Question 1

Which of the following items is not a competitive advantage?

Accepted Answer

A) Consistently providing better customer service than the competition 
B) Using a new patented manufacturing process that reduces manufacturing costs by 25% 
C) Finding a better supplier at a lower cost 
D) Cutting costs on shipping by 50% 
E) Offering free samples during a two-week promotion 
A) Consistently providing better customer service than the competition 
B) Using a new patented manufacturing process that reduces manufacturing costs by 25% 
C) Finding a better supplier at a lower cost 
D) Cutting costs on shipping by 50% 
E) Offering free samples during a two-week promotion E

Question 2

You only need to be concerned with having a competitive advantage over direct competitors.

Accepted Answer

A) True 
 B)False  False

Question 3

Total gross profit = ________.

Accepted Answer

A) Total cost of goods sold - Total revenue 
B) Total profit - Total revenue 
C) Total revenue - Total cost of goods sold 
D) Total revenue - Total profit 
E) None of the above 
A) Total cost of goods sold - Total revenue 
B) Total profit - Total revenue 
C) Total revenue - Total cost of goods sold 
D) Total revenue - Total profit 
E) None of the above C

Question 4

The function of a mission statement is to clarify what the business is trying to do in the present,but it can provide direction and motivation for future action through a clear and compelling message.

Accepted Answer

A) True 
 B)False

Question 5

The vision for your business is narrower and less comprehensive than its mission.

Accepted Answer

A) True 
 B)False

Question 6

A tactic is a plan for outperforming the competition.

Accepted Answer

A) True 
 B)False

Question 7

Competitive advantage must be sustainable over the long term.

Accepted Answer

A) True 
 B)False

Question 8

Business definition + Competitive advantage is ________.

Accepted Answer

A) Competitive strategy 
B) Competitive plan 
C) Competitive approach 
D) Competitive tactics 
E) Business mission 
A) Competitive strategy 
B) Competitive plan 
C) Competitive approach 
D) Competitive tactics 
E) Business mission

Question 9

If the Foreign Exchange rate between the Japanese yen and the euro is 190:1,how many yen will equal 10 euros?

Accepted Answer

A) 1900 
B) 1800 
C) 2000 
D) 300 
E) 500 
A) 1900 
B) 1800 
C) 2000 
D) 300 
E) 500

Question 10

In analyzing your competitive advantage,you will need to ask three questions.Among these is/are ________.

Accepted Answer

A) Competitive offers: How do you compare with competitors on a feature-by-feature basis? 
B) Cost structure: Are you at a cost advantage or disadvantage? 
C) What is your unique selling proposition: What do you have that competitors cannot or will not match? 
D) Both A and B 
E) All of the above 
A) Competitive offers: How do you compare with competitors on a feature-by-feature basis? 
B) Cost structure: Are you at a cost advantage or disadvantage? 
C) What is your unique selling proposition: What do you have that competitors cannot or will not match? 
D) Both A and B 
E) All of the above

Question 11

For a business to be successful,a competitive advantage must be ________.

Accepted Answer

A) Sustainable 
B) Profitable 
C) Legal 
D) Expensive 
E) Clever 
A) Sustainable 
B) Profitable 
C) Legal 
D) Expensive 
E) Clever

Question 12

To help determine whether your business will be profitable,calculate your ________.

Accepted Answer

A) Economics of one unit 
B) Finances of one unit 
C) Cost of goods sold 
D) Rate of goods sold 
E) The difference between the costs and profits for one unit 
A) Economics of one unit 
B) Finances of one unit 
C) Cost of goods sold 
D) Rate of goods sold 
E) The difference between the costs and profits for one unit

Question 13

Why is it a good idea to figure out your Economics of One Unit?

Accepted Answer

The economics of one unit reveals how mu

Question 14

Briefly describe a product or service idea (e.g.,a bookstore)and describe how you might create a competitive advantage.

Accepted Answer

The book identifies six factors that lea

Question 15

For your business to be successful you will need a strategy for beating the competition,that is,a ________.

Accepted Answer

A) Competitive advantage 
B) Market analysis 
C) Target market 
D) Customer analysis 
E) Competitive benefit 
A) Competitive advantage 
B) Market analysis 
C) Target market 
D) Customer analysis 
E) Competitive benefit

Question 16

A competitive advantage can be based on any of six factors.Which of the following is not one of the six?

Accepted Answer

A) Selection 
B) Opportunity 
C) Quality 
D) Cost 
E) Service 
A) Selection 
B) Opportunity 
C) Quality 
D) Cost 
E) Service

Question 17

Describe the six factors of competitive advantage.

Accepted Answer

Competitive advantage comes from one (or

Question 18

An offer includes the complete bundle of products and services the entrepreneur will be bringing to the marketplace.

Accepted Answer

A) True 
 B)False

Question 19

To succeed,a business must satisfy a consumer need ________.

Accepted Answer

A) At a price consumers can afford 
B) At a price that covers the business's costs 
C) At a price that provides the business with a profit 
D) At a price that covers variable costs 
E) At a price that matches your competitors 
A) At a price consumers can afford 
B) At a price that covers the business's costs 
C) At a price that provides the business with a profit 
D) At a price that covers variable costs 
E) At a price that matches your competitors

Question 20

A(n)________ is a group of people or organizations that may be interested in buying a given product or service,has the resources to purchase it,and is permitted by law and regulation to do so.

Accepted Answer

A) Target market 
B) Market 
C) Organization 
D) Industry 
E) All of the above 
A) Target market 
B) Market 
C) Organization 
D) Industry 
E) All of the above

Exam 5: Creating Business From Opportunity

Which of the following items is not a competitive advantage?

You only need to be concerned with having a competitive advantage over direct competitors.

Total gross profit = ________.

The function of a mission statement is to clarify what the business is trying to do in the present,but it can provide direction and motivation for future action through a clear and compelling message.

The vision for your business is narrower and less comprehensive than its mission.

A tactic is a plan for outperforming the competition.

Competitive advantage must be sustainable over the long term.

Business definition + Competitive advantage is ________.

If the Foreign Exchange rate between the Japanese yen and the euro is 190:1,how many yen will equal 10 euros?

In analyzing your competitive advantage,you will need to ask three questions.Among these is/are ________.

For a business to be successful,a competitive advantage must be ________.

To help determine whether your business will be profitable,calculate your ________.

Why is it a good idea to figure out your Economics of One Unit?

Briefly describe a product or service idea (e.g.,a bookstore)and describe how you might create a competitive advantage.

For your business to be successful you will need a strategy for beating the competition,that is,a ________.

A competitive advantage can be based on any of six factors.Which of the following is not one of the six?

Describe the six factors of competitive advantage.

An offer includes the complete bundle of products and services the entrepreneur will be bringing to the marketplace.

To succeed,a business must satisfy a consumer need ________.

A(n)________ is a group of people or organizations that may be interested in buying a given product or service,has the resources to purchase it,and is permitted by law and regulation to do so.

Entrepreneurs Recognize Opportunities

Franchising

Finding Opportunity in an Existing Business

The Business Plan: Road Map to Success

Exploring Your Market

Developing the Right Marketing Mix and Plan

Pricing and Credit Strategies

Integrated Marketing Communications

Marketing Globally

Smart Selling and Effective Customer Service

Understanding and Managing Start-Up, fixed, and Variable Costs

Using Financial Statements to Guide a Business

Cash Flow and Taxes

Financing Strategy: Debt, equity, or Both

Addressing Legal Issues and Managing Risk

Operating for Success

Location, facilities, and Layout

Human Resources and Management

Leadership and Ethical Practices

Franchising, licensing, and Harvesting: Cashing in Your Brand

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