Entrepreneurship Final Review Fall 2016
In choosing an advertising medium, you should
consider its effectiveness in reaching your target market.
Long-term sales projections are
five to ten years in the future.
After it is completed, you can use your business plan to
help manage your business.
A business plan should
identify target customers, show how your business will earn a profit, and detail who will run your business.
A business plan is important for all of the following except
it helps decide what to sell.
Before lenders will loan money to a new business,
they need to be convinced that the people running the business have the necessary skills to succeed.
A business plan explains how your product or service
will be produced, will be sold, and is either new or better than existing products or services.
A business must have a completely new product or service to convince investors that the idea is solid.
False
A business plan has four important purposes.
False
A business plan is necessary only if you need to secure financing for your business.
False
A disadvantage of direct-mailing is that it is difficult to determine how to reach only your type of business.
False
A press release is a statement issued by the media to inform the public of an event.
False
A radio station will provide a psychographic profile of its listeners so that businesses can be sure they reach their target market.
False
After your business is up and running, you will rarely use your business plan in making decisions.
False
An advantage of advertising in a telephone directory is that people look there for a particular type of business.
False
How a business will keep customers is not a part of a business plan.
False
If you are shipping a large item to another country, you would probably choose a parcel delivery service.
False
In choosing an advertising medium, cost is the most important factor.
False
No intermediaries are involved in the manufacturer to retailer to consumer channel option.
False
Online advertising is a cost-effective way for businesses to reach potential customers.
False
The ability to send mass mailings by e-mail to Internet users - called spamming - is one of the greatest advantages of online advertising.
False
The routes that products take from the time they are produced until they arrive at a retail store are the channels of distribution.
False
Unlike retail businesses, service businesses do not have channels of distribution because they produce the services they sell.
False
Which of the following in not a purpose of a business plan?
To describe the backgrounds and experience of your suppliers.
A business plan helps to convince banks and other people to invest in your business idea.
True
A good business plan includes sales projections for the short, medium, and long term and sets fourth future business plans.
True
A product may move through several channel members by various forms of transportation to get it to the point where it will ultimately be sold to consumers.
True
All types of businesses must receive goods from suppliers.
True
Although publicity is free, it can be negative if the media coverage is unfavorable.
True
Although television advertising is very effective, it is expensive and generally reaches too broad an audience for most businesses.
True
Direct distribution channels move products directly from the manufacturer to the consumer.
True
Intermediaries are businesses that move products between manufacturers and consumers.
True
Lenders require a business plan before they will consider financing a business.
True
Manufacturers usually don't sell directly to consumers.
True
Newspaper advertising is good for small firms because it targets a limited geographic area.
True
Retail stores can distribute their products to consumers b having convenient hours for customers, shipping directly to consumers, and being accessible through the internet.
True
The backgrounds and experience of the people who will be running the business help lenders make financing decisions.
True
Writing a business plan can help you identify problems you might encounter in the future.
True
Before they will consider financing a business, lenders require
a business plan.
A paid form of communication sent out by a business about a product or service is
advertising.
