What is the main advantage of small business that helps retain effective employees who could earn more at a larger firm?
A) Better pay and employee benefits
B) Ability to adapt to change
C) Simplified record keeping
D) Limited ability to raise capital
E) Personal relationships with employees
Question 2 - Burberry Mills sold stock to an insurance company to raise needed financing for expansion and new product development. This type of transaction is referred to as a(n)
A) equity deal.
B) private placement.
C) ownership transfer.
D) debt placement.
E) small business assistance package.
Question 3 - The elements of the marketing mix are combined to
A) demonstrate the expertise of the marketing staff.
B) meet product display requirements.
C) encourage in-house support for marketing.
D) fulfill trade show and other promotional commitments.
E) satisfy the target market.
Question 4 - The overall value of a brand to an organization-the extra money that consumers will spend to buy that brand-is called _____.
A) brand extension
B) brand mix
C) brand equity
D) brand segment
Question 5 - A friend of yours has recently received his MBA. He wants to open his own business but feels that it might be too risky at this point in his career. As an SBA counselor, you are able to advise him and explain more clearly to him some of the advantages and disadvantages of starting a small business. Which of the following statements best represents something you might tell him?
A) Although opening a small business is risky, there is practically unlimited potential.
B) The cost of opening a small business is relatively low, and financing is easily obtained.
C) Record keeping will be complicated, and public disclosure of most transactions is required.
D) Small businesses foster personal relationships and offer flexibility and independence.
E) Opening a small business is especially difficult because there is little help available for those desiring to do so.
Question 6 - A venture capital firm
A) provides financing to only large businesses.
B) looks for business that will provide a steady, average return.
C) receives corporate bonds from firms it finances.
D) consists of a pool of investors or a family partnership.
E) is a large, diversified corporation looking for investment opportunities.
Question 7 - When Pepsi decides to develop a new product, it creates the product itself, determines the price the new product will sell for, decides how to distribute the product to consumers, and develops a promotion campaign to inform the market of the new product. Pepsi has created a(n)
A) marketing strategy.
B) consumer market.
C) undifferentiated approach.
D) market segmentation.
E) marketing mix.
Question 8 - Which of the following can happen when a company launches a new product that is lower in price than the current products of the company?
A) Cannibalization
B) Market penetration
C) Augmentation
D) Market segmentation
Question 9 - In her small retail shop, Jocelyn knows most of her best customers by name and knows their preferences in clothing and shoes. This demonstrates which advantage of a small business?
A) Ability to adapt to change
B) Independence from customers' desires
C) Simplified record keeping
D) Personal relationships with customers
E) Small customer base
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