You should never offer your customers “freebies” unless they are truly valuable and
expensive, otherwise you will earn a negative reputation among your customers.
Online sales and Internet activity will account for more than 60 percent of total retail
sales.
The left brain processes information intuitively – all at once, relying heavily on images.
Acting with integrity means that entrepreneurs do what is right no matter what the
circumstances.
The creative process involves seven distinct steps including preparation, investigation,
transformation, incubation, illumination, verification, and implementation.
A highly profitable business is a highly liquid business.
Management is an example of a stakeholder.
For most service firms, labor and profit comprise the greatest portion of the cost of the
service.
To determine net profit, the owner records sales revenue for the year and subtracts
liabilities.
The greater the leverage suppliers of key raw materials or components have, the less
attractive is the industry.
The key factor in forecasting cash disbursements for a cash budget is to record them in
the month when they are incurred, not when they are paid.
Even the smallest businesses have the potential to export.
Leadership is an easy skill to learn.
Demographics are the study of important population characteristics such as age,
income, education, race, and others.
Absentee franchise owners are consistently successful.
A clearly defined vision helps a company in which of the following ways?
A) Provides direction
B) Determines decisions
C) Motivates people
D) All of the above
In 2020, members of ________ different generations will be working side by side in the
United States.
A) 2
B) 3
C) 4
D) 5
Which of the following sets of experiences may enhance individual creativity?
A) Travel and recognize the creative power of mistakes and accidents.
B) Notice what is missing.
C) Journal and listen to people and customers.
D) All the above
A common pricing mistake entrepreneurs make is lowering prices because they fail to
recognize the ________.
A) extra value, convenience, service, and quality they offer their customers
B) advantages they have due to their lower cost structure
C) complexities that larger competitors have to face
D) driving need that all customers have to find the lowest price possible
In terms of quality, which company has the weakest competitive position?
A) Your company
B) Competitor 1
C) Competitor 2
D) Impossible to tell from the information given.
Collecting demographic data from The Statistical Abstract of the United States is an
example of ________ research.
A) secondary
B) primary
C) windshield
D) tertiary
Kevin Abt noticed that people were cooking meals in their homes less often but wanted
to avoid the hassle of going out to eat. They wanted to “eat in” without cooking. Abt
launched a company, Takeout Taxi, that delivers restaurant-prepared food to his
customers’ homes and businesses. Takeout Taxi is the result of a(n) ________.
A) strength
B) weakness
C) opportunity
D) threat
A small company’s mission statement ________.
A) establishes its purpose in writing
B) gives the business and everyone in it a sense of direction
C) defines what the company is, why it exists, and its reason for being
D) All of the above
Typically located near affluent residential neighborhoods where their target customers
live, ________ centers are designed to look less like shopping centers and malls and
more like the busy streets in the central business districts that once existed in towns and
cites.
A) neighborhood
B) power
C) lifestyle
D) community shopping
Time out of cash is relevant to ________ analysis.
A) strategic
B) business model
C) business plan
D) financial feasibility
The primary variable(s) that influence(s) the scope of a trading area is/are the
________.
A) character of the transportation network
B) nature of competing businesses
C) type and size of the business operation
D) racial and political barriers in the local community
A ________ contains from 12 to 50 stores and serves a population of 40,000 to 150,000
people.
A) neighborhood shopping center
B) community shopping center
C) regional shopping mall
D) central business district
________ is the number of months the business can survive at its current rate of
negative cash flow.
A) Time out of cash
B) Bleeding rate
C) Survival time
D) Life cycle
An important part of any e-commerce effort is ________.
A) the use of current technology and its successful implementation
B) the ability to understand the underlying business and to develop a workable business
model
C) to have a site that is fast and dependable
D) to have high traffic to the site, regardless of the customers’ interest in what the site
actually offers
Which of the following statements concerning marketing research is false?
A) Market research is the vehicle for gathering the information that serves as the
foundation for the company’s marketing plan, helps avoid costly marketing mistakes,
and can uncover unmet customer needs the business can serve.
B) Market research involves systematically collecting, analyzing, and interpreting data
pertaining to the small company’s market, customers, and competitors.
C) Small companies are at a distinct disadvantage compared to larger ones when
conducting market research since it is so expensive.
D) Small businesses cannot afford to miss their target markets and market research can
help them focus their efforts.
Factors that feed the economic boom behind entrepreneurship include ________.
A) demographic and economic factors
B) technology and cloud computing
C) the shift to a service-based economy and international opportunities
D) All of the above
The average venture capital firm screens about ________ investment proposals each
year and ultimately invests in ________ of them.
A) 10,000; 12
B) 1,000; 1
C) 5,000; 13
D) 5,000; 80
A successful Web site should include all of the following characteristics except
________.
A) a FAQ section
B) continuous automated music that cannot be cut off
C) updated and timely information
D) readable font sizes
Explain the differences between the left and right sides of the brain.
Mini Case 3-1: Protecting Your Intellectual Property
Devo, Anthony, and Spencer were childhood friends who had always talked about
starting a business together after college graduation. Devo had the financial background
and startup capital to contribute and Spencer and Anthony had the technical knowledge
they believed would give them the competitive advantage needed to become an industry
leader.
During their early college years, Anthony and Spencer developed a new and innovative
way to manufacture computer components. When they shared their idea with Devo, he
was able to draw up a detailed business plan to present to potential investors when the
three were ready to launch their venture. They had been very careful not to disclose
anything about their innovative idea to other colleagues or any of their friends and were
anxious to get started.
After selecting the company name “Millennium Computers” the three friends come to
you for advice on intellectual property rights.
To protect their innovative process for manufacturing computer components from
unauthorized use, which type of intellectual property should the threesome apply for?
Identify the office to which they should apply and outline the steps involved in the
process.
Mini Case 3-1: Protecting Your Intellectual Property
Devo, Anthony, and Spencer were childhood friends who had always talked about
starting a business together after college graduation. Devo had the financial background
and startup capital to contribute and Spencer and Anthony had the technical knowledge
they believed would give them the competitive advantage needed to become an industry
leader.
During their early college years, Anthony and Spencer developed a new and innovative
way to manufacture computer components. When they shared their idea with Devo, he
was able to draw up a detailed business plan to present to potential investors when the
three were ready to launch their venture. They had been very careful not to disclose
anything about their innovative idea to other colleagues or any of their friends and were
anxious to get started.
After selecting the company name “Millennium Computers” the three friends come to
you for advice on intellectual property rights.
Should they consider protecting or registering their company name? Which intellectual
property would cover this concern? Could they use the name without registering it?
Which of the following pairs describing leadership (first column) and management
(second column) is notaccurate?
Why is it important for small business owners to clearly define their target market(s) as
part of their marketing strategies?
Outline the recommended procedure for buying a franchise.
Identify the 10 myths of e-commerce and capture one aspect that negates that myth.
Describe the other barriers to trade, including political, business, and cultural.
Mini-Case 8-1: Customers: Key to Success
Lloyd Dixon has owned and operated a small dress shop for the past three years. Each
fashion season, Lloyd attends the apparel shows and he is always very impressed by the
glamour and the hundreds of different manufacturers, all with the merchandise that they
say will be this season’s biggest sellers. Lloyd caters to an older market and baby
boomers. He hopes to tap into the upscale market.
After his first year of operation, Lloyd recognized that some of his merchandise was not
selling. The “inventory close-out sale” did rescue his investment in this merchandise but
did not make him a profit or contribute much to his overhead. Lloyd knew that it was
not reasonable to expect to sell everything you bought, but he was not sure exactly how
much of his inventory was comprised of slow movers. Lloyd believed that when he
went into business he knew what women wanted in dresses. He had always prided
himself on having good taste. When he had the opportunity to open this store, he was
confident that he could choose merchandise that would be well received. In the first
three years of operations, sales have not met Lloyd’s expectations.
How could Lloyd realistically create a competitive advantage by giving customer
service a focus in his business?
Mini-Case 10-1: Pricing for Profit
Miller Manufacturing, Inc., produces electronic components for television circuitry.
Variable costs comprise 67 percent of the product’s selling price. The variable costs of
producing a component include:
Vicki Miller, President, expects to produce 80,000 electronic components and to incur
$280,000 of fixed costs.
What is the minimum price that Miller Manufacturing should set for its electrical
components?