Question 1

Which of the following is included in an executive summary?

Accepted Answer

A)   The product or service provided by the business
B)   The most important trends in the industry
C)   The type of advertising and promotion that will be implemented
D)   All of the aboveE) None of the above
F) B) and C)

Question 2

The goal of public relations is to

Accepted Answer

A)   create awareness of the company.
B)   create a favorable impression with the public.
C)   increase sales.
D)   decrease seasonal merchandise.E) C) and D)
F) None of the above

Question 3

A mission statement is a comprehensive document that helps the entrepreneur analyze the market and plan the business strategy.

Accepted Answer

A) True 
 B)False  False

Question 4

Markup on cost and markup on selling price are pricing methods used in retailing.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is a form of direct marketing?

Accepted Answer

A)   Mail-order catalogs
B)   Advertising
C)   Publicity
D)   Public relationsE) B) and C)
F) All of the above

Question 6

If credit terms are stated as 2/10 net 30 E.O.M., the E.O.M. means

Accepted Answer

A)   the bill must be paid by the end of the month.
B)   discounts are available until the end of the month.
C)   the 30-day period and the 10-day period do not begin until the end of the month.
D)   no credit will be given until the end of the month.E) B) and C)
F) C) and D)

Question 7

If all customers pay the same shipping costs, this is known 	as

Accepted Answer

A)   F.O.B. Buyer.
B)   uniform-delivered pricing.
C)   F.O.B. Seller.
D)   all of the above.E) C) and D)
F) A) and B)

Question 8

If an entrepreneur hires someone to help customers who come to the business, or those who call the business, this employee is a(n)

Accepted Answer

A)   account manager.
B)   inside sales person.
C)   telemarketer.
D)   sales supervisor.E) B) and C)
F) None of the above B

Question 9

Entrepreneurs should plan advertising a year in advance because

Accepted Answer

A)   that is what large corporations do.
B)   it improves advertising delivery.
C)   it prevents flighting.
D)   it results in more consistent and effective advertising.E) A) and B)
F) None of the above

Question 10

Informative advertising explains the company's products and services and helps build the initial customer base.

Accepted Answer

A) True 
 B)False

Question 11

The number of people who will see or hear an ad is referred to as the _____ of the medium.

Accepted Answer

A)   frequency
B)   delivery
C)   reach
D)   selectivityE) A) and C)
F) A) and B)

Question 12

Typical competitive advantages include price, quality, and service.

Accepted Answer

A) True 
 B)False

Question 13

Using heavy promotion during peak selling seasons and no advertising during slow times is referred to as pulsing.

Accepted Answer

A) True 
 B)False

Question 14

The single most important demographic trend in the United States is the

Accepted Answer

A)   fact that there are more women than men.
B)   aging of the population.
C)   large number of teenagers.
D)   number of babies born each year.E) A) and C)
F) B) and D)

Question 15

Promotions used by retailers to encourage consumers to shop at a particular store are known as

Accepted Answer

A)   trade-oriented promotions.
B)   public relations.
C)   consumer-oriented promotions.
D)   direct marketing.E) All of the above
F) None of the above C

Question 16

Promotions such as samples, refunds and rebates, and coupons are types of

Accepted Answer

A)   trade-oriented promotions.
B)   public relations.
C)   consumer-oriented promotions.
D)   direct marketing.E) C) and D)
F) None of the above

Question 17

Prices set at $1.99, $3.95, etc., is known as

Accepted Answer

A)   price-lining.
B)   odd-ending.
C)   bundling.
D)   loss-leader.E) A) and B)
F) B) and C)

Question 18

Advertising that is designed to convince the customer that the new company is better than the competition is

Accepted Answer

A)   informative advertising.
B)   persuasive advertising.
C)   reminder advertising.
D)   maintenance advertising.E) A) and D)
F) All of the above

Question 19

As the large number of baby-boomers ages and changes lifestyles, this has created a

Accepted Answer

A)   decrease in the amount of goods and services sold.
B)   threat to the survival of businesses.
C)   demand for different products and services.
D)   upheaval in the U.S. economy.E) A) and B)
F) C) and D)

Question 20

When selecting media, the entrepreneur should choose the one which will

Accepted Answer

A)   reach the largest number of people.
B)   be the least expensive.
C)   reach a large number of people in the target market without spending advertising dollars on those not in the target market.
D)   reach a small number of people for a reasonable cost.E) None of the above
F) A) and C)

Exam 1: Introduction

Which of the following is included in an executive summary?

Correct AnswerverifiedShow Answer

The goal of public relations is to

Correct AnswerverifiedShow Answer

A mission statement is a comprehensive document that helps the entrepreneur analyze the market and plan the business strategy.

Correct AnswerverifiedFalse

Markup on cost and markup on selling price are pricing methods used in retailing.

Correct AnswerverifiedShow Answer

Which of the following is a form of direct marketing?

Correct AnswerverifiedShow Answer

If credit terms are stated as 2/10 net 30 E.O.M., the E.O.M. means

Correct AnswerverifiedShow Answer

If all customers pay the same shipping costs, this is known as

Correct AnswerverifiedShow Answer

If an entrepreneur hires someone to help customers who come to the business, or those who call the business, this employee is a(n)

Correct AnswerverifiedB

Entrepreneurs should plan advertising a year in advance because

Correct AnswerverifiedShow Answer

Informative advertising explains the company's products and services and helps build the initial customer base.

Correct AnswerverifiedShow Answer

The number of people who will see or hear an ad is referred to as the _____ of the medium.

Correct AnswerverifiedShow Answer

Typical competitive advantages include price, quality, and service.

Correct AnswerverifiedShow Answer

Using heavy promotion during peak selling seasons and no advertising during slow times is referred to as pulsing.

Correct AnswerverifiedShow Answer

The single most important demographic trend in the United States is the

Correct AnswerverifiedShow Answer

Promotions used by retailers to encourage consumers to shop at a particular store are known as

Correct AnswerverifiedC

Promotions such as samples, refunds and rebates, and coupons are types of

Correct AnswerverifiedShow Answer

Prices set at $1.99, $3.95, etc., is known as

Correct AnswerverifiedShow Answer

Advertising that is designed to convince the customer that the new company is better than the competition is

Correct AnswerverifiedShow Answer

As the large number of baby-boomers ages and changes lifestyles, this has created a

Correct AnswerverifiedShow Answer

When selecting media, the entrepreneur should choose the one which will

Correct AnswerverifiedShow Answer

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False

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B

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C

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