Chapter 11

15. 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. Documentary drafts

1. 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. Where are my customers? Where should I be?

11. 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. a start at the end and work your way up by asking each link from whom they buy

15. 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. contract manufacturing

21. 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. direct marketing

13. 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. indirect exporting

_____ 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. rent free use period

18. _____ "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. $5 to $25 a square foot

6. 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. For direct emailing, sender must use harvested e-mail addresses

8. 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. Multichannel marketing

24. 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. born international

17. 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. for any type of equipment, you want the landlord to at least guarentee the first six months of operation

7. 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. guerilla marketing

20. 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. In terms of a three-year lease,with a one -year cap, you are obligated to pay one year's more rent

3. 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. The need to find the right market for your offering

9. 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. a fulfillment center

10. 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. agent

16. 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. cost potential

22. 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. e-mailing

4. 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. microinventory

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

C. word-of-mouth

23. 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. direct response advertising

5. 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. just in time inventory

6. 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. magazine

12. 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. which employees do we send?