Question 1

The value delivered to the customer is second in order of importance to the pricing decision.

Accepted Answer

A) True 
 B)False

Question 2

Something that is essential to how you live and does not have many substitutes or alternatives is called an elastic product.

Accepted Answer

A) True 
 B)False

Question 3

In a _____ layout,material flows in on one side of the operation and continues to the other end of the operation.

Accepted Answer

A)  free-form 
B)  process 
C)  grid 
D)  production line 
A)  free-form 
B)  process 
C)  grid 
D)  production line

Question 4

_______ is an estimation of what a price should be based on information a consumer gathered,such as advice,advertisements,or comparison shopping.

Accepted Answer

A)  An external reference price 
B)  Perception of value 
C)  An internal reference price 
D)  Optimum price 
A)  An external reference price 
B)  Perception of value 
C)  An internal reference price 
D)  Optimum price

Question 5

Which of the following statements is true of nondirect distribution?

Accepted Answer

A)  A product's final price is more than the manufacturing cost if intermediaries are involved. 
B)  An agent sells products to consumers or end-users,typically in small quantities. 
C)  Distributors and wholesalers tend to take on start-up products due to zero setup charges. 
D)  A retailer represents a manufacturer's product to other business-to-business middleman firms. 
A)  A product's final price is more than the manufacturing cost if intermediaries are involved. 
B)  An agent sells products to consumers or end-users,typically in small quantities. 
C)  Distributors and wholesalers tend to take on start-up products due to zero setup charges. 
D)  A retailer represents a manufacturer's product to other business-to-business middleman firms.

Question 6

In a _____ layout,the store is laid out in sections with aisles that angle or meander through the store.

Accepted Answer

A)  production line 
B)  free-form 
C)  grid 
D)  process 
A)  production line 
B)  free-form 
C)  grid 
D)  process

Question 7

It is good to opt for distributors when a whole line of products need to be bought or warehoused.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is true of business locations?

Accepted Answer

A)  Target market customers are essential factors for selecting business locations. 
B)  Most entrepreneurs prefer their business locations to be outside their hometown. 
C)  The cost of moving a company across town or across the country is cheap. 
D)  Proximity of competitors does not affect choice of business locations. 
A)  Target market customers are essential factors for selecting business locations. 
B)  Most entrepreneurs prefer their business locations to be outside their hometown. 
C)  The cost of moving a company across town or across the country is cheap. 
D)  Proximity of competitors does not affect choice of business locations.

Question 9

Which of the following statements is true of price elasticity?

Accepted Answer

A)  Elastic products have few substitutes and price changes make little difference in demand. 
B)  Inelastic products have many substitutes and price changes lower demand. 
C)  Elasticity is the idea that the market's demand for a product or service is sensitive to changes in its price. 
D)  Gas for your car is an example of an elastic product. 
A)  Elastic products have few substitutes and price changes make little difference in demand. 
B)  Inelastic products have many substitutes and price changes lower demand. 
C)  Elasticity is the idea that the market's demand for a product or service is sensitive to changes in its price. 
D)  Gas for your car is an example of an elastic product.

Question 10

Which of the following international strategies is usually inexpensive,quick to start,easy to change,and less risky than the others?

Accepted Answer

A)  Exporting 
B)  Joint venture 
C)  Franchising 
D)  Licensing 
A)  Exporting 
B)  Joint venture 
C)  Franchising 
D)  Licensing

Question 11

Which of the following direct sales methods is effective for products that need demonstrations or detailed explanations?

Accepted Answer

A)  Industrial sales 
B)  Door-to-door sales 
C)  Vending machines 
D)  Flea market 
A)  Industrial sales 
B)  Door-to-door sales 
C)  Vending machines 
D)  Flea market

Question 12

_____ refers to a method of selling in which catalogs,brochures,letters,videos,and other pieces of marketing materials are shipped straight to customers from which they can mail,call,or e-mail an order.

Accepted Answer

A)  Guerilla marketing 
B)  Direct sales 
C)  Contract manufacturing 
D)  Direct mail 
A)  Guerilla marketing 
B)  Direct sales 
C)  Contract manufacturing 
D)  Direct mail

Question 13

Which of the following is a disadvantage of leasing?

Accepted Answer

A)  It requires a considerably high initial cash outlay than building or buying. 
B)  It is expensive than building or buying a property that are of the same value. 
C)  Lease expenses are not deductible business expenses. 
D)  Renovation options are limited in a leased property. 
A)  It requires a considerably high initial cash outlay than building or buying. 
B)  It is expensive than building or buying a property that are of the same value. 
C)  Lease expenses are not deductible business expenses. 
D)  Renovation options are limited in a leased property.

Question 14

A _____ is a document issued by a bank that guarantees a buyer's payment for a specified period of time upon compliance with specified terms.

Accepted Answer

A)  documentary draft 
B)  letter of credit 
C)  mail order 
D)  bill of lading 
A)  documentary draft 
B)  letter of credit 
C)  mail order 
D)  bill of lading

Question 15

A(n)_____ is a middleman business which buys and sells to businesses rather than consumers.

Accepted Answer

A)  manufacturer 
B)  agent 
C)  wholesaler 
D)  retailer 
A)  manufacturer 
B)  agent 
C)  wholesaler 
D)  retailer

Question 16

Which of the following has low overhead and unlimited shelf space and thereby can afford to take on an unknown firm or product?

Accepted Answer

A)  An e-tailer 
B)  A wholesaler 
C)  A retailer 
D)  An agent 
A)  An e-tailer 
B)  A wholesaler 
C)  A retailer 
D)  An agent

Question 17

Traditionally,manufacturing processes are laid out in one of the two formats: grid layout and free-form layout.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is an example of a high customer contact business?

Accepted Answer

A)  Manufacturing businesses 
B)  Legal offices 
C)  Business incubators 
D)  Remote location services 
A)  Manufacturing businesses 
B)  Legal offices 
C)  Business incubators 
D)  Remote location services

Question 19

Describe the key issues in leasing.

Accepted Answer

Hidden charges: Many leases include char

Question 20

Which of the following forms of direct response advertising attracts a large audience and is a good way to demonstrate a product?

Accepted Answer

A)  Television 
B)  Radio 
C)  Magazine 
D)  Billboard 
A)  Television 
B)  Radio 
C)  Magazine 
D)  Billboard

The value delivered to the customer is second in order of importance to the pricing decision.

Something that is essential to how you live and does not have many substitutes or alternatives is called an elastic product.

In a _____ layout,material flows in on one side of the operation and continues to the other end of the operation.

_______ is an estimation of what a price should be based on information a consumer gathered,such as advice,advertisements,or comparison shopping.

Which of the following statements is true of nondirect distribution?

In a _____ layout,the store is laid out in sections with aisles that angle or meander through the store.

It is good to opt for distributors when a whole line of products need to be bought or warehoused.

Which of the following is true of business locations?

Which of the following statements is true of price elasticity?

Which of the following international strategies is usually inexpensive,quick to start,easy to change,and less risky than the others?

Which of the following direct sales methods is effective for products that need demonstrations or detailed explanations?

_____ refers to a method of selling in which catalogs,brochures,letters,videos,and other pieces of marketing materials are shipped straight to customers from which they can mail,call,or e-mail an order.

Which of the following is a disadvantage of leasing?

A _____ is a document issued by a bank that guarantees a buyer's payment for a specified period of time upon compliance with specified terms.

A(n)_____ is a middleman business which buys and sells to businesses rather than consumers.

Which of the following has low overhead and unlimited shelf space and thereby can afford to take on an unknown firm or product?

Traditionally,manufacturing processes are laid out in one of the two formats: grid layout and free-form layout.

Which of the following is an example of a high customer contact business?

Describe the key issues in leasing.

Which of the following forms of direct response advertising attracts a large audience and is a good way to demonstrate a product?

Small Business: Its Opportunities and Rewards

Small Business Entrepreneurs: Characteristics and Competencies

Small Business Environment: Managing External Relations

Small Business Ideas: Creativity, opportunity, and Feasibility

Small Business Entry: Paths to Part-Time Entrepreneurship

Small Business Entry: Paths to Full-Time Entrepreneurship

Small Business Strategies: Imitation With a Twist

Business Plans: Seeing Audiences and Your Business Clearly

Small Business Marketing: Product and Pricing Strategies

Small Business Promotion: Capturing the Eyes of Your Market

Small Business Accounting: Projecting and Evaluating Performance

Cash: Lifeblood of the Business

Small Business Finance: Using Equity, debt, and Gifts

Assets: Inventory and Operations Management

Small Business Protection: Risk Management and Insurance

Legal Issues: Recognizing Your Small Business Needs

Human Resource Management: Small Business Considerations

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Exam 11: Small Business Distribution and Location

The value delivered to the customer is second in order of importance to the pricing decision.

Something that is essential to how you live and does not have many substitutes or alternatives is called an elastic product.

In a _____ layout,material flows in on one side of the operation and continues to the other end of the operation.

_______ is an estimation of what a price should be based on information a consumer gathered,such as advice,advertisements,or comparison shopping.

Which of the following statements is true of nondirect distribution?

In a _____ layout,the store is laid out in sections with aisles that angle or meander through the store.

It is good to opt for distributors when a whole line of products need to be bought or warehoused.

Which of the following is true of business locations?

Which of the following statements is true of price elasticity?

Which of the following international strategies is usually inexpensive,quick to start,easy to change,and less risky than the others?

Which of the following direct sales methods is effective for products that need demonstrations or detailed explanations?

_____ refers to a method of selling in which catalogs,brochures,letters,videos,and other pieces of marketing materials are shipped straight to customers from which they can mail,call,or e-mail an order.

Which of the following is a disadvantage of leasing?

A _____ is a document issued by a bank that guarantees a buyer's payment for a specified period of time upon compliance with specified terms.

A(n)_____ is a middleman business which buys and sells to businesses rather than consumers.

Which of the following has low overhead and unlimited shelf space and thereby can afford to take on an unknown firm or product?

Traditionally,manufacturing processes are laid out in one of the two formats: grid layout and free-form layout.

Which of the following is an example of a high customer contact business?

Describe the key issues in leasing.

Which of the following forms of direct response advertising attracts a large audience and is a good way to demonstrate a product?

Small Business: Its Opportunities and Rewards

Small Business Entrepreneurs: Characteristics and Competencies

Small Business Environment: Managing External Relations

Small Business Ideas: Creativity, opportunity, and Feasibility

Small Business Entry: Paths to Part-Time Entrepreneurship

Small Business Entry: Paths to Full-Time Entrepreneurship

Small Business Strategies: Imitation With a Twist

Business Plans: Seeing Audiences and Your Business Clearly

Small Business Marketing: Product and Pricing Strategies

Small Business Promotion: Capturing the Eyes of Your Market

Small Business Accounting: Projecting and Evaluating Performance

Cash: Lifeblood of the Business

Small Business Finance: Using Equity, debt, and Gifts

Assets: Inventory and Operations Management

Small Business Protection: Risk Management and Insurance

Legal Issues: Recognizing Your Small Business Needs

Human Resource Management: Small Business Considerations

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