ENT3003 Exam 3

Which of the following interested parties should not have access to the venture's business plan? A. Competitors B. Lenders C. Investors D. Suppliers

A. Competitors

Market conditions, product attributes, cost benefits and venture attributes are all part of which major consideration in channel selection? A. Degree of directness B. Number of channel members C. Criteria in selection of channel members D. Number of channels

A. Degree of directness

Which area of e-commerce experienced the largest increase in sales from 2010-2011? A. Digital content and subscriptions B. Events tickets C. Consumer Electronics D. Jewelry and watches

A. Digital content and subscriptions

All of the following are questions an opportunity assessment plan might answer except: A. How much capital do I need? B. What market need does it fill? C. What business skills do I have? D. Can a patent be obtained?

A. How much capital do I need?

In what stage would you use the systematic market evaluation checklist? A. Idea stage B. Concept stage C. Product development stage D. Commercialization stage

A. Idea stage

Distribution, pricing, and promotion of the product are discussed in which section of the plan? A. Marketing B. Production C. Merchandising D. Organization

A. Marketing

71. Which of the following is not true about the operations plan portion of the business plan? A. Only service businesses need an operations plan. B. An operations plan describes the flow of goods and services from production to customer. C. The role of technology in the business transaction process is discussed. D. The shipping process and inventory control process can be discussed in this section.

A. Only service businesses need an operations plan.

______ control compares the cost figures estimated in the business plan with actual day-to-day operations costs. A. Production B. Sales C. Inventory D. Costs

A. Production

Which survey method is the fastest method for obtaining data? A. Telephone B. Mail C. Personal D. Internet

A. Telephone

Focus groups use which of the following methods? A. A moderator leads the group in an open, in-depth discussion. B. A moderator asks each individual in the group questions, interview style. C. Each participant fills out a questionnaire, followed by individual exit interviews. D. Each participant obtains new ideas and solutions by focusing on problems.

A. A moderator leads the group in an open, in-depth discussion.

_______ identifies potential hazards and alternative strategies to meet business plan goals and objectives. A. Assessment of risk B. Financial planning C. Alternative planning analysis D. The financial plan

A. Assessment of risk

Which of the following statements is (are) true? A. The business plan describes both internal and external elements. B. The preliminary business plan should be prepared by a lawyer. C. Most business plan resources on the Internet are too complex and expensive to be of use to the new venture. D. Once made, a business plan should not be changed.

A. The business plan describes both internal and external elements.

___________ is not one of the main perspectives an entrepreneur should consider when writing the business plan. A. The employee's perspective B. The marketing perspective C. The investor's perspective D. The entrepreneurs own perspective

A. The employee's perspective

An assessment of external uncontrollable variables that may impact the business plan is known as: A. an environmental analysis. B. a description of the venture. C. a trend analysis. D. an executive summary.

A. an environmental analysis.

78. The tendency among many entrepreneurs is to: A. avoid planning. B. not take initiative. C. not market their product or services. D. lose focus on the business plan.

A. avoid planning.

Probably the most well known and widely used technique for creative problem solving is: A. brainstorming. B. focus groups. C. forced relationships. D. scientific method.

A. brainstorming.

Investors often place more emphasis on the entrepreneur's _________ than lenders do. A. character B. experience C. financial records D. personal viewpoint

A. character

Continuous innovations are described as: A. having the least disrupting influence on established consumption patterns. B. having some disruptive influence on established consumption patterns. C. having no disruptive influence on established consumption patterns. D. having to establish new consumption patterns due to the creation of a previously unknown product.

A. having the least disrupting influence on established consumption patterns.

The four variables that affect short-term marketing decisions are referred to as the: A. marketing mix. B. market segment. C. marketing plan. D. marketing system.

A. marketing mix.

The _________ is the written statement of marketing objectives, strategies, and activities to be followed in the business plan. A. marketing plan B. marketing mix C. marketing system D. marketing structure

A. marketing plan

The simplest approach to gathering primary information is: A. observation. B. focus groups. C. experimentation. D. interviewing.

A. observation.

Information that already exists is called: A. secondary data. B. primary data. C. marketing data. D. target data.

A. secondary data.

The __________ is the specific group of potential customers toward which a venture aims its marketing plan. A. target market B. external environmental factor C. channel of distribution D. consumer market

A. target market

The usefulness of the title or introductory page is: A. that it provides information about the company. B. such that it requires several pages. C. questionable, especially to investors. D. that it contains backup data.

A. that it provides information about the company.

When products cannot be easily differentiated: A. there is little room for price variations from the competition. B. a skimming price strategy is appropriate. C. a higher price can be charged. D. the lowest possible price must be charged.

A. there is little room for price variations from the competition.

A focus group should consist of: A. 6-8 potential customers B. 10-12 potential customers C. 14-16 potential customers D. 18-20 potential customers

B. 10-12 potential customers

In what stage would it be most beneficial to use conversational interviews? A. Idea stage B. Concept stage C. Product development stage D. Commercialization stage

B. Concept stage

Which of the following is defined as having some disruptive influence on established consumption patterns? A. Continuous Innovations B. Dynamically Continuous Innovations C. Discontinuous Innovations D. Breakthrough Innovations

B. Dynamically Continuous Innovations

Which of the following statements is (are) not true? A. Primary focus of an industry analysis is to provide sufficient knowledge of the environment that can affect marketing strategy decision-making. B. Industry analysis needs to be conducted using only primary research data. C. Industry analysis begins with the broadest-based assessment of environmental and industry trends. D. The information-seeking process of industry analysis is known as an upside-down pyramid.

B. Industry analysis needs to be conducted using only primary research data.

Intensive, selective and exclusive are all part of which major consideration in channel selection? A. Degree of directness B. Number of channel members C. Criteria in selection of channel members D. Number of channels

B. Number of channel members

In this method, instead of generating new ideas themselves, consumers are provided with a list of problems in a general product category. What method is the author referring to here? A. Reverse brainstorming B. Problem inventory analysis C. Brainstorming D. Focus groups

B. Problem inventory analysis

Business-to-business marketing involves: A. sales to households for personal consumption. B. a more direct channel of distribution than consumer markets. C. selling products such as household furniture. D. selling products and services through certified representatives.

B. a more direct channel of distribution than consumer markets.

The executive summary section should: A. be prepared before the total plan is written. B. be about two to three pages in length. C. highlight key financial milestones that have been achieved. D. try to summarize every section of the plan.

B. be about two to three pages in length.

All of the following would be an operations information need except: A. raw materials. B. break even numbers. C. equipment. D. labor skills

B. break even numbers.

Marketing research begins with: A. setting the advertising budget. B. definition of objectives or purpose. C. identifying direct marketing strategy. D. collecting a list of primary and secondary sources of information.

B. definition of objectives or purpose.

The part of the plan that describes the location and size of the business, the personnel and office equipment that will be needed, and the history of the venture is called the: A. organizational plan. B. description of the venture. C. production plan. D. executive summary.

B. description of the venture

Market segmentation is the process of: A. describing market conditions. B. dividing the market into smaller homogeneous groups. C. presenting future opportunities. D. exploring new market opportunities.

B. dividing the market into smaller homogeneous groups.

Before beginning the business plan, the entrepreneur should define the venture's goals and objectives. These goals should be: A. general and broad. B. feasible. C. guaranteed. D. unique.

B. feasible.

In establishing goals and objectives, it is important to: A. quantify all aspects of the goals. B. limit the number of goals. C. set standards that are ideal. D. measure it for control purposes.

B. limit the number of goals.

Groups of Internet visitors who share opinions and have similar interests are called: A. page groups. B. newsgroups. C. library sources. D. news homes.

B. newsgroups.

If the new venture is not a manufacturing operation, but a retail store or service, a new section of the business plan is required which is called the: A. organizational plan. B. operational plan. C. production plan. D. executive summary.

B. operational plan.

Observation, interviewing, and focus groups are examples of collecting: A. marketing data. B. primary data. C. secondary data. D. target data.

B. primary data.

The opportunity recognition process contains all of the following except: A. work experience B. reformation C. entrepreneurial alertness D. networks

B. reformation

While preparing the first draft of the business plan, the entrepreneur should not: A. prepare it from his or her personal viewpoint. B. take into consideration the constituencies that will ultimately read and evaluate the plan's feasibility. C. prepare it with an aim to identify possible barriers to success. D. try to define the goals and objectives of the venture.

B. take into consideration the constituencies that will ultimately read and evaluate the plan's feasibility.

The largest source of new product ideas is: A. the U.S. Patent Office. B. the entrepreneur's research and development. C. customers. D. the federal government.

B. the entrepreneur's research and development.

If the entrepreneur is constantly faced with significant changes in the marketing strategy, then it is likely that: A. there is insufficient monitoring of the plan. B. the plan was not prepared properly. C. the business marketing effort does not support the strategy. D. there have been too many external factors that were difficult to predict.

B. the plan was not prepared properly.

The depth and detail of a business plan depend on: A. the target audience. B. the size and scope of the new venture. C. the experience of the entrepreneur. D. the amount of capital needed.

B. the size and scope of the new venture

The business plan is designed to guide the entrepreneur: A. through the distribution process. B. through the first year of operations. C. in the financing process. D. in case of a change in ownership.

B. through the first year of operations.

Generally speaking, entrepreneurs see the external environment as: A. marginally influential. B. uncontrollable. C. largely influential. D. predictable.

B. uncontrollable.

To assess the potential profitability of a venture, the entrepreneur needs to ascertain expected sales and expense figures for the first: A. month. B. year. C. quarter. D. three years.

B. year.

Which survey method is the most expensive? A. Telephone B. Mail C. Personal D. Internet

C. Personal

Which survey method results in the most in-depth information and the best response rate? A. Telephone B. Mail C. Personal D. Internet

C. Personal

Which of the following documents is not usually included in the Financial Plan? A. Statement of cash flows B. Income statement C. Price lists from suppliers D. Projected balance sheet

C. Price lists from suppliers

In which stage of the product planning and development process would it be appropriate to give product samples to a panel of potential customers? A. Idea stage B. Concept stage C. Product development stage D. Commercialization stage

C. Product development stage

All of the following are questions that should be considered in the environmental and industry analysis section of the business plan except: A. What are total industry sales over the past five years? B. Who are the nearest competitors? C. What is my promotional strategy? D. What is anticipated growth in this industry?

C. What is my promotional strategy?

Which of the following is not a major question that should be addressed by the marketing plan? A. Where have we been? B. Where do we want to go in the short term? C. Where do we want to go in the long term? D. How do we get there?

C. Where do we want to go in the long term?

Creativity declines with A. training and tradition. B. education and work experience. C. age, education and lack of use. D. mental health and work experience.

C. age, education and lack of use.

The _________ element of the marketing mix involves decisions as to what is the most appropriate channel. A. product B. price C. distribution D. promotion

C. distribution

Competitor analysis begins with: A. gathering samples of the competitors product(s). B. discovering each competitors advertising budget. C. documenting the current strategy of each primary competitor. D. identifying which competitors are most successful.

C. documenting the current strategy of each primary competitor.

When collecting marketing information the entrepreneur should: A. not include general environmental information. B. start with narrow-based data and work down to a more broader scope of information. C. identify competitors. D. not aim to define a specific market.

C. identify competitors.

Financial resources and the management team are both examples of the: A. external environment. B. marketing mix decision variables. C. internal environment. D. feedback system

C. internal environment.

Once the marketing goals and objectives have been established, the entrepreneur can begin to develop the __________ and __________ to achieve them. A. marketing plan, industry analysis B. marketing mix, consumer research C. marketing strategy, action plan D. market research, industry analysis

C. marketing strategy, action plan

The major interacting components that enable a firm to successfully provide products to the marketplace are called the: A. marketing plan. B. marketing mix. C. marketing system. D. marketing structure.

C. marketing system.

Primary data is: A. data that has been collected by the private sector. B. data collected by the government. C. original information collected by the entrepreneur. D. data that is hard to find.

C. original information collected by the entrepreneur.

The marketing mix consists of: A. product, price, research, and promotion. B. product, research, distribution, and promotion. C. product, price, distribution, and promotion. D. product, price, distribution, and research.

C. product, price, distribution, and promotion.

If the new venture is a manufacturing operation a(n) __________ in the business plan is necessary. A. ownership plan B. quality control plan C. production plan D. partnership agreement

C. production plan

The business plan presentation for potential investors: A. should be presented only in writing. B. should contain no negative projections. C. should enable the entrepreneur to "sell" his or her business concept in a designated period of time. D. should provide the entrepreneur's own perspective.

C. should enable the entrepreneur to "sell" his or her business concept in a designated period of time.

In the idea stage of the product planning and development process: A. conversational interviewing is used. B. product samples are given out. C. systematic market evaluation is used. D. multiple brand comparison is used.

C. systematic market evaluation is used.

Brainstorming groups should: A. contain an expert in the field to be discussed. B. be serious and work-oriented. C. try to generate as many ideas as possible. D. encourage criticism of ideas from other participants in the group.

C. try to generate as many ideas as possible.

When determining how much help is needed to write the business plan an entrepreneur should conduct a self-assessment. In this self-assessment which skill set would not be considered? A. product design B. organizing C. venture capital D. people management

C. venture capital

_____ is not desirable when brainstorming is in process. A. "Freewheeling" B. Idea combination and improvement C. Generating a large quantity of ideas D. Criticism

D. Criticism

Which is the first step in preparing a marketing plan? A. Identifying strengths and weaknesses B. Defining the target market C. Establishing goals and objectives D. Defining the business situation

D. Defining the business situation

Which stage of marketing research is considered to be the most difficult for an entrepreneur due to lack of knowledge or experience in marketing? A. Analyzing and interpreting the results B. Gathering data from primary sources C. Gathering data from secondary sources D. Defining the purpose or objectives

D. Defining the purpose or objectives

Which of the following is (are) not a key element in the pricing strategy? A. Cost B. Margin or markup C. Competition D. Distribution

D. Distribution

Which of the following is an internal environmental variable? A. The economy B. Technology C. Industry demand D. Financial resources

D. Financial resources

How many stages are in the product planning and development process? A. Two B. Three C. Four D. Five

D. Five

Which of the following is true of implementing a market plan? A. It is meant to be a tentative plan by the entrepreneur to a specific strategy. B. It need not be assigned to an individual for coordinating and implementing the plan. C. It is a formality that serves as a superficial document to outside financial supporters or suppliers. D. It is a commitment to make adjustments as needed or dictated by market conditions.

D. It is a commitment to make adjustments as needed or dictated by market conditions.

_____ is the process of gathering information in order to determine who will buy the product and what is the most appropriate distribution channel. A. Market segmentation B. Marketing planning C. Market mixing D. Marketing research

D. Marketing research

Which of the following statements is true? A. Customers form the largest source of new ideas for entrepreneurs. B. While members of the distribution channel may be willing to provide new ideas for entrepreneurs, they may not help market them. C. The Federal Government is not a source of new ideas since the patent information they collect is confidential. D. Potential entrepreneurs should establish a formal method for monitoring and evaluating competitive products and services on the market.

D. Potential entrepreneurs should establish a formal method for monitoring and evaluating competitive products and services on the market.

58. Focus groups: A. should be led by the entrepreneur. B. consist of 20 to 30 potential customers. C. discuss information in a formal and standardized procedure. D. are an informal method of gathering market information.

D. are an informal method of gathering market information.

Manufacturer's representatives are marketing middlemen that: A. take title and physical possession of the product. B. take physical possession of the product. C. work exclusively for the entrepreneur. D. are paid a commission when a sale is made.

D. are paid a commission when a sale is made.

What type of innovation is illustrated by the ideas of the airplane and penicillin? A. ordinary innovation B. continuous innovation C. technological innovation D. breakthrough innovation

D. breakthrough innovation

The section of the business plan in which the entrepreneur identifies changes occurring on the national and international level is the: A. merchandising plan. B. description of the venture. C. executive summary. D. environmental and industry analysis.

D. environmental and industry analysis.

An opportunity assessment plan: A. is the same thing as a business plan. B. is longer than a business plan. C. has a lot of computer-based spreadsheets. D. focuses on the opportunity, not the venture.

D. focuses on the opportunity, not the venture.

The organization plan describes the business': A. physical plant and machinery layout. B. location as well as its plant(s). C. system of distribution. D. form of ownership.

D. form of ownership.

The most common approach to gathering primary information is: A. observation. B. focus groups. C. experimentation. D. interviewing.

D. interviewing.

By controlling __________, the firm can ensure maximum service to the customer. A. production B. sales C. costs D. inventory

D. inventory

When evaluating business plans _________ are primarily concerned with the four Cs of credit. A. investors B. employees C. vendors D. lenders

D. lenders

The _______ is defined as the stages each product goes through from introduction to decline. A. entrepreneurial decision making process B. test marketing process C. product planning and development process D. product life cycle

D. product life cycle

The stage in the product planning and development process in which actual sales results are available is the: A. idea stage. B. concept stage. C. product development stage. D. test marketing stage.

D. test marketing stage.

Which of the following is not a part of the introductory page? A. the name and address of the company B. statement of confidentiality C. amount of financing needed D. the names and addresses of all managers

D. the names and addresses of all managers

Reverse brainstorming is much like brainstorming except that: A. criticism is not allowed. B. the technique is based on finding solutions. C. the group need not be careful to maintain good morale. D. the process usually involves identification of everything wrong with an idea.

D. the process usually involves identification of everything wrong with an idea.

All of the following would be considering part of the description of the venture section of the business plan except: A. the business location. B. the history of the business. C. what equipment will be purchased. D. the projected statement of cash flows for the first year.

D. the projected statement of cash flows for the first year.

Which of the following is not a common reason why business plans fail? A. objectives are not measurable B. no customer need was established C. the entrepreneur has no experience in the planned business D. the promotional strategy was not taken seriously

D. the promotional strategy was not taken seriously