12 Week Benchmark Entrepreneurship I

An entrepeneur considers venture location and financial needs during the _____________ process.
Planning
Which of the following is an operational issue that entrepreneurs must consider when planning their businesses:
Production process
Which of the following is a tool that an entrepreneur develops to project sales for a new business venture:
Sales Forecast
When planning for her new business, Janine allocates two percent of the company’s estimated annual sales to web and newspaper advertising. Janine is developing a
Promotional Budget
Which of the following statements is true about business start-up requirements
The financial needs to start a new business depend on the nature of the venture
In order for a business to generate a profit, its operating costs must be __________ the gross margin.
less than
The costs of operating a business are often called __________ expenses
overhead
Variable expenses increase in direct proportion to the increased rate of
production
Regan is deciding if she is willing to give up a secure position with a well-known company so she can start a home-based business. Which of the following risks is Regan assessing:
career
Emotional risks that many entrepreneurs face include
a martial tension and family problems
Costs of sales for a new manufacturing venture typically include
raw materials, equipment, and product inventory
One-time start-up costs often include __________ fees
incorporation
Which of the following is a characteristic of a well-conducted feasibility study:
complete
The primary purpose of a feasibility study is to answer which of the following questions:
should we proceed with the project
Which of the following statements is true regarding training for entrepreneurial ventures:
The type of training and education that entrepreneurs need depends on the nature of the start-up business
Successful entrepreneurs enjoy their work and often start their businesses so that they can share their interests and enthusiasm with others. In other words, successful entrepreneurs have __________ for what they do.
passion
Which of the following sources of start-up information would you recommend to an entrepreneur looking for information about the average start-up and operating costs for a self-serve laundromat:
Coin laundry trade association
A reliable online source of general business start-up information is
the Small Business Administration (www.sba.gov)
Marketing strategies are designed and implemented for the overall purpose of
achieving planned goals
Which of the following is a consideration in the place element of marketing:
Choosing distribution channels
Which of the following best describes the role of tactics in marketing strategies:
Specific actions
Companies have been forced to pay more attention to the specific needs of consumers because of
competition
Procter & Gamble’s decision to offer different types of soaps in a wide range of prices is an example of
market segmentation
When sellers offer one-size-fits-all products that will appeal to most buyers, they are using
mass marketing
Marzetti’s Musical Instruments has determined that it will focus its marketing efforts on senior high-school students. Marzetti’s is engaged in _________ marketing.
target
The same person can be included in more than one
target market
Marketers should check on their markets periodically because markets can
change
Sorting customers by their physical and social characteristics is called _________ segmentation.
demographic
The community college has decided to market its evening classes to women between the ages of 18 and 30 who are high-school graduates. What type of segmentation is the college using?
demographic
Geographic segmentation is dividing a market by where customers are
living
Which question do customers ask in behavioral segmentation?
how will the product benefit me
Which of the following should be included in a marketing plan’s executive summary:
The organization’s mission statement
Which of the following is often included in a marketing plan’s situation analysis:
A SWOT analysis chart
What section of the marketing plan includes information about expected results?
Performance and implementation
Which of the following items might be included in a marketing plan’s appendix:
A product photograph
A marketing plan should outline the specific activities that the business will use to
achieve its marketing objectives
Which of the following is an important benefit of marketing plans:
They can help obtain funding
Where in a marketing plan would a business discuss how it plans to communicate with its customers?
Marketing strategies and programs
Which of the following is a question that a business should answer about its target market while conducting a situational analysis:
What are our customers buying
Which of the following situations presents a business threat to a company:
A competitor obtains a bank loan for expansion
Which of the following is an external threat that a company might identify while conducting a situation analysis:
Rising inflation rate
A business identifies a market that shares common characteristics on the basis of where people live and work, which is an example of market identification by __________ segmentation
geographic
Businesses that segment the market based on psychographics are grouping people according to their
lifestyles
Identifying market segments helps a business to develop appropriate
marketing strategies
When a business selects a target market, the most useful or desirable market segments to the business are those that are measurable and
accessible
Selecting a target market based on very specific criteria that limit the audience to a well-defined segment is an example of
niche marketing
When the Green Company selected its target market, it decided to ignore the segment differences and generate appeal with one offer. The company is using __________ marketing.
mass
Which of the following is a factor that businesses often consider when conducting a market analysis:
Size of the market next year
One of the purposes of conducting a market analysis is to develop a(n)
customer profile
When a business conducts a market analysis and identifies territories, determines the possible buyers in the territories, and estimates the buyers’ purchases, it is evaluating the
area’s market potential
What is a potential threat a manager might identify in a SWOT analysis?
Growing government regulation
Which of the following questions is it important to ask to determine the business’s strengths
when conducting a SWOT analysis:
Where are we making money
Which of the following is a question that a business might ask when it wants to evaluate its weaknesses:
What resources do we lack
One reason why it is often important for businesses to conduct a competitive analysis is to identify
external threats
Which of the following is an activity that a business performs when conducting a competitive analysis:
Monitors rivals’ marketing strategies
One way that a business can learn about its competitors’ activities is by
reviewing secondary data
Entrepreneurial discovery is an important process in a free-enterprise economic system because an entrepreneur or small-business owner can:
Satisfy an unmet demand
Which of the following statements is true about entrepreneurial discovery?
It’s an ongoing process that facilitates a business’s success rate
The entrepreneurial discovery process requires knowledge and the recognition of a(n):
Market need
Which of the following is an example of a demographic trend that has encouraged entrepreneurial discovery?
Increased cultural diversity
Identifying new product opportunities usually requires a person to be:
Aware
When conducting an environmental scan, which of the following is an economic factor that a business should consider?
Consumer spending habits
Which of the following is a true statement about a business’s environment?
It is always changing
Which of the following is an example of a demographic trend?
The aging of the population
Which of the following examples illustrates how environmental factors are interrelated?
The economy affects what competitors are doing
Which of the following is a global trend that might encourage an entrepreneur to consider international business opportunities?
Lower tariffs
When determining venture-creation opportunities, entrepreneurs must first:
Conduct research
Which of the following does effective product/service management help businesses to do:
To compete
When considering a new product for your company, you decide to introduce the product in only three states for a six-month period. This is known as
test marketing.
Which of the following is a characteristic of pure services:
Does not include a tangible product
Product/service management is a marketing function that involves obtaining, developing, maintaining, and improving a product or service mix in response to
market opportunities
When considering the services to offer customers, a business should determine if a specific service would
enhance customer-satisfaction levels
A business is extending its operating hours to accommodate its customers. Which of the following is a business cost associated with this service:
Higher payroll expenses
A person who owns, operates, and takes the risk of a business venture is
An entrepreneur
A person who works for someone else is
and employee
Which of the following does effective product/service management help businesses to do:
To compete
When considering a new product for your company, you decide to introduce the product in only three states for a six-month period. This is known as
test marketing
Which of the following is a characteristic of pure services:
Does not include a tangible product
Product/service management is a marketing function that involves obtaining, developing, maintaining, and improving a product or service mix in response to
market opportunities
Which of the following is an example of a company’s using brand extension:
Coca-Cola adding Caffeine-Free Diet Coke
Which of the following factors helps a business to determine its product mix:
Size and target market goods
To appeal to a target market with slightly different needs, a business decides to add a group of related items to its product mix. This is called a
line extension
The product mix that a business decides to offer customers helps to project the business’s
unique image
One way for a business to expand its product mix is by
acquiring another company
When a business expands its product mix, its goal is to appeal to
more market segments with a wider variety of options
Due to lackluster sales, the Elba Corporation has decided to eliminate several of its product lines. Elba’s executives hope that by focusing on fewer product lines, they will see more profit. The Elba Corporation is planning to adjust the _________ of its product mix.
width
When considering the services to offer customers, a business should determine if a specific service would
enhance customer-satisfaction levels competitors
A business that emphasizes a product’s environmental friendliness is positioning the product by focusing on
attributes
When a business emphasizes a product’s degree of excellence, it is positioning the product by its
quality
If the XOB Company wants to emphasize the advantages of its product in comparison to similar products in the marketplace, it should position its product in relation to
competitors
Marketers often condense USPs into short slogans because
customers tend to remember just one thing from an advertisement
A business that fails to protect its employees from unnecessary risk or health hazards on the job may be sued for
negligence
Which of the following types of laws protects a business’s inventions or written works from the unauthorized use by others
Intellectual property
The primary reason that governments regulate business activities is to
protect the well-being of individuals and businesses
The form of business ownership that can raise money easily is the
corporation.
The form of business ownership that can raise money easily is the
ease of start-up
A disadvantage of a general partnership is that each partner
is liable for the business’s losses
Which of the following is an example of a written business inquiry:
An e-mail requesting vendor pricing and discounts
Which of the following is a reason why managers develop company objectives:
To identify business purpose
Managers use the broad objectives they develop for a business as the basis for setting
performance targets
An effective mission statement should effectively reflect the business’s
core values
Metrics that gauge the market’s buying habits and attitudes relate to the
customer