SIE Exam
Buiz starting with no start up capital and those starting with more than $50K are among most likely to survive long term
False
Competitors of a company are not a source of business ideas
False
Funds left over after deducting the CGS are referred to as the net profit
False
More specific the suggested EDITS one receives, the more one learns how to write well, into their words "do it this way" v. "figure this out and respond" Dr. Bell
False
Mr. Oles was the first person to suggest a dress code for the class and Mr. Barshop agreed
False
Price skimming involves setting a price above that of the competition so as to indicate a higher quality or that a product is a status symbol
False
Pure inovation is an overall strategic approach in which a firm patterns itself on other firms, with the exception of one or two key areas
False
Second sourcing provides customers with greater certainty of supplies or services
False
When one firm absorbs another through a purchase, its called a merger
False
When one serves on a Board, for either a profit or a non for profit org, they are protected from lawsuits
False
The research and development team of Leonide Inc has generated 5 diff product ideas. All 5 ideas are being rated against each other based on product, uniqueness, idea profitability, protectable intellectual property and product team quality. Based on their ranking in this stage, only 3 ideas will make it to the immediate next step is what stage
Feasibility study
Which of the following is the primary goal for performing due diligence?
Finding any inefficiencies, unnoticed opportunities, waste and mismanagement
In the goal step of the strategic planning process, the key is to
Focus on the kind of customers the business wants to deal with
Which of the following is a generic strategy that targets a portion of the market, called a segment or niche?
Focus strategy
Room 119 in Mccoy is named after
Gary Woods
Which of the following is a characteristic of a traditional business?
Generally has sales between $100K and $1 million depending on the industry
The amount by which sales price exceed product costs refers to
High margins
What rate is the % of ppl who buy out total population of people approrached for the sale of product or service
Hit
Changes in competitors, sales & profits in an industry over time are referred to as
Industry dynamics
Which of the following is a disadvantage of buying a franchise?
You give up control of marketing and operating
commercialization
best described as process of making a new product available to consumers
What is a credit agreement that allows the borrower to pay all or part of the balances at any time as the loan balance is paid off, becomes available to be borrowed again
Revolving credit
Which of the following should be avoided while coming up with a company or brand name considering the possibility of future expansion
Selecting a company or brand name thats too narrow
Which of the following is most likely to increase the odds of start up successes?
Starting business in a business incubator
Which of the following is the first step for performing due diligence?
Study the financial reports & other records of the business
When a product is sold in limited area, for limited time, it is referred to as
Test marketing
The new product development process is likely to be easier for services than for innovative goods
True
Which of the following statements about family businesses succession is true?
Turning over management authority is not easy for most founders
At Sea Shell Diner, a burger cost $4 and a pack of 2 cookies costs $2. the dinner also offers combo meal consitising of burger and cookies for $5. The pricing strategy is an example of
bundling
Optimum price
refers to highest price of product that will produce desired level of sales in intended market
a good marketing strategy is most likely to focus on
sales plan that show specific ways to secure sales from customers
vision statement
simple 5-10 word sentence or tagline that expresses fundamental idea of goal of firm
Which of the following statements is true of executive summary
single most widely distributed written description of a business
Which of the following is the biggest problem with simulated test markets
they dont always reflect actual buying behavior
financial statements in a business plan include income statements, cash flow, balance sheet and respective assumptions
true
goal of appendix is to provide supporting info that helps detail the key selling points of a business plan
true
if product has protection through propietary technology, it is mentioned in product subsection of companys section of a buisness plan
true
Smart Home, a retailer for consumer electronics, sells reputed brands desktops at near cost price. These are located at end of store so customers notice other products first. This is an example of
Bait pricing technique
The story of the railroad emphasized the importance of
Being committed and dedicated
Which of the following will be an example of odd even pricing
Buy a t shirt for $19.89
Ivory Isles Resort set a low base price $250 for rooms. It appears to be great bargain. However the customers have to pay additional charges for using services such as a casino, spa, hot pool. According to this info, Which of the following pricing strategies is used by Ivory Isles?
Captive pricing
Which of the following is most likely to increase odds of successes for a start up?
Choosing a business that produces high margins
Which of the following is commonly used to estimate the value of a buisness
Comptable sales of other firms
Which of the following is true of a small business?
Considers sales as more important than marketing?
Which of the following statements is true about elastic products?
Customers will respond to price increases for elastic products much more negatively than for inelastic products
What analysis is based on the concept that the longer you have to wait to receive money the less valuable it is right now
Discounted cash flow
Which of the following is the first step (and usually addressed first) of a business marketing plan?
Discussing the target market of the business
Which of the following is a disadvantage of purchasing an existing business?
Existing managers and employees resisting change
Which of the following approaches yields better results in richer dynamic uncertain environments or industries?
External Focus
Which of the following statements best describes the process of idea screening in new product development
It is the process of selecting the most promising ideas to be further evaluated for feasibility qwa
Sam used management skills to start loans advising website. He started seeing clients to his home before it grew into a well established company in the next ten years. Which of the following entrepreneurial methods did he use in the beginning, to reduce the financial risk of his start up?
Lean method
As a firm gets more experience, it can often work with fewer mistakes and greater efficiencies, thereby lowering cost. This leads to the cost benefit of
Learning
Which of the following is most likely to be the best indicator of a successful start up?
Level of experience of the founders
Mr. Barshop noted that what is most important to a business?
Location
Mr. Barshop recommended a book that focused on
Location
Which of the following types of customers are likely to generate more potential customers than the other type?
Loyal customers
According to the SCAMPER tool, a feature that allows customers to order directly from a website rather than visiting a store is an example of
Magnification
Which of the following survey methods is the most expensive?
Which of the following is true of the introduction stage of a product?
Most customers are unaware of the offerings
If a business is trying to grow, the right price for its products is one that is
Necessary to capture a desired market share given an anticipated level of sales volume
What is the amount of money left after deducting the operating expenses of the business?
Net profit
Charging lower prices at certain times to encourage customers to come during slack periods is known as
Off peak pricing
Imitation plus one degree of similarity results in
Patterning a business on existing firms
The "story" of Smitty from LA focused on
Paying your productive people well
What involves introducing products to potential customers & taking orders for later delivery
Preselling
Which of the following pricing practices in the most inappropriate?
Pricing a product, advertised for high quality and prestige, lower than the competition
What would happen when a small business that is growing becomes too great to be handled alone by an individual owner?
Professional managers are hired to share the management load
A start up, typically cannot
Provide positive cash flow immediately
Which of the following is true for start ups?
Provides new, unique products or services that aren't available
Which of the following is most likely to be an advantage of buying an existing business?
Purchasing a business often requires less cash layout than for creating a start up
What is a concession which covers the time while you prepare your location prior to opening?
Rent free use period
Magic numbers is define as
The post tax income the entrepreneur personally seeks from the business
Which of the following statements is true about me too products
The vast majority of new ideas for a small business will be me too products
Which of the following is true of niche markets?
They are specific and narrow
A niche market is a narrowly defined segment of the population that is likely to share interests or concerns?
True
According to "what do i do in a group" assessment, a good manager needs to focus on two things
True
Barshop and Oles has been both private and public company (traded on the stock market) and its currently private
True
Even if a compeitior matches a sale or offers some other promotions to edwmatch ones offering, its not as aggressive an action as a price war
True
Key man (person) insurance is bought to protect the company against loss of crucial employees
True
Patents/trademarks are popular strategic actions for protecting firms from competition
True
People starting small to medium size ventures need to know how to seek and obtain venture captial
True
Random discounts shouldnt be too frequent bc consumers begin to realize if they stock up in this sales period, they can probably wait until the next sales period
True
Strategy is the idea and actions that explain how a firm will make its profits
True
in the context of a business plan, a firms responsiveness to customers is a key concern of bankers
false
research suggests that firms without business plans are less likely to close down that firms with plans
false
Which of the following stages of new product development typically involves specifying the details of each ideas technolocial feasibility its cost how it can be marketed and its market potential?
idea evalution
Most small businesses are more
imitative than innovative
Soul pine issues a card to each new customer on which every purchase is stamped and when a customer completed 9, they get 10 service for free. This is example of
loyalty program
Which of the following terms refers to amount profit an entrepreneur incurs, stated as % of total price?
margin
Markup price
price setting method where amount is added to cost of product to set the retail price and provide profit
While developing a new product, in the product development stage, the 1st versions of products are using in further consumer testing. Theres first versions of products are called
prototypes
