The fixed costs of a business

include interest on business loans

The target market is the individuals or companies interested in a product or service and

are willing and able to pay for it

All of the following are disadvantages of locating a business in a downtown area except

offices and professional buildings are located there

An advantage of buying an existing business is that

policies and procedures are already established

A written marketing plan should

identify strategies for price, product, place, and promotion

The executive summary

should capture the interest of the readers

Stand-alone stores can be good locations for businesses because

there is no competition next door

Short-term marketing strategies can

be created based on the four elements of the marketing mix

The reason a bank may turn down your loan application is

your business plan is poorly written

The products or services section of your plan should

explain any unique features of your product or service

An disadvantage of newspaper advertising is that

your advertisement competes with many others

Businesses should always set their prices

high enough so that revenues exceed expenses

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Spring Final Exam Review

25 termsStudBud Administration83 plays

Entrepreneurship

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Questions 25

Answers

1
Operating costs of a franchise
are paid by the franchisor
include a fee for advertising
include a fee for writing the franchise agreement
are usually less than one thousand dollars
2
The fixed costs of a business
are different each month
are based on the quantity of goods produced
include the cost of production materials
include interest on business loans
3
The target market is the individuals or companies interested in a product or service and
can afford to pay for it
are willing and able to pay for it
are customers of the competition
are located in the surrounding area
4
Competitors should be analyzed in terms of their
size
advertising campaign
suppliers
location and price
5
Market research is a system for collecting, recording, and analyzing information about
competitors
customers
all of these
goods and services
6
All of the following are disadvantages of locating a business in a downtown area except
suburbs are too far away
offices and professional buildings are located there
lack of parking spaces
there are not many customers in the evenings
7
An advantage of buying an existing business is that
it has a reputation with customers
a large amount of capital is not required
it is financially viable
policies and procedures are already established
8
Publicity is free promotion that is generated by
creative advertising
networking
press release
media coverage
9
Data describing people in terms of tastes, personality traits, and lifestyle habits are
demographics
demonstration data
psychology data
psychographics
10
An employee
sets non-financial goals for a business
takes the risk of a business venture
sets financial goals for a business
works for someone else
11
A written marketing plan should
identify strategies for price, product, place, and promotion
help you choose an advertising medium
help you determine your networking objectives
be revised every two years
12
The executive summary
includes the name, address, and phone number of your company
is the second introductory element
should capture the interest of the readers
is rarely read by lenders or investors
13
Disadvantages of entrepreneurship include
All of these
Working Long Hours
Risk
Uncertain Income
14
Information collected for the very first time to fit a specific purpose is
primary data
market data
secondary data
psychographics
15
Stand-alone stores can be good locations for businesses because
they do not need to advertise heavily
there is no competition next door
there are no anchor stores to distract customers
they attract walk-in customers
16
Short-term marketing strategies can
be created based on the four elements of the marketing mix
be used to identify medium-term goals
teach you how to network
identify your product mix
17
The reason a bank may turn down your loan application is
a start-up business is less likely to default on a loan
your business plan is poorly written
you have not owned a business before
you have invested too much of your own money
18
Without a business plan, you will not be able to
make sales projections
obtain a business loan
find a location for your business
manage your business
19
The products or services section of your plan should
describe the market for your product or service
show the expertise of your sales force
explain who your prospective customers are
explain any unique features of your product or service
20
As an entrepreneur, you have responsibilities to
your community
all of these
your investors
your suppliers
21
An disadvantage of newspaper advertising is that
you cannot include much information
it targets a limited geographic area
it is expensive
your advertisement competes with many others
22
Characteristics of successful entrepreneurs include
Self-Control
Indiscretion
Optimism
Independence
23
Which of the following is a retailing business?
Paper Mill
Appliance Repair Shop
Orange Grower
Jewelry Store
24
Businesses should always set their prices
lower than their competitors' prices
by using cost-based pricing
high enough so that revenues exceed expenses
to maximize sales
25
All of the following are important types of insurance for your business except
property insurance
workers' compensation
casual insurance
life insurance

Spring Final Exam Review Flashcards | StudBud