1. Question: (TCO 3) Which of the following is true about a small business?
Answer: A small business is one that employs between 500 to 1000 employees.
small business is usually funded by personal lines of credit and not through
bank loans and microlenders.
small business is one that is not dominant in its field.
small firm usually curtails the freedom to innovate.
small firm avoids risks that larger firms are willing to take.
2. Question : (TCO 3) 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 _____.
Answer: mid-size enterprise
3. Question : (TCO 3) Three factors contributing to the increased number of
small businesses are technologies such as e-commerce, growing diversity in
entrepreneurship, and _____.
Answer: downsizing and outsourcing
ease in going public
4. Question : (TCO 3) 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 _____.
Answer: specialty products
5. Question : (TCO 3) The introductory stage will be followed by a _____ stage
for a successful product.
6. Question : (TCO 3) People who monitor social media to spot shifts in
consumer tastes are called _____.
Answer: social arbitrators
7. Question : (TCO 4) Consumer purchasing differs from organizational
purchasing in that consumer purchasing _____.
Answer: is influenced more by subconscious and emotional factors
a formal buying process
greater complexity in product usage
closer relationships between buyers and sellers
a greater emphasis on economic payback
8. Question : (TCO 4) 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 _____.
Answer: stealth marketing
9. Question : (TCO 4) Selling existing products to new markets is called _____.
Answer: market development
10. Question : (TCO 4) _____ refer(s) to intermediaries that sell products to
other intermediaries for resale or to organizations for internal use.
11. Question : (TCO 4) 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.
Answer: rack jobbing
12. Question : (TCO 4) _____ are full-service merchant wholesalers who set up
displays in retail outlets, stock inventory, and perform other services, such
as marking prices on merchandise.
Answer: Rack jobbers
13. Question : (TCO 4) The government agency that has the authority to impose
penalties against advertisers who violate federal standards for truthful
advertising is the _____.
Answer: Federal Communications Commission
Product Safety Commission
14. Question : (TCO 4) In _____, behaviorally targeted ads follow users even as
they move on to other websites.
Answer: attack ads
15. Question : (TCO 4) 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?
Answer: Institutional advertising