question

Which of the following statements concerning the financing of a business purchase is true?

answer

The buyer should be able to make the payments on the loans out of the company's cash flow.

question

When seeking to evaluate the financial soundness of the company prior to purchase, the buyer needs to examine:

answer

D) all of the above.

question

For entrepreneurs, a business plan is:

answer

D) All the above

question

A business plan:

answer

A) reduces the risk and uncertainty involved in starting a new company.

question

An effective market analysis identifies:

answer

B) how you will achieve your market goals, what methods will be used.

question

An explanation of how the product will be distributed is contained within the:

answer

marketing strategy portion of the business plan.

question

Companies do a number of things to focus on their customers, including:

answer

conducting market research on what superior customer service is.

question

A key to effective innovation by the entrepreneur is:

answer

always looking for new product and service ideas.

question

Small companies with limited financial resources can often use ________ as a way to differentiate themselves from larger competitors.

answer

customer service

question

Numerous surveys have concluded that the most important element of service is:

answer

the personal touch.

question

The right price for a product depends on which factors?

answer

All of the above

question

In reality, advertising:

answer

is an investment in the future; without steady advertising the customer base will dry up.

question

Tami is developing a promotional campaign for her small business. The first step in this process is to:

answer

define her unique selling proposition.

question

Effective ads are built on:

answer

a unique selling proposition.

question

A recent study of top salespeople found that they:

answer

work from the customer's perspective and use past "success stories."

question

________ is the personal contact between salespeople and potential customers that comes from sales efforts.

answer

Personal selling

question

Radio's power as an advertising medium comes from:

answer

its nearly universal presence in society.

question

Magazines have a number of advantages for the small business owner, including:

answer

high quality ad reproduction.

question

Which of the following is a disadvantage of magazine ads?

answer

The long closing times

question

An important advantage of specialty advertising is its:

answer

versatility.

question

Tactics that can help an entrepreneur stimulate positive publicity for the firm are:

answer

All of the above

question

One of the disadvantages of using transit advertising is its:

answer

limited appeal.

question

________ forces the salesperson to be open-minded and to shoot for the top.

answer

The visionary objective

question

What advertising media attract a large percentage of the advertising dollars nationwide?

answer

Television

question

Small business owners get into trouble when determining their price floor when they:

answer

assume their costs are the same as their competitors'.

question

The final price set by the entrepreneur for the products depends on:

answer

the desired image for the products.

question

When small manufacturing companies face rapidly increasing raw material costs, they can adopt a number of strategies including:

answer

emphasize the value their company provides customers.

question

Geographical pricing includes numerous techniques, such as:

answer

uniform delivered pricing.

question

________ include(s) the unit cost of a manufacturer's product under an absorption costing system.

answer

Opportunity costs

question

A variation of geographic pricing in which the small company sells its merchandise to customers on the condition that they pay all the shipping is called:

answer

F.O.B. factory.

question

F.O.B. factory is a variation of ________ pricing.

answer

geographic

question

When developing a marketing approach to pricing, business owners must:

answer

establish prices that are compatible with their customers' expectations and what they are willing to pay.

question

Price wars usually begin when:

answer

when one competitor believes that they can achieve a higher volume through lower price.

MGMT 325 – Test Two – Flashcards

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