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Study Resources (Business Management)

    31) The worst marketing catastrophe to befall any business would be to: A) encourage customers to complain and have employees give management feedback on the complaints. B) have great advertising and poor quality products. C) have poor customer service and a highly effective promotional campaign. D) have a great product and an inaccessible location.   32).
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    101) The first step in preparing a break-even analysis is to break business expenses down into "fixed" and "variable" categories. 102) To calculate break-even sales, use the equation: break-even sales (in dollars) = total variable costs divided by contribution margin as a percentage of sales revenue.   103) The break-even analysis provides an.
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    1) A pro forma financial statement means: A) looking at the current financial statement. B) looking at the past financial statement. C) preparing the current financial statement. D) preparing a projected financial statement.   2) The ________ shows what assets the business owns and what claims creditors and owners have against those assets. A) balance sheet B) income.
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    61) A ________ is a checking account that technically never has funds in it but is tied to another master account like payroll. A) cash account B) money market account C) zero balance account D) sweep account   62) Sweep account refers to: A) an account that sweeps cash from checking to personal savings. B) an account that.
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    41) ________ publishes key business ratios for over 800 business categories. A) Robert Morris Associates B) Boston Consulting Group C) Bank of America D) Dun and Bradstreet, Inc.   42) ________ publishes Annual Statement Studies, showing ratios and other financial data for over 750 different industrial, retail, and wholesale categories. A) Robert Morris Associates B) Boston Consulting Group C).
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True / False Questions  1.Ewing Kauffman took a risk when he started his company Marion Labs in 1950.    2.How Ewing Kauffman ran his business illustrates corporate entrepreneurship.    3. Entrepreneurial opportunities are those situations in which new goods, services, raw materials and organizing methods can be sold at greater than their production cost. 4. Entrepreneurial.
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    101) A lockbox arrangement is very inexpensive to operate and is economical even for small businesses with a low volume of payments on account.   102) Some companies manage their accounts receivable and cash by using sweep accounts. These are accounts where all funds above a certain minimum are automatically moved into.
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    91) The average inventory turnover ratio tells the owner how fast merchandise is moving through the business.   92) There is a direct 1:1 relationship between a company's expected average inventory turnover ratio and the amount of cash required to launch it.   93) A low inventory turnover ratio demonstrates that the firm's.
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  125) Explain the three basic financial reports that a business uses in building a financial statement: the balance sheet, the income statement, and the statement of cash flows. What information is contained in each, what is their value to the small business owner, and how are they used to build.
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    61) What drives my customers' buying behavior? Are they receptive to new products or are they among the last to accept them? What values are most important to them? These questions are to identify: A) psychographic data B) geographic data C) demographic data D) All of the above 62) Too often, business plans describe in.
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    41) Time compression management (TCM) involves: A) speeding new products to market. B) enhancing the quality of existing products. C) decreasing the time it takes a product to move from introduction to the maturity stage of the product life cycle. D) shortening the sales clerks' response time to customers entering the retail store and.
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  21.Research indicates that male entrepreneurs tend to start their first significant venture in their middle 30s, while women entrepreneurs tend to do so in their early 30s.22.Previous start-up experience is a good predictor of starting subsequent businesses.    23.Dissatisfaction with various aspects of one's job often motivates the launching of a new.
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    1) A business plan for the small business owner: A) is of relatively little importance due to the dynamic nature of the marketplace. B) is synonymous with the marketing plan. C) tends to stress how the entrepreneur will operate rather than detailing what he/she wants to accomplish. D) contains both a marketing plan and.
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    21) What are the options for repairing a poor gross profit margin? A) Raise prices B) Cut manufacturing or purchasing costs C) Refuse orders with low profit margins D) All of the above   22) ________ ratios tell whether or not the small company will be able to meet its maturing obligations as they come due. A).
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    111) Relatively few consumer goods use the manufacturer-to-retailer-to-consumer distribution channel.   112) The price element of the marketing mix affects both sales volume and profits.   113) A small company's promotional goals may include creating a brand image, persuading customers to buy, and/or to develop brand loyalty.   114) Promotion involves both advertising and lengthy warranties.   115).
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    121) Only 60% of a typical business' inventory turns over quickly. 122) Selling on credit is a common practice in business.   123) Cash flow cycle refers to the time lag between paying suppliers for merchandise and receiving payment from customers.   124) Cash flow measures a company's liquidity and its ability to pay its.
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    21) The key to marketing success is: A) economy of scale in promotion by creating broad-based ad campaigns. B) understanding customers' unique needs, wants and preferences. C) the use of direct-marketing and E-commerce. D) catering to teenagers.   22) ACT!, Clementine, DataScope Pro, GoldMine, and MineSet are what type of software packages? A) Customer Relationship Management B) Data.
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  131) Identify and explain the two profitability ratios a small business owner can use to measure how effectively he/she is managing the business.   132) How can the entrepreneur interpret and use the various business ratios available to him/her?   133) What does a break-even analysis tell the small business owner?       .
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    51) By planning cash needs ahead of time, an entrepreneur is able to: A) reduce the amount and cash flowing out of the company. B) develop a sound borrowing and repayment plan. C) Both A and B D) increase borrowing costs by borrowing only when necessary.   52) Marking down inventory items that don't sell will.
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    21) The most important item on the balance sheet is: A) cash. B) disbursements. C) expenses. D) receivables.   22) Small businesses selling on credit find that: A) it is relatively inexpensive and simple. B) it is expensive and requires a great deal of effort. C) it is essentially borrowing money from the customer. D) many can get by without.
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    61) Which of the following is correct? A) Assets — Liabilities = Equity B) Assets — Equity = Liabilities C) Assets = Liabilities + Equity D) All of the above   62) In which statement, the account balances are reversed to zero on a monthly basis? A) Balance Sheet B) Cash Flow Statement C) Income Statement D) All of the.
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    31) The American Collector's Association has found that only about ________ of accounts over 90 days delinquent will be paid voluntarily. A) 5% B) 10% C) 2% D) 13%   32) A small business owner could accelerate accounts payable by: A) having customers mail printed orders to you. B) sending or faxing invoices the day of shipment. C) slowing.
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  123) What is relationship marketing? What characterizes each of the four levels of customer involvement that is part of relationship marketing?   124) Discuss strategies that a company can use to focus on their customers. 125) What characterizes companies that "get it right the first time," that have an emphasis on quality?     .
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    101) Technology has little impact on the quality of customer service a small company offers.   102) TCM focuses solely on reducing administrative time in product development.   103) The key to successful time compression management is speeding up the manufacturing process, since manufacturing consumes 90% of the time it takes to get the.
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    51) The most meaningful basis for comparing operating ratios is: A) other companies of similar size in the same industry. B) companies within the neighborhood. C) major corporations in the same industry. D) all publicly traded companies.   52) A ratio greater than ________ days would indicate poor collection procedures. A) 29 B) 40 C) 60 D) 90 53).
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    51) ________ is the process of creating and delivering desired goods and services to customers and involves all of the activities associated with winning and retaining loyal customers. A) Retailing B) Selling C) Marketing D) None of the above   52) Which of the following principles can help business owners create powerful, effective guerrilla marketing.
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  130) What are the five cash management roles an entrepreneur needs to fulfill in his/her small business?   131) Define or describe the terms: revenue, cash, profit, cash budget, cash flow, and cash flow cycle. Why is it important to understand the differences among them? 132) Discuss the five basic steps to establishing.
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  128) What are liquidity ratios and how are they used by the small business owner? Name and briefly explain the current and quick ratios. 129) What do leverage ratios measure? Name and explain three of them.   130) Describe what operating ratios are. Identify the five operating ratios covered in your text, explaining.
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    111) To get the best results, an entrepreneur should track as many ratios as possible.   112) The quick ratio is sometimes called the working capital ratio.   113) Calculating ratios is not enough to insure proper financial control. 114) The net profit on sales ratio (also called the profit margin on sales) measures the.
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    91) If employees are committed to quality, management's commitment becomes unimportant.   92) When asked what they want from a business they deal with, most customers say convenience.   93) Because of their organizational and managerial flexibility, small businesses often can detect and act on new opportunities faster than large companies.   94) The ability to.
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  11. The casual process of thinking starts with what one has and selects among possible outcomes.   12. Demographics, ethnic origin, and marital status are examples of segmentation variables.  13.Principles of effectuation help entrepreneurs develop their cognitive adaptability.  14.The question "What is this technology all about?" is a comprehension question.    15.Comprehension questions are designed to.
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    11) The primary goal of marketing research is to: A) discover potential competitors. B) reduce the risks associated with business decisions. C) determine how to allocate distribution resources. D) help management choose the appropriate promotional tool. 12) The marketing goal of a small business is to treat each customer as a(n): A) individual. B) group C) profit center. D).
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    71) The primary general goal of market research is to identify and profile the target market and most profitable customer in it.   72) The marketing approach that companies of all sizes strive to achieve is mass marketing.   73) The goals of one-to-one marketing are to attract, retain and increase the purchases by.
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    1) The first step in managing cash more effectively is: A) having an adequate cash reserve for emergency expenditures. B) rapid payment of accounts payable. C) speeding up payment of accounts receivable. D) understanding the company's cash flow cycle.   2) ________ is the money that moves through the business in a continuous cycle. A) Profit B) Net.
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    41) The real benefit of barter for the entrepreneur is that: A) it is essentially without cost to the business owner. B) it is considered a depreciable item for tax purposes rather than as income. C) it saves the small business owner between $50,000 and $150,000 a year on average. D) it is "paid".
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    71) The difference between the total sources of funds and the total uses of funds represents the increase or decrease in a firm's working capital. 72) The pro forma shows the company's current overall financial condition.   73) The most common method of creating a projected income statement is to develop a sales.
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    11) The statement of cash flow: A) compares costs and expenses against a firm's sales. B) is built on the basic accounting equation: Assets = Liabilities + Capital. C) shows what assets the business owns and what claims creditors and owners have against those assets. D) shows changes in working capital by listing sources.
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    81) Price is the safest criterion upon which to build a competitive edge.   82) Generally speaking, small businesses are more effective at relationship marketing than larger companies.   83) While customer contact is important to a small business, excellent products and low prices can offset any problems a small business may have with.
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    31) ________ is one indication that a small business may be undercapitalized. A) A current ratio below 1:1 B) A quick ratio above 2:1 C) A debt-to-net worth ratio above 1:1 D) A net-sales-to-working capital ratio equal to 3:1   32) If Mary wants to compare what her small business owes to what it owns in.
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  136) How should a small business owner manage his/her accounts payable?   137) How can an entrepreneur manage inventory in order to improve cash flow?   138) What role does barter play in improving a small firm's cash flow?   139) Offer several suggestions on how to trim overhead expenses in order to avoid a cash.
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