Question 1

A typical unit of sale for a wholesaler would be ________.

Accepted Answer

A)  One hour of work 
B)  A block of time devoted to a task 
C)  One item 
D)  One dozen 
E)  All of the above 
A)  One hour of work 
B)  A block of time devoted to a task 
C)  One item 
D)  One dozen 
E)  All of the above

Question 2

Economic forces, social forces, technological advances, and political and regulatory changes are not sources for finding competitive advantage.

Accepted Answer

A) True 
 B)False

Question 3

Barriers to entry are the factors that contribute to the ease or difficulty of a new competitor's joining an established market.

Accepted Answer

A) True 
 B)False

Question 4

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

Question 5

The business definition has three elements: ________.

Accepted Answer

A)  Offer, target market, and production/delivery capability 
B)  Offer, acceptance, and consideration 
C)  Business definition, target market, and market analysis 
D)  Target market, potential customers, and production capability 
E)  None of the above 
A)  Offer, target market, and production/delivery capability 
B)  Offer, acceptance, and consideration 
C)  Business definition, target market, and market analysis 
D)  Target market, potential customers, and production capability 
E)  None of the above

Question 6

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 7

Describe the six factors of competitive advantage.

Accepted Answer

Competitive advantage comes from one (or

Question 8

Average gross profit per customer is ________.

Accepted Answer

A)  Average sale per customer minus average cost of sale per customer 
B)  Average cost of tangible product minus average cost of intangible product 
C)  Average sale per consumer plus average sale per wholesaler 
D)  Average cost of sale minus average sale per customer 
E)  Average cost of sale multiplied by average sale per customer 
A)  Average sale per customer minus average cost of sale per customer 
B)  Average cost of tangible product minus average cost of intangible product 
C)  Average sale per consumer plus average sale per wholesaler 
D)  Average cost of sale minus average sale per customer 
E)  Average cost of sale multiplied by average sale per customer

Question 9

Your ________ is a concise communication of your strategy including your business definition and your competitive advantage.

Accepted Answer

A)  Mission statement 
B)  Target market analysis 
C)  Values statement 
D)  Business plan 
E)  SWOT analysis 
A)  Mission statement 
B)  Target market analysis 
C)  Values statement 
D)  Business plan 
E)  SWOT analysis

Question 10

A target market can never be too broad and unfocused.

Accepted Answer

A) True 
 B)False

Question 11

A unique selling proposition is the distinctive feature and benefit that sets you apart from your competition.

Accepted Answer

A) True 
 B)False

Question 12

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 13

Total cost of goods sold per unit consists of ________.

Accepted Answer

A)  Materials cost per unit plus labor cost per unit 
B)  Volume cost plus labor cost 
C)  Selling price per unit plus gross profit per unit 
D)  Labor cost minus volume discount per unit 
E)  None of the above 
A)  Materials cost per unit plus labor cost per unit 
B)  Volume cost plus labor cost 
C)  Selling price per unit plus gross profit per unit 
D)  Labor cost minus volume discount per unit 
E)  None of the above

Question 14

Trey has a T-shirt business that buys shirts from a wholesaler for four dollars each and sells them to retailers for eight dollars each. He imprints each shirt with a picture of a musical artist that costs him two dollars. He also pays his cousin to do the printing at five dollars an hour. LaShawn prints five shirts per hour. A retailer offers to buy 1000 shirts at seven dollars each. Should Tray agree to the deal?

Accepted Answer

A)  Yes, Tray will make a profit of one dollar per shirt. 
B)  Yes, Tray will make a profit of two dollars per shirt. 
C)  No, Tray will not make a profit at this price. 
D)  No, Tray's profit at this price is too small. 
E)  None of the above 
A)  Yes, Tray will make a profit of one dollar per shirt. 
B)  Yes, Tray will make a profit of two dollars per shirt. 
C)  No, Tray will not make a profit at this price. 
D)  No, Tray's profit at this price is too small. 
E)  None of the above

Question 15

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 16

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

Question 17

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 18

Leaders of a company build a particular culture by making the beliefs, values, and behavioral norms explicit and intentional.

Accepted Answer

A) True 
 B)False

Question 19

Once you know your ________ you can calculate gross profit.

Accepted Answer

A)  Cost of goods sold 
B)  Unit of sale 
C)  Gross cost 
D)  Profit 
E)  Fixed costs 
A)  Cost of goods sold 
B)  Unit of sale 
C)  Gross cost 
D)  Profit 
E)  Fixed costs

Question 20

A ________ is a group of people who would be interested in buying a given product or service.

Accepted Answer

A)  Market 
B)  Target 
C)  Customer 
D)  Consumer 
E)  Shopper 
A)  Market 
B)  Target 
C)  Customer 
D)  Consumer 
E)  Shopper

A typical unit of sale for a wholesaler would be ________.

Economic forces, social forces, technological advances, and political and regulatory changes are not sources for finding competitive advantage.

Barriers to entry are the factors that contribute to the ease or difficulty of a new competitor's joining an established market.

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.

The business definition has three elements: ________.

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

Describe the six factors of competitive advantage.

Average gross profit per customer is ________.

Your ________ is a concise communication of your strategy including your business definition and your competitive advantage.

A target market can never be too broad and unfocused.

A unique selling proposition is the distinctive feature and benefit that sets you apart from your competition.

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

Total cost of goods sold per unit consists of ________.

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

Which of the following items is not a competitive advantage?

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

Leaders of a company build a particular culture by making the beliefs, values, and behavioral norms explicit and intentional.

Once you know your ________ you can calculate gross profit.

A ________ is a group of people who would be interested in buying a given product or service.

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

Filters

Exam 5: Creating Business From Opportunity

A typical unit of sale for a wholesaler would be ________.

Economic forces, social forces, technological advances, and political and regulatory changes are not sources for finding competitive advantage.

Barriers to entry are the factors that contribute to the ease or difficulty of a new competitor's joining an established market.

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.

The business definition has three elements: ________.

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

Describe the six factors of competitive advantage.

Average gross profit per customer is ________.

Your ________ is a concise communication of your strategy including your business definition and your competitive advantage.

A target market can never be too broad and unfocused.

A unique selling proposition is the distinctive feature and benefit that sets you apart from your competition.

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

Total cost of goods sold per unit consists of ________.

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

Which of the following items is not a competitive advantage?

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

Leaders of a company build a particular culture by making the beliefs, values, and behavioral norms explicit and intentional.

Once you know your ________ you can calculate gross profit.

A ________ is a group of people who would be interested in buying a given product or service.

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

Filters