Which of the following would have a very short-term approach to planning?
A. Individuals who look for opportunities to achieve their goal, even if the opportunity
isn’t the one related to their original goal.
B. Individuals who develop long-range plans for all aspects of the business and act
based on the plans they’ve developed.
C. Individuals who plan around the most important aspect of the business first, act on it,
and then consider if additional plans are needed.
D. Individuals who are comfortable with planning and act based on the plans they have
developed.
In the context of entry wedges, _____ occurs because government agencies,
government-sponsored commercial contracts, and many big businesses have policies
that provide for quotas for buying from small businesses.
A. second sourcing
B. favored purchasing
C. market relinquishment
D. customer contracting
Cash that can be obtained from stocks, bonds, land, buildings, or equipment that a
business has is called:
A. cash flow from operations.
B. cash from financing.
C. cash flow from subsidy.
D. cash flow from investing.
A _____ systematically articulates a business’s product, price, distribution, and
promotion strategy, and it also clearly identifies the business’s target market and
competition.
A. marketing plan
B. balance sheet
C. documentary draft
D. mission statement
A _____ is best described as a small group (8 to 20 people) that is asked to meet to
discuss a series of questions about a particular product or service.
A. focus group
B. strategic group
C. reference group
D. command group
Which of the following is true of typical accounting functions used in businesses?
A. Inventory accounting facilitates maintenance of appropriate levels of inventory and
aids in calculation of appropriate stocking and reorder levels.
B. Fixed assets record the improvements to leased property or equipment made by the
business.
C. Payroll records automatically calculate and accumulate depreciation.
D. Accounts receivable records track what one owes and helps to make timely
payments.
The primary disadvantage of the payback period is that:
A. it incorporates all cash flows that occur after the payback period.
B. it is highly complex.
C. it does not allow the comparisons of alternatives.
D. it disregards the time value of money.
Which of the following forms of business is the easiest to set up?
A. A limited liability company
B. A corporation
C. An S corporation
D. A general partnership
A perceptual map is:
A. a chart that maps changes in competitors, sales and profits in an industry over time.
B. a graphic display which positions products according to their scores on important
strategic dimensions.
C. a chart that indicates the changes in the magic number of a business owner.
D. a graphic display which indicates the various stages of the lifecycle of a product.
Which of the following strategies is central to the process of upselling?
A. Market penetration
B. Market expansion
C. Product expansion
D. Diversification
At Sea Shell Diner, a burger costs $4, and a pack of two cookies costs $2. The diner
also offers a combo meal consisting of the burger and cookies at $5. This pricing
strategy is an example of _____.
A. prestige pricing
B. price lining
C. off-peak pricing
D. bundling
Cannibalizing is one of the major concerns when _____.
A. moonlighting
B. aggrandizing
C. benchmarking
D. bootstrapping