1) under the ____ method of establishing an advertising budget, the owner sees advertising as a luxury.
a. matching competitors
b. objective-and-task
c.what- is-affordable
d. percentage of sales
2) A new product ____ pricing strategy is often used in markets with little competition and when the company seeks to recover start-up costs quickly.
a.penetration
b. sliding-down-the-demand-curve
c. skimming
d. discount
3) The Pastry Shop normally sells cheese Danishes for 60 cents each. On Mondays and Tuesdays, its slowest days, The Pastry Shop offers cheese Danishes at “4 for $2.00.” This is
a. leader pricing
b. price lining
c. multiple pricing
d. odd pricing
4) To establish a reasonable, profitable price for service, the small business owner needs to know:
a. competitors’ prices, and costs of direct and indirect labor
b. fixed and variable costs, the break-even point, and his/her contribution percentage
c. full absorption costs, direct and indirect labor, and the break-even point
d. the cost of materials, direct labor, and overhead for each unit of service
5) for some customers, a higher price equals:
a. uniqueness
b. higher quality
c. greater perceived value
d. all of the above
6) Price ____ usually begin when one competitor believes that they can achieve a higher volume through lower price, or they believe that they can exert enough pressure on competitor’s profits to drive them out of business.
a. discounts
b. wars
c. penetration
d. markdowns
7)Cindi is thinking through a number of management issues in making her exporting decisions. She is thinking about her company’s ____ capacity when she is thinking about how exporting will affect meeting domestic orders, her pricing structure, collection process, and what it will cost her for the company to make enough product for foreign export.
a. management
b. marketing
c. financial
d. production
8) A key to successfully establishing an international location is:
a. securing the necessary licenses to operate in the foreign country
b. being able to speak the language of the foreign country
c. making substantial investment in personnel
d. finding the right person to manage the international office
9) E-commerce requires a basic infrastructure somewhere in the channel of distribution to process orders, maintain inventory, _____, and handle customer service.
a. technology
b. fill orders
c. process e-mail
d. all of the above
10) KHA.com started selling sporting goods designed for senior citizens who live in retirement homes and apartments. KHA.com is selling its products using:
a. senior citizens strategy
b. niche strategy
c. mass strategy
d. community strategy
11) A _____ is one that visitors are willing to share with their friends
a. banner
b. viral site
c. sticky site
d. pop-up
12) Another word for browse-to-buy is:
a. tracker
b. conversion
c. controller
d. none of the above.
13) Which of the following is correct?
a. make it easy for customers to change the contents of their shopping carts
b. make it easy for customers to pay for their online purchases.
c. give customers the option of calling to resolve problems they encounter during checkout
d. all of the above
14) when raising money to launch new businesses, the entrepreneurial segment of the nation’s economy:
a.needs $170 billion per year in seed capital to fuel its growth
b. is spending less time and finding more money than in the past decade
c. finds it easier every year to find risk capital
d. knows where to find it, as traditional sources are full of venture capital
15) Most venture capitalist purchase ownership in a small business through:
a. loans with an option to buy stock
b. a general partnership
c. a common stock or convertible preferred stock
d. an ESOP
16) One of the biggest advantages of going public is:
a. the ability to retain control while gaining maximum funding
b. the ability to attract low cost equity funding
c. enhanced credibility and improved corporate image
d. better employee morale and productivity
17) Working capital can be calculated by:
a. current assets – Current liabilities
b. Total assets – Current Liabilities
c. Total asset – Total Liabilities
d. Total Liabilities – Total Asset
18) Equity capital is also called:
a. stock money
b. equity money
c. risk capital
d. none of the above
