_____ insurance is normally included in insurance on physical assets.
A. Theft
B. Credit
C. Intellectual property
D. Safety
Which of the following is an element of a firm’s external environment?
A. Employees
B. Suppliers
C. Owners
D. Board of directors
Government specifications for acceptable use of land and buildings in particular areas
are called:
A. licensing laws.
B. public utility laws.
C. property laws.
D. zoning laws.
Skygull, Inc. is planning to launch a new generation of cell phones. Being the first
entrant in this market makes it difficult for the company to decide the means to reach its
potential customers, the advertising medium to use, and the optimum price for each cell
phone. Skygull, Inc. can best tackle this problem by conducting a(n) _____.
A. social audit
B. variance analysis
C. operational benchmarking
D. marketing research
Which of the following statements is true about the focus group method of market
research?
A. It is a form of secondary research.
B. It involves observing the participants without interacting with them.
C. It is a large group of more than 50 participants.
D. It is led by a moderator who is skilled to ask questions the right way.
Roller-Tell Inc., a major supplier of components to the automobile industry, has recently
confronted a crisis as one of its manufacturing units has been forcefully shut down by
the local union. As a result, the company has been unable to meet the customer
demands appropriately. As the owner of the business, the most appropriate way for the
firm to handle this crisis is to:
A. delegate as much as possible of the crisis management to the employees.
B. make the process of dealing with the problem as open as possible.
C. keep employees, customers, and suppliers isolated from the crisis.
D. avoid admitting that there is any issue hampering production.
According to the BRIE model, which of the following falls under the boundary
category?
A. The financial resources of a company
B. The desire to start a business
C. An e-mail address of the company
D. A product or service offered by the company
Entrepreneurs who start with a goal instead of a plan and look for a chance to achieve it
are known as _____.
A. reactive planner
B. critical-point planner
C. comprehensive planner
D. opportunistic planner
Working for a very large organization in the tractor manufacturing industry, John
always heard complaints from customers about the parts and services aspects of the
business. Taking an early retirement, John started his own business to specifically
address the many customer complaints he had been hearing. Which of the following is
most likely to be the factor that led John to the business idea?
A. A similar business
B. Chance happening
C. Work experience
D. Technology transfer
A _____ is a concession which covers the time while you prepare your location prior to
opening.
A. rent-free use period
B. leasehold improvement
C. construction allowance
D. hidden charge
Which of the following statements is true of service locations?
A. Services at a remote location can be located anywhere in the world.
B. Office cleaning is an example of services at a mutually accessible location.
C. Services at a remote location needs frequent face-to-face client involvement.
D. Services at a mutually accessible location are ideal for home-based businesses.
_____ is a payment to a licensor based on the number or value of licensed items sold.
A. Milestone payment
B. Lump sum payment
C. Royalty
D. Pay-off
_____ repay employers for losses caused by dishonest or negligent employees.
A. Credit insurance
B. Business interruption insurance
C. Surety bonds
D. Fidelity bonds
Which of the following stages of new product development typically involves
specifying the details of each idea’s technological feasibility, its cost, how it can be
marketed, and its market potential?
A. Idea generation
B. Market introduction
C. Idea evaluation
D. Test marketing