Starting A New Business – Flashcards
59 test answers
Unlock all answers in this set
Unlock answers 59question
Which of the following is not true of secondary market research ?
answer
it is the place to start
Unlock the answer
question
Which of the following is not true of secondary market research?
answer
Correct it is less expensive than primary research
Unlock the answer
question
Which of the following is not true of secondary market research?
answer
Correct it is a possible solution
Unlock the answer
question
Market research that is guided through group discussions is called:
answer
focus groups
Unlock the answer
question
The first step of developing a marketing plan is:
answer
consumer analysis.
Unlock the answer
question
Marketing is the satisfying of customer needs
answer
at a profit.
Unlock the answer
question
Demographics are:
answer
statistics that describe a population in detail.
Unlock the answer
question
Most business experts agree that a business should develop its marketing plan:
answer
first
Unlock the answer
question
The first step of developing a marketing plan is:
answer
consumer analysis.
Unlock the answer
question
Smart marketers emphasize a product's:
answer
benefits
Unlock the answer
question
Demographics are:
answer
statistics that describe a population in detail.
Unlock the answer
question
Behavioral segmentation is:
answer
dividing the market by purchase behaviors that have been observed.
Unlock the answer
question
Why is it important to consider opportunity cost when making a decision?
answer
It is important to consider opportunity cost because cost/benefit analysis is incomplete without considering opportunity cost.
Unlock the answer
question
A business opportunity is not necessarily the same as a business idea.
answer
True
Unlock the answer
question
A free enterprise system discourages entrepreneurs who waste limited resources.
answer
True
Unlock the answer
question
A service is intangible, meaning
answer
you can't actually touch it.
Unlock the answer
question
A small business is one that has fewer than 600 employees, and sales of products and services less than $7 million in one year.
answer
False
Unlock the answer
question
An entrepreneur can be both an employee and an owner.
answer
True
Unlock the answer
question
An entrepreneur must strike an excellent balance between being a risk taker and someone who carefully evaluates a decision.
answer
True
Unlock the answer
question
Explain how a business opportunity differs from a business idea.
answer
For an idea to be an opportunity, it must lead to the development of a product or service that is of value to a customer.
Unlock the answer
question
Opportunity cost is:
answer
the cost of your next-best investment.
Unlock the answer
question
The desire to make money is:
answer
in itself not a good enough reason to start a business a great reason to start a business
Unlock the answer
question
Why is it important to show that you have "skin in the game" in a business plan?
answer
Because it will show your audience that you are devoted, intellegent, and economical invested in the business.
Unlock the answer
question
What three financial statements should be included in a business plan, give a brief explanation of each.
answer
. income statement - sum up profit and loss over a time period. 2. cash flow- is receipts cash taken in and out 3. balance sheet - shows what a bsiness own,owe and worth
Unlock the answer
question
A well-written business plan can save an entrepreneur time.
answer
True
Unlock the answer
question
An IPO is the most common way entrepreneurs exit their companies.
answer
False
Unlock the answer
question
Entrepreneurs should not show losses in their business plans.
answer
False
Unlock the answer
question
Making the beliefs, values, and behavioral norms explicit and intentional builds the __________ of an organization.
answer
culture
Unlock the answer
question
Writing a business plan can ensure that an entrepreneur
answer
figures out how to make her business work.
Unlock the answer
question
Financial projections should be very optimistic to attract financing.
answer
False
Unlock the answer
question
The quick verbal summary of a business plan is called a(n)
answer
elevator pitch.
Unlock the answer
question
The cover page of a business plan should contain
answer
contact information.
Unlock the answer
question
The ______________ section of the business plan should be written last.
answer
executive summary
Unlock the answer
question
Explain why a competitive advantage must be sustainable.
answer
A competitive advantage must be sustainable, meaning that you can keep it going.
Unlock the answer
question
For a business to be successful, a competitive advantage must be:
answer
sustainable.
Unlock the answer
question
The cost of goods sold is:
answer
the cost of producing one additional unit of a product.
Unlock the answer
question
To be successful, a business must:
answer
satisfy a consumer need at a price that provides the business with a profit.
Unlock the answer
question
Total revenue - Total cost of goods sold =
answer
total gross profit
Unlock the answer
question
What is a "competitive advantage?"
answer
whatever you can do better than the competition that will attract customers to your business
Unlock the answer
question
What does an entrepreneur use as the unit of sale when he/she sells more than one product?
answer
An entreprenur uses combination as the unit of sale.Average sale per customer - Average cost of sale per customer = Average gross profit per customer
Unlock the answer
question
Which is not one of the six factors of competitive advantage?
answer
Correct opportunity
Unlock the answer
question
Which is not one of the four basic types of business?
answer
customer service
Unlock the answer
question
A competitive advantage must be sustainable because you want to be able to keep your word on your competitive advantage.
answer
A competitive advantage must be sustainable, meaning that you can keep it going. If you decide to beat the competition by selling your product at a lower price, your advantage will not last long if you cannot afford to continue at that price. Small business owners should realize that price alone is probably not going to work as an advantage for long. A bigger business can almost always beat you on price because it can buy larger quantities from its suppliers, who will be more willing to give them a lower price.
Unlock the answer
question
Competitive strategy combines:
answer
business definition + competitive advantage.
Unlock the answer
question
ist the types of fixed costs? (USAIIRD) How do they compare to variable cost? Why is understanding what your fixed costs are each month crucial to the success of your business?
answer
Fixed costs are costs that do not vary with sales. They can be remembered as USAIIRD: Fixed cost need to be paid whether you sell one hamburger or 5000. Variable costs only are cost when you sell something. You only buy as many buns as your are going to sell.
Unlock the answer
question
Breakeven is the point at which:
answer
Correct a business sells enough units to cover its fixed costs.
Unlock the answer
question
When companies build a brand they focus on one key
answer
benefit.
Unlock the answer
question
Which of the following is considered public relations?
answer
public speaking
Unlock the answer
question
Which is not one of the four P's of marketing?
answer
publicity
Unlock the answer
question
Successful advertising can achieve all of these objectives except:
answer
ensuring growth of declining products.
Unlock the answer
question
How can you pick a pricing strategy that will be right for your business?
answer
choose a pricing strategy that communicates your competitive advantage
Unlock the answer
question
A press release should be __________ long.
answer
several paragraphs
Unlock the answer
question
A banner ad is:
answer
Correct an ad that runs on a web site.
Unlock the answer
question
Cause-related marketing is:
answer
inspired by a commitment to a social, political, or environmental cause.
Unlock the answer
question
How does a pitch letter differ from a press release?
answer
Correct a pitch letter explains the story behind a press release
Unlock the answer
