Which of the following statements is incorrect regarding the marketing plan section of a
business plan?
A) The marketing plan focuses on how the business will market and sell its product or
service.
B) The two most important items to include in a marketing plan are (1) overall
marketing strategy and (2) the nuts and bolts of marketing a firm’s product in terms of
product, price, promotion, and place.
C) The best way to describe a company’s marketing plan is to begin by talking about its
competitors.
D) A firm’s marketing strategy refers to its overall approach for marketing its products
and services.
E) A firm’s overall approach to marketing typically boils down to how it positions itself
in its market and how it differentiates itself from its competitors.
Answer:
A company’s ________ defines the products and markets on which it will concentrate.
A) tactical analysis
B) business mission
C) product/market scope
D) supplier/buyer scope
E) basis of differentiation
Answer:
Which of the following symbols is the copyright bug?
A) ç
B) €
C) ¢
D) ©
E) ™
Answer:
Which of the following was not identified in the textbook as a common (and sound)
bootstrapping strategy?
A) coordinate purchases with other businesses
B) hire interns
C) minimize personal expenses
D) buy rather than lease equipment
E) obtain payments in advance from customers
Answer:
Which of the following is a disadvantage of growth by means of external growth
strategies?
A) diversification of business risk
B) economies of scale
C) getting access to proprietary products or services
D) reducing competition
E) increased business complexity
Answer:
A(n) ________ is a route a product takes from the place it is made to the customer who
is the end user.
A) trade channel
B) product channel
C) allotment channel
D) promotion channel
E) distribution channel
Answer:
A product attribute map is used to help a firm determine:
A) if it is emphasizing benefits rather than features
B) if its branding strategy is appropriate
C) if its market segmentation is correct
D) if its positioning strategy is appropriate
E) if its target market is appropriate
Answer:
Xplosafe, the company profiled in the opening feature for Chapter 7, interviewed four
attorneys before selecting the attorney they now use. They selected the attorney they did
for two reasons:
A) his fees were the lowest and he is an entrepreneur himself
B) his references were the strongest and he is a former examiner for the U.S. Copyright
Office
C) he is the President of the Oklahoma City, Oklahoma, bar association and he had
experience working with startups
D) he is a startup entrepreneur himself and he is a former examiner for the U.S. Patent
and Trademark Office
E) he had more experience working with startups and he agreed to alter his fee structure
to charge less at the beginning and more as Xplosafe became profitable
Answer:
Research in Motion (RIM) is a handheld computer company that focuses specifically on
business users that need dependable access to e-mail and the Internet while away from
their office. For RIM, this specific type of user within the large business market
segment is referred to as its:
A) gap market
B) task market
C) position market
D) hole market
E) niche market
Answer:
The four components of a firm’s business model are:
A) marketing plan, core strategy, business plan, and customer interface
B) core strategy, strategic resources, partnership network, and customer interface
C) economic environment, social environment, technological environment, and
legal-regulatory environment
D) opportunity recognition, feasibility analysis, business plan, and human resource plan
E) marketing plan, operating plan, financial plan, and human resource plan
Answer:
Which of the following is not a “primary” activity in the value chain?
A) inbound logistics
B) marketing and sales
C) service
D) technology development
E) outbound logistics
Answer:
Chad and Allison Druxman launched a firm several years ago and have been
particularly successful in introducing new products to the marketplace. One thing that
Chad and Allison are particularly good at is translating their thoughts, creativity, and
imaginations into products that reach the marketplace. The ability to make this happen
is most closely related to which of the following characteristics of successful
entrepreneurs?
A) passion for the business
B) execution intelligence
C) tenacity despite failure
D) product/market focus
E) a desire for recognition
Answer:
SafetyWeb is a Web-based service that helps parents protect their children’s online
reputation, privacy, and safety. Which of the following approaches to identifying an
opportunity was most likely the impetus for SafetyWeb?
A) observing trends
B) studying government reports
C) finding gaps in the marketplace
D) talking to consumers
E) solving a problem
Answer:
At the high school and younger level, according to a Harris Interactive Survey,
________ said they’d like to start their own business someday.
A) 10%
B) 20%
C) 30%
D) 40%
E) 50%
Answer:
Which of the following is a “primary” activity in the value chain?
A) resource procurement
B) technology development
C) outbound logistics
D) firm infrastructure
E) human resource management
Answer:
The document that lays out specifically how much money a firm needs, where the
money will come from, and what the money will be used for is referred to as a(n):
A) sources and uses of funds statement
B) assumptions sheet
C) pro forma financial statement
D) credit and debit statement
E) capital and operational budgeting statement
Answer:
________ marketing is a low-budget approach to marketing that relies on ingenuity,
cleverness, and surprise rather than traditional techniques.
A) Rebel
B) Bug
C) Catching
D) Guerrilla
E) Revolutionary
Answer:
Which of the following is not an advantage of buying a franchise?
A) a proven product or service within an established system
B) franchisor ongoing support
C) availability of financing
D) potential for business growth
E) duration and nature of the commitment
Answer:
New product development, other product-related strategies, and international expansion
are examples of:
A) external growth strategies
B) domestic growth strategies
C) secondary growth strategies
D) internal growth strategies
E) inward growth strategies
Answer:
Which of the following statement is not correct regarding the costs associated with
purchasing a franchise?
A) The franchisee typically pays a royalty based on a percentage of weekly or monthly
net income.
B) Capital costs vary by franchisor, but may include the cost of buying land and
building a building.
C) Additional fees may be charged for activities such as training staff, providing
management expertise when needed, and providing computer assistance.
D) Franchisees are often required to pay into a national or regional advertising fund.
E) The initial franchise fee varies, depending on the franchisor.
Answer:
________ occurs when one work derives from another or is an exact copy or shows
substantial similarity to the original work.
A) Copyright infringement
B) Copyright violation
C) Copyright intrusion
D) Copyright breach
E) Copyright duplication
Answer:
The author of the book titled The Theory of the Growth of the Firm, which is referred to
in Chapter 13, is:
A) Gary Hammel
B) Joseph Schumpeter
C) Edith Penrose
D) Michael Porter
E) Tom Peters
Answer:
The two primary issues to consider in organizational feasibility analysis are
management prowess and:
A) market timeliness
B) concept testing
C) resource sufficiency
D) target market attractiveness
E) total startup cash needed
Answer:
According to the textbook, which of the following statements is inaccurate regarding
the size and composition of the founding team of a firm?
A) There is no relationship between a founding team’s size and its effectiveness.
B) A founding team larger than four people is typically too large to be practical.
C) The members of a homogeneous founding team are similar in terms of their abilities
and experiences.
D) The members of a heterogeneous founding team are diverse in terms of their abilities
and experiences.
E) A founding team can be too big, causing communication problems and increasing
potential for conflict.
Answer:
Which of the following is not a recommended guideline for writing a business plan?
A) To make the best impression, a business plan should follow an unconventional
structure and stand out in some dramatic way.
B) A business plan needs to project a sense of anticipation and excitement about the
possibilities that surround a new venture.
C) For most plans, 25 to 35 pages is sufficient.
D) A business plan should look sharp, but not a lot of money should be spent on the
physical appearance of the plan.
E) Shy away from using a lot of boldfaced type, italics, clip art, and different font sizes
and colors when preparing a business plan.
Answer:
________ feasibility is an assessment of the overall appeal of the product or service
being proposed.
A) Consumer
B) Industry/market segment
C) Industry/market
D) Product/service
E) Purchaser/end-user
Answer:
Each quarter, Cindy Anderson, who owns a chain of card and gift shops, does a detailed
analysis of her firm’s competitors. This analysis is called:
A) competitor analysis
B) challenger analysis
C) strategic analysis
D) participant analysis
E) industry analysis
Answer:
There are three basic requirements for a patent to be granted. The subject of the patent
application must be:
A) useful, difficult to copy, and novel in relation to prior arts in the field
B) based on cutting edge science or technology, not obvious to a person of ordinary
skill in the field, and rare
C) useful, novel in relation to prior arts in the field, and not obvious to a person of
ordinary skill in the field
D) rare, difficult to copy, and not obvious to a person of ordinary skill in the field
E) useful, scientific, and novel in relation to prior arts in the field
Answer:
Jeremy Rhodes leases a manufacturing facility that produces computer keyboards.
Jeremy tries to keep production high, because his lease payments are $6,200 a month,
regardless of whether he produces one computer keyboard a month or 10,000. Jeremy’s
lease payment is a:
A) variable cost
B) secondary cost
C) fixed cost
D) marginal cost
E) tangible cost
Answer:
Peter Simmons owns an electronic games company. Although Peter’s game designers
and programmers are very good, it takes 2-3 years to develop a good electronic game.
This example illustrates the need for funding or financing referred to as:
A) personnel costs
B) marketing costs
C) costs associated with building a brand
D) lengthy product development cycles
E) cash flow challenges
Answer:
Most C corporations have two classes of stock:
A) premium and normal
B) common and preferred
C) standard and substandard
D) regular and special
E) ordinary and distinct
Answer:
Which of the following is incorrect regarding the typical role of consultants in business
startups?
A) give professional advice
B) international consulting firms, like Accenture and Bearing Point, are financially
beyond the reach of most small firms
C) consultants fall into two categories: paid consultants and consultants who are made
available for free
D) give expert advice
E) help manage the day-to-day activities of the firm
Answer:
Which of the following was identified in the textbook as a disadvantage of participating
in strategic alliances and joint ventures?
A) risk and cost sharing
B) economies of scale
C) partners’ cultures may clash
D) gain access to a foreign market
E) learning
Answer: