Consumerism is an organized effort to protect consumers from the undesirable effects
of poorly designed products.
A recent trend in the operation of a family business is that of retired parents wanting to
buy their children’s business.
A person’s liability for sales taxes is always limited to the state to which he/she belongs.
Managers are always motivating employees – either positively or negatively – even
when they are not conscious of doing so.
The four variables of a marketing mix are – customer, company, competition, and
constraints.
Chapter 11 of the Bankruptcy Reform Act of 1978 provides for reorganizing of a
bankrupt business.
Many small businesses use only the most basic forms of computerization because of the
cost involved.
Specialty goods are usually low-priced items that are purchased often, are sold in many
stores, are bought by habit, and lend themselves to self-service.
In a small business, the process layout requires more movement of material or people,
and requires a larger inventory.
The marketing concept opposes the systems approach to managing a business.
Small businesses should give the same attention to ethnic groups as they give to
traditional markets when marketing their product.
Successful marketing programs move the target customer through three stages of
relationship building: awareness, exploration, and commitment.
An offer of a new policy to replace one that is flawed implies a red flag in the process
of choosing an insurer.
A _____ is a handheld pocket-sized computer that is often a completely wireless
system.
a) laptop computer
b) firewall
c) personal data assistant
d) mainframe computer
Which of the following is true of the 80-20 rule?
a) A company should order 80 percent of its supplies from one supplier, and the
remaining 20 percent from other suppliers.
b) 80 percent of a company’s income comes from 20 percent of its products.
c) The cost of raw materials should be about 80 percent of the cost of the finished
product, and the cost of manufacturing should be about 20 percent of the cost of the
finished product.
d) A company should schedule 80 percent of its production during 20 percent of the
work week.
The system of gathering, recording, classifying, analyzing, and interpreting data related
to merchandising of goods and services is known as:
a) market research.
b) operational research.
c) drip marketing.
d) loyalty marketing.
A(n) _____ consists of the various marketing organizations involved in moving the
flow of goods and services from producer to user.
a) distribution channel
b) intermodal shipping network
c) trade promotion
d) order processing
_____ is the difference between revenue earned and expenses incurred.
a) Profit
b) Liability
c) Gap ratio
d) Depreciation
_____is the process of setting objectives and devising courses of action to achieve those
objectives.
a) Controlling
b) Planning
c) Organizing
d) Leading
Which of the following is true of setting performance standards for small businesses?
a) A good set of standards must not allow time for delays.
b) Estimates by experienced people are used to set performance standards.
c) It is easier to set performance standards for mental work than for physical work.
d) Many precise tools are available to establish standards for measuring performance.
In the context of small businesses, which of the following is an alternative for
improving profits?
a) Increasing productivity of people and machines
b) Selling products on the basis of price alone
c) Buying all components of the product from the outside
d) Removing a summer product from a winter line of products
Which of the following is true about the introduction stage of the product life cycle?
a) Management considers pruning items from the product line to eliminate unprofitable
ones
b) Marketing strategy typically encourages strong brand loyalty
c) Promotion costs climb and competitors cut prices to attract business
d) Many products never get beyond this stage
John wants to start his own business. After doing some research, he has decided to
specialize in cleaning kitchens since most homemakers are not satisfied with the quality
of the service offered by the residential cleaning companies. What is this process of
finding a small – but profitable – demand for something and producing a custom-made
product or service known as?
a) Out-of-home advertising
b) Niche marketing
c) Sales promotion
d) Visual merchandising
The new business owner’s primary motive is usually _____.
a) independence
b) the need to obtain a second income
c) the need to provide a niche product
d) profits
_____ is the process of coordinating the movement, storage, and all processes from
beginning to end.
a) Supply chain management
b) Supplier-base downsizing
c) Promoting
d) Economic order quantification
Which of the following is true about the typical growth pattern of a small business?
a) Owners do not need to give managers a financial interest in the business to hold
them.
b) The length of service of professional managers (as opposed to owner-managers) in
small businesses tends to be relatively long.
c) Owners typically hire professional managers as soon as they start their business.
d) Professional managers who work in small companies move from one company to
another as they progress upward in rank and earnings.
Which of the following is the last step in the creative selling process?
a) Closing the sale
b) Handling objections
c) Suggestion selling
d) Sales follow-up
_____ show(s) a firm’s financial position and reflect(s) any changes in that position.
a) Benchmarks
b) Cost of goods sold
c) Profit goals
d) Accounting records
Discuss some practical ways to motivate employees.
What are freestanding stores?
Explain the process of appraising and evaluating employees’ performance.
How do small wholesalers and small producers set prices for their products?
Explain why price should not be the only factor when choosing a supplier.
What are the different types of sales promotions?
Define the job related areas that need counseling.