The more innovative your domain and name, the better.
The customer group that spends the most time in shopping malls is teenagers between
the ages of 14 and 17.
Although a small business manager must assume a wide range of ideas, tasks, and
responsibilities, none is more important than the role of leader.
A free trade area is an association of countries that have agreed to knock down trade
barriers (both tariff and nontariff) among partner nations.
One advantage of being your own boss and owning a small business is that work hours
are very flexible and leisure time is abundant.
The most effective way for a small business to establish a competitive advantage is by
offering lower prices.
Ethical decisions are individual decisions.
Mashups, blogs, social networking, RSS feeds, wikis and widgets are popular social
media tools used by businesses.
Which of the following is not a secondary source of market research data?
A) Census data
B) Trade publications
C) Focus groups
D) Magazines
The ________ population is the fastest-growing sector in the United States.
A) Asian
B) African-American
C) Hispanic
D) Caucasian
Two valuable resources for entrepreneurs to investigate for going global should include
________.
A) U.S. Department of Commerce
B) International Trade Administration
C) A and B above
D) Neither of these resources will provide real value or insight
Melinda and John Perez, both corporate attorneys in New York City, have grown tired
of their lengthy daily commute, the stress of their jobs, and the overbearing policies of
their employers. They have decided to leave their six-figure jobs and together open a
guide service in Wyoming. Melinda and John are examples of ________.
A) corporate castoffs and corporate dropouts
B) corporate dropouts and copreneurs
C) corporate castoffs and copreneurs
D) copreneurs and serial entrepreneurs
Which of the following is a guideline for becoming a successful international
competitor?
A) Make yourself at home in all of the world’s key markets – North America, Europe,
and Asia.
B) Become familiar with foreign customs and languages.
C) Consider using partners and joint ventures to break into foreign markets you cannot
penetrate on your own.
D) All of the above
Which of the following statements is/are true regarding export management companies?
A) Most are merchant intermediaries that work on a buy-and-sell arrangement with
domestic small companies.
B) They provide small businesses with a low-cost, efficient, independent, international
marketing department.
C) Many specialize in particular products or product lines and offer services ranging
from market research and advice or patent protection, to arranging financing and
handling shipping.
D) All of the above
Which of the following is required to form a partnership?
A) A general partner
B) A limited partner
C) A secret partner
D) A silent partner
The North American Free Trade Agreement (NAFTA) created a free trade area among
________.
A) Canada, Mexico, and the United States
B) Japan, Mexico, and Canada
C) Mexico, Japan, and the United States
D) None of the above
Which of the following is a domestic barrier to small business exporting?
A) The attitude, “I’m too small to export.”
B) A lack of information about how to get started in exporting.
C) A lack of export financing for small companies.
D) All of the above
Which company has the strongest competitive position?
A) Your company
B) Competitor 1
C) Competitor 2
D) Impossible to tell from the information given.
More women entering the workforce is an example of a ________ change.
A) economic
B) demographic
C) technological
D) sociocultural
Businesses selling less well-known brands should ________.
A) reduce prices
B) offer freebies
C) use customer testimonials and endorsements
D) All of the above
A global customer loyalty consulting firm reports that a company must land ________
to ________ new customers to offset the impact of one lost loyal customer.
A) 2; 12
B) 6; 18
C) 12; 20
D) 20; 30
Although many business owners see checking references as a formality and pay little
attention to it, the process is ________.
A) expensive and often meaningless
B) necessary and often invaluable
C) optional, based on the position’s salary and relative importance
D) a questionable practice that may bias the hiring process
Which of the following would be a potential source of information for preparing a sales
forecast?
A) Past records
B) Trade associations and the Chamber of Commerce
C) Similar firms
D) All of the above
Currently, the World Trade Organization (WTO) had 155 member countries that
represent over ________ percent of all world trade.
A) 97
B) 39
C) 76
D) 52
Which of the following is nota behavior typically exhibited by effective leaders?
A) Define and constantly reinforce the vision they have for the company.
B) Respect and support their employees.
C) Require employees to gather necessary resources to complete their tasks; they will
be more likely to “feel ownership” than if you did it for them.
D) Create an environment in which people have the motivation, the training, and the
freedom to achieve the goals they have set.
Establishing a Baskin-Robbins franchise inside a Blimpee’s franchise is an example of
________ franchising.
A) multi-unit
B) master
C) cobranding
D) diversionary
The specific group of customers at whom a company aims its good or services is
referred to as a ________.
A) market segmentation
B) bootstrap marketing
C) niche marketing
D) target market
To calculate the IRS, a retailer needs to know the number of customers, the number of
competitors, and the total square feet of space allocated to selling her/his kind of
product in the trading area.
Discuss the three options that entrepreneurs may consider when they sell their business
to insiders.
Mini-Case 9-1: Marketing a Nonprofit – Virtual Opportunities
New Wave Chance Youth Club is a local youth organization supported solely by the
donations of individuals and the local church community. Its co-founders, Valerie and
Kristen, are considering launching a Web site to promote upcoming events and raise
money for a new gym. Their good friend Paul has volunteered to develop a Web site,
which they feel will help promote their efforts.
The building fund manager, Mr. Grover, has been overwhelmed by the generosity of the
community and numerous requests to donate supplies. Describe how the Web site may
be able to help him organize the donation requests and determine the type and quality of
the building supplies needed?
Explain “brainstorming” and list at least five of the guidelines for a successful
brainstorming session.
What is ethics and how is it different from social responsibility?
Explain the concept of total quality management. How is it different from the quality
inspection of a final product just before being packaged?
Why is it important for an entrepreneur, about to launch a business, to perform a
break-even analysis? Describe the steps in calculating it.
Discuss the impact of small businesses on the U.S. economy, including sales, GDP, job
creation, and innovation.
What is strategy? Describe the three basic strategies small companies can choose from:
cost-leadership, differentiation, and focus. Explain the conditions under which each
works, its benefits, and its pitfalls.
Why is it important for small business owners to track demographic trends? How can
small companies become effective trend trackers?