Question 1

Briefly state the difference between a market and an industry.

Accepted Answer

A market consists of buyers, current or potential customers who are interested in purchasing a particular class of products or services to satisfy their wants or needs - and they must have the ability to pay for them.
An industry is made up of sellers who compete with one another by offering identical or similar products or services for sale to the same general group of buyers.

Question 2

Marketplace Farms is a regional cooperative of apple and orange growers. In order to compete against larger regional growers, Marketplace Farms relies on low-cost migrant workers instead of machines and inexpensive packaging processes. (That is, it uses individual hand-packaging instead of assembly lines.) Marketplace Farms is relying on a

Accepted Answer

A)  price-based strategy. 
B)  marketing-based strategy. 
C)  efficiency-based strategy. 
D)  cost-based strategy. 
A)  price-based strategy. 
B)  marketing-based strategy. 
C)  efficiency-based strategy. 
D)  cost-based strategy. D

Question 3

Buyers, suppliers, substitute products, competitive rivalry, and new entrants all represent forces within an industry.

Accepted Answer

A) True 
 B)False  True

Question 4

In marketing terms, a focus strategy depends upon market segmentation.

Accepted Answer

A) True 
 B)False

Question 5

An increase in the rivalry among existing competitors in a target market

Accepted Answer

A)  increases both the attractiveness and the profitability of the target market. 
B)  decreases both the attractiveness and the profitability of the target market. 
C)  decreases the attractiveness and increases the profitability of the target market. 
D)  increases the attractiveness and decreases the profitability of the target market. 
A)  increases both the attractiveness and the profitability of the target market. 
B)  decreases both the attractiveness and the profitability of the target market. 
C)  decreases the attractiveness and increases the profitability of the target market. 
D)  increases the attractiveness and decreases the profitability of the target market.

Question 6

The general environment is very narrow and includes the forces that directly impact a firm and its competitors.

Accepted Answer

A) True 
 B)False

Question 7

The industry environment is made up of very broad factors that influence all-or at least most-businesses in a society.

Accepted Answer

A) True 
 B)False

Question 8

According to a study by the National Federation of Independent Business Foundation, new product ideas for small business startups originate from all of the following except

Accepted Answer

A)  prior work experience. 
B)  personal interests and hobbies. 
C)  a chance happening. 
D)  existing records of a business. 
A)  prior work experience. 
B)  personal interests and hobbies. 
C)  a chance happening. 
D)  existing records of a business.

Question 9

A fatal flaw is a circumstance or development that, in and of itself, could render a new business unsuccessful.

Accepted Answer

A) True 
 B)False

Question 10

Developments in the technological segment of the general environment have created significant opportunities for many new and creative small businesses.

Accepted Answer

A) True 
 B)False

Question 11

Market segmentation and niche marketing are similar in that they both utilize a top-down approach that breaks the market into smaller, more manageable sub-markets.

Accepted Answer

A) True 
 B)False

Question 12

SWOT analysis provides a concise overview of a firm's strategic situation.

Accepted Answer

A) True 
 B)False

Question 13

A cost-based strategy requires a firm to create and sustain differentiation in the marketplace.

Accepted Answer

A) True 
 B)False

Question 14

The following are change-based sources of opportunity identified by Peter Drucker except

Accepted Answer

A)  process needs 
B)  structural change 
C)  new knowledge 
D)  the unwavering 
A)  process needs 
B)  structural change 
C)  new knowledge 
D)  the unwavering

Question 15

A feasibility analysis should be conducted only after completion of a business plan.

Accepted Answer

A) True 
 B)False

Question 16

Core competencies are those resources and capabilities that provide a firm with a competitive advantage over its rivals.

Accepted Answer

A) True 
 B)False

Question 17

What marketing activities suggest that a small firm is following a focus strategy?

Accepted Answer

The answer of What marketing activities suggest that a small...

Question 18

Trade between the United States and Mexico has increased since the enactment of the North American Free Trade Agreement. This factor is related to the ____ element of the general environment.

Accepted Answer

A)  technological 
B)  global 
C)  ecological 
D)  sociocultural 
A)  technological 
B)  global 
C)  ecological 
D)  sociocultural

Question 19

Which of the three different categories of new venture ideas accounts for the most startup ventures?

Accepted Answer

Type C startup ideas probably account fo

Question 20

An example of an idea for a new startup from a hobby is

Accepted Answer

A)  a coin collector, who bought and sold coins for years to build a personal collection, deciding to become a coin dealer. 
B)  a furniture salesperson seeing the possibility of opening a new furniture store in a different area of the city. 
C)  a sharpshooter, who shot holes in a pair of her boyfriend's jeans during an argument, hearing him get complimented on the way they look. 
D)  a purposeful exploration to find a new idea. 
A)  a coin collector, who bought and sold coins for years to build a personal collection, deciding to become a coin dealer. 
B)  a furniture salesperson seeing the possibility of opening a new furniture store in a different area of the city. 
C)  a sharpshooter, who shot holes in a pair of her boyfriend's jeans during an argument, hearing him get complimented on the way they look. 
D)  a purposeful exploration to find a new idea.

Exam 3: Getting Started

Briefly state the difference between a market and an industry.

Buyers, suppliers, substitute products, competitive rivalry, and new entrants all represent forces within an industry.

In marketing terms, a focus strategy depends upon market segmentation.

An increase in the rivalry among existing competitors in a target market

The general environment is very narrow and includes the forces that directly impact a firm and its competitors.

The industry environment is made up of very broad factors that influence all-or at least most-businesses in a society.

According to a study by the National Federation of Independent Business Foundation, new product ideas for small business startups originate from all of the following except

A fatal flaw is a circumstance or development that, in and of itself, could render a new business unsuccessful.

Developments in the technological segment of the general environment have created significant opportunities for many new and creative small businesses.

Market segmentation and niche marketing are similar in that they both utilize a top-down approach that breaks the market into smaller, more manageable sub-markets.

SWOT analysis provides a concise overview of a firm's strategic situation.

A cost-based strategy requires a firm to create and sustain differentiation in the marketplace.

The following are change-based sources of opportunity identified by Peter Drucker except

A feasibility analysis should be conducted only after completion of a business plan.

Core competencies are those resources and capabilities that provide a firm with a competitive advantage over its rivals.

What marketing activities suggest that a small firm is following a focus strategy?

Trade between the United States and Mexico has increased since the enactment of the North American Free Trade Agreement. This factor is related to the ____ element of the general environment.

Which of the three different categories of new venture ideas accounts for the most startup ventures?

An example of an idea for a new startup from a hobby is

The Entrepreneurial Life

Entrepreneurial Integrity and Ethics

Franchises and Buyouts

The Family Business

The Business Plan: Visualizing the Dream

The Marketing Plan

The Human Resources Plan: Managers, Owners, Allies, and Directors

The Location Plan

Understanding a Firms Financial Statements

Forecasting Financial Requirements

A Firms Sources of Financing

Planning for the Harvest

Building Customer Relationships

Product and Supply Chain Management

Pricing and Credit Decisions

Promotional Planning

Global Opportunities for Small Business

Professional Management in the Entrepreneurial Firm

Managing Human Resources

Managing Operations

Managing the Firms Assets

Managing Risk in the Small Business

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