Entrepreneurship Final (sem 2)
Marco has invested $7,500 in his submarine sandwich shop near a local college Hw wants to earn a 15 percent return on investment (ROI). How much will he need to earn to meet his goal?
$1,250
Missy operates a sunglasses kiosk at the local mall. She buys a certain style of sunglasses for $12.50 a pair. If she adds 40 percent to her wholesale cost what is the retail price for a pair sunglasses?
$17.50
In a corporation, each share of stock is
A unit of ownership in the company
A(n) _______ is a relationship that allows one party to act in a way that legally binds another party.
Agency
The Nike "swoosh" is an example of a product
Brand
Which of the following is NOT an element of a tort?
Capacity
A _____ cannot have anything in it that is illegal or that would result in illegal activities.
Contract
A business that has the legal rights of a person and may have many oweners is a
Corporation
_______ offers customers a reduced price to encourage them to buy.
Discount
______ means that a corporation's profits are taxed as corporate income and again as individual income.
Double taxation
Advertising fees for franchises are paid direcly to the advertisers.
False
Consideration occurs when one party in a contract offers or agrees to do something the other party accepts.
False
Large businesses have an advantage over small businesses because they get to know their customers better.
False
Many businesses mark down items below their cost as a way to make quick profits.
False
Not every product has features
False
Over the past 50 years, the US market has changed from being a consumer-driven market to a product-driven market.
False
Sole proprietorships enable two or more people to be in control of a business.
False
The marketing plan should be separate from your business plan.
False
Your market share rarely depends on the level of competition in your market.
False
Product characteristics that will satisgy customer needs are called _______.
Features
A(n) ________ is the person who purchases a franchise agreement.
Franchisee
An advantage to buying an existing business is that it may have built up ____________, or customer loyalty.
Goodwill
Medium-term goals describe what you want your business to achieve
In the next 2-5 years
Special government protections provide business owners with the exclusive use of _____ in the US.
Intellectual property
_______ pricing strategies include price skimming and penetration pricing.
Introductory
________ refers to the costs of making and marketing a product.
Investment
______ is the process of selling your idea to a company for the development and launch of a new product.
Licensing
A copyright lasts
Life of author plus 70 years
A(n) ___________ is calculated by subtracting a percentage amount from the retail price of an item.
Markdown price
The _______ is a belief that the wants and needs of customers are the most imoprtant consideration when developing any product or marketing effort.
Marketing concept/concept
As part of your ________, you should include performance standards that will help you measure your effectiveness.
Marketing plan
A(n) _____ occurs when a company buys a competing firm.
Merger
Marketing consists of all of the following processes except
Operating
The _________ is a box, container, or wrapper in which the product is placed.
Packaging
A(n) _____ is the grant of a property right to an inventor to exclude others from making, using, or selling his or her invention.
Patent
The different products and services that a business sells are its ________.
Product mix
Which of the following is NOT a discount pricing strategy?
Quality discounts
Which of the following antitrust legislation laws makes it illegal to discriminate by charging different prices to customers?
Robinson-Patman Act
_____ are weekly or monthly payments made by the local owner to the franchise company.
Royalty fees
A business' market _________ will depend on the level of competition in its market.
Share
Which of the following antitrust lefislation laws makes it illegal for competitors to get together and set prices on the products or services they sell?
Sherman Act
A _____ enables one person to be in control of all business aspects.
Sole proprietorship
An advantage of buying an existing business is that
Suppliers are lined up
The FDD contains all of the following information except
The name and address of at least 200 current franchises
The FTC monitors all the folling activities except
The sale of unhealthful foods
A(n) ______ is a wrong against people or organizations for which the law grants a remedy.
Tort
A(n) _____ is a name, symbol, or special mark used to identify a busienss.
Trademark
A disadvantage of buying an existing business is that it may be poorly located.
True
A partnership agreement identifies the type of value of the investment contributed by each partner.
True
During the period a patent is in effect, no business or individual can copy or use the paatented invention without the patent holder's permission.
True
Establishing short-, medium-, and long-term marketing goals ensures that the marketing you do today fits the vision you have for your business tomorrow.
True
In a partnership, any losses the business incurs will be shared by all the partners.
True
The Federal Trade Commission regulates franchises.
True
The brand is the name, symbol, or design used to identify your product.
True
The government exercises very little control over sole proprietorships.
True
The marketing concept for a business is developed by using the primary and secondary data that is gathered through market research.
True
The original, creative work of an artist or inventor is called intellectual property.
True
The price is the actual amount that a customer pays for a product or service.
True
Unlike regulary corporations, an S corporation is not taxed as a business.
True
Which of the following laws requires leanders to inform customers about all costs of credit before an agreement is signed?
Truth-in-lending Act
A(n) _____ is an expert on determining the value of a business.
Valuator
An advantage of a partnership is that
b. it faces very little government regulation
Ownership of a(n) _____ is in the form of shares of stock.
corporation
________ are distributions of corporate profits to the shareholders.
dividends
A disadvantage of a corporation is
double taxation
Businesses should always set their prices
high enough to make a profit
When buying a business, you should do all of the following except
inspect a list of all customers
Frianchisors may offer
management and technical training
The four elements of the _________ are product, price, distribution, and promotion.
marketing mix
Creating an image for a product in the customer's mind is called
positioning
A company can increase market share through all of the following ways except
price discounts
To create a SMART goal you must be...
specific, measurable, attainable, realistic, and time bound