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Final Exam Questions
Effective Business Management
75
Business
11/11/2008

Additional Business Flashcards

 


 

Cards

Term
In franchising ______ pay fees and royalties to a _______ in return for the right to sell its product or services und the franchiser's trad name and often use its business format system.
Definition

franchisee, franchiser

Term
Franchising is currently dominated by:
Definition
Retail Outlets
Term

_____________ franchising exists when a frachisee is licensed to sell specific products under the franchiser's brand name throught a selective distribution system.

Definition
Product Distribution
Term
In _______ franchising, a franchisee purchases only the right to become identified with the franchiser's trade name.
Definition
Trade Name
Term
_____________ franchising involves providing the franchisee with a complete busines system-- the established name, the building layout and design, accounting systems, etc.
Definition
Pure
Term
Most gasoline products are sold throught the _______ system of franchising.
Definition
product distribution
Term
McDonald's is and example of a ______ franchise.
Definition
Pure
Term
The success of franchising is largely due to:
Definition
the neutral benefits it provides to the franchiser and the franchisee.
Term
McDonald's worldwide success as a franchise can be attributed to a few simple strategies,
Definition
ability to obtain prime locations in hight trafic areas.
Term
A significant advantage a franchisee has over the independent small business owner is participation in the franchiser's ________.
Definition
centralized and large-volume buying power.
Term
In view of the cause of most new business failures, probably the most valuable service provided franchisees by the franchiser is:
Definition
Management Training and Experience.
Term
The franchising boom spearheaded by ____ in the late 1950s brought with it many prime investment opportunities.
Definition
McDonalds
Term
In franchising, the reputation of the franchiser is dependent on:
Definition
The quality of the goods and services provided.
Term
When buying and existing business, the potential buyer should remember that:
Definition
It is a long process and the buyer should be patient.
Term
One advantage of buying an existing business is:
Definition
Equipment is installed and production capacity is known.
Term

When it comes to buying an existing business, it is not uncommon to find it:

Definition
bargain priced.
Term
When buying an existing business, one should remember that:
Definition
The real reason for selling is seldom stated honestly.
Term
The inventory in an existing busines:
Definition
needs to be checked for age and salability.
Term
Definition
Term
Accounts receivalve in an existing business:
Definition
are rarely worth thier face value.
Term
The first step and entrepeneur should take when acquiring an existing business is to:
Definition
analyze his/her skills, abilities, and interests in an honest self audit.
Term
Once an entrepreneur has evaluated him/herself the next step in the acquisition process would be to:
Definition
prepare a list of potential candidates and investigate them.
Term
When conduction a self evaluation it is important to consider:
Definition
What kind of business you want to have and want to advoid.
Term
The biggest source for the best companies to buy is:
Definition
the hidden market.
Term
 The process of gathering information about the company, valuing the company, and performing a detailed review of all records, agreements, and compliance is called:
Definition
due diligence.
Term
When negotiating the deal, the most important thing to remember is:
Definition
terms are more important than price paid.
Term
Perhaps the ideal source of financing the purchase of an existing business is:
Definition
The seller
Term
Which of the following statements concerning the financing of a business purchase is true?
Definition
The buyer should be able to make the payments on the loans out of the company's cash flow.
Term
For entrepreneurs, a business plan is:
Definition
All the above
Term
A business plan performs a number of functions including:
Definition
Attracting capital for the start-up
Term
The _____ becomes the document that summarizes the analysis that has been done to justify a new business.
Definition
business plan
Term
A business plan:
Definition
forces and entrepreneur to think a business idea through, considering both its positive and its negative aspects.
Term
A well-developed business plan provides the entrepreneur with a number of benefits, such as:
Definition
Determining the principle risks confronting the business.
Term
The primary purpose of building a business plan is to:
Definition
provide direction, to create a "target" to shoot for.
Term
A business plan for the small business owner:
Definition
Contains both a marketin plan and a financial plan.
Term
_____ is the process of creating and delivering desired goods and services to customers, and involves all of the activities associated with winning and retaining loyal customers.
Definition
Marketing
Term
Small businesses can compete with larger rivals with bigger budgets by employing unconventional, low-cost creative techniques known as:
Definition
guerilla marketing techniques
Term
The focus of the small company's marketing plan is:
Definition

The customer.

Term
The marketing plan builds a strategy for success:
Definition
from the customer's point of view.
Term
The marketing plan should include certain key objectives, such as:
Definition
pinpointing  the specific target markets a small business will serve.
Term
Shifting patterns in the age, income, education, race, and other characteristicsof the population are the subject of ______ and exert a potent force on a company's marketing plan.
Definition
demographics
Term
A demographic trend is like a train for the small business owner in that:
Definition
he/she needs to discover where it is going early and decide whether or not to get on board.
Term
Market Research:
Definition
Provides the information that is foundational to the marketing plan.
Term
Market research answers what important question for the small business onwer?
Definition
Who are my customers and what are they looking for?
Term
The primary goal of marketing research is to:
Definition
Reduce risks associated with business decisions
Term
THe first, and most critical, step in conduction market research is to:
Definition
Define the research problem clearly.
Term
John wants to answer the question, "What drives my customers' buying behavior?"  The best information to adress this question comes from:
Definition
Psychographics Data
Term
When it comes to gathering market research on customers, most small companies tend to be:
Definition
data rich, lots of facts, but information poor, little in useful form.
Term
One-to-one marketing is a marketing strategy that:
Definition
gathers data on individual customers and then tailors an appeal to their needs and tastes.
Term
For the results of market research to provide a solution to a small business onwner's problem:
Definition
the owner must attach meaning to it.
Term
Effective one-to-one marketing involves:
Definition
all of these
Term
______ is a process in which computer software that uses statistical analysis, database technology, and artificial intelligence find hidden patterns, trends, and connections in data so that business owners can make better marketing decisions and predictions about customer's behavior.
Definition

Data Mining

Term
Most marketing experts contend that the greatest marketing mistake small businesses make is:
Definition
failing to identify the target market.
Term
When it comes to the target market, most succesful businesses:
Definition
have well-defined "portraits" of the customers they want to attract.
Term
The key to marketing success is:
Definition
understanding customers' unique needs, wants, and preferences.
Term
ACT!, Clementine, DataScope Pro, GoldMine, MineSet, Nuggets are what type of software packages:
Definition
Data Mining
Term
A company's competitive edge is:
Definition
based on customers' perceptions of it products and services.
Term
A "natural" advantage small businesses have over large business, which can be a significant competitive advantage, is:
Definition
relationship marketing.
Term
______ puts the customer at the center of a company's thinking, planning, and action and shifts the focus from a product or service to customers and their needs and wants.
Definition
Customer Relationship Management (CRM)
Term
______is the notion of drawing customers into a store by creating a kaleidscope of sights, sounds, smells, and activities, all designed to entertain-and, of course, sell.
Definition

Entertaining

Term

The majority of customers who stop patronizing a particular store do so because:

Definition
an indifferent employee treated them poorly.
Term
In reality, advertising:
Definition
is an investment in the future; without steady advertising the customer base will dry up.
Term
Tami is developing an advertising strategy fo her small business.  The first step in this process is to:
Definition
Identify her target audience.
Term
Effective ads are built on:
Definition
A unique selling proposition
Term
The most meaningful unique selling proposition:
Definition
describes the primary benefit of the product.
Term
The choice of advertising medium is primarily determined by:
Definition
The target audience and the message
Term
There are a number of tips a small business owner can follow to build effective advertising including:
Definition
limit the content of each ad.
Term
_____ is any commercial news covered by the media that boosts sales but for which the small business does not pay.
Definition
Publicity
Term
The Last Hole, a small golf shop, sponsors a hole-in-one contest in a golf tournament to raise money for charity.  Anyone scoring a hole-in-one on #16 wins a complete set of clubs; the golfer closest to the pin on #16 wins a golf wardrobe.  The Last Hole is the subject of several reports and stories in the local media.  This is an example of:
Definition
Sales Promotion
Term
When Chapters, a small book store, brings in a famous author for a special autogtraph session promoting her latest book and gets her on the local radio station, Chapters is using;
Definition
Sales Promotion
Term
A recent study of top salespeople found that they:
Definition
Work from the customer's perspective and use past "success stories."
Term
________ is any sales presentation that is nonpersonal in nature and is paid for by an identified sponsor
Definition
Advertising
Term
The _______ cost of an advertising medium compares the actual dollar cost of an ad with the number of potential customers it reaches.
Definition
relative
Term
When selecting the advertising vehicle the small business owner should ask him/herself:
Definition
Who are my target customers?
Term
Definition