Effective Small Business Management: An Entrepreneurial Approach 9th Edition, 2009 ISBN-13: 9780136152705
Norman M. Scarborough, Douglas L. Wilson, and Thomas W. Zimmerer
Complete the mcq:
1. The location of the business is especially important for what type of start-up businesses?
a. service
b. manufacturing
c. retail
d. computer-based service
2. The limited liability company is most like a/an:
a. S-corporation
b. master partnership
c. sole proprietorship
d. general partnership
3. Which of the following is true about choosing a limited liability company form of ownership?
a. It is inexpensive, easy to form, and covered by little regulation due to its newness.
b. It has no disadvantages except its newness.
c. It's an excellent conversion vehicle for existing businesses that are suffering from double taxation but problematic for sole proprietorships.
d. It is ideal for a new company but difficult to convert to with an existing company.
4. Typically, the franchiser controls are very tight on what the franchisee:
a. sets in terms of retail pricing and hours of operation.
b. does in terms of who they hire as employees.
c. sales in terms of the product or service they offer.
d. does with his/her net profits after fees and taxes are paid.
5. The recommended steps when buying a business are:
a. analyze your skills and abilities
b. explore a variety of financing options
c. investigate the potential acquisitions
d. all of the above
6. Using the discounted future earnings approach, the buyer estimates
a. the company's net income for the several years
b. the company's net income for the next six months
c. the company's net income for several years and then discounted back to the present value
d. the company's net asset for several years and then discounted back to the present value
7. Potential investors tend to believe that if an entrepreneur can't develop a good plan:
a. then the entrepreneur is just like the majority of entrepreneurs and will probably do quite well
b. he/she probably lacks the discipline to run a business
c. he/she is probably the action-oriented sort of person they need running a business
d. he/she needs to hire a consultant to write the plan for him/her
8. Defining the target market's potential and describing its characteristics is part of the:
a. marketing strategy portion of the business plan
b. competitive analysis
c. description of the product line
d. business strategy section of the business plan
9. An explanation of how the product will be distributed is contained within the:
a. business strategy section of the business plan
b. description of the product line
c. marketing strategy portion of the business plan
d. competitive analysis
10. A description of the key factors that will dictate the success of your business quality, price competitiveness, etc. should be contained in the ________ section of the business plan.
a. executive summary
b. market analysis
c. description of the business
d. competitor analysis
11. The marketing plan should include certain key objectives, such as:
a. determining product costs through market research
b. determining what costing strategies to use
c. pinpointing the specific target markets a small business will serve
d. discovering what the company's ETDB index is
12. A demographic trend is like a train for the small business owner in that:
a. the small business will be "run over" if it doesn't get out of the way and try to work with the "spin-offs" from the trend
b. he/she needs to catch it and ride it to wherever it is going
c. he/she needs to discover where it is going early and decide whether or not to get on board
d. it is a slow process that is easily caught at several points, and the small business owner has lots of time to consider his/her options
13. To build an effective customer service program, it is important to:
a. swiftly discipline employees who mistreat customers
b. offer low prices
c. train key employees to watch for and intervene when there are problems let managers wait on d. customers occasionally
14. The cost of marketing a product is highest in the:
a. saturation stage
b. introductory stage
c. growth and acceptance stages
d. maturity stage
15. The choice of advertising medium is primarily determined by:
a. what media the competition uses
b. the unique selling proposition and budget
c. the target audience and the message
d. what media the industry focuses on
16. Radio:
a. can reach nearly any target market
b. is the one medium that customers spend the most time paying attention to
c. is the most expensive advertising medium in terms of relative costs
d. is very susceptible to "zapping"
17. When pricing products, it is important to remember that:
a. pricing is more an intuitive than a quantitative process
b. a customer orientation in price setting is most important
c. there is an ideal price that customers will pay for a given product or service
d. once the acceptable price range is found, prices should not be changed again
18. ABC manufactures computer hardware. The marketing executives, in order to increase the market share, forced a business to accept a suggested retail price and not to sell the items below the stated price. This is a violation of what?
a. As long as the manufacturer offer rebates, they can do whatever they want.
b. This practice violates the Fair Price Protection Act
c. This practice violates the Sherman Antitrust Act.
d. There is no violation. The manufacturer has the rights to tell a business at what price they should resell the computer.
19. In regards to strategies for E-success, which goal(s) of e-commerce are no different from traditional off-line businesses?
a. boost profits
b. improve efficiency
c. to increase sales
d. all of the above