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Study Resources (Business Management)

  81.A business plan that provides information to potential licensees is referred to as a(n) _____ plan.  A.screening B.invention C.operational D.concept 82._____ plans are designed to be used internally for management purposes.  A.Summary B.Informational C.Operational D.Invention 83.Which of the following is a specialized legal form of business plan crafted by lawyers for the purpose of soliciting formal investments?  A.Key employee/partner plan B.Private placement.
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  31.Which of the following situations indicates that it makes better sense to first undertake a part-time business?  A.Byron has a full-time business plan. B.Jamie wants to start a franchise for an international brand. C.Cathy has funds to start her own music school. D.Damon wants to gain experience in the advertising industry. 32.All of the following.
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  81.Which of the following statements is true regarding the entry wedge of supply shortage?  A.It occurs when a new product is in demand. B.It takes place in a stable market that doesn't change rapidly. C.It takes place in a long-term market. D.It occurs when certain physical resources are unutilized. 82.Which of the following is a.
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  True / False Questions  1.Strategy is the idea and actions that explain how a firm will make its profits.  2.Small businesses typically use the strategy of innovativeness rather than imitativeness.  3.The first step of the strategic planning process for small businesses is considering your customers and the benefits you want to offer them.  4.There.
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  83.Which of the following holds true for product distribution franchising?  A.It provides the franchisee with specific brand named products, which are resold by the franchisee in a specified territory. B.It provides an organization through which independent businesses may combine resources. C.It is an agreement that provides only the rights to use the franchisor's.
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  True / False Questions  1.Franchising a new business is one of the ways to business ownership.  2.A buyout refers to starting a business from scratch.  3.A start-up never has existing employee problems, debts, lawsuits, contracts, or other legal commitments that must be satisfied.  4.A start-up can be kept small deliberately to limit the magnitude.
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  41.An Internet site designed to introduce and explain a business to others is known as a(n):  A.e-commerce website. B.portal website. C.advocacy website. D.informational website. 42.When an individual buys products like shoes, music, or cell phones online, it is referred to as _____ type of e-commerce.  A.business-to-business (B2B) B.business-to-consumer (B2C) C.consumer-to-consumer (C2C) D.business-to-Internet (B2I) 43.In _____ sales, one firm sells to.
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  71.Retrenchment is:  A.the third life cycle stage. B.a stage marked by a stabilization of demand. C.a type of life cycle stage following a boom in which there is a rapid decrease in the number of firms. D.an organizational life cycle stage in which established firms must find new approaches to improve the business. 72.A research.
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  True / False Questions  1.A product can include goods, services, and ideas.  2.Services have separability of production and consumption.  3.The concept of total product includes how customers describe one's good or service.  4.The total product is the most general description of a business, and the one which captures the smallest amount of what is.
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  31.In Connie's business plan, which of the following components is most likely to be of interest to Mr. Johnson?  A.Cash flow and cash cycle B.Growth rate C.Competitive advantage D.Amounts and schedules for returns 32.If Connie gets her family and friends involved as investors, which of the following is most likely to be their concern?  A.Cash flow.
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  41.A(n) _____ is an action-oriented description of a business designed to sell the idea of the business to another.  A.vision statement B.executive summary C.mission statement D.elevator pitch 42.Which of the following statements is true of an elevator pitch?  A.It is shorter than a vision statement or tagline. B.Its goal is to sell the idea of a business.
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  71.Which of the following is true with regard to the consignment approach of selling?  A.They permit full-time sales only with full-time involvement from a person. B.They are high-risk level undertakings. C.They have low profitability because of agent's fees. D.They have no flexibility despite variety of consignment agents and agencies available. 72.Which of the following represents.
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  Multiple Choice Questions  21.A(n) _____ plan is a document designed to detail the major characteristics of a firm—its product or service, its industry, its market, its manner of operating and its financial outcomes with an emphasis on the firm's present and future.  A.screening B.informational C.invention D.business 22.The extent to which a small business is taken for.
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  51.A _____ displays characteristics related to the nature of a product or service itself.  A.value benefit B.cost benefit C.scale saving D.cause and effect diagram 52.Value benefits are important because:  A.they lead to scope savings. B.they lead to higher prices. C.they result in scale savings. D.they lead to reduced costs. 53.Which of the following is an advantage of picking customer-desired benefits.
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  Multiple Choice Questions   21._____ refers to working for self for 35 or fewer hours a week.  A.Franchising B.Full-time self-employment C.Aggrandizing D.Part-time self-employment 22.Which of the following is an example of part-time self-employment?  A.Tabatha, who works from home for a fashion website for a minimum of 40 hours a week B.Raul, who works as an intern in a law.
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  61.Changes in competitors, sales and profits in an industry over time are referred to as:  A.industry dynamics. B.retrenchment. C.shake-out. D.transformational competency. 62.The life cycle stage in which a product or service is being invented is known as the _____.  A.growth stage B.boom C.introduction stage D.shake-out 63.Which of the following is true of the introduction stage of a product?  A.Sales are almost.
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  11.Brokers advertise and facilitate the sale of business for a fee, usually a percentage of the ultimate selling price.  12.Due diligence is the process of investigating to determine the full and complete implications of buying a business.  13.Properly performing due diligence minimizes the risk of failure and maximizes the probability of success.
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  31.Which of the following are the two major classification systems that code industries?  A.NAICS and SIC B.SCALE and SCOPE C.SWOT and VRIO D.OLC and SWOT 32.Standard industrial classification system (SIC) codes have _____ digits.  A.four B.six C.seven D.nine 33.North American industry classification system (NAICS) codes have _____ digits.  A.three B.six C.eight D.nine 34.In an imitative strategy, an entrepreneur:  A.creates a new product or service which has.
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  True / False Questions  1.Business plans are essential for external legitimacy and internal understanding.  2.In the context of a business plan, a firm's responsiveness to customers is a key concern of bankers.  3.In the context of a business plan, product quality, its benefits, service quality, and the competitive advantage are the primary concerns.
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  51.Which of the following sections of a classic business plan mentions the legal and hierarchical structures, key personnel, related service providers, and business location?  A.The market B.The organization C.The appendixes D.The financials 52.Critical risks, cash flow projection, balance sheet, and start-up costs are included in the _____ section of a classic business plan.  A.title page B.market C.financials D.appendixes 53.In the.
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  61.Which of the following is true of home businesses?  A.It is very difficult to set up. B.It requires a very high initial capital to start up. C.It does not allow one to work away from his or her employer. D.It provides highly variable income. 62.The fundamental success factor in door-to-door selling is:  A.closing the sale. B.having a.
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  33.A(n) _____ credit is a credit agreement that allows the borrower to pay all or part of the balance at any time; as the loan balance is paid off, it becomes available to be borrowed again.  A.revolving B.installment C.social D.primary 34.The specific concept that leads to a start-up business usually comes from the _____ of.
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  51._____ is a general approach to website design intended to result in the site being displayed toward the beginning of a search engine's listing for that term.  A.Sponsored link B.Embedded placement C.Trackback submitter D.Search engine optimization 52.Smith & Roden Enterprises (SRE), a law firm, paid a leading search engine to put their company's website at.
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  Multiple Choice Questions  21._____ is the idea and actions that explain how a firm will make its profits.  A.Strategy B.Objective C.Mission D.Goal 22.Most small businesses are more _____ than _____.  A.cost-directed; profit-directed B.imitative; innovative C.profit-directed; cost-directed D.innovative; imitative 23.The first step of the strategic planning process for a small business is:  A.performing a SWOT analysis. B.reviewing and confirming the goals that define the.
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  Essay Questions  91.Identify at least two concerns of the various business plan audiences.  92.Briefly describe the five types of business planning presentations.  93.Differentiate between the vision statement and the mission statement of a business plan presentation.      .
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  Multiple Choice Questions  23.Which of the following is one of the ways to get into small business management?  A.Narrowcasting B.Franchising C.Expropriating D.Onboarding 24.A legal agreement that allows a business to be operated using the name and business procedures of another firm is referred to as a:  A.franchise. B.blue ocean strategy. C.green field investment. D.cartel. 25.A new business that has begun from.
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  71.When a product or service is sold in a limited area, for a limited time, it is referred to as _____.  A.a pioneering business B.test marketing C.preselling D.parallel marketing 72.When your product or service already exists but your firm is the first of its kind in your market, it is considered a(n) _____ business.  A.entry-level B.pioneering C.substitutive D.new entrant 73.A(n).
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  61.Craftsmanship and customization are examples of:  A.a fragmented industry strategy. B.a generic strategy. C.a supra-strategy. D.a risk strategy. 62._____ involves introducing a product to potential customers and taking orders for later delivery.  A.Preselling B.Test marketing C.Research and Development D.Parallel marketing 63.Which of the following parts of a business plan is focused on creating new products or services and preparing new.
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  63.Which of the following is a financial statement that will be checked during due diligence when buying an existing business?  A.White paper B.Balance sheet C.Codicil D.Amicus brief 64.Patents and trade secrets are examples of:  A.employee stock option plans. B.heuristics. C.franchising. D.intangibles. 65._____ are the cash flows that have been reduced in value because they are to be received in the.
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  11.For an existing business, the financials report the last five years of actual data, and then offer ten-year projections for the income, cash flow, and balance sheet.  12.The goal of appendixes is to provide supporting information that helps detail or support the key selling points of a business plan.  13.When a product.
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  43.A combination in which the whole is greater than the sum of its component parts refers to:  A.revolving credit. B.synergy. C.microinventory. D.spin-off. 44.Which of the following is most likely to increase the odds of successes for a start-up?  A.Starting a business with a sole founder B.Having experience managing large firms C.Choosing a business that produces high margins D.Securing investment.
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  81._____ is the strategy of combining two or more products in one unit and pricing it less than if the units were sold separately.  A.Skimming B.Bundling C.Premium pricing D.Price signaling 82.In bonus pack pricing strategy:  A.lower prices are charged at certain times to encourage customers to come during slack periods. B.more than one unit of the same.
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  53.Sam used his management skills to start a loans advising website. He started seeing clients at his home before it grew into a well-established company in the next ten years. Which of the following entrepreneurial methods did he use in the beginning, to reduce the financial risk of his start-up?  A.Franchise B.Consignment C.Lean.
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  73.Which of the following refers to income capitalization?  A.Regular and systematic reduction in income that transfers asset value to expense over time. B.Dividing projected net income excluding depreciation, interest, and owner draws, by the best return that you could expect to obtain in other investments. C.Multiplying your estimate of future earnings by the.
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  Essay Questions  91.What are the four key decisions that entrepreneurs need to make to build the strategy for their firms?  92.Differentiate between incremental innovation and pure innovation.  93.What are the two market decisions that entrepreneurs need to make early in the process of going into business?      .
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  11.Cost benefits include scale and scope savings.  12.Generally, benefits do not influence a firm's strategy process.  13.Shake-out is a type of life cycle growth stage marked by a very rapid increase in sales in a relatively short time.  14.In the decline stage, sales and profits of the firms in an industry begin a.
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