Deck 3: Financing Your Business and Accounting Practices

Question 1

Organizations such as hospitals,personal care homes,schools,universities,are considered part of:

A)The B2C market
B)The institutional market
C)The industrial market
D)The government market

Answer 1

B

Question 2

________ is the level of return or compensation that you might expect for assuming the risks associated with investing in this business.

A)Profit potential
B)Return on investment
C)Risk analysis
D)Capital appreciation

Answer 2

A

Question 3

Cloud computing is an example of a product that is:

A)A new invention
B)Highly innovative
C)Moderately innovative
D)Slightly innovative

Answer 3

B

Question 4

_________ data comprise information that others have put together relating to your industry and/or your customers.

A)Primary
B)Secondary
C)Tertiary
D)Financial

Question 5

Which part of the feasibility study contains information about the nature of your competition?

A)Marketing plan
B)Technical feasibility
C)Market assessment
D)Profit assessment

Question 6

Other firms and businesses in your community and across the country are considered to be part of the:

A)B2C market
B)institutional market
C)industrial market
D)government market

Question 7

A condo developer has determined that his target market consists of financially independent,unattached singles between the ages of 40-50.He has segmented the market based on _____ factors.

A)Psychographic
B)Sociological
C)Demographic
D)Geographic

Question 8

One key source of demographic data on the Canadian market is:

A)Industry Canada
B)CANSIM
C)The CRA (Canada Revenue Agency)
D)Canadian Industry Statistics

Question 9

Other companies which offer products similar to yours are called:

A)Indirect competitors
B)Direct competitors
C)Parallel competitors
D)Rival competitors

Question 10

This process of breaking down large,heterogeneous consumer or industrial markets into more homogeneous groups is known as:

A)Market segmentation
B)Market diversification
C)Market augmentation
D)Market differentiation

Question 11

A typical feasibility study includes all of the following areas,except:

A)The concept for your venture
B)The technical feasibility of your idea
C)The supply situation
D)International trade regulations

Question 12

All of the following are likely uses for your prototype,except:

A)You can get photographs and other promotional material.
B)Show the idea to prospective buyers
C)Sell the prototype to the highest bidder
D)Put out publicity releases

Question 13

Wireless technologies are generally considered to be:

A)New inventions
B)Highly innovative
C)Moderately innovative
D)Copycatting

Question 14

A SWOT analysis represents:

A)Strengths,weaknesses,obstacles,tactics
B)Strategy,weaknesses,opportunities,tactics
C)Strengths,weaknesses,opportunities,threats
D)Strategy,weakness,obstacles,threats

Question 15

The first comprehensive plan you need in contemplating any new venture is called:

A)A profit-loss statement
B)A financial projection report
C)A feasibility study
D)A business plan

Question 16

A fully developed concept includes all of the following,except:

A)A description of the proposed pricing strategy
B)Distribution plans
C)Proprietary aspects
D)A prototype

Question 17

Which of the following competitive strategies creates a meaningful difference between your products and those of the competition,which creates a higher level of perceived customer benefits?

A)Cost advantage
B)Marketing advantage
C)Differentiation advantage
D)Focus on a Market Niche

Question 18

A microprocessor used to control a single-person car is an example of a product that is:

A)A new invention
B)Highly innovative
C)Moderately innovative
D)Slightly innovative

Question 19

Which part of the feasibility study contains information about the distribution channels for your product?

A)Marketing plan
B)Technical feasibility
C)Market assessment
D)Profit assessment

Question 20

Perhaps the best way to get the most current and useful information regarding your potential market is through:

A)Primary data
B)Secondary data
C)Trade publications
D)Statistics Canada

Question 21

Which of the following competitive strategies identifies a position in the market that has been overlooked by your competitors?

A)Cost advantage
B)Marketing advantage
C)Differentiation advantage
D)Focus on a Market Niche

Question 22

Selecting a location is most critical for which of the following businesses?

A)An automobile manufacturing plant
B)Public Utilities Commission
C)Municipal waste and recycling site
D)Hakim Optical

Question 23

Items such as food products and other staple products typically have markups in the range of:

A)5-10%
B)15-25%
C)35-45%
D)50-60%

Question 24

All of the following are external factors which might affect your sales,except:

A)Seasonal changes
B)Level of your promotional effort
C)Political activities and events
D)Changes in the retail mix

Question 25

Which of the following promotional activities is weakest in terms of the ability to deliver a complicated message?

A)Advertising
B)Sales Promotion
C)Public Relations
D)Personal Selling

Question 26

Which of the following promotional activities offers the greatest ability to focus on the target customer?

A)Advertising
B)Sales Promotion
C)Public Relations
D)Personal Selling

Question 27

Using cost-based pricing,what is the percentage markup on an item costing $1.00 and selling for $5.00?

A)25%
B)45%
C)55%
D)80%

Question 28

What is the percentage markup on an item costing $1.50 and selling for $3.00?

A)25%
B)50%
C)75%
D)Cannot be determined.

Question 29

All of the following are forms of non store retailing,except:

A)Vending machines
B)Fairs and exhibitions
C)Bricks and Mortars
D)The Internet

Question 30

All of the following are internal factors which might affect your sales,except:

A)the distribution channels you decide to use
B)level of your promotional effort
C)fashion trends and cycles
D)your ability to manage inventory levels effectively

Question 31

Items such as specialty products or jewellery,for example,typically have markups in the range of:

A)5-10%
B)20-30%
C)35-45%
D)50-60%

Question 32

The principal ingredients of a marketing program include all of the following,except:

A)Person
B)Productivity
C)Pricing
D)Place

Question 33

For your business plan,sales estimates for your first year of operation should be _____,while the estimates for subsequent years can be _________.

A)Quarterly; annually
B)Quarterly; semi-annually
C)Monthly; semi-annually
D)Monthly; quarterly

Question 34

_______ gives you a method of moving inventories that you may otherwise have to carry over to the following year.

A)Cash discounts
B)Quantity discounts
C)Quality discounts
D)Seasonal discounts

Question 35

________ are commonly provided to customers who buy more than some minimum quantity or dollar value of products or services from you.

A)Loyalty discounts
B)Cash discounts
C)Quantity discounts
D)Cumulative discounts

Question 36

Which of the following promotional activities is weakest in terms of the ability to focus on the target customer?

A)Advertising
B)Sales Promotion
C)Public Relations
D)Personal Selling

Question 37

Which of the following promotional activities has the highest cost per audience member?

A)Advertising
B)Sales Promotion
C)Public Relations
D)Personal Selling

Question 38

The ______ approach utilizes published statistics and weights them by an index that may be some factor such as the percentage of the population within your designated geographic area.

A)Broad-based
B)Narrow-focus
C)Statistic-specific
D)Top-down

Question 39

Which of the following promotional activities has the highest level of credibility?

A)Advertising
B)Sales Promotion
C)Public Relations
D)Personal Selling

Question 40

_________ permit customers to deduct a percentage amount from the net cost of their purchases if payment is made in cash at the time of purchase or full payment is made within a specified number of days.

A)Cash discounts
B)Quantity discounts
C)Quality discounts
D)Noncumulative discounts

Question 41

In the model for small business growth,the key issue in the inception stage is:

A)Obtaining customers
B)Increasing competition
C)Expansion into new products or markets
D)Finding growth opportunities

Question 42

A discount expressed as "2/10 net 30" means the customer can take a 2 percent cash discount for making payment within 10 days.Otherwise,the customer must increase the invoice total by 2 percent and pay that amount in 30 days.

Question 43

Examples of psychographic factors include the desire for status,the pursuit of fun,and the desire to be environmentally conscious.

Question 44

When it comes to the "one-store test" to test your product,you are safe to assume that the single location will be representative of the marketplace in general.

Question 45

In the model for small business growth,the key issue in the survival stage is:

A)Obtaining customers
B)Increasing competition
C)Expansion into new products or markets
D)Finding growth opportunities

Question 46

Merchant wholesalers are further classified as full-service,limited-function,drop shippers,truck wholesalers,and rack jobbers.

Question 47

In the model for small business growth,the key issue in the maturity stage is:

A)Obtaining customers
B)Increasing competition
C)Expansion into new products or markets
D)Finding growth opportunities

Question 48

A cost advantage competitive strategy involves a significantly lower cost compared to the competition which permits reasonable profit margins while offering lower prices.

Question 49

Which of the following promotional activities offers the greatest capacity to interchange with the audience?

A)Advertising
B)Sales Promotion
C)Public Relations
D)Personal Selling

Question 50

Free product samples and contests are activities related to:

A)Advertising
B)Personal selling
C)Sales promotion
D)Public relations

Question 51

The market research process involves two basic steps: gather information and then interpret it.

Question 52

What are the most important technical requirements to consider when developing a working prototype?

Question 53

The first plan you will write for your new venture is the business plan,once that is complete,you will then conduct a feasibility study.

Question 54

In the model for small business growth,product and market research in the inception stage is:

A)Non-existent
B)Little
C)Moderate
D)Innovative

Question 55

The bottom-up approach involves aggregating information from the customer level to the total market level.

Question 56

Discuss the relationship between the level of risk of a new venture and the expected return for that risk for new inventions,moderately or slightly innovative ideas,and copycat products?

Question 57

Secondary data is far less expensive for a firm to collect than is primary data.

Question 58

In the model for small business growth,product and market research in the survival stage is:

A)Non-existent
B)Little
C)Moderate
D)Innovative

Question 59

Survey research is the most widely used method of primary data collection.

Question 60

A personal sales person's primary function is informing customers about the nature of the offering and the value and benefits of using the product or service.

Question 61

Compare and contrast observational methods to questioning methods as a form of primary data collection.

Question 62

Describe market segmentation based on geographic location.

Question 63

Describe three different kinds of discounts provided by businesses to their customers.

Question 64

What are some of the common complaints faced by the owners of home-based business from neighbours and others in the community?

Question 65

Describe the primary issues faced by manufacturing firms in the selection of a location for their facilities.

Question 66

Discuss the disadvantages associated with running a home-based business.