Reference no: EM133313953

Questions

1. Before outlining any marketing strategy decision, what must entrepreneurs do? Why?

A. They must establish realistic and specific goals and objectives because doing so responds to the question, "Where do we want to go?"

B. They must confirm that any marketing goasl and objectives align with those of the business and answer, "Are our goals compatible?"

C. They must outline steps to develop the marketing strategy because doing so will answer the question, "How do we get there?"

D. They must ensure that there is sufficient funding with which to implement markting strategies and answer, "What effect will spending on deployment of marketing strategies have on sales?"

2. Why should marketers use mobile marketing to communicate marketing messages with consumers instead of traditional Internet marketing?

A. Compared to traditional Internet marketing, mobile marketing is very cost-effective. Advertising on mobile devices is almost free because costs are subsidized by mobile phone service providers, who earn huge profits when they sell expensive data plans to customers.

B. Using Facebook's targeted advertising is very effective as it creates groups of people who have similar interests and buying behavours based on their social conversations and web browsing history.

C. Consumers are increasingly using mobile devices instead of tradtional computers to access the Internet.

D. Sending marketing messages using popular social media apps is free and it reaches more consumers compared to traditional Internet marketing. Everyone has Twitter, Instagram and LinkedIn accounts.

3. Why should entrepreneurs of new start-up businesses include early adopters in promotional campaigns for new products?

A. Early adopters act delibertly, so their followers rely on them for purchase decisions.

B. Early adopters are regarded by their social followers as influential opinion leaders. Therefore, they're able to influence their followers' purchasing decisions.

C. Early adopters are leaders in their communities and they don't need others' approval.

D. Early adopters are industry insiders who are the first to buy and try new products.

4. In which category of consumer products would a root canal belong?

TIP: Consider options very carefully.

A. Convenience

B. Shopping

C. Unsought

D. Specialty

5. With regards to the trade credit, 2/10 net 30 that's typically offered to promote sales to businesses, why should business customers pay these invoices within ten calendar days?

A. Doing so enables them to build a favouable credit history with vendors

B. Doing so enables them to take advantage of trade credit discounts, which approximates 37% in interest costs annually.

C. Doing so enables them to take advantage of discounts, which approximates 2% in interest costs annually.

D. Doing so enables them to take advantage of discounts, which approximates 24% in interest costs annually.

6. The formula for Return on Investment (ROI) is Net Profit (before tax) / Owner's Equity.

This ratio may be compared not only with those in similar businesses, but also with alternative investments.

When comparing to the bank rate of interest, why should ROI be higher for the business than the bank rate?

A. To compensate for potential bad debt that the business may experience.

B. To compensate for differences in size between the business and banks.

C. To compensate for the risks associated with starting and operating the business.

D. To compensate for the premium that banks charge on interest in addition to the bank rate.

7. Which of the following is accurate with regards to ratio analysis for a small business?

A. As long as sales are growing and as long as profits are rolled back into the firm as retained earnings, there's no reason to go through the formality of completing a ratio analysis.

B. Ratio analysis enables the financial performance of a firm to be compared to other competitors in the same industry and to its past performance.

C. Ratio analysis is not necessary for small businesses since sales volumes, compared to big businesses, is relatively small (hence, the term, small business)

D. Ratio analysis is not applicable for businesses that operate on a cash-based system, since they don't have accounts receivables

8. A third of businesses that review social media sites in order to research applicants have opted not to hire someone as a result of this review.

True

False

9. Why should smalll business owners change their companies' board of directors or advisors periodically?

A. Growing firms can have vastly different needs and business goals compared to when they first started.

B. Government legislation requires firms to change their board of advisors in intervals of 3-5 years so as to promote inclusion and diversity.

C. Board members provide diminishing returns on investment as companies expand internationally.

D. Current board members become bored membes when they lose interest and focus on start-up firms.