Archive for March 2018

Mariano is looking for a location for his firm. He really likes a location on Elm Street, but he is concerned that his costs will rise each year. Mariano is likely considering _____________ the Elm Street location.

Mariano is looking for a location for his firm. He really likes a location on Elm Street, but he is concerned that his costs will rise each year. Mariano is likely considering _____________ the Elm Street location.




a. Building on
b. Buying
c. Renting
d. It's impossible to tell.




Answer: C

Sy wasn't getting the business he thought he should. He started asking the few customers who came in how they had found him. Most of them had just stumbled onto him and stated that they had had no idea that he was even in this mall. Sy have had better luck had he studied the ____________ clause in the contract.

Sy wasn't getting the business he thought he should. He started asking the few customers who came in how they had found him. Most of them had just stumbled onto him and stated that they had had no idea that he was even in this mall. Sy have had better luck had he studied the ____________ clause in the contract.



a. Signage
b. Hidden charges
c. Rent default
d. Bail out clause




Answer: A

Carlton was in a real cash crunch. He needed to pay his monthly lease payment, but the remodeling he did cost so much that he didn't have the cash. Carlton should have considered a __________ clause.

Carlton was in a real cash crunch. He needed to pay his monthly lease payment, but the remodeling he did cost so much that he didn't have the cash. Carlton should have considered a __________ clause.




a. Leasehold improvements
b. Use of premise
c. Non-compete
d. Hours of operation



Answer: A

Melbourne didn't have much success with his video store, so he changed his product line and became an adult bookstore. His landlord was not so happy and asked him to vacate. Melbourne should have considered the __________________ clause in his lease.

Melbourne didn't have much success with his video store, so he changed his product line and became an adult bookstore. His landlord was not so happy and asked him to vacate. Melbourne should have considered the __________________ clause in his lease.




a. Leasehold improvements
b. Use of premise
c. Non-compete
d. Hours of operation




Answer: B

Kimana is excited that her landlord is repaving the parking lot and improving the landscaping. She might not be so excited if her lease contract did not contain a _______________ clause.

Kimana is excited that her landlord is repaving the parking lot and improving the landscaping. She might not be so excited if her lease contract did not contain a _______________ clause.



a. As is vs. compliant
b. Moves and remodels
c. Subleases
d. Co-tenancy




Answer: B

When considering competition you should?

When considering competition you should?



a. Avoid places that your competitors are
b. Locate within a few blocks of your competitors
c. Locate near or even next door to your competitors
d. Any of the three could be good choices.





Answer: D

High customer contact businesses need to consider:

High customer contact businesses need to consider:



a. Traffic, customer ease, and competition
b. Zoning, customer ease, and competition
c. Traffic, zoning, and competition
d. Traffic, customer ease, and zoning





Answer: A

Complications in exporting include:

Complications in exporting include:



a. Pricing as you need to cover transportation, increased paperwork, tariffs and other additional costs
b. Cultural and legal differences in product specifications
c. Conflict resolution in case of disputes
d. All of the above are potential complications





Answer: D

A born international is:

A born international is:




a. A foreign born entrepreneur
b. A start-up company who sets up a sales Website immediately
c. A company started in a foreign country and then brought to the United States
d. A small business that starts up to do business internationally (e.g., and import-export company)




Answer: B

For small businesses a major problems with most retailers is that they:

For small businesses a major problems with most retailers is that they:




a. Are hard to convince to take a chance on a small business start-up product
b. Deal only with distributors and not manufacturers directly
c. Require such large quantities of products that a small business has trouble delivering
d. Are tied into supply contracts years in advance and cannot take your products until these run out.



Answer: A

Internet malls:

Internet malls:




a. May have thousands of stores covering virtually every category or be smaller and focused on a particular target market.
b. Offer different levels of marketing and selling assistance
c. Vary in pricing depending on the services offered.
d. All of the above are true.




Answer: D

Waving signs at passing cars is a form of

Waving signs at passing cars is a form of



a. Direct sales
b. Guerilla marketing
c. Telemarketing
d. Direct response advertising




Answer: B

Which of the following in NOT direct response advertising?

Which of the following in NOT direct response advertising?




a. A classified ad
b. An infomercial on a television shopping network
c. A billboard with your business's phone number
d. A magazine ad that directs users to your Website




Answer: D

A candy bar you buy from a machine is a form of:

A candy bar you buy from a machine is a form of: 




a. Business-to-business direct selling
b. Telemarketing
c. Door-to-door sales
d. Vending sales




Answer: D

Advantages of direct marketing include all EXCEPT:

Advantages of direct marketing include all EXCEPT:



a. It can be relatively inexpensive
b. You do all the work your self
c. You control the information that is passed on to the consumer
d. You control the final price





Answer: B

Which is a modern way of achieving free ink?

Which is a modern way of achieving free ink?




a. Getting the local newspaper to interview you.
b. Getting you company mentioned in your local television news
c. Having a blogger write about your product.
d. Going viral.



Answer: C

Which of the following is NOT a CRM strategy?

Which of the following is NOT a CRM strategy?




a. Market penetration
b. Market expansion
c. Market diversification
d. Product expansion




Answer: C

Which of the following is a typical close technique?

Which of the following is a typical close technique?



a. The limited time offer (The sale ends tomorrow)
b. The objective close (Why must I do in order for you to buy this product?)
c. The assumptive close (Will this be cash or credit?)
d. The evaluative close (Try it and see; you can always return it later.)



Answer: C

Which of the following is NOT a reason personal selling so important to small businesses?

Which of the following is NOT a reason personal selling so important to small businesses?




a. You can design your message to fit the customer
b. You don't have to have outside help like you would in advertising or designing a Website
c. You can gain information to help you adapt your product or service
d. You can gain information about your customers




Answer: B

Which is true about advertising?

Which is true about advertising?



a. Clever ads may backfire as customers remember the ad but not the product or message.
b. A fear appeal works well for products such as clothing.
c. While it great if you can link a customer need to your value proposition, most ads don't do it.
d. Using patriotism after September 11 always worked well.



Answer: A

Why segment and target?

Why segment and target?



a. To decide how to price your products
b. To decide what magazines are the best places for your ads
c. To adapt your product or service to the customer's taste
d. All of the above are good reasons for segmenting and targeting.





Answer: D

A value proposition is ________

A value proposition is ________



a. The same things as a unique selling point or differential advantage.
b. Key to determining why your customers will buy your product.
c. Key to determining who your target market might be.
d. All of the above.




Answer: D

Which of the following statements is true of joint ventures?

Which of the following statements is true of joint ventures? 




A. It requires both partners involved to allocate revenues and expenses equally between them.

B. It is not considered a separate entity from any of the partners that own it.

C. It does not require its partners to lose more than what each partner has invested in it.

D. It is never taxed as a partnership.




Answer: C

Which of the following is true regarding buyout insurance?

Which of the following is true regarding buyout insurance? 




A. It is usually provided as a stand-alone policy.

B. It is only applicable for large businesses.

C. It is a type of disability insurance.

D. It is the most highly desired form of insurance for most employees.



Answer: C

Which of the following statements is true regarding credit insurance?

Which of the following statements is true regarding credit insurance? 




A. It does not cover losses from credit customers not paying their bills.

B. It refers to credit provided by merchants to their customers on purchased products.

C. It requires the merchant to provide co-insurance in the amount of 10 to 20 percent of the credit loss.

D. It is only available to retailers.



Answer: C

A _____ is an agreement with an insurance or bonding company that will pay a specified amount in the event that the entity bonded fails to comply with specified contractual requirements.

A _____ is an agreement with an insurance or bonding company that will pay a specified amount in the event that the entity bonded fails to comply with specified contractual requirements. 




A. business interruption insurance

B. credit insurance

C. surety bond

D. fidelity bond



Answer: C
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