The Marketing Plan - Chapter 7 - Review
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1) Small business marketing involves numerous activities, many of which occur even before a
product is created or made ready for distribution or sale.
2) As suggested
Chapter 7The Marketing Plan
1. Small business marketing is best defined as the performance of distribution activities that affect the
flow of goods and services from producer to consumer or user.
Small business marketing involves numerou
Chapter 19Professional Management in the Entrepreneurial Firm
1. Individuals who are launching promising startups need to have a tolerance for ambiguity.
REF: p. 495
OBJ: 19-1 TYPE: C
2. An automobile dealer wants to use the moder
Chapter 6The Business Plan: Visualizing the Dream
1. A business plan is a written document that sets out the basic idea underlying a business and its related
REF: p. 147
OBJ: 6-1 TYPE: D
2. As the game plan
Chapter 9The Location Plan
1. For many entrepreneurs, choosing a location for a small business is a one-time decisionmade only
when the business is first established or purchased.
REF: p. 231
OBJ: 9-1 TYPE: C
2. The site location
Chapter 20Managing Human Resources
1. Personnel programs are the same for small companies as for Wal-Mart or Sears, just on a much smaller
Small businesses cannot duplicate the personnel programs of such industry giants, but they
Chapter 14Building Customer Relationships
1. Customer relationship management means the different things to different people.
REF: p. 363
OBJ: 14-1 TYPE: D
2. The goals of a CRM program for most small firms are the complete custom
Chapter 10Understanding a Firm's Financial Statements
1. The income statement shows a firm's financial position on a specific date.
The income statement indicates the amount of profits generated by a firm over a given period of time,
Chapter 8The Human Resources Plan: Managers, Owners, Allies, and
1. In reviewing business plans, investors show great concern for the quality of venture leadership.
REF: p. 202
OBJ: 8-1 TYPE: C
2. A management team is of
Chapter 23Managing Risk in the Small Business
1. According to the textbook, risk is a condition in which there will be a known and adverse deviation
from a desired outcome that is expected or hoped for.
Risk is a condition in which there
The Business Plan - Chapter 6 Review
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1) A business plan is a written document that sets out the basic idea underlying a business and its
related startup considerations.
2) A busines plan crystallizes the hope
Chapter 12A Firm's Sources of Financing
1. The basic factors that determine how a firm is financed include the following: the firm's past economic
performance, the nature of its assets, the maturity of the firm, and the personal preferences of
Chapter 21Managing Operations
1. Operations refers to the processes used to create and deliver a good or service.
REF: p. 548
OBJ: 21-1 TYPE: C
2. The term quality may be defined as the manufacture of products that are free of def
Chapter 11Forecasting Financial Requirements
1. Projections of a ventures profits, its asset and financing requirements and its cash flows are essential
in determining whether a venture is economically viable.
REF: p. 287
Chapter 5The Family Business
1. When a parent retires completely and turns the firm over to a son or daughter, the firm ceases to be a
A firm remains a family business when it passes from one generation to the next.
Chapter 4Franchises and Buyouts
1. One of the advantages of buying a franchise is that the purchaser has access to a proven business
REF: p. 97
OBJ: 4-2 TYPE: C
2. A franchise is typically attractive because it offers trai
Chapter 22Managing the Firm's Assets
1. Working-capital management focuses on the attractiveness of long-run investment opportunities.
Working-capital management refers to managing short-term assets and short-term sources of finan cing.
Chapter 15Product and Supply Chain Management
1. It is important that small firms gain a competitive advantage, which cannot be quickly imitated.
REF: p. 394
OBJ: 15-2 TYPE: C
2. According to the textbook's three-stage model of th
Chapter 13Planning for the Harvest
1. Harvesting is the method entrepreneurs and investors use to grow their firms.
Harvesting is the method entrepreneurs and investors use to exit a business and, hopefully, reap the
value of their inves
Chapter 3Getting Started
1. "Me, too" strategies are used by very few new ventures.
In reality, most new ventures (especially in service industries) are founded on "me, too" strategies.
REF: p. 63
OBJ: 3-1 TYPE: C
2. Many new busi
Chapter 17Promotional Planning
1. The way small businesses communicate with their customers is completely different from the way
family members communicate with one another.
There are many similarities between the way small businesses co
Chapter 16Pricing and Credit Decisions
1. Because small businesses are small by definition, pricing and credit considerations are relatively
unimportant to their overall performance.
Pricing and credit decisions are vital to small busine
The Family Business - Chapter 5 Review
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1) A firm is a family business when it passes from one generation to another.
2) A family business is not necessarily a small business. Even though Ford Motor Company
Franchises and Buyouts - Chapter 4 Review
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1. Due to the unique characteristics of franchising, the success rate is much higher than for nonfranchised businesses.
2. The most attractive characterstics of franchi