Secondary research includes customer surveys.
One of the rights given to consumers by the Consumer Bill of Rights is the right to
safety.
The mission statement addresses the first question of any business venture: “What
business am I in?”
Generally, an industry is more attractive when buyers’ cost of switching to substitute
products is low.
Few companies with less than $25 million in annual sales manage to go public
successfully.
Angels fill a significant gap in the seed capital market.
The best way for a small business to ensure quality products is to use quality
inspections.
If an entrepreneur has a good enough product or service to sell, a business plan is not
really necessary since the product or service will sell itself.
Because their companies are small, entrepreneurs need not develop the leadership skills
managers in larger companies need.
Ethics and social responsibility simply set behavioral boundaries for decision makers.
One of the surest ways to alienate online customers is to abuse the information
collected from them by selling it to third parties or by spamming them with unwanted
solicitations.
The Business Model Canvas has ________ elements.
A) 3
B) 5
C) 9
D) 6
A(n) ________ competitor offers the same or similar products or services only in a
small number of areas, and their target customers seldom overlap yours.
A) indirect competitor
B) direct
C) parallel
D) divergent
The acceptable price range of a product or service is the area between the ________
defined by customers in the market and the ________ established by the company’s cost
structure.
A) price floor; price ceiling
B) image; quality
C) price ceiling; price floor
D) price floor; value
A competitive profile matrix ________.
A) identifies a firm’s core competencies
B) permits the small business owner to divide a mass market into smaller, more
manageable segments
C) allows the small business owner to evaluate her firm against competitors on the key
success factors for the industry
D) creates a road map of action for the entrepreneur to fulfill her company’s mission,
goals, and objectives
Maria is excited about the new opportunity her company has offered her – she will be
able to work from her home office with a company computer and a high-speed Internet
connection while she spends time with her newborn son. This is possible because of the
implementation of ________.
A) telecommuting
B) hoteling
C) job sharing
D) job rotation
McDonald’s is an example of a ________ franchise.
A) conversion forms
B) trade name
C) product distribution
D) pure
To avoid unpleasant surprises in launching an e-commerce effort an entrepreneur
should ________.
A) test the Web site with real customers to make sure it is easy to navigate
B) avoid being talked into establishing a privacy policy
C) cancel all current advertisements in other media
D) not try to out-guess customers, and handle order fulfillment as orders come in
The most common problem is the online transactions that customers dispute, referred to
as ________.
A) acts of fraud
B) chargebacks
C) torts
D) recency
________ responsibility is how an organization responds to the needs of the many
elements in society.
A) Moral
B) Investor
C) Social
D) Ethical
The principle of putting a franchise’s products or services directly in the paths of
potential customers with smaller, less expensive outlets is called ________.
A) cobranding
B) intercept marketing
C) area development
D) master franchise
A ________ partner is a person who makes financial investments in a partnership, does
not take an active role in managing the business, and whose liability for the
partnerships’ debts is limited to the amount they have invested.
A) limited
B) master
C) dormant
D) silent
When investing surplus cash, the small business owner’s key objectives should be on
the ________ of the investment.
A) high yields
B) current income
C) liquidity and safety
D) long-term yield
The total quality management (TQM) concept ________.
A) strives to achieve quality not just in the product or service itself, but in every aspect
of the business and its relationship with the customer
B) relies on quality inspections through an army of quality control inspectors
C) focuses on reducing the time it takes to fulfill a customer’s request for a product
D) None of the above
Experts estimate that ________ percent of companies worldwide engage in some type
of socially responsible activity.
A) 25
B) 50
C) 75
D) 80
The most important ingredient for a successful joint venture is ________.
A) targeting the right country in which to sell
B) getting government approval and avoiding antitrust charges
C) choosing the right partner
D) splitting costs and profits equally
Companies with a customer focus typically ask their customers all but which of the
following questions?
A) What are we doing right?
B) What have we done wrong?
C) What can we do in the future?
D) What have our competitors done wrong?
The ability to see the connections among various data and events is called ________.
A) convergent thinking
B) divergent thinking
C) transformational thinking
D) illumination