Filters
Question type
Study Flashcards

Nigel came to the U.S. on a swimming scholarship. After a few months of frustration with trying to find swim goggles like he used in his native country, he started a website that offered specialty goggles for swimming, skiing, and snowboarding. Before launching the website and filling orders, Nigel spent a few months going to swim meets and gathering preferences about goggles from other swimmers. Nigel's actions:


A) showed that he had a ready market for this product.
B) demonstrated that he had little experience with this product.
C) showed that he was promoting the website before it launched.
D) demonstrated his need to better understand the market.

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

A market consists of potential buyers of a good or service. However, for a market to exist:


A) the business requires wholesalers and retailers.
B) one firm must dominate in sales and product development.
C) people must have unsatisfied wants and needs as well as a willingness and ability to buy.
D) the product must be laboratory tested and approved by the Food and Drug Administration (FDA) .

E) B) and C)
F) A) and C)

Correct Answer

verifed

verified

Management includes attention toward financing the business, hiring employees, marketing, and record keeping.

A) True
B) False

Correct Answer

verifed

verified

Mini-Case Peppy Roaney believes that pizza is a much more versatile dish than most people realize. As the national marketing manager for Pizza Guys, he observed how consumers were delighted with barbecue pizza, Hawaiian pizza, Mexican pizza and other unique combinations. His suggestions for other unusual pizzas, however, were met with a negative response by his superiors. Even some of his colleagues laughed at his ideas. Peppy's confidence in his ability to understand the market has led him to focus on planning a business of his own. Peppy realizes that he will take a risk when he leaves his job with Pizza Guys and embarks upon a new venture: Peppy's Pizzazzeria. Peppy is excited about the potential of profitably catering to the unmet desires of pizza consumers. -Peppy knows a lot about marketing, but not much about the legal or financial aspects of starting a new business. He wants to consult with a lawyer and accountant, but his budget is tight with all of the expenses involved in getting Peppy's Pizzazzeria up and running. Peppy should:


A) delay talking with a lawyer and accountant until the business has established a positive cash flow for at least one year.
B) trust his basic instincts and try to put it together without the advice of lawyers and accountants.
C) consult with a lawyer and accountant even though the budget is tight.
D) immediately hire full-time lawyers and accountants for his staff.

E) B) and D)
F) A) and B)

Correct Answer

verifed

verified

The executive summary section of the business plan contains:


A) computerized information that readers can access interactively.
B) information that will capture the attention of bankers and other investors who receive many business plans every day.
C) qualifications, experience, and education of the entrepreneur and prospective employees.
D) a financial summary prepared by the business's accountant.

E) B) and C)
F) All of the above

Correct Answer

verifed

verified

Which of the following statements is characteristic of entrepreneurs?


A) They like certainty.
B) They have the ability to visualize a clear path.
C) They look at problems and see opportunities.
D) They prefer to be inventive rather than worry about whether the invention solves a customer need.

E) A) and D)
F) None of the above

Correct Answer

verifed

verified

Because of their superior financial resources and specialized staffs, big corporations can almost always outperform small businesses.

A) True
B) False

Correct Answer

verifed

verified

The easiest businesses to start are those that offer the greatest profit potential.

A) True
B) False

Correct Answer

verifed

verified

When Crystal graduates from culinary school she dreams of opening her own Asian fusion restaurant. Her other passion is skiing in Colorado, where she schedules four or five trips each year. As her small business advisor, you believe it necessary to provide her with information that will help her make good business decisions. Which of the following would be helpful for Crystal to know?


A) Restaurants are relatively easy businesses to start, but are labor intensive and also have the greatest failure rate.
B) Restaurants are not the easiest type of business to start, but once you get it going, you will have plenty of time for skiing.
C) Most restaurant owners get rich if they open their own, independent restaurant as opposed to starting a franchised operation.
D) Franchised operations will take less time on the part of the owner than a regular independently owned operation. If she opens a franchise, she will have more time for creativity in the business, and more time for skiing too.

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

Many micropreneurs are home-based business owners.

A) True
B) False

Correct Answer

verifed

verified

Chris is an angel investor. This means that he:


A) invests his money in new businesses with potential for growth, hoping for a good return on his investment if they go public.
B) creates business incubators for start-up web-based firms.
C) invests in nonprofits that plan to change their status when they double in size.
D) comes to the rescue of firms who default on their bank loans.

E) A) and B)
F) B) and C)

Correct Answer

verifed

verified

As a result of corporate downsizing, Alex lost his job as an IT manager for a large telecommunications company. A bonafide computer geek in his own right, Alex knew that several of his past company contacts often outsourced their computer problems. He decided it was a good time to test the waters and see if he could secure enough computer clients to be in business for himself. His success demonstrated that:


A) starting your own business can quickly provide security and profits.
B) people always tend to hire people they know from past associations.
C) the service sector is not an area of significant growth.
D) successful big businesses often create profitable opportunities for small businesses.

E) A) and C)
F) C) and D)

Correct Answer

verifed

verified

Attracting qualified workers presents a problem for small businesses since they usually offer less money, fewer benefits, and less room for advancement than larger firms offer.

A) True
B) False

Correct Answer

verifed

verified

Jake is an innovative engineering graduate who works for a large company that makes adhesive products for commercial and consumer use. One of his primary responsibilities is to initiate and develop new products to complement the firm's current product line. Jake's company is ___________


A) intrapreneurial
B) entrepreneurial
C) an outside consultant for other firms
D) at a disadvantage because it is trying to operate like a small business

E) A) and C)
F) None of the above

Correct Answer

verifed

verified

Ameet's three employees have been with him since he started Employment Recruiters, Inc., nearly 10 years ago. As he contemplates the staffing for his new branch office, he senses that none of these three are ready to manage the office. Faced with this difficult situation, he should:


A) appoint one of the three anyway to show that he appreciates their loyalty and commitment.
B) run the new branch himself and appoint one of the three to take over the original office.
C) hire a new qualified employee to manage the office since utilizing his unready employees could be detrimental to the business.
D) appoint all three to the new branch and let them run it using a team approach.

E) B) and C)
F) All of the above

Correct Answer

verifed

verified

Successful small business owners are:


A) not good sources for information on starting your own business because they generally do not understand failure.
B) valuable sources for information since you can learn from their experiences.
C) good but risky since their keen sense of sniffing out something with potential will tempt them to steal your ideas.
D) valuable sources of information, but you should proceed with caution because talking with someone who could eventually be your competitor may cross the line due to federal trade commission laws.

E) B) and D)
F) B) and C)

Correct Answer

verifed

verified

An entrepreneurial team consists of:


A) managers with similar skills, abilities, and interests.
B) experienced professionals from different areas of business.
C) a group of wealthy investors who share a vision for a product.
D) representatives from management, labor, and the government who work together to solve a company's problems in a creative way.

E) A) and B)
F) None of the above

Correct Answer

verifed

verified

The only real barrier preventing small businesses from exporting is insufficient knowledge of the opportunities available.

A) True
B) False

Correct Answer

verifed

verified

Because college students realize the importance of nursing homes for our aging population, students comprise an attractive market for nursing home insurance policies.

A) True
B) False

Correct Answer

verifed

verified

Micropreneurs are motivated by a desire to have both a satisfying family life and rewarding work.

A) True
B) False

Correct Answer

verifed

verified

Showing 241 - 260 of 316

Related Exams

Exam 1

Taking Risks and Making Profits Within the Dynamic Business Environment

327 Questions

Exam 2

Understanding Economics and How It Affects Business

314 Questions

Exam 3

Doing Business in Global Markets

358 Questions

Exam 4

Demanding Ethical and Socially Responsible Behavior

269 Questions

Exam 5

How to Form a Business

347 Questions

Exam 7

Management and Leadership

285 Questions

Exam 8

Structuring Organizations for Todays Challenges

369 Questions

Exam 9

Production and Operations Management

326 Questions

Exam 10

Motivating Employees

374 Questions

Exam 11

Human Resource Management: Finding and Keeping the Best Employees

437 Questions

Exam 12

Dealing With Union and Employeemanagement Issues

302 Questions

Exam 13

Marketing: Helping Buyers Buy

252 Questions

Exam 14

Developing and Pricing Goods and Services

357 Questions

Exam 15

Distributing Products

315 Questions

Exam 16

Using Effective Promotions

267 Questions

Exam 17

Understanding Accounting and Financial Information

366 Questions

Exam 18

Financial Management

300 Questions

Exam 19

Using Securities Markets for Financing and Investing Opportunities

410 Questions

Exam 20

Money, Financial Institutions, and the Federal Reserve

312 Questions

Exam 21

Managing the Marketing Mix: Product, Price, Place and Promotion

516 Questions

Exam 22

Extension: Working Within the Legal Environment

245 Questions

Exam 23

Extension: Using Technology to Manage Information

189 Questions

Exam 24

Extension: Managing Risk

129 Questions

Exam 25

Extension: Managing Personal Finances

259 Questions

Show Answer