Chris is developing an innovative picture book for kids. He believes that it will be something every grandparent in the world will want to buy for his or her grandchild. Creating an innovative book does not necessarily mean that the book will be successful. In order to make his book a success, which of the following will Chris need to consider first and foremost?
A) Chris needs to consider if there are enough people in the target group to support the business.
B) Chris should look for a market that sells similar products and compete against them.
C) Chris should look for a target group that is ready to pay large sums of money to cover the costs of marketing and production.
D) Chris should look for target groups in any part of the world without considering the distance.
Question 2 - Michael Tucker operates Tucker Farms in northern Illinois. Last year, his annual receipts were just under 750,000. According to the Small Business Administration, Tucker Farms is a
A) small business.
B) medium-sized business.
C) large business.
D) franchise.
E) joint venture.
Question 3 - Which of the following is not an advantage that promissory notes have over trade credit from the perspective of the seller?
A) Notes are legally binding agreements.
B) Most notes earn interest for the seller.
C) Notes are negotiable instruments.
D) The company extending credit can sell the note and receive the money quickly.
E) The seller may demand payment from the buyer at any time.
Question 4 - Sue Wallace is getting married on Saturday. She purchases flowers for the church ceremony early Saturday morning from a local flower shop. Which of the following types of utility is not created by this activity?
A) Form
B) Place
C) Time
D) Possession
E) Ownership
Question 5 - Peter is starting a new business. He has to develop a marketing strategy by identifying similar characteristics, attributes, and behaviors of the target market, and then group the customers according to these characteristics, attributes, and behaviors. The term used to describe Peter's strategy is:
A) market sharing.
B) customer relationship management.
C) cognitive dissonance.
D) market segmentation.
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