricing, it would typically be a(n) _____ research
Secondary
_____is the process of dividing the market into smaller portions of people who have certain common characteristics?
Segmentation
Which of the following is a reason for a business to do accounting?
To produce information that is useful in managing a business
Which of the following is an example of sales promotion?
Treats today gives away samples of its new healthy donuts for free.
A (n)_________ is a legal obligation to pay money in the future:
debt
Checking and savings accounts are the most common forms of:
demand deposits
Tammy is talented as craft but lacks the cash flow management skills required to run a business. She opens a store, with the help of her son David-a business major-who would manage budgets and expenses of the business. Tammy buys her craft materials from her supplier but clears all her debts at the end of every month. The amount that Tammy owes her supplier is referred to as_______.
deposits
Which of the following forms of direct mail is the least expensive?
Which of the following is a disadvantage of providing credit to customers?
it delays the receipt of cash
Which of the following is an advantage of providing credit to customers?
it reduces the cost of selling
________ refers to amounts that are owed to a business for merchandise that was sold on credit.
payables
A business formed by an individual who is responsible for all debts and clients against the business is called a:
sole proprietorship
When compared to open ended questions, close-ended questions:
take considerably more time to ask and evaluate.
Which of the following forms of direct response advertising attracts a large audience and is a good way to demonstrate a project?
television
The number one source of financing for small businesses is from:
the owner's themselves
