Ch 5-8

lease

a contract that permits the use of someone else's property for a specified time period

false

a franchise owns a franchise name, , DISTINCTIVE ELEMENTS, and license to sell its product to others

false

a franchiser exercises complete control over a franchisee's business operations

current assets

what capital requirements are relatively permanent nature and necessary for the functioning of the business?

trade in

what do you call a small retailer that provides an allowance to a customer upon the purchase of a washing machine?

owns the companies name and license

what does a franchiser do?

grants franchise the right to sell recognized brand

what does product and trademark franchising grant?

promotion cost climbs and competitors cut prices to attract business

what happens during the maturity stage of the product life style?

consumerism

what involves prodding businesses to improve the quality of their products and to expand consumer knowledge?

bond

what is a form of debt security with a standard denomination, method of interest payment, and method of principal repayment?

an agreement whereby an independent buisnessperson is given exclusive rights to sell a good or service

what is an franchise?

research and analysis of the company that is done before a business transaction

what is due diligence ?

allowance

what is given to customers for accepting less of something or as an adjustment for variation in quality

refers to a particular characteristics that makes one firm more attractive to customers than other firms

what is meant by the term competitive edge?

private firms licensed and regulated by the Small Business Administration to make "venture"investments in small firms

what is small business investment companies?

niche marketing

what is the process of finding a small profitable demand for something and producing a product for the MARKET?

controlling

what is the process of setting standards , measuring performance against standards and taking action to see planned performance is achieved ?

market research

what is the system of gathering , recording, analyzing ad interpreting data?

skimming

what price is one which is set relatively high initially in order to obtain the "cream" of the target market before competitors enter

methods and procedures

what provides employees with standing instructions for performing their jobs ?

planning

what should be the first management function performed by an effective business owner-management ?

available equity

which of the following is a part of a company's financial resources?

attention to packaging

which of the following is a strategy used by companies with a reputation for superior marketing?

cultural clashes can lead to the break up of this arrangement

which of the following is a true of combination franchising?

internal promotions

which of the following is not an action by employer to encourage unionization?

marketing strategy in this stage typically encourages strong brand loyalty

which of the following statements characterizes the growth stage of the product life cycle?

formal research programs are a valuable but expensive way to obtain guidance

which of the following statements is true of market research in the contex of small business?

special consideration must be given to the needs , desires and wishes of present consumers

which of the following statements is true of the marketing concept?

they prefer to back small firms with opportunities for fast growth

which of the following statements is true of venture capital firms?

diversification

while implenting a market strategy,--------involves adding products that are unrelated to the present product line.

they nurture young firms and help them grow

in the contex of small businesses, which of the following statements is true of business incubators?

it accepts the assets of a firm as collateral in exchange for a loan

in the context of a small business , which of the following statements is true of asset based financing ?

true

in the context of franchising , the success of fast food restaurant is related to increasing number of women working outside the home

small companies rely on loans from commercial banks

in the context of small business, which of the following statements is true of debt securities?

it usually conveys no voting rights to it's holder

in the context of small business, which of the following statements is true of preferred stock?

airing grievances

the union pre election campaign usually goes through the following stages except..?

grocrey store

unit pricing is most likely used by who?

barter

----- consists of two or more companies exchanging items of roughly equal value.

budgets

------- set the requirements needed to follow strategies and accomplish objectives

lender(s) will typically look at the track record of his business because the money being borrowed is an existing business

John, who needs funding for his small business approaches a few lenders for funds. Which of the following will be true in this statement?

a price set relatively low to secure market acceptance

a penetration price refers to what?

stock

equity financing in a corporation is evidenced by shares of either common or preferred --------.

fixed expenses

expenses that do not alter in value as sales volume rise or fall are called...?

financial planning

planning that involves estimating income and expenses is?

used familiar jargon

questionnaires used for primary research should...?

self-directed work teams

self-managed work teams are also called..?

true

small business must drive for low overhead , use no-frills assets, and look for better real estate deals

missions

strategic planning helps a business set its...?

contract bar doctrine

the NLRB rule which specifies that a valid, signed agreement for a fixed period of the three years or less will bar any representation election for the life of the agreement is called the..?

synergy

the concept that two or more people , work together in coordinated way to accomplish more

royalty fee

the contentious fee paid by the franchise tot he franchiser based on a percentage of the franchisee gross revenues is termed....

production standard

the expected employee output is consistent with workmanship quality , operational efficiency and reasonable working capacities of normal operators is called..?

opportunities and threats

the external environment of a SWOT analysis consists of ?

growth

the sales product are RISING rapidly and profits are peaking. this product is in what stage of the product life cycle?

true

true or false? a target market is a part of the total market toward which promotional efforts are concentrated

false

true or false? deceptive or amplified advertising is an essential component of consumerism.

false

true or false? if a business is to be organized and run by more than one person, preparing the business plan should be an individual effort.

false

true or false? market research can be useful before starting a small firm , but it is not required once the firm is in operation

false

true or false? strategies are general statements that serve as short-term guides to managerial decision making.

true

true or false? the marketing concept is opposed tot he systems approach in managing a business

true

true or false? watching people is a useful marketing research technique

true

true or false? when customers walk out of the store without buying anything , it may be an indication that is a business is in trouble.

false

true or false? the small business administration in the U.S. is a effective source of local information for business owners because it is familiar with an areas need

true

true or false? a competitive edge is a particular characteristics that makes a firm more attractive to customers than are its rivals

true

true or false? a lease is a contract that permits use of someone else's property for a specified period of time

true

true or false? an advantage of buying a franchise is that it already has many of the requirements for success

false

true or false? due diligence is the concept that two or more people, working together in coordinated way, can accomplish more than an independent effort.

false

true or false? growing companies must be financed entirely with debt financing

false

true or false? in the content of small business , franchises tend to fail because of unsuccessful marketing

false

true or false? in the context of business setting, operational planning involves developing strategies to meet competition

true

true or false? income from sales is termed revenue

true

true or false? methods and procedures provide employees with standing instructions for performing their jobs

false

true or false? one should buy an existing business even if the physical facilities of the firm are old and obsolete

true

true or false? planning to start one's business begins with searching for or identifying a good or service to sell

false

true or false? small business assets such as buildings should be financed with short term loans

true

true or false? small company offering registration is the sale of common stock to the public

true

true or false? small firms use debt financing because interest payments are tax-deduct expenses

true

true or false? strategic planning consists of two parts; firms mission and objective and its strategist

false

true or false? the mission statement of a business corporation should be revised frequently

false

true or false? the purpose of business incubators is to shelter failing enterprise by providing finacial services