Entrepreneurship Review

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51. Scarcity occurs when peoples needs and wants are unlimited and the resources needed to produce the goods and services to meet those needs and wants are limited
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True
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1. Entrepreneurs try to meet the needs of the marketplace by supplying a product or service
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True
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2. Entrepreneurs and employees are both directly affected by the consequences of the decisions they make
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False
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52. Opportunity cost is the cost of the last alternative
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False
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3. Manufacturing businesses produce the products they sell
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True
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53. The functions of businesses operate independently of each other
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False
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4. Entrepreneurial businesses include retailing businesses, such as clothing and furniture stores, but do not include service businesses
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False
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54. A market economy is based on personal choice
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True
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5. A travel agency is a retailing business
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False
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55. Traditional economies are used in developed countries
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False
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56. A mixed economy often results in when a country shifts away from command economy toward a market economy but still has government involvement in the marketplace
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True
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6. Entrepreneurs constantly change U.S. business and contribute to the nation’s overall good
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True
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7. Small firms with fewer than 500 employees represent about 25% of all businesses in the U.S. today
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False
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57. Communism is another name for the economic system in the U.S.
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False
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8. The owner’s of a business experience is a factor that contributes to the like hood of success
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True
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58. The rivalry among businesses to sell their goods and services is called competition
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True
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9. Small businesses contribute billions of dollars to the U.S. economy every year
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True
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59. The value of the next-best economic alternative is the tradeoff cost
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False
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10. Small companies cannot take as many risks as large companies, so small companies are likely to be innovative
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False
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60. A Marketing mix is the combination of product, distribution, price , and promotion
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True
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11. Successful entrepreneurs need to be self-confident because they must make decisions alone, but they do not need to be creative because they can hire creative people
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False
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61. The supply curve for a market economy shows that as the price os a good or services rises, suppliers are willing to produce more of the good or service
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True
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12. Entrepreneurs need to able to make quick decisions
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True
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62. The demand curve for market economy shows that as the price of a good or service rises, individuals are willing to consume more of the good or service
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False
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13. To determine if entrepreneurship is right for you, you need to perform a self-assessment
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True
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63. Demand elasticity occurs when demand for a product is affected by its price
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True
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64. In market with perfect competition, a small number of businesses gain the majority of total sales
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False
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14. Everyone has the qualities and aptitude needed to become a successful entrepreneur
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False
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15. Your past experiences are key factors in determining your commitment to a business
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True
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65. Inelastic demand occurs when a change in price creates more demand
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False
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16. Aptitude is the ability to evaluate your strengths and weaknesses
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False
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66. When a company controls all of the market, it is a monopoly
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True
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17. Before starting a business, it is important to identify the kinds of entrepreneurial opportunities that match your aptitudes and interests
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True
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67. Fixed costs must be paid even if a company has no sales
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True
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68. When the quantity of good or service produced increases, variable costs remain the same
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False
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18. Entrepreneurial involves risk, which is both an advantage and a disadvantage
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True
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19. An advantage of entrepreneurship is that nobody tells and entrepreneur what to do
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True
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69. Marginal benefit measures the advantages of producing one additional unit of a good
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True
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20. An advantage of entrepreneurship is that owners make all of the decisions by themselves
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False
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70. It is difficult for new businesses to enter businesses in a market with an oligopoly market structure
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False
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71. A business plan provides financial information that shows how businesses will earn a profit
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True
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21. Libraries have publications that provide data of interest to entrepreneurs
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True
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22. Many companies display their products at the Small Business Administration (SBA)
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False
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72. How a business will get and keep customers is not a part of a business plan
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False
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23. You can learn about business opportunities by talking to other entrepreneurs
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True
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73. A business plan does not give suppliers much confidence when it comes to extending credit
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False
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24. Assessing different opportunities help you identify those most likely to succeed
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True
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74. Businesses must have a completely new product or services to convince investors that the idea is solid
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False
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25. To decide whether or not a business opportunity is realistic for you, compare your background and experience with the experience of people who own that kind of business
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True
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75. A good business plan includes sales projections for the short, medium, and long term and sets forth future business plans
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True
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76. The backgrounds and experience of the people who will be running the business help lenders make the financing decisions
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True
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26. It is not necessary to determine how much money it will take to start a business because you will be able to borrow the money you need
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False
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27. Financial goals may include how quickly you can pay your debts
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True
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77. A business plan will not help you think about all of the aspects of your business
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False
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78. Writing a business plan can help you identify problems you might encounter in the future
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True
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28. Ideas are thoughts or concepts that come from creative thinking
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True
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79. Lenders require a business plan before they will consider financing a business
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True
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29. Non-Financial goals are only for entrepreneurs who are solely interested in financial gain
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False
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80. After your business is up and running, you will rarely use your business plan
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False
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30. Your financial and non-financial goals do not have to be realistic
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False
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31. The best entrepreneurs use a formal problem-solving model to make decisions
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True
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81. Entrepreneurs estimate demand for their products and services by identifying their target market
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True
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32. Defining and quantifying the problem is the first step in the problem-solving process
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True
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82. Understanding your customers allows you to meet customer demands
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True
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33. Identifying one or two possible solutions is usually sufficient
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False
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83. Demographics describe a group of people in terms of their tastes, opinions, personality traits, and lifestyle habits
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False
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84. A customer profile should include demographic data but not psychographic data
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False
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34. Quantifying a problem helps a business owner determine how much it is worth to them to solve it
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True
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85. Marital status, family size, and age are useful data for identifying your target market
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True
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35. The problem solving process is not complete until the action is evaluated
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True
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86. Segmenting your market is usually not necessary because most markets are small
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False
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36. The fourth step in the problem solving process is brainstorming
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False
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87. Data that helps you determine how often potential customers use a particular service is called customer profile
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False
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37. Communication and listening skills are vital to the problem-solving process
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True
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38. Brainstorming is always done in a group setting; it is a useful activity for an individual
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False
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88. A Market segment is made up of people with common characteristics
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True
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39. Following a brainstorming session, a decision should be made immediately
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False
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89. Customers should never be profiled based on geographic data
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False
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40. Entrepreneurs should not be afraid of making mistakes
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True
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90. A marketing strategy identifies customers that you can better serve than your competitors, but it cannot help you determine the size of your market
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False
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41. Both types of wants–economic and non-economic–form the basis of an economy
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False
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91. A marketing mix is the blending of product, distribution, price, and promotion to satisfy a target market
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True
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42. Needs are things that you must have in order to survive
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True
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92. Establishing short-, medium-, and long-term marketing goals ensures that the marketing you do today fits the vision you have for your business tomorrow
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True
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43. The role of businesses is to produce and distribute goods and services that people need and wants
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True
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93. Long-term goals are what you want your business to achieve in the next 2 or 3 years
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False
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94. Short-term goals should not be listed in terms of product price, distribution, and promotion
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False
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44. The most basic of needs is security
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False
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45. Needs and wants are unlimited
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True
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95. Medium-term goals are used to create strategies for each element of the marketing mix
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False
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96. If a short-term goal is to generate traffic in a retail store, the marketing strategy should focus on the market share of the competition
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False
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46. Economic resources are not factors of production
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False
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97. Long-term goals show where you would like your business to be in 5 or 10 years from now but do not help you think about how to market your business today
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False
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47. Services must be provided to you at the time you need them–they cannot be stores
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True
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98. A written marketing plan can help you define your market and identify your customers
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True
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48. Human resources rarely perform specialized labor
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False
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99. The marketing concept uses the needs of entrepreneurs as the primary focus during the planning, production, distribution, and promotion of a product or service
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False
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49. Natural resources are not limited
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False
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100. Researching industry norms and past performances will help you develop appropriate performance standards for your marketing plan
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True
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50. Capital resources include buildings and equipment
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True
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What can not provide additional information about direct competition
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Reasearch a competitor’s business plan
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Today China operate’s under a what economy
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Mixed economy
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The psychologist who developed a theory on the hierarchy of needs was who
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Abraham Maslow
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A business plan’s title page includes everything but
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A summary of the plan
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A letter that introduces and explains an accompanying document is called a what
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Cover letter
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Price is one of the elements of what
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Marketing mix
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Creating an image for a product in the customers mind is called what
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Positioning
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Bernie Marcus and Arthur Blank did what
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Opened the first Home Depot Stores
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Information about necessary equipment for your business is included in the what section
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Operations section
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What need involves something that provides a sense of accoplishment such as earning a college degree
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Self-actualization
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In the U.S History, entrepreneurs have what
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been an important part of the American economy
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Secondary data is found where
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in news papers, internet, and government publications
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Which of the following is not an element of the financial management section of your plan A. Financial Statements B. Distribution of profits and loses C. Funding request and return on an investment D. Identification of risks
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B. Distribution of profits and loses
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Your busniess plan must A. Be consistant B. Nver overlook the competition C. All of these D. Clearly define your market
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C. All of these

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