Question 1. Which of the following is true about a small business?
Student Answer: A small business is one that employs between 500 to 1000 employees.
A small business is usually funded by personal lines of credit and not through bank loans and microlenders.
A small business is one that is not dominant in its field.
A small firm usually curtails the freedom to innovate.
A small firm avoids risks that larger firms are willing to take.
Question 2. Barbara owns a small florist shop that employs a couple of part-time floral designers. She doesn't expect her business to grow much, but it provides her with a comfortable income and she enjoys what she does. Barbara's business would be described as a _____.
Student Answer: mid-size enterprise
retail business
lifestyle business
high-growth venture
service business
Question 3. Three factors contributing to the increased number of small businesses are technologies such as e-commerce, growing diversity in entrepreneurship, and _____.
Student Answer: downsizing and outsourcing
increased ease in going public
nationalization
market regulation
monopolistic business practices
Question 4. Charles is the purchase agent for a consulting firm. He places orders for office stationeries and consumables once in two weeks. The purchases are made in large quantities and are billed in the firm's name. The items that Charles buys are examples of _____.
Student Answer: specialty products
expense items
capital items
shopping products
convenience products
Question 5. The introductory stage will be followed by a _____ stage for a successful product.
Student Answer: maturity
research
saturation
growth
infiltration
Question 6. People who monitor social media to spot shifts in consumer tastes are called _____.
Student Answer: social arbitrators
trend watchers
crowd pullers
social developers
social programmers
Question 7. Consumer purchasing differs from organizational purchasing in that consumer purchasing _____.
Student Answer: is influenced more by subconscious and emotional factors
follows a formal buying process
has greater complexity in product usage
involves closer relationships between buyers and sellers
has a greater emphasis on economic payback
Question 8. The process of examining an organization's current marketing situation, assessing opportunities and setting objectives, and then developing a marketing strategy to reach those objectives is called _____.
Student Answer: stealth marketing
strategic marketing planning
marketing research
social commerce
marketing concept
Question 9. Selling existing products to new markets is called _____.
Student Answer: market development
product development
market segmentation
market penetration
vertical integration
Question 10. _____ refer(s) to intermediaries that sell products to other intermediaries for resale or to organizations for internal use.
Student Answer: Retailers
Wholesalers
Department store
Specialty store
Convenience store
Question 11. One of the valuable services that a wholesaler might perform is _____, in which it receives large shipments from the producer and then sells smaller quantities to retailers.
Student Answer: rack jobbing
drop shipping
bundling
breaking bulk
system integration
Question 12. _____ are full-service merchant wholesalers who set up displays in retail outlets, stock inventory, and perform other services, such as marking prices on merchandise.
Student Answer: Rack jobbers
Agents
Brokers
System integrators
Value-added resellers
Question 13. The government agency that has the authority to impose penalties against advertisers who violate federal standards for truthful advertising is the _____.
Student Answer: Federal Communications Commission
Consumer Product Safety Commission
Federal Trade Commission
Federal Advertising Administration
Federal Regulatory Commission
Question 14. In _____, behaviorally targeted ads follow users even as they move on to other websites.
Student Answer: attack ads
advocacy advertising
cooperative advertising
remarketing
search engine marketing
Question 15. A television commercial promoting a new range of naturally flavored ice cream, manufactured by Ice Fountain, an ice cream and candy manufacturing firm, is an example of which of the following elements in the communication mix?
Student Answer: Institutional advertising
Sales promotion
Social media
Product advertising
Personal selling