A vending machine is a form of direct sales method.
Ninety percent of all new businesses fail within two years.
Jacob often manipulates charges on his travel expenses to indicate higher amounts when
he travels for the company he works for. Trent, the accounts manager, accepts fake bills
and assists Jacob in deceiving the company. They split the profits made this way. This is
an example of theft by:
A. adverse possession.
B. employee collusion.
C. employee nonfeasance.
D. vendor fraud.
An item’s capability of being touched, seen, tasted, or felt is called _____.
A. tangibility
B. legitimacy
C. mutuality
D. perishability
Which of the following stages involves working extensively with potential sources of
funding and other key resources, as well as working with markets outside and
employees within the firm?
A. Survival
B. Resource maturity
C. Existence
D. Takeoff
_____ is typically a source for consumers’ internal reference price.
A. Researching on the Internet
B. Taking advice from friends and family
C. Looking at competitive ads
D. Recollecting previous shopping experiences
Activities common to all businesses such as sales, operations (also called production),
accounting, finance, and human resources are known as _____.
A. key business functions
B. competencies
C. business accreditations
D. business-related expertise
According the study of what matters most to entrepreneurs and their businesses, start-up
entrepreneurs feel most confident about which of the following aspects?
A. Complying with local/state/federal regulations
B. Obtaining start-up capital
C. Obtaining a bank’s help
D. Attracting employees
_____ are the only way a sole proprietorship may be purchased.
A. Buy-ins
B. Takeovers
C. Key resource acquisitions
D. Buyouts
Doubt that occurs after a purchase has been made is called _____.
A. cognitive dissonance
B. customer vector
C. segmentation
D. trendiness
_____ are completely passive, waiting for cues from the environment to determine what
actions to take.
A. Opportunistic planners
B. Critical-point planners
C. Comprehensive planners
D. Reactive planners
The popular name for a Chapter 13 bankruptcy in which a bankrupt firm continues to
operate while paying off debts identified by the bankruptcy trustee is _____.
A. liquidation
B. amortization
C. reorganization
D. depreciation
_____ refers to earnings of the business that are taxed once with the owners paying the
taxes.
A. Pass through taxation
B. Double taxation
C. Check the box taxation
D. Single taxation
While teaching strategy at Farrell University, Jessica developed an interactive
strategy-simulation game to help her students understand its concepts. She found that
they were able to grasp the concept much better from the game rather than from reading
books. For two years, Jessica used the game to teach students. Eventually she removed
possible glitches and perfected the game. She wanted students at other universities to
benefit from the simulation. The result was the launch of Simulate Strategy, Inc. Given
that Jessica has a very limited budget, which of the following forms of direct mail will
be most appropriate for her to adopt?
A. Brochure
B. Direct response advertising
C. E-mail
D. Telemarketing
Which of the following terms means “let the buyer beware”?
A. Caveat lector
B. Spin-off
C. Caveat emptor
D. Synergy
Which of the following is a value benefit?
A. Scale savings
B. Cost savings
C. Learning
D. Technology
The amount that revenues exceed expenses is termed _____.
A. interest
B. credit
C. profit
D. overhead
Which of the following plans is most likely to be useful for demonstrating a new
technology or service?
A. An invention plan
B. A private placement memo
C. A proof-of-concept Web site
D. An operational plan
While teaching strategy at Farrell University, Jessica developed an interactive
strategy-simulation game to inculcate the concept of strategy to her students. She found
that they were able to grasp the concept much better from the game rather than from
reading books. For two years Jessica used the game to teach students. Eventually she
removed possible glitches and perfected the game. She wanted students at other
universities to benefit from the simulation. The result was the launch of Simulate
Strategy, Inc. Jessica places an advertisement about her product with her e-mail and
contact information in the “Chronicle of Higher Education,” a leading publication for
University professors. Which of the following marketing strategies exemplifies this
scenario?
A. Guerilla marketing
B. Telemarketing
C. Direct sales
D. Direct response advertising
Key business functions:
A. are skills necessary to identify and exploit elements of the business environment that
can lead to a profitable and sustainable business.
B. are activities that reflects a person’s determination to start their business and make it
a success.
C. are certain fundamental activities that all businesses must perform.
D. are business-related activities that are optional for the entrepreneur to perform.