question

Small business marketing involves a member of activities, including

answer

creating, developing, preparing, communicating, and delivering a bundle of satisfaction to a larger market

question

Traditionally, marketing philosophies have been categorized as

answer

consumer-oriented, productive-oriented, and sales-oriented

question

What is the proper order of the steps in the typical research process 1. Interpreting the data gathered 2. Identifying the informational need 3. Collecting primary data 4. Searching for secondary data

answer

2,4,3,1

question

Forecasting sales for a new venture will be the most difficult when

answer

the owner is unfamiliar with quantitative analysis

question

Unlimited liability for business debts is imposed on

answer

sole proprietors

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A corporation

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is chartered under state laws

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Large manufactures have been known to form strategic alliances with small manufactures in order to benefit from the smaller firms

answer

operational expertise

question

Linda has assembled a list of potential board of directors. Who should she not include

answer

her attorney

question

Facilities that rent shared space, services and management only to new businesses are called

answer

business incubators

question

An example of special-purpose equipment for a carbonated beverage company is a

answer

bottling machine that adjusts pressure for different flavors

question

Rod is locating his architecture business at his home in a rural area. Which professional should he contact before starting?

answer

All of the above (CPA, city's planning and zoning, his insurance agent)

question

Revenues from auction sites are derived for the most part from

answer

Listing fees and commissions on sales

question

Interest expense is deducted from the (blank) to arrive at the company's profits before taxes

answer

operating profits

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The "bottom line" of the income statements is affected by all of the following except

answer

dividends paid to owners

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Assets that are relatively liquid are classified as

answer

current assets

question

The balance sheet and income statement are separate reports, but actually

answer

complement each other

question

If a firm's current ratio improves from 1.5 to 2.8, what has happened

answer

current liabilities have decreased

question

Yvonne is planning a doughnut shop. The cost of producing the donuts should be included in the

answer

costs of goods sold

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The greater a firm's sales, the greater need for financing because of greater (blank) requirements

answer

asset

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Jill's business has current assets of $50,000 and current liabilities of $25,000. Which state is true about the company's current ratio?

answer

The ratio is 2 and is acceptable for most industries

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No single planning document is more important in the life of a company than the

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cash budget

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The tradeoffs that must be understood between debt or equity financing include all of the following except

answer

return on assets

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A loan covenant is very unlikely to require

answer

A fixed business strategy

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The assets most commonly used for security by asset-based lending companies

answer

equipment and buildings

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Ellie is using a governmental program to help finance her new business. Her company is not eligible for a loan through a normal lending channel and is receiving $120,000 with the SBA guaranteeing 90% of the loan. She also had to submit a loan application to the lender. Ellie is participating in the

answer

7(a) Loan Guaranty Program

question

Small business marketing is best defined as the performances of distribution activities that affect the flow of goods and services from produces to consumer to user. T/F

answer

True

question

Regardless of the type of business, the consumer-oriented marketing philosophy is the best choice among the competing alternatives. T/F

answer

True

question

Personal interview surveys are attractive as a marketing research method because these are inexpensive to conduct. T/F

answer

False

question

When a strategist divides the total market for a product and/or service into groups with similar needs, so that each group is likely to respond to the same marketing strategy, he or she is engaging in a practice called market segmentation. T/F

answer

True

question

The concept of balance on the management team means that the entrepreneurs should not be wrapped up too much in one area, such as sale or production, but be well rounded. T/F

answer

True

question

One of the disadvantages of the corporate form of organization is the limited liability of its owner. T/F

answer

False

question

A partnership reports the income it earns to the IRS, but the partnership itself does pay any taxes. T/F

answer

True

question

S corporations can have nonresident alien stockholders but no more than 50 members. T/F

answer

False

question

A brick-and-mortar store is actually a general term that refers a retail outlet dealing in building supplies. T/F

answer

False

question

If the cost of shipping the finished product is high, the factory should probably be located near a source of raw materials. T/F

answer

True

question

To maximize sales and profits, a discount shoe store should create an atmosphere similar to higher price point shoe stores as the customers will expect the same atmosphere. T/F

answer

True

question

The role of a website can range from merely offering content and information to enabling complex business transactions. T/F

answer

True

question

The term earnings, profits, and income refer to different amounts on the income statement. T/F

answer

False

question

Total assets less outstanding debt equals ownership equity. T/F

answer

True

question

While an income statement reports a firm's results over a given period of time, the cash flow statement is required to determine a firm's overall financial position. T/F

answer

False

question

Cash flows that investors either provide to or receive from the business are included in the cash flows from owners' equity. T/F

answer

True

question

To determine the debt ratio, the total debt is divided by the total assets. T/F

answer

False

question

The projection of profits, asset requirements, financing requirements and cash flows are essential in determining whether a venture is economically viable. T/F

answer

True

question

Profits reward an owner for investing in a company and constitute a primary source of financing for future growth. T/F

answer

True

question

Many small firms have a tendency to overestimate the amount of capital the business requires when beginning operations. T/F

answer

True

question

The cash budget is concerned only with dollars received and dollars paid out. T/F

answer

True

question

Borrowing money rather than issuing common stock typically increases the potential for higher rates of return to owners. T/F

answer

False

question

Approximately 1/2 of the financing for startups comes from personal savings. T/F

answer

True

question

Lines of credit are legal obligations to provide capital. T/F

answer

False

question

When a stock sale is restricted to private placement an entrepreneur can avoid many of the demanding requirements of the securities laws. T/F

answer

True

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