Quiz 4

Which type of ownership is the most expensive to start

Corporation

Corporations distribute profits to owners through:

Dividends

Market segmentation is the process of:

Dividing the market into smaller homogeneous groups

Competitor Analysis begins with

Documenting the current strategy of each primary competitor

It is harder to charge a high price if the company operates in a differentiated market

False

The internet is a good source of primary information, but does not provide many secondary sources

False

The marketing mix consists of the following variables: external environmental factors, internal environmental factors, and marketing strategy

False

The only source of capital for a corporation is the sale of shares of stock

False

The proprietor is only personally liable for all aspects of the business when gross negligence occurs

False

Transferability of interest is easiest in a limited partnership

False

________ have unlimited liability for the actions of the business

General partners

The most common approach to gathering primary information is:

Interviewing

Once the marketing goals and objectives have been established, the entrepreneur can begin to the develop the _______ and _______ to achieve them

Marketing strategy, action plan

Observation, interviewing, and focus groups are examples of collecting:

Primary data

The _______ is the specific group of potential customers toward which a venture aims its marketing plan

Target Market

Shareholders in an S corporation have the same liability protection as shareholders in a C corporations

True

The corporation has the most continuity of the forms of business

True

The first step in preparing the marketing plan is to define the target market

True

The marketing system identifies the major interacting components, both internal and external to the firm

True

In a limited partnership, the limited partners:

are liable only for the amount of their capital expenditures