question

A(n) _______ is a document that thoroughly explains a business idea and how it will be carried out.

answer

Business Plan

question

Bankers and other potential investors will often refuse to see an entrepreneur who does not have a ________.

answer

complete business plan

question

Writing a business plan can ensure that you ________.

answer

figure out how to make your business work.

question

It is best for ________ to write a new venture's business plan.

answer

the entire team

question

Your business plan projections should be ________.

answer

realistic and attainable

question

A business plan can help a company ________.

answer

All of the above

question

The ________ section of the business plan should be written last.

answer

Executive Summary

question

The executive summary contains the ________.

answer

All of the above

question

Making the beliefs, values, and behavioral norms explicit and international builds the _______ of an organization.

answer

Culture

question

One section of the business plan that is often neglected is the ________.

answer

Opportunity Analysis and Research

question

The ________ addresses the roles of the community, region, nation, and the world in business.

answer

Environmental analysis

question

Target market segments are defined by common factors such as ________.

answer

All of the above

question

A(n) ________ competitor provides a substitute product or service that a consumer might buy instead of yours.

answer

Indirect

question

The four factors that form competitive advantages are ________.

answer

Product, Price, Promotion, and Place

question

Advertising is ________ promotion through media outlets.

answer

Paid

question

Resumes and position descriptions should be included in business plans for ________.

answer

Key Managers

question

A factor to consider when selecting a physical location is ________.

answer

All of the above

question

Cash flow ________ be negative before debt and equity infusions and ________.

answer

Can, cannot

question

Income statement projections realistically ________ in the first few months of operations.

answer

Show losses

question

Ration analysis can help business owners ________.

answer

All of the above

question

An IPO is a ________ exit strategy for entrepreneurial ventures.

answer

an alternative for a buyout plan.

question

When you make an in-person presentation to prospective investors you should ________.

answer

All of the above

question

Business plan and venture competitions for students are held worldwide. Many all of them include ________.

answer

All of the above

question

To succeed, a business must satisfy a consumer need ________.

answer

At a price that provides the business with a profit.

question

What type of business produces a tangible product?

answer

Manufacturing

question

Business definition + Competitive advantage is ________.

answer

Competitive strategy

question

For a business to be successful, a competitive advantage must be ________.

answer

sustainable

question

The cost of selling one additional unit of a product is called ________.

answer

Cost of goods sold

question

To help determine whether your business will be profitable, calculate the ________.

answer

economics of one unit

question

Total gross profit + ________.

answer

Total revenue - Total cost of goods sold

question

What type of business deals in intangible products?

answer

Service

question

A typical unit of sale for a wholesaler would be ________.

answer

one dozen

question

Average gross profit per customer is ________.

answer

average sale per customer minus average cost of sale per customer

question

Total cost of goods sold per unit consists of ________.

answer

Materials cost per unit plus labor cost per unit.

question

Business leaders create wealth by ________.

answer

Hiring employees in order to sell more units and generate more profit.

question

What is the average unit of sale for a restaurant that serves $3,350 per day in meals to 200 customers per day?

answer

$16.25

question

The foreign exchange rate is ________.

answer

The relative value between one currency and another.

question

Once you know your ________ you can calculate gross profit.

answer

Cost of goods sold

question

A retail business buys form ________and sells to ________.

answer

wholesalers/consumers

question

What type of business busy in bulk from a manufacturer and sells smaller quantities to a retailer?

answer

Wholesaler

question

A ________ is a group of people who would be interested in buying a given product or service.

answer

Market

question

The business definition has three elements ________.

answer

offer, target market, and production/delivery capability.

question

For your business to be successful you will need a strategy for beating the competition, i.e., your ________.

answer

Competitive Advantage

question

________ is the core values on an organization in action.

answer

Culture

question

When you start your business your _______ will guide the business operations and decisions.

answer

Core beliefs

question

Entrepreneurs tend to be ________.

answer

Optimistic

question

Your ________ is a concise communication of your strategy including your business definition, purpose, and your competitive advantage.

answer

Mission statement

question

Psychographic analysis and behavioral analysis are examples of methods of ________.

answer

market segmentation

question

Marketing is ________.

answer

All of the above

question

A marketing term that describes owning a perception in the minds of consumers is called ________.

answer

Mind Share

question

What is the third step of deciding who the potential customers are for your business?

answer

analyzing who has the authority to buy

question

Which of the following aspects of a product/service is the most important to focus on when selling?

answer

Benefits

question

Which of the following is a step in determining how customers decide to buy a product?

answer

All of the above

question

Dividing a population on the basis of age, gender, income or education is ________.

answer

Demographics

question

Consumers who have a similar response to a certain type of marketing can be classified as a ________.

answer

market segment

question

Marketing is the satisfying of customer needs _______.

answer

Regardless of profit

question

An entrepreneur's market is ________.

answer

the group of people who are current and possible future customers

question

When has a market become saturated?

answer

When most of the people in the market are interested in the product have already purchased it.

question

Positioning your product in the market involves _______.

answer

communicating your competitive advantage to the customer by demonstrating how your product/service differs from the competition.

question

Dividing the market by purchase behaviors that have been observed is _______ segmentation.

answer

behavioral

question

The most important thing you should do before launching your product or service is ________.

answer

thoroughly research the market

question

The positioning statement for a business includes its name/brand, its competitive industry/category, ________, and audience/target market.

answer

benefits or points of difference

question

What is a focus group?

answer

It is a method of market research that involves bringing together some people who might use a product and having a researcher question them about it.

question

There is a subtle difference between the _______ and the _______ of a product. One is a fact while the other is a perception.

answer

features/benefits

question

Research carried out indirectly through other existing resources is called ________.

answer

Secondary research

question

Market research can help you get a fix on who your customers are ________.

answer

All of the above

question

In doing research, there are several choices to help you. Among these are ________.

answer

All of the above

question

________ ask(s) people directly through interviews or questionnaires about their perceptions of a product or service.

answer

Surveys and focus groups

question

The set of four stages that a product or market goes through from its beginning until its end is called the ________.

answer

Product life cycle

question

The product life cycle phases include ______.

answer

all of the above

question

Smart marketers always emphasize ________.

answer

benefits, not features

question

Which of the following is one of the four Ps of marketing?

answer

product

question

What is the smartest price strategy?

answer

Choose a pricing strategy that incorporates the psychology of pricing.

question

Which of the following is not an example of successful branding?

answer

Customers confuse a business logo with that of another business.

question

When you build a brand, try to focus tightly on one key ________.

answer

Benefit

question

Promotion consists of ________.

answer

All of the above

question

Marketing inspired by a commitment to a social, political or environmental issue is called _______.

answer

cause-related marketing

question

Why are nonprofit organizations tax exempt?

answer

because they use the money they collect to help improve society

question

To break even, a business must _______.

answer

Sell enough units to cover its fixed costs

question

What is a banner ad?

answer

an ad that runs on a website

question

We must use IMC for success, which means ________.

answer

integrated marketing communications

question

A ________ is an announcement sent to the media to generate publicity.

answer

press release

question

A nonprofit organization that uses donated money to help others is called a ________.

answer

foundation

question

Expressing concern for social issues by giving money, time, or advice is called _______.

answer

philanthropy

question

Which of the following is a way to use cause-related marketing in your business?

answer

Pay employees to volunteer some time toward community service.

question

Which of the following is away to use cause-related marketing in your business?

answer

Pay employees to volunteer some time toward community service

question

Which of the following is a role of the marketing plan?

answer

All of the above

question

According to author Jay Levinson, when consumers in the furniture industry rated factors affecting their purchase decision ________.

answer

price was the ninth most important variable

question

Good marketers know that a(n) ________ is the heart of the marketing plan.

answer

analysis of the market

question

Pricing strategies include ________.

answer

all of the above

question

Finding a retail site that has more than ample parking, excellent access and walk-in trade potential is an example of maximizing which of the marketing Ps?

answer

place

question

Marketing should not be budgeted as a percentage of sales but rather as money that is needed to drive sales. Therefore it is part of the business' ________.

answer

fixed costs

question

Good marketing material serves a variety of functions. These include ________.

answer

all of the above

question

Create a ________ that can be used in all the promotional materials you use to present your business image.

answer

logo and "look"

question

In doing your pitch letter you will always want to address ________.

answer

Any or all of the above.

question

You should always ________.

answer

A and C combined

Entrepreneurship Exam 1 – Chapters 2-5 – Flashcards

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