Info
Warning
Danger

Study Resources (Business Management)

  109) Describe what is meant by guerrilla marketing. What objectives should a guerrilla marketing plan accomplish? List at least five guerrilla marketing tactics your small business might be able to use successfully. 110) Describe why a small business might gain a competitive edge over its rivals by using a focus.
0 Views
View Answer
  1) A franchise is a system of distribution in which semi-independent business owners pay ________ and ________ to a parent company in return for the right to become identified with its trademark, to sell its product or services, and often to use its business format and system. A) a percentage of.
11 Views
View Answer
  41) Entrepreneurs should not spend much time selecting a form of ownership for their businesses because making the choice is merely a technicality, which has little impact on the business and its owner(s). 42) The sole proprietorship is the best form of ownership for entrepreneurs launching their first businesses. 43) Of all.
1 Views
View Answer
  101) The adjusted balance sheet method of valuing a business changes the book value of net worth to reflect its actual market value. 102) Neither the balance sheet method nor the adjusted balance sheet method of valuing a business considers the future earning power of the business. 103) FIFO, LIFO, and average.
1 Views
View Answer
  61) A principal advantage of buying an existing business is the purchaser's ability to rely on the previous owner's experience. 62) An entrepreneur should never purchase a business that is losing money. 63) A new owner of an existing business can generally introduce change and innovation almost as easily as if the.
3 Views
View Answer
  81) If the corporation, rather than the business seller, signs a restrictive covenant, the seller may not be bound by its terms. 82) A restrictive covenant prohibits the seller of an existing business from opening a competitive business within a specific time period and geographic area of the existing one. 83) Ralph.
3 Views
View Answer
  135) Is Ms. Todd's asking price reasonable? How much should Lauren offer Ms. Todd at the beginning of the negotiation process? 136) Based on the balance sheet method, what do you calculate the business to be worth? 137) Based on the capitalized earnings method, what do you calculate the business to be.
2 Views
View Answer
  124) Your friend Susan is considering purchasing an existing business. How would you explain to her what due diligence is, why it is important, and the critical areas of it? 125) Explain the steps in the acquisition process. 126) What is "goodwill"? Give an example of goodwill. Is it possible to inherit.
0 Views
View Answer
  71) Most states do not require a Certificate of Incorporation or a charter to be filed for a new corporation. 72) Corporations must obtain a federal charter before they can conduct any business. 73) Stockholders in the corporation have the same kind of liability as do general partners in a partnership. 74) When.
2 Views
View Answer
  51) Mitchell Schlimer, founder of the Let's Talk Business Network, a support community for entrepreneurs, says that, initially, about ________ percent of small business owners who sell their companies to larger businesses remain with the acquiring company. A) 40 B) 50 C) 70 D) 90 52) ________ gives owners the security of a sales.
1 Views
View Answer
  21) Which of the following is true regarding the corporate form of ownership? A) Generally has the greatest ability to accumulate capital B) Most complex form of ownership C) Separate legal entity in the eyes of the law D) All of the above 22) A corporation receives its charter from: A) the federal government. B) the state. C).
0 Views
View Answer
  11) A recent study reports that the success rate of franchisees increases when a franchise system: A) requires franchisees to have prior industry experience. B) requires franchisees to actively manage their operations. C) has built a strong brand name with training programs to improve knowledge and skills. D) All of the above increase the.
0 Views
View Answer
  21) A study by the International Franchises Association reports that minorities own more than ________ percent of all franchises and women own ________ percent of franchises. A) 2;8 B) 9;20 C) 12.;25 D) 20;25 22) ________ is an emerging international market for U.S. franchisers that is expected to realize the highest future growth rate. A).
0 Views
View Answer
  11) Which of the following statements concerning a company's target market is false? A) Marketing experts contend that the greatest marketing mistake small companies make is failing to clearly define the target market to be served. B) A "shotgun approach" to marketing-trying to appeal to everyone rather than to only a small.
2 Views
View Answer
  115) Faith Popcorn offers several ways Lloyd Dixon could collect information about his customers and competitors. Explain at least five of those ways. 116) Can Marvin use TQM to develop a competitive edge? If so, what would you recommend he do? 117) How can Marvin develop "stellar" customer service?     .
1 Views
View Answer
  21) When evaluating the financial position of a business he or she is considering buying, an entrepreneur should examine: A) its income statements and balance sheets from the past three to five years. B) its income tax returns for the past three to five years. C) the owner's compensation and that of relatives. D).
2 Views
View Answer
  31) A key customer benefit of a product or service that sets it apart from the competition answers the critical questions every customer asks: "What's in it for me?" and is known as: A) its brand identity. B) the unique selling proposition (USP). C) total quality management (TQM). D) branding. 32) The unique selling proposition.
3 Views
View Answer
  91) Truly customer-oriented companies seek to go beyond customer satisfaction, striving for superior customer service. 92) When an employee in a business treats a customer poorly, that customer usually does not complain; however, she does tell her "horror story" about that business to more than 10 other people. 93) Since front-line.
0 Views
View Answer
  51) The Uniform Franchise Disclosure Document (UFDD) is a document that every franchiser is required by law to give prospective franchisees before any offer or sale of a franchise. 52) If a franchiser encourages you to sign without reading the agreement, or discourages you from "spending the money on an attorney,".
0 Views
View Answer
  61) To attract potential customers, a ________ can serve multiple business purposes, including keeping customers updated on new products, enhancing customer service, and promoting the company. A) newspaper advertisement. B) brochure. C) blog D) radio promotion 62) The Internet offers entrepreneurs tools to provide existing and potential customers with meaningful information: A) in a passive,.
0 Views
View Answer
  31) Which of the following would be most likely to benefit from choosing S corporation status? A) Startup companies anticipating net losses B) Corporations where net profits before any compensation to shareholders is less than $100,000 per year C) Highly profitable firms with substantial dividends to pay out to shareholders D) A and C.
0 Views
View Answer
  51) The total quality management (TQM) concept: A) strives to achieve quality not just in the product or service itself, but in every aspect of the business and its relationship with the customer. B) relies on quality inspections through an army of quality control inspectors. C) focuses on reducing the time it takes.
0 Views
View Answer
  21) Which of the following is not a primary market research source? A) Customer surveys B) Focus groups C) Daily transactions D) All of the above are sources of primary market research. 22) Which of the following is not a secondary source of market research data? A) Census data B) Trade publications C) Focus groups D) Magazines 23) A process.
2 Views
View Answer
  139) You have found two similar businesses whose stock is publicly traded on the OTC market. Their price-earnings ratios are 3.19 and 2.91. Using these two firms as a benchmark, what do you estimate the business to be worth using the market approach? 140) Given the following earnings estimates, compute the.
4 Views
View Answer
  51) Although not required by law, a written partnership agreement that spells out the terms of operating the partnership and the status of each partner should be developed. 52) State law requires that individuals creating a partnership file the Articles of Partnership with the secretary of state. 53) Defining the duties, responsibilities,.
0 Views
View Answer
  71) Before purchasing an existing business, an entrepreneur should analyze both its existing and its potential customers. 72) If a business has a lien against any of its assets at the time of the sale, the buyer must assume them and is financially responsible for them. 73) A creditor's claim against an.
1 Views
View Answer
  81) Market research requires a business owner to define the objective, collect data, analyze and interpret that data, and draw conclusions and act. 82) Small entrepreneurial companies are at a definite disadvantage compared to larger ones when it comes to conducting market research since it is so expensive. 83) A company has.
1 Views
View Answer
  41) The ________ approach to valuing a business assumes that a dollar earned in the future is worth less than that same dollar is today. A) balance sheet B) capitalized earnings C) adjusted balance sheet D) discounted future earnings 42) Which of the following valuation techniques is best suited for determining the value of service.
1 Views
View Answer
  31) Using the adjusted balance sheet technique, what is the business worth? A) $397,650 B) $386,475 C) $249,150 D) $232,875 32) The valuation approach that considers the value of goodwill is the: A) balance sheet technique. B) excess earnings method. C) discounted future earnings approach. D) market approach. 33) Under the excess earnings method, what is the "extra earning power".
4 Views
View Answer
  81) Making money on the Web is easy. 82) It is important that customers trust the Web sites they visit. and one study reports that 94 percent of consumers believe that online privacy is important. 83) Businesses that publish privacy policies, and then adhere to them, build trust among their customers,.
3 Views
View Answer
  1) ________ 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) Marketing B) Personal selling C) Promotion D) Customer service 2) For an entrepreneur, a business plan: A) is of relatively little importance due to the dynamic nature.
5 Views
View Answer
  111) According to the discounted future earnings technique, a dollar earned in the future is worth more than a dollar earned today. 112) The reliability of the discounted future earnings approach to valuing a business depends on making accurate forecasts of future earnings and on choosing a realistic present value rate. 113).
0 Views
View Answer
  91) A nondisclosure document is an agreement between a business buyer and a seller that requires the buyer to maintain strict confidentiality of all records, documents, and information he receives during the parties' negotiations. 92) A letter of intent is a nonbinding document stating that a business buyer and a seller.
1 Views
View Answer
  106) Why is it important for small business owners to define clearly their target market(s) as part of their marketing strategies? 107) Why is it important for small business owners to track demographic trends? How can small companies become effective trend trackers? 108) Your friend Maria is experiencing declining sales in the.
0 Views
View Answer
  11) Perhaps the ideal source of financing the purchase of an existing business is: A) a venture capitalist. B) the Small Business Administration. C) the seller of the business. D) an insurance company. 12) To ensure a smooth transition when buying an existing business, a buyer should: A) communicate with employees to reduce their uncertainty and.
2 Views
View Answer
  41) Most franchisers provide extensive financial help such as loans and low-rate financing for their franchises. 42) The failure rate for franchises is below that for other types of new businesses. 43) In addition to other fees, franchisees must also pay royalties but only on net profits; in other words, no profits,.
0 Views
View Answer
  112) Why is it important for a small business to keep existing customers satisfied? How can a company achieve such customer satisfaction? 113) What marketing potential does the Internet offer small business owners? 114) How could Lloyd realistically create a competitive advantage by giving customer service a focus in his business?     .
2 Views
View Answer
  71) A critical marketing step is to clearly define their target market. 72) The company's target customer should permeate the entire business, from the merchandise purchased, in the layout and decor of the store, and on their Web site. 73) The increasing diversity of our population is creating a marketing "threat" to.
4 Views
View Answer
  1) One of the most valuable attributes of the Web is the ability to: A) provide companies with instantaneous customer feedback. B) enable the site to create an appearance that the organization is able to meet customer needs that, in fact, are not possible based on its actual resources. C) eliminate advertising expenses.
11 Views
View Answer
  31) Establishing a Baskin-Robbins franchise inside a Blimpee's franchise is an example of ________ franchising. A) multi-unit B) master C) cobranding D) diversionary 32) A franchise is an arrangement in which semi-independent business owners pay fees and royalties to a parent company in return for the right to sell its products or services and often.
1 Views
View Answer
  131) Identify five questions that influence the negotiation process between a business buyer and a seller. 132) Using the capitalized earnings method, calculate the value of the business. 133) Based on the excess earnings approach, what do you expect the business to be worth? 134) Given the following earnings estimates, compute the value.
2 Views
View Answer
  127) Is there a "best method" for determining the value of a business? Why? How should a prospective buyer go about establishing the value of a business? 128) Briefly summarize the mechanics of each of the methods for valuing an existing business: balance sheet technique, adjusted balance sheet technique, excess earnings.
1 Views
View Answer