Entrepreneurship Exam 1 – Chapters 2-5

A(n) _______ is a document that thoroughly explains a business idea and how it will be carried out.
Business Plan
Bankers and other potential investors will often refuse to see an entrepreneur who does not have a ________.
complete business plan
Writing a business plan can ensure that you ________.
figure out how to make your business work.
It is best for ________ to write a new venture’s business plan.
the entire team
Your business plan projections should be ________.
realistic and attainable
A business plan can help a company ________.
All of the above
The ________ section of the business plan should be written last.
Executive Summary
The executive summary contains the ________.
All of the above
Making the beliefs, values, and behavioral norms explicit and international builds the _______ of an organization.
Culture
One section of the business plan that is often neglected is the ________.
Opportunity Analysis and Research
The ________ addresses the roles of the community, region, nation, and the world in business.
Environmental analysis
Target market segments are defined by common factors such as ________.
All of the above
A(n) ________ competitor provides a substitute product or service that a consumer might buy instead of yours.
Indirect
The four factors that form competitive advantages are ________.
Product, Price, Promotion, and Place
Advertising is ________ promotion through media outlets.
Paid
Resumes and position descriptions should be included in business plans for ________.
Key Managers
A factor to consider when selecting a physical location is ________.
All of the above
Cash flow ________ be negative before debt and equity infusions and ________.
Can, cannot
Income statement projections realistically ________ in the first few months of operations.
Show losses
Ration analysis can help business owners ________.
All of the above
An IPO is a ________ exit strategy for entrepreneurial ventures.
an alternative for a buyout plan.
When you make an in-person presentation to prospective investors you should ________.
All of the above
Business plan and venture competitions for students are held worldwide. Many all of them include ________.
All of the above
To succeed, a business must satisfy a consumer need ________.
At a price that provides the business with a profit.
What type of business produces a tangible product?
Manufacturing
Business definition + Competitive advantage is ________.
Competitive strategy
For a business to be successful, a competitive advantage must be ________.
sustainable
The cost of selling one additional unit of a product is called ________.
Cost of goods sold
To help determine whether your business will be profitable, calculate the ________.
economics of one unit
Total gross profit + ________.
Total revenue – Total cost of goods sold
What type of business deals in intangible products?
Service
A typical unit of sale for a wholesaler would be ________.
one dozen
Average gross profit per customer is ________.
average sale per customer minus average cost of sale per customer
Total cost of goods sold per unit consists of ________.
Materials cost per unit plus labor cost per unit.
Business leaders create wealth by ________.
Hiring employees in order to sell more units and generate more profit.
What is the average unit of sale for a restaurant that serves $3,350 per day in meals to 200 customers per day?
$16.25
The foreign exchange rate is ________.
The relative value between one currency and another.
Once you know your ________ you can calculate gross profit.
Cost of goods sold
A retail business buys form ________and sells to ________.
wholesalers/consumers
What type of business busy in bulk from a manufacturer and sells smaller quantities to a retailer?
Wholesaler
A ________ is a group of people who would be interested in buying a given product or service.
Market
The business definition has three elements ________.
offer, target market, and production/delivery capability.
For your business to be successful you will need a strategy for beating the competition, i.e., your ________.
Competitive Advantage
________ is the core values on an organization in action.
Culture
When you start your business your _______ will guide the business operations and decisions.
Core beliefs
Entrepreneurs tend to be ________.
Optimistic
Your ________ is a concise communication of your strategy including your business definition, purpose, and your competitive advantage.
Mission statement
Psychographic analysis and behavioral analysis are examples of methods of ________.
market segmentation
Marketing is ________.
All of the above
A marketing term that describes owning a perception in the minds of consumers is called ________.
Mind Share
What is the third step of deciding who the potential customers are for your business?
analyzing who has the authority to buy
Which of the following aspects of a product/service is the most important to focus on when selling?
Benefits
Which of the following is a step in determining how customers decide to buy a product?
All of the above
Dividing a population on the basis of age, gender, income or education is ________.
Demographics
Consumers who have a similar response to a certain type of marketing can be classified as a ________.
market segment
Marketing is the satisfying of customer needs _______.
Regardless of profit
An entrepreneur’s market is ________.
the group of people who are current and possible future customers
When has a market become saturated?
When most of the people in the market are interested in the product have already purchased it.
Positioning your product in the market involves _______.
communicating your competitive advantage to the customer by demonstrating how your product/service differs from the competition.
Dividing the market by purchase behaviors that have been observed is _______ segmentation.
behavioral
The most important thing you should do before launching your product or service is ________.
thoroughly research the market
The positioning statement for a business includes its name/brand, its competitive industry/category, ________, and audience/target market.
benefits or points of difference
What is a focus group?
It is a method of market research that involves bringing together some people who might use a product and having a researcher question them about it.
There is a subtle difference between the _______ and the _______ of a product. One is a fact while the other is a perception.
features/benefits
Research carried out indirectly through other existing resources is called ________.
Secondary research
Market research can help you get a fix on who your customers are ________.
All of the above
In doing research, there are several choices to help you. Among these are ________.
All of the above
________ ask(s) people directly through interviews or questionnaires about their perceptions of a product or service.
Surveys and focus groups
The set of four stages that a product or market goes through from its beginning until its end is called the ________.
Product life cycle
The product life cycle phases include ______.
all of the above
Smart marketers always emphasize ________.
benefits, not features
Which of the following is one of the four Ps of marketing?
product
What is the smartest price strategy?
Choose a pricing strategy that incorporates the psychology of pricing.
Which of the following is not an example of successful branding?
Customers confuse a business logo with that of another business.
When you build a brand, try to focus tightly on one key ________.
Benefit
Promotion consists of ________.
All of the above
Marketing inspired by a commitment to a social, political or environmental issue is called _______.
cause-related marketing
Why are nonprofit organizations tax exempt?
because they use the money they collect to help improve society
To break even, a business must _______.
Sell enough units to cover its fixed costs
What is a banner ad?
an ad that runs on a website
We must use IMC for success, which means ________.
integrated marketing communications
A ________ is an announcement sent to the media to generate publicity.
press release
A nonprofit organization that uses donated money to help others is called a ________.
foundation
Expressing concern for social issues by giving money, time, or advice is called _______.
philanthropy
Which of the following is a way to use cause-related marketing in your business?
Pay employees to volunteer some time toward community service.
Which of the following is away to use cause-related marketing in your business?
Pay employees to volunteer some time toward community service
Which of the following is a role of the marketing plan?
All of the above
According to author Jay Levinson, when consumers in the furniture industry rated factors affecting their purchase decision ________.
price was the ninth most important variable
Good marketers know that a(n) ________ is the heart of the marketing plan.
analysis of the market
Pricing strategies include ________.
all of the above
Finding a retail site that has more than ample parking, excellent access and walk-in trade potential is an example of maximizing which of the marketing Ps?
place
Marketing should not be budgeted as a percentage of sales but rather as money that is needed to drive sales. Therefore it is part of the business’ ________.
fixed costs
Good marketing material serves a variety of functions. These include ________.
all of the above
Create a ________ that can be used in all the promotional materials you use to present your business image.
logo and “look”
In doing your pitch letter you will always want to address ________.
Any or all of the above.
You should always ________.
A and C combined