ENTREPRENEURSHIP
Business Plans
REVIEW
a.
b.
c.
d.
e.
f.
g.
h.
i.
Angel Investors
Demographics
Harvest Strategy
Price Skimming
Marketing
Psychographics
Features
Demand-based Pricing
Publicity
j.
k.
l.
m.
n.
o.
p.
q.
r.
Penetration Pricing
Business Plan
Geographic Data
Label
Economy Pricing
Marketing Mix
Venture Capitalist
Market Segmentation
Brand
s.
t.
u.
v.
w.
x.
y.
z.
Premium Pricing
Positioning
Market Share
Personal Selling
Distribution
Public Relations
Promotional Pricing
ROI
Matching
1.
N
2.
3.
4.
5.
6.
7.
B
I
E
R
M
J
8.
T
9.
K
10.
11.
12.
13.
14.
15.
16.
C
G
O
D
U
W
Y
17.
18.
19.
20.
A
F
V
Z
21.
22.
23.
P
H
S
24.
25.
26.
L
X
Q
Pricing strategy with a low price, low quality
Statistical data relating to the population and particular groups within it (i.e. age, marital status, income, education)
A nonpaid form of communication that calls attention to your business through media coverage
All of the processes used to determine and satisfy the needs of customers and the company
The name, symbol, or design used to identify your product
Where information about the product is given on the package
Pricing strategy with a low price, high quality
Creating an image for the product in the customers mind; an effort to influence consumer perception
of a brand or product relative to that of competing brands or products.
A written document that describes all the steps necessary for opening and operating a successful
business
The way an entrepreneur intends to extract his or her money from a business after it is operating
successfully
Product characteristics that will satisfy customer needs
Reaching the target market through a blend of product, price, place, and promotion
Pricing strategy with a high price, low quality
A business’s percentage of the total sales generated by all companies in the same market
Involves the locations and methods that are used to make products available to customers
Temporarily offering lower prices to increase sales
An affluent individual who provides capital for a business start-up, usually in exchange for ownership equity
Analysis of consumer lifestyles to create a detailed customer profile
a direct communication between a buyer and a sales person
Amount earned as a result of the investment; usually expressed as a percentage
A firm that manages the pooled money of others in a professionally managed fund used to invest in
start-up businesses
Pricing that is determined by how much customers are willing to pay for a product or service
Pricing strategy with a high price, high quality
Collecting and analyzing information based on the physical location of the customer (i.e. city, state,
region, zip code, etc.)
The act of establishing a positive relationship with customers and the general public
Breaking down a group of consumers into smaller groups with shared common characteristics
True/False
Indicate whether the sentence or statement is true or false.
27. T
The Home Shopping Network is an example of a Manufacturer to Consumer channel option.
28. T
Most entrepreneurs spend between 50 – 100 hours developing their business plans.
29. F
Businesses will use a status quo pricing objective to maximize the per-unit profit of a product.
30. T
One of the disadvantages of TV advertising is that the audience is too broad.
31. F
It is easy to obtain a bank loan for a start-up business.
32. T
A rebate is a refund offered to people who buy a product.
33. F
Rational buying decisions are based on the desire to have a specific product or service.
34. T
Fliers and catalogs are examples of direct marketing.
35. F
Prices ending in even numbers are perceived to be bargains.
36. F
Time-based pricing is determined by considering what competitors charge for the same good or service.
37. T
Understanding your target market is critical to a business’s success.
38. T
Storage and handling adds to the cost of the product.
39. F
Direct Channels of distribution use intermediaries to move products between the manufacturer and the
consumer.
40. F
A promotional mix is the different products and services a business sells.
41. T
One of the main reasons small businesses fail is due to lack of experience and poor planning.
42. T
The marketing mix is also known as the 4 Ps.
43. T
Business plans are often written to make outsiders aware of your business; specifically investors.
44. F
Rolex and Mercedes use Price Skimming pricing strategies.
45. T
If a price is set too high, it could alienate a customer from even trying the product, regardless of its
features.
46. T
It is easier to determine the effectiveness of online advertising than traditional advertising.
Multiple Choice
Identify the letter of the choice that best completes the statement or answers the question.
47. B
Which of the following is a firm that manages the pooled money of others in a
professional-managed fund?
a.
Angel Investors
c. Devil’s Aid
b.
Venture Capitalists
d. Parents
48. B
What is a SWOT analysis?
a. Strong Willed One-Minded Teen
b. Strengths, Weaknesses, Opportunities, and Threats
c. Studious, Wonderful, Opportunistic, and Terrific
d. Strong, Weak, Opportune, and Titled
49. A
Which of the following is NOT a type of physical distribution?
a. Logistics
c. Transportation
b. Product Storage and Handling
d. Packaging
50. C
Which type of market segmentation groups individuals by tastes, opinions, personality traits,
etc.?
a. Sociographics
c. Psychographics
b. Demographics
d. Geographics
51. C
Which of the following is NOT an element of the promotional mix?
a. Advertising
c. Inventory Management
b. Personal Selling
d. Public Relations
52. A
Which of the 4 Ps is an item that satisfies what a customer wants or needs?
a. Product
c. Placement
b. Price
d. Promotion
53. B
How long does a Venture Capitalist typically spend researching an investment opportunity?
a. 1 year
c. 2 years
b. 5 months
d. 7 months
54. A
Which of the following will not help you sell your ideas?
a. Obtaining a patent
c. Working as a consultant
b. Licensing
d. Selling your idea to a company for the
development and launch of a new product
55. B
Which of the 4 Ps is the easiest to change?
a. Product
c. Place
b. Price
d. Promotion
56. A
Which of the following is NOT a part of the marketing mix?
a. Premonition
c. Price
b. Product
d. Promotion
57. D
How could a business increase their market share?
a. Lower prices
c. Increase advertising and promotion
b. Network with potential
d. All of the above
customers
58. A
Selling something for $19.99 is an example of what type of pricing strategy?
a. Psychological
c. Promotional
b. Predatory
d. Product Line
59. A
Which of the following is NOT a type of market segmentation?
a. Sociographics
c. Psychographics
b. Demographics
d. Geographics
60. C
What does the acronym SMART stand for in terms of setting your goals?
a. Specific, Managed, Attainable, Reasonable, Timeless
b. Suddenly, Materialistic, Affluent, Research, Totals
c. Specific, Measureable, Attainable, Realistic, Time bound
d. Smart, Measures, Always, Relates to Teens
61. C
Which of the following is a paid form of promotion?
a. Publicity
c. Advertising
b. Public Relations
d. Press Release
62. B
Which of the following is NOT an Introductory Element of the business plan?
a. Cover Letter
c. Statement of Purpose
b. Appendix
d. Executive Summary
63. B
How long are short term goals?
a. Less than 3 months
b. 1 year
64. A
65. A
66. D
67. A
c.
d.
Less than 6 months
3 years
Which of the following pricing strategy sets a high price to create a feeling of superiority?
a. Prestige
c. Penetration
b. Skimming
d. Promotional
Which of the following is an independent agency of the federal government that helps
Americans develop new businesses?
a. SBA
c. USDA
b. FTA
d. WTF
Why is a business plan important?
a. Makes you think about all
aspects of your business
b. Helps you communicate your
ideas to others
c.
May help you secure financing
d.
All of the above
A business’s percentage of the total sales generated by all companies in the same market is
called
a. Market Share
c. Distribution
b. Demographics
d. Market Capitalization