_____ refers to a preliminary run of a business, sales effort, program, or Web site with
the goal of assessing how well the overall approach works and what problems it might
have.
A. Conversion rate
B. Pilot test
C. Incubation period
D. Commercialization
Tammy is talented at craft but lacks the cash flow management skills required to run a
business. She opens a store, Tammy’s Craft Corner, with the help of her son David’“a
business major’“who manages the budgets and expenses of the business. Tammy
receives a bulk order from a customer to make 100 paper roses for Valentine’s Day. She
charges 20 percent of the total sales price in advance and promises to deliver the order
within 30 days. The advance payment that Tammy receives for the order before
delivering the product is called _____.
A. discount payment
B. deposit and progress payment
C. noncash incentive
D. gaming the payment process
The extent to which a small business is taken for granted, accepted, or treated as viable
by organizations or people outside the small business is referred to as _____.
A. narrowcasting
B. external legitimacy
C. test marketing
D. internal understanding
The primary disadvantage of leasing is that:
A. it is difficult to replace leased assets than it is to replace owned assets.
B. the process of negotiating and closing a lease is very complicated.
C. it usually costs more than it would cost to purchase an asset.
D. the responsibility of disposing of obsolete assets lies on the lessee.
Money that is immediately available to be spent is called _____.
A. receivable
B. stock
C. chargeback
D. cash
_____ is a process of producing an idea or opportunity that is novel and useful,
frequently derived from making connections among distinct ideas or opportunities.
A. Prototyping
B. Creativity
C. Benchmarking
D. Incubation
According to the BRIE model, _____ sets up a business as a firm.
A. intention
B. exchange
C. franchise
D. boundary
_____ refers to searching and capturing new ideas that lead to business opportunities.
A. Opportunity charging
B. Entrepreneurial alertness
C. Opportunity recognition
D. Opportunity encryption
A legal agreement that allows a business to be operated using the name and business
procedures of another firm is referred to as a:
A. franchise.
B. blue ocean strategy.
C. green field investment.
D. cartel.
Which of the following challenges is typical to family businesses?
A. Motivation and nepotism
B. Role conflict and succession
C. Succession and finances
D. Leadership and finances
Gold Pelican, Inc. is a small e-commerce company that sells custom made briefcases to
customers spread across the globe. The company is now planning to expand its
operations by opening stores in many countries. Hence, the company decides to conduct
a survey to understand what its existing customers think about it as a brand, its product
quality, pricing, and their future expectations. Keeping in mind the budget constraints of
a small business and the need to cover customers all over the world, which of the
following is the most appropriate way to conduct a survey?
A. Internet
B. In person
C. Telephone
D. Focus group
The fundamental success factor in door-to-door selling is:
A. closing the sale.
B. having a location with enough foot traffic.
C. approaching a “high-rent” district.
D. having a perishable product for sale.
A system of recording the receipt and sale of each item as it occurs is called a _____.
A. micro inventory
B. periodic inventory
C. just-in-time inventory
D. perpetual inventory
In a(n) _____ marketing strategy, a marketer selects one specific group of consumers
and designs a marketing mix specifically for that group.
A. undifferentiated
B. concentrated
C. differentiated
D. mass
Economic sector in the general environment is primarily concerned about the:
A. trends in the mix of ages, races, and gender in society.
B. availability of raw materials and changes in weather and ecological forces.
C. availability of equity, credit, and employment in a country.
D. shared interests and differences between subcultures.
Maintaining an inventory helps a business to have an optimal level of cash flow by:
A. increasing the cost of carrying inventory.
B. reducing the cost of processing orders.
C. reducing cash inflow due to being out of stock.
D. increasing cash outflow due to waste resources.