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

The executive summary

should capture the interest of the readers

Businesses should always set their prices

high enough so that revenues exceed expenses

An disadvantage of newspaper advertising is that

your advertisement competes with many others

A written marketing plan should

identify strategies for price, product, place, and promotion

The fixed costs of a business

include interest on business loans

The products or services section of your plan should

explain any unique features of your product or service

Short-term marketing strategies can

be created based on the four elements of the marketing mix

Stand-alone stores can be good locations for businesses because

there is no competition next door

An advantage of buying an existing business is that

policies and procedures are already established

The reason a bank may turn down your loan application is

your business plan is poorly written

studbud

Spring Final Exam Review

25 termsStudBud Administration83 plays

Entrepreneurship

Flashcards25 cardsFPractice quizPHost liveL

Questions 25

Answers

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

Spring Final Exam Review Flashcards | StudBud