S.B 15

A verbal or symbolic means of identifying a product is referred to as a a. brand. b. trademark. c. service mark. d. trade dress.

A

Intermediaries exist because a. they perform the distribution function better than the product producer. b. they are able to reach geographic areas with much less expense. c. they have lower risk levels since they don't have ownership of the goods. d. they specialize in products for specific customer needs.

A

4. Which statement is true about company growth? a. Successful growth occurs on it own. b. A high-growth firm's need for additional financing may exceed its available resources, even though the venture is profitable. c. Inventory needs will increase while account receivables will decrease with growth. d. While rapid growth may stress personnel, the increase in pay will be sufficient.

B

Bagels Bagels Bagels, a small breakfast bagel bakery, has expanded into sandwiches for lunch using bagels. They are now employing a _____ product strategy. a. single product/one market b. single product/multiple markets c. modified product/one market d. modified product/multiple markets

B

Both the physical movement of products and the establishment of intermediary relationships to guide and support the movement of the products are included in a. channels. b. distribution. c. intermediaries. d. logistics.

B

Growing quickly a. is expected for most businesses. b. can be stressful if the company is not prepared. c. should be easy if the owner has the correct management style. d. will keep most business functions the same, just larger in scope.

B

Thanks to national press, Wonderful Gifts has had more 100% more orders placed than last quarter. The company could be caught in a ______ if proper planning does not occur. a. growth net b. growth trap c. profit net d. profit trap

B

A small company's future growth should always be a. a quick process to have a market presence. b. expected to cover costs. c. planned as growth causes company change. d. All of the above are true for a company's growth.

C

In general, the most appropriate and effective product strategy to use in the initial stage of a small business is the _____ product strategy. a. one product/one market b. one product/multiple markets c. multiple products/one market d. The strategy depends on the product or service.

C

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. a. multiple products/one market b. multiple products/multiple markets c. modified product/one market d. modified product/multiple markets

C

The activities of physically moving a product is a. channel management. b. distribution. c. logistics. d. supply chain management.

C

The fact that Karen, owner of BareBabies,com could not take a vacation due to her business's triple in size displays a personal _______ to company growth. a. Return b. Benefit c. Cost d. Hindrance

C

The intermediary relationship that involves the transfer of ownership is a. agents. b. brokers. c. merchant middlemen. d. supply chain managers.

C

Warranties are important for products a. that are relatively inexpensive. b. that are frequently purchased. c. that are relatively complex to repair. d. regardless of how they are positioned in the market.

C

When a product line has more items, it is has greater a. breath. b. consistency. c. depth. d. lines.

C

A sustainable competitive advantage is a. rarely appreciated by the firm's owners. b. of little consequence to profitability. c. an idealized position that is unachievable in reality. d. a value-creating industry position that is likely to endure over time.

D

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. a. multiple products/one market b. multiple products/multiple markets c. modified product/one market d. modified product/multiple markets

D

The collection of product lines within a firm's ownership and control is referred to as the a. product depth. b. product accumulation. c. product line consistency. d. product mix.

D

What increase in sales percentage will put pressure on a small company personnel and management style of the owners? a. Sales that triple in size will stress a company. b. Doubling sales will stress a company. c. Any increase greater than last quarter's sales will stress a company. d. The increase depends on the company planning before the increase.

D

A brand includes only the verbal identification of a product.

F

American Idol's change in judges is an example of a business planning for the future by changing its competitive advantage.

F

If inventory needs grow with higher sales, the increase in accounts receivables will cover this cost.

F

A direct channel of distribution is one that involves no intermediaries.

T

A growth trap occurs when more cash is needed for a company faster than can be made in profits.

T

Channel management is synonymous with the term logistics.

T

Delivery terms specify which party pays the freight costs, selects carriers, bears the risk of damage, and selects the modes of transport.

T

Distribution includes both the physical movement of products and the establishment of intermediary relationships to guide and support the movement of products.

T

If a firm extends a janitorial cleanser from the industrial market to reach the home market, it is following a one product/multiple markets strategy.

T

It is important that small firms gain a competitive advantage which cannot be quickly imitated.

T

While growth in sales is perceived as good for business, the owner needs to be prepared for possible changes in personnel demands, operations and management style.

T