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Study Resources (Business Management)

  121) Describe the small business failure rate.  What are the primary causes of business failures, and what steps can an entrepreneur take to avoid becoming a business failure statistic? Mini Case 1-1: Hudson's Dilemma   Bill Hudson was a real craftsman when it came to being a machinist. Bill had learned almost all.
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  31.The core product typically includes:  A.the basic description of what a company or a product does. B.features of a product that differentiates it from competition. C.what a product means to the customers. D.value and cost benefits customers incur from a product. 32.The group of people on which a marketer focuses promotion and sales efforts is.
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  Mini-Case 10-1:  Pricing for Profit   Miller Manufacturing, Inc., produces electronic components for television circuitry. Variable costs comprise 67 percent of the product's selling price. The variable costs of producing a component include: Direct material$1.83/unit Direct labor$6.72/unit Variable factory overhead$ .86/unit Vicki Miller, President, expects to produce 80,000 electronic components and to incur $280,000 of fixed.
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  11) ________ value is the price customers would be willing to pay if they perfectly understood the benefits offered while ________ value is what determines the price they are willing to pay. A) Objective; perceived B) Perceived, objective C) Objective; quantitative D) Perceived; real 12) Ultimately, the "right" price for a product or service depends.
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  89) Generally, the higher the current ratio, the stronger the small firm's financial position. 90) Most firms calculate their quick assets by subtracting the value of their inventory from their current asset total. 91) A quick ratio of more than 1:1 suggests that a small company is overly dependent on inventory and.
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  99.Describe partitioned pricing, captive pricing, and price lining.  100.Discuss any four price lowering techniques that a small business owner can adopt without starting price wars or reducing the quality perception of his or her products?      .
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  51) One hallmark of successful entrepreneurs is the ability to: A) be willing to gamble. B) fail intelligently. C) overlook past successes. D) repeat the same mistake. 52) Which of the following was not identified as one of the suggestions for small business success? A) Develop a business plan as you grow your business. B) Manage your.
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  61.Turquoise Innovations Inc. has introduced a unique software that has no competition in the market. The company has incurred huge research and development costs in order to commercialize this software. Several business firms have been waiting for the release of this product as it saves their cost of outsourcing finance.
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  31) A technique that involves selling a product for a low price and charging a higher price for the accessories that accompany it is called: A) multiple-unit pricing. B) optional product pricing. C) captive-product pricing. D) by product pricing. 32) ________ is the difference between the cost of a product or service and its selling.
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  96) David Birch considers "gazelles" those businesses that grow at 20 percent or more per year and gross at least $100,000 in annual sales. 97) Small companies have created two-thirds to three-fourths of the net new jobs in the U.S. economy. 98) Small businesses actually create more jobs than do big businesses. 99).
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  79) Pro forma financial statements show a company's most recent financial position. 80) On a projected income statement, a business owner's target income is the sum of a reasonable salary for the time spent running the business and a normal return on the amount the owner has invested in it. 81) In.
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  11) It is estimated that ________ percent of new businesses fail within two years, while ________ percent fail within four years. A) 35; 54 B) 51; 64 C) 35; 80 D) 64; 80 12) Within 6 years, ________ percent of new businesses will fail. A) 35 B) 50 C) 64 D) 75 13) The majority of new business owners work: A).
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  119) Explain what ratio analysis is.  Name the four categories of ratios and describe the type of information each group provides the small business owner. 120) List the 12 key ratios outlined in the text and explain the type of information they provide the small business owner. 11.Net profit to asset ratio?Measures.
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  21) ________ pricing strategies work best in markets where no "elite" segments exist or in highly competitive markets where similar products are trying to gain a foothold. A) Skimming B) Sliding-down-the-demand-curve C) Odd D) Penetration 22) Once a company has invested time and money developing a unique new product, in order to recoup some of.
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  70) A market penetration pricing strategy is designed to recover a company's development and promotional cost of a new product very quickly. 71) A skimming price strategy is used to introduce relatively low-priced goods into a market where no "elite" segment exists. 72) A skimming pricing strategy sets a relatively high price.
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  86) Not all family-owned businesses are small; in fact, over one-third of the Fortune 500 companies are family businesses. 87) Of the 25 million businesses in the U.S., about 40 percent are family owned and managed. 88) Ninety-percent of businesses in the United States are family-owned and managed and account for 62.
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  71.By adopting the pricing technique of loss leaders, a firm most likely aims to:  A.attract traffic toward its products. B.imply superior quality to a competitor. C.signal that its products are a status symbol. D.reward repeat customers. 72.Smart Home, a retailer for consumer electronics, sells a reputed brand's desktops at near cost price. These desktops are.
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  11.If a rapid prototyping model can be developed, the molds for manufacturing can be made inexpensively by most modern manufacturers.  12.Optimum price is the lowest price that will produce the desired level of sales in an intended market.  13.Setting prices higher than the competition without providing customers with the perception of receiving.
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  102) There are at least eight different pricing strategies for established goods and services.  Explain four of those strategies and under what conditions a business owner should use them. 103) Explain the difference between absorption costing and variable (or direct) costing.  Which one is more useful when establishing prices?  Why?     .
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  115) What is an entrepreneur?  Give a brief profile of a typical entrepreneur.  What is the primary motivation for the typical entrepreneur? 116) Discuss the potential benefits and drawbacks of entrepreneurship. 117) Describe the factors that are driving the current entrepreneurial trend in the U.S. economy.     .
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  1) One of the most significant economic developments in recent business history relates to the: A) growth of blue-chip corporations. B) development of Pacific Rim countries. C) entrepreneurial spirit. D) additional employment opportunities offered by government institutions. 2) All of the following are characteristics of the typical entrepreneur except: A) confidence in his/her ability to succeed. B).
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  76) Nearly two-thirds of entrepreneurs start their businesses between the ages of 25 and 44. 77) Research has isolated a set of characteristics that can predict who will succeed as an entrepreneur. 78) Although about 83 percent of women-owned companies are concentrated in the retailing and service sectors, female entrepreneurs are branching.
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  Multiple Choice Questions  21.Which of the following statements is true about products?  A.People such as political candidates and celebrities cannot be considered as products. B.Most of the products sold today are combinations of both goods and services. C.Products in terms of goods are generally less homogeneous than services. D.Products in terms of goods are more.
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  106) Expanding a business usually requires no significant changes in structure or business practices. 107) About 75 percent of the businesses in the U.S. can be considered "small" businesses. 108) The lifeblood of the "brick and mortar" small business?sales?is influenced heavily by choice of location. 109) To boost sales, small businesses, especially start-ups,.
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  41._____ is best described as the process of selling prototype of a product in either a real or simulated market environment.  A.Test marketing B.Moonlighting C.Bootstrapping D.Commercialization 42.In new product development process, the product development stage typically involves:  A.testing the feasibility of product ideas. B.creating a marketing plan for the final product. C.introducing product prototypes to test markets. D.commercializing the.
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  51.A(n) _____ is best defined as a product for which there are few substitutes and for which a change in price makes very little difference in quantity purchased.  A.pure good B.augmented product C.prototype D.inelastic product 52.Given the fact that there are several substitutes available for Tinkle Toys' products, these Tinkle Toys' products are most likely.
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  31) Which of the following is a characteristic of copreneurs? A) Mutual respect B) Complementary business skills C) A clear division of roles and authority D) All of the above 32) Approximately ________ percent of corporate managers who are "cast off" as companies downsize become entrepreneurs. A) 5 B) 15 C) 20 D) 45 33) Melinda and John Perez, both.
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  41) Pandecker, Inc., estimates the variable costs of producing one unit to be $11.26.  The company plans to produce 26,500 units.  The fixed costs the company expects to incur are $82,770.  What is Pandecker's break-even selling price? A) $14.38 B) $35.17 C) $11.26 D) $3.12 42) Which of the following is/are not true regarding pricing.
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  1) Setting prices for products and services requires entrepreneurs to balance a multitude of complex forces as entrepreneurs determine prices for their goods and services that will draw customers and: A) position prices lower than all competitors. B) produce a profit. C) effectively compete with online alternatives. D) have high volume/high margin sales. 2) Which.
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  60) Perceived value is the price customers would be willing to pay if they perfectly understood the benefits offered while objective value is what determines the price they are willing to pay. 61) Entrepreneurs that face rapidly rising costs in their business should consider strategies that facilitate better customer communication, efficiencies,.
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  120) The following lists the ten deadly mistakes of entrepreneurship. 1.Management mistakes 2.Lack of experience 3.Poor financial control 4.Weak marketing efforts 5.Failure to develop a strategic plan 6.Uncontrolled growth 7.Poor location 8.Improper inventory control 9.Incorrect pricing 10.Inability to make the entrepreneurial transition 1.Management mistakes?Primary cause of business failure; may include lack of knowledge, leadership ability, etc. 2.Lack of experience?In the field they.
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  99) A company with a times-interest-earned ratio that is well above the industry average would likely have difficulty making the interest payments on its loans, as creditors would see that it was overextended in its debts. 100) Creditors often look for a times-interest-earned ratio of at least 4:1 to 6:1 before.
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  109) An excessively high average payable period ratio indicates the possibility of the presence of a significant amount of past-due accounts payable. 110) Although sound cash management principles call for a business owner to keep her cash as long as possible, slowing accounts payable too drastically can severely damage a company's.
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56) The 21st century has seen record numbers of entrepreneurs launching businesses.   57) Current competitive conditions favor large companies over smaller ones because of their ability to use their size to achieve efficiency and economies of scale. 58) Increased entrepreneurial activity is a phenomenon unique to the U.S. 59) One study conducted by.
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  80) The manufacturer's suggested price takes into account the small firm's cost structure and its competitive situation. 81) The manufacturer's suggested retail prices may create an undesirable image for the small firm. 82) A manufacturer can force a small business to charge the "manufacturer's suggested retail price." 83) When a small business owner.
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  90) Direct (variable) costing includes in the unit cost of a product only those costs that vary with the quantity of units produced. 91) Break-even pricing will determine the price that will cover total fixed and variable costs and generate a reasonable profit. 92) Because the manufacturer's capacity in the short run.
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  41) The majority of small companies are concentrated in the ________ and ________ industries. A) manufacturing; retail B) manufacturing; service C) retail; service D) wholesale; retail 42) David Birch, president of the research firm Cognetics, suggests that three percent of small businesses create approximately ________ percent of new jobs. A) 50 B) 60 C) 70 D) 80 43) David Birch.
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  1) In order to reach profit objectives, entrepreneurs must be aware of their firms': A) current ratio and liabilities. B) fixed assets and owner's equity. C) assets and liabilities. D) overall financial position and any changes in the financial status. 2) The ________ shows what assets the business owns and what claims creditors and owners.
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  21) Although there is a trend toward younger entrepreneurs, most entrepreneurs launch their businesses between the ages of ________ and ________. A) 20; 34 B) 25; 44 C) 30; 44 D) 35; 49 22) Which of the following statements is true of Generation X? A) They are the most entrepreneurial generation in history. B) They are three.
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