Intro to Business Midterm

A royalty fee is typically required when buying a franchise. In addition to one's initial investment, the owner will be required to pay fees on a monthly basis for continued support from the franchiser and the right to keep using the company's trade name. What is the typical range of a royalty fee?

3-12%

Businesses fail for all of the following reasons, EXCEPT:

Ability to handle growth

What is the difference between the accounting and finance functional areas of business?

Accounting prepares financial statements and finance manages company funds.

Which of the following types of retailers would best be defined as a "category killer"?

Amazon

_______________ provide early stage financing and look to help other aspiring business owners to succeed.

Angel investors

Anita is conducting market research for her new invention and is deciding which research collection tool would be ideal for assisting her in this process. Which of the following is NOT a common tool that she may consider using when conducting market research?

Clustering segments

Which stakeholder group would be most impacted by Apple's decision to get rid of headphone jacks?

Companies that make headphones that use jacks

Management involves planning for, organizing, leading, and _______________ a company's resources, so that it can achieve its goals.

Controlling

On September 29, 1982, three people died in the Chicago area after taking cyanide-laced Tylenol at the outset of a poisoning spree that would claim seven lives by October 1. Johnson and Johnson immediately recalled all Tylenol products and ordered their removal from store shelves costing the company millions of dollars. Johnson and Johnson was recognized for practicing exceptional:

Crisis management

In this type of financing, the entrepreneur might offer a form of appreciation in exchange for funds.

Crowd funding

A marketing strategy that focuses on using customer information to retain them and to keep them satisfied is

Customer-relationship management

The six-step approach to decision making includes all of the following EXCEPT:

Delegate the decision to someone else

During graduation weekend, the local Holiday Inn raised their prices to maximize revenue opportunities, following this pricing strategy.

Dynamic

Which external force includes business environment information such as unemployment rates, inflation, GDP growth, and oil prices?

Economic

Someone who identifies a business opportunity and assumes the risk of creating and running a business to take advantage of it is known as a(n):

Entrepreneur

Strategic Planning is the process of establishing an overall course of action. The first step is asking, "Why does the organization exist?" The following are steps in the process EXCEPT:

Firing the C-suite

Where do entrepreneurs most often start to raise money for their startup businesses?

Friends and family

By dividing its market according to this specific type of market segmentation McDonald's may offer a variety of breakfast options of Spam and rice in Hawaii, tacos in Arizona, and lobster rolls in Massachusetts. What type of market segmentation is McDonald's utilizing?

Geographic segmentation

__________ are major accomplishments that the company would like to achieve, while __________ are shorter-term performance targets.

Goals; objectives

A specialty store would be best defined as offering:

Goods typically confined to a narrow category with a high level of personal service.

Which sector includes companies in manufacturing, construction and agriculture?

Goods-producing

This stage of the product life cycle has the largest number of competitors.

Growth

Ron's company has developed a new product, 'The Puffer.' There is growing competition for products like The Puffer and industry profits are rising. Based on this information, in what stage of the product life cycle is The Puffer?

Growth Stage

A buyer who wants a product for use in making other products would be identified as which type of market?

Industrial

A group of companies that compete with one another and sell similar products is a(n):

Industry

A manager with ____ skills has the ability to deal effectively with people inside and outside the organization.

Interpersonal

In the ________ stage, industry profits are typically negative.

Introduction

In this product life cycle stage, one of the main objectives of the organization is to drive awareness and adoption.

Introduction

A business exerts very little, if any, control over the ___________ environment.

Macro

Marketing is one of the largest expenses for a company. Therefore, marketers often seek specific subsets of the overall market that have common characteristics that influence buying decisions rather than marketing to 'everyone'. This strategy is known as ____________.

Market segmentation

___________ is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Marketing

_______________ consists of everything that a company does to identify customers' needs and designing products to meet those needs.

Marketing

During the _________ stage of the product life cycle, larger competitors tend to purchase smaller competitors in order to find synergies.

Maturity

All of the following are functions of the management process EXCEPT:

Monitoring

During a recent sale at Best Buy, a new Sony television was on sale for $399.99. What form of pricing strategy did Best Buy use?

Odd-Even

Ron's company has developed a new product, 'The Puffer.' They have decided to price the item low in order to grab as much market share as possible. What pricing strategy is this?

Penetration

This pricing strategy will initially charge a low price to discourage competition and to grab a sizeable share of the market.

Penetration

________________ classifies consumers on the basis of individual lifestyles as they are reflected in people's interests, activities, attitudes, and values.

Psychographic segmentation

Susie had just finished the first day of her lemonade stand business. After counting all of the money she had received for selling her cups of lemonade, she announced, ""I made $12.50""! Since Susie had not taken out the cost of her cups, the lemonade mix, etc., the $12.50 represented ______________.

Revenue

The ultimate goal for any business, regardless of what product or service they offer, is to:

Satisfy customer needs and generate a profit for its owners

Which pricing strategy can be used when introducing an innovative product in an emerging market and starts by charging the highest price that customers will pay and then lowers the price over time?

Skimming

What is the name of the government agency that provides many kinds of support for small businesses, including information and funding assistance?

Small Business Administration

Providing customers the ability to interact with each other online and spread the word about a company's products or services is one of the advantages of

Social media marketing

Home Depot includes product information signs in both English and Spanish in its stores. It is responding to which environmental factor?

Sociocultural trends

Every business has people with a legitimate interest in the success or failure of the business and the policies it adopts. These people are known as:

Stakeholders

Which of the following is NOT an advantage of business ownership?

Time commitment

Conceptual skills, the ability to analyze and solve complex problems that may involve different parts of an organization, are important for:

Top managers

Because he identifies mistakes in others and disciplines employees for poor performance, some leadership experts might qualify President Donald Trump as a ________.

Transactional leader

Juan frequently identifies new and challenging opportunities for his subordinates. He can be described as practicing this style of leadership:

Transformational

Which SWOT category would include things like poor customer service or low product quality?

Weaknesses