The first step in budgeting is to make a forecast of your future sales.
The advantage of consignment approaches is that they permit full-time sales with only a
part-time involvement from the owner.
One way to maximize communication in the succession process is to create a family
council.
Liquidity enhancement is an estate planning strategy which focuses on generating cash
to cover likely estate taxes.
Variance analysis is the process of determining the effect of price and quantity changes
on revenues and expenses.
When the fear appeal used by a marketing message is a too strong, it always causes the
audience to react positively.
Correlation is one of the four stages in the creative process.
One technique to increase cash inflow is to offer discounts for delayed payments.
Commercial paper is transferable to other investors.
Copyrights, trademarks, and patents provide automatic full protection to small business
owners.
Truly entrepreneurial businesses are characterized by imitativeness in their products,
services, or business models.
Exporting is usually expensive, difficult to start, and more risky than licensing,
franchising, or joint ventures.
The goal of the industry section of a business plan is to focus on customers-who they
are, what they are like, and how to plan to get or keep the customers.
In making moral decisions, it is possible to find oneself in the legal “right” but still
unable to make a viable business decision by pursuing legal recourse.
Which among the following is an example of a variable cost?
A. Lighting
B. Security
C. Shipping
D. Cleaning
The visible behavior a person takes is known as:
A. promotion.
B. perception.
C. action.
D. cognition.
A web page in which entries are posted in reverse chronological order is a known as a:
A. blog.
B. variance.
C. search engine.
D. push service.
Peace Cut, Inc. manufactures “one size fits all” unisex pajamas. This is a typically an
example of _____ marketing strategy.
A. customization
B. concentrated
C. niche
D. undifferentiated
A(n) _____ plan provides information on the company, product/service, market, and
critical risks to prospective business or marketing partners or to prospective key
employees.
A. invention
B. operational
C. screening
D. concept
Which of the following is an element of a firm’s internal environment?
A. Customers
B. Suppliers
C. Unions
D. Board of directors
Myro Labs, Inc. has organized for a formal discussion between 12 potential customers
to test a new drug product’s packaging and pricing. The company’s marketing head has
been carefully questioning the participants in order to effectively bring out their
reactions toward the new product. This is a typical example of a(n) _____.
A. ethnographic research
B. secondary research
C. focus group research
D. survey research
_____ target specific industries and professions.
A. Trade magazines
B. Scholarly journals
C. Popular press magazines
D. Academic journals
Financial accounting is primarily intended for:
A. bankers, investors, and regulators.
B. calculating and reporting taxes.
C. predicting the results of management decisions.
D. avoiding penalties for noncompliance.
_____ is the particular way a firm implements customer benefits that keeps the firm
ahead of other firms in the market.
A. Industry analysis
B. Competitive advantage
C. Resource distribution
D. Market relinquishment
In personal selling, _____ means cleaning up the list to remove potential clients that are
unable or unlikely to buy a business owner’s product.
A. prospecting
B. prequalifying
C. polarizing
D. closing
Which of the following is an agreement that provides only the rights to use the
franchisor’s trade name and/or trademarks?
A. Product distribution franchising
B. Trade name franchising
C. Conversion franchising
D. Business format franchising
Which of the following statements is true of an elevator pitch?
A. It is shorter than a vision statement or tagline.
B. Its goal is to sell the idea of a business to another.
C. It does not sound like a sales pitch.
D. It is a summary of the business, its business models, and immediate goals.
The emphasis of financial management during the _____ phase is to obtain increasing
amounts of cash inflows to pay for added inventory, productive assets, and employees.
A. start-up
B. exit
C. growth
D. operations
Which of the following is a difficulty that arises in understanding and interpreting the
income statements?
A. There is difficulty deciding whether to report the revenues.
B. There is difficulty deciding what should be considered as expenses.
C. There are disputes over when to recognize revenues.
D. There are disputes over the preferred tax rate to incorporate.