396 Ch. 15
A copyright provides protection for the duration of the creator's life, plus
70 years.
Which statement is true about company growth?
A high-growth firm's need for additional financing may exceed its available resources, even though the venture is profitable.
Which statement is correct concerning the role of innovation for small businesses?
According to Clayton Christensen, 93 % of all innovations that eventually became successful started out in the wrong direction.
Annabelle's company makes pottery. She would like to expand her business and is looking for ideas. What advice would you give her?
Base innovative efforts on her experience.
The profit curve is the highest in which stage of the product life cycle?
Growth
Cooking for Collin, a small manufacturer of holiday cakes, sells its product through independent retailers and mail-order marketing. Cooking for Collin is relying on
a dual distribution channel.
Since Love Languages has decided to sell its tutoring service on CD's through an online site as well as the traditional format of personal tutors, they are relying on
a dual distribution channel.
A sustainable competitive advantage is
a value-creating industry position that is likely to endure over time
High performing companies
adjust strategies for changing customer needs before rivals.
Small businesses should view distribution costs as
an investment.
The distinctive operating image of a product, including features such as size, shape, color or color combinations, texture, graphics, or even particular sales techniques, can be protected
as trade dress.
To maintain performance, a small business must launch a new competitive advantage
before the current strategy has run its course.
Arden has designed an artistic design to complement his product's name to assist customers in identifying his product. These are commonly as referred to as a:
brand.
iPad is a
brand.
Judy is opening a small business producing high-quality paper products and has decided to place a green pine tree on all product boxes and on the sign outside the facilities to symbolize the business. At this point, the symbol is an example of a
brandmark.
Products must be carefully analyzed in terms of financial considerations in the _____ stage of the product development process.
business analysis
A product strategy that includes a new product that is quite different from existing products
can be more challenging to manage.
Growing quickly
can be stressful if the company is not prepared.
If a small firm is to maintain its performance over time, it is essential to
continue to reinvent themselves.
The three considerations in building a channel of distribution are
cost, coverage, and control.
When a product line has more items, it is has greater
depth.
Devon has registered protection for 14 years that covers his product's inseparable parts. Devon owns a:
design patent.
Both the physical movement of products and the establishment of intermediary relationships to guide and support the movement of the products are included in
distribution.
Franklin sells his product in a bricks-and-mortar store and online. Franklin is using:
dual distribution.
Thanks to national press, Wonderful Gifts has had 100% more orders placed than last quarter. The company could be caught in a ______ if proper planning does not occur.
growth trap
The product life cycle, as opposed to the competitive advantage life cycle,
helps an entrepreneur visualize the sales and profits of a product from the time it is introduced until it is no longer on the market.
Before a company's competitive advantage moves into the decline stage, it should
implement previously developed plans for the hidden curves.
The activities of physically moving a product is
logistics.
The intermediary relationship that involves the transfer of ownership is
merchant middlemen.
Furniture Shine is introducing an improved version of its existing wax targeted to owners of antiques. The firm has decided to leave the original wax in the mix aimed towards residential owners. Furniture Shine is employing a _____ product strategy.
modified product/multiple markets
Love Languages is introducing an improved version of its tutoring targeted to students wanting more in-depth assistance using a CD format. The company has decided to continue to offer their original tutoring package and aim the new product at the original target market; therefore they are employing a ____ product strategy.
modified product/one market
Bagels Bagels Bagels, a small breakfast bagel bakery, has expanded into sandwiches for lunch using bagels. They are now employing a _____ product strategy.
one product/multiple markets
Carrigan has just launched his new business. He has great plans for expansion later but for now, the most appropriate and effective product strategy to use in this stage of his small business is the _____ product strategy.
one product/one market
The business analysis stage of new product development is critical since
one to three years may pass before profits are realized
Coca-Cola produces and distributes products under the brand names Coke, Minute Made, Dasani, and many others. This collection of product lines within a Coca-Cola's ownership and control is referred to as the:
product mix.
Joe has redesigned an app that helps businesses organize their taxes after a rival gained market share. The IRS and the Society of Certified Public Accountants have said the app meets tax standards. The app would be considered a(n)
sustainable competitive advantage.
Beatrice is contemplating whether to offer a warranty on her product. She should remember that warranties are important for products:
that are relatively complex to repair.
Euginie has written a poem that she plans to print inside the greeting cards she will publish. Her work is automatically protected but Euginie should include on the back of her greeting cards
the symbol ©.
Intermediaries exist because
they provide more efficient means of distribution than the product producer.
A legal term indicating the exclusive right of a firm to use a brand to identify a product is a
trademark.
