Small Business Final Exam

Sorts out all the details of marketing tactics, including timelines and budgets.

Action plan

Time lines, budgets, and metrics are addressed in which section of the marketing plan?

Action plan

Places products in lines and circles to create visual interest; used by smaller boutiques.

Angular floor plan

A company that has a physical store or facility.

Brick-and-mortar

Grocery stores are an example of which type of physical structure?

Brick-and-mortar

Which of the following is the most expensive option for obtaining a space for a business?

Build

A ____ is a legal document describing the purpose, place of business, and other details of the corporation.

Charter

Records and procedures that a corporation is required by law to complete are referred to as ____.

Corporate formalities

Which of the following is not an advantage of the straight floor plan?

Creative

Measures the average change of prices for goods and services purchased by households.

Customer price index

Which of the following does not have to be considered when creating a retail floor plan?

Customer size

Assigning workers to specialized tasks for increased efficiency is known as ____.

Division of labor

Which of the following is not a disadvantage of a partnership?

Double taxation

Any business process conducted using computers or on the Internet is called ____.

E-business

Any business process conducted using computers or the Internet.

E-business

Buying and selling of goods or services through the Internet.

E-commerce

A hybrid business is one that uses both solar power and electricity to run the facility.

False

A royalty payment is paid to the franchisee for as long as he or she owns the business.

False

C-shape, U-shape, and S-shape are the most common ways that materials flow in manufacturing.

False

E-tailers only offer products for sale on the Internet and have no brick-and-mortar facility.

False

In partnerships, the ownership between the partners is always equal.

False

In project-based layout, materials are brought to each specialized group for a different part of the production.

False

Indirect competitors do not need to be listed in the competition part of a marketing plan.

False

Leasing is the most expensive option of obtaining a space for a business.

False

Leasing space increases the business start-up costs and also has a high risk.

False

Marketing plans are written when a business is first created and are not altered.

False

Marketing strategies directly support the marketing mix.

False

Metrics to measure the success of marketing activities are always easy to track.

False

One of the least important goals of a store layout is promoting good traffic flow.

False

Promotion strategies include decisions about image and design.

False

Public corporations are not required to release information about their sales or profits.

False

The five words that make up the SMART goals acronym are specific, measurable, attainable, reliable, and timely.

False

The loop floor plan is often used in high-end boutiques.

False

Three types of space are required for a retail business: selling space, storage space, and employee space.

False

When inflation is high, consumer purchasing power is unlimited.

False

Writing a marketing plan is an expensive endeavor and must follow a standard format.

False

All businesses are monitored by the ____.

Federal Trade Commision

The department of the federal government that monitors all businesses and protects consumers is the _.

Federal Trade Commission

A drawing of how an overall space will be divided is a ____.

Floor plan

Scale drawing showing how an overall space will be divided.

Floor plan

Which of the following does not need to be considered when opening a business in an area?

Floor plan

Encourages movement throughout the store in no particular order.

Free-flow plan

Which type of floor plan encourages wandering, adds visual appeal, and encourages impulse buying?

Free-flow plan

Measures the value of all goods and services produced inside a nation's borders.

Gross domestic product

Measures the value of the nation's products and services, even those produced outside the borders.

Gross national product

Allows the owner to schedule flexible hours, but requires focus.

Home-based business

The blend of two or more location types.

Hybrid business

Investors and entrepreneurs may want to _ so that they are not personally liable for the business risks.

Incorporate

Which of the following is not a typical source for marketing templates?

Investors

Which type of layout allows customers who do not want to shop the entire store to cut through the departments?

Loop

Organizes merchandise according to function and pulls customers through the store.

Loop floor plan

All of the following are disadvantages of a corporation except ____.

Loss of credibility

Goals the business wants to achieve in a given time by implementing a marketing plan.

Marketing objectives

Marketing goals and corporate goals are addressed in which section of the marketing plan?

Marketing objectives

Document that describes a company's marketing objectives and the strategies and tactics to achieve them.

Marketing plan

Includes decisions about product, price, place, and promotion.

Marketing strategies

The longest section of the marketing plan, which details specific activities, is the ____ section.

Marketing tactics

The specific activities that will carry out marketing strategies.

Marketing tactics

The owners of an LLP, called _, have limited personal liability.

Partners

Deciding on the location where a product will be sold or how the product will be moved through the distribution channel is an example of ____.

Place decisions

Plan concerning where the products will be sold, including the physical location and distribution channel.

Place strategy

Which of the following is not used to define a target market?

Position factors

Plan concerning the markup, profit margin, discounts offered, or list price.

Price strategy

____ layout places the equipment and workers that are grouped by division of labor to maximize efficiency.

Process-based

Plan concerning the goods and services a business offers.

Product strategy

Which of the following is not a disadvantage of owning a franchise?

Profits

Employees and machines must move to the product to assemble it at its location in a ____ manufacturing layout.

Project-based

Decisions about public relations activities and advertising are examples of ____.

Promotion decisions

Plan concerning which advertising, electronic promotions, sales promotions, and public relations activities to pursue.

Promotion strategy

Which of the following is not included in a marketing plan?

Promotional items

GDP numbers corrected for inflation.

Real gross domestic product

Which of the following is not a common type of manufacturing layout?

Safety-based

Includes the economic situation as it relates to marketing and sales and includes the target market and competition.

Situation analysis

Performing a particular task within a larger process on a regular basis is ____.

Specialization

People who own stock in a company are referred to as _.

Stockholders

Which of the following floor plans is most commonly found in supermarkets?

Straight

Provides structure, directing customers through aisles; often found in supermarkets.

Straight floor plan

A brick-and-mortar business is not limited to a physical space.

True

A disadvantage of the straight floor plan is that it lacks creativity.

True

A major consideration when creating a store layout is to prevent shoplifting.

True

A marketing plan must be professional in appearance because many key people read it.

True

Advantages of buying an existing business include earning profits faster and having an established customer base.

True

Franchisors dictate what products and services a franchise can sell.

True

Home-based businesses have lower overhead costs than brick-and-mortar businesses.

True

Marketing templates have similar components but are not identical.

True

Place strategies include decisions about order processing.

True

Pricing policies affect the company's image.

True

Product strategies include decisions about the goods or services a business offers.

True

The Service Corps of Retired Executives (SCORE) is a good source of templates for marketing plans.

True

The first full marketing plan is generally developed a year or more after a business opens.

True

The goal of a retail layout is to maximize the sales per square foot.

True

The gross national product measures the value of nation's products and services both inside and outside the borders.

True

The marketing plan is seen by people inside and outside of the organization.

True

The more products a worker produces each hour, the higher his or her productivity.

True

The primary indicator of a country's economic strength and stability is the gross domestic product.

True

There are two different types of competitors: indirect and direct competitors.

True

Types of goods or services and customer access are examples of factors that must be considered when designing a layout of a business.

True

When designing a layout for a manufacturing business, the first step is to define production needs and processes.

True

Creating floor plans and displays to attract customers and encourage purchases.

Visual merchandising

Overall rise in prices.

inflation