Business Final Exam - Practice Exam Summary

Secondary research involves interacting with the world by talking to people.

Mind mapping is a free and open exchange of ideas.

According to Statistics Canada's survey of electronic commerce and technology, what approximate percentage of private sector firms used internet-based systems in 2007?

Which type of marketing involves the process of identifying the specific needs of each customer, repeatedly satisfying those needs, and creating a long-term, value-added relationship?

To succeed in a mature market, you must win customers from your competitors.

A competitive test matrix will help you to develop your competitive pricing strategy.

According to the textbook, branding is a promotional technique that is too expensive for a small business.

According to the Direct Sellers Association, which of the following methods resulted in the highest sales in 2008?

An important Action Step is to "fantasize your perfect location"

According to the text, your firm's image can be affected by the types of businesses in the neighbourhood where you are located.

Which of the following types of partnerships has unlimited personal liability for any debts?

Which of the following Acts requires an annual return to be filled each year?

As an employer, you are responsible only for those situations addressed in the occupational health and safety legislation.

As described in the Chapter 10 case study, what represented the first step to financial freedom for Ray and Joan Stewart?

What amount of net profit would an owner require if he or she wanted to achieve a profit margin of 45 percent of every $100 worth of sales?

The just-in-time team is a group of individuals who are hired on a contact basis to perform a specific function.

It is not necessary to profile the businesses that compete indirectly against you.

Return on owner's investment means little if you are investing money in bonds.

Which of the following defines "Paid Reach"?

Which is an example of the "simple method" of GST accounting?

According to 90 percent of entrepreneurs, which of the following is a major characteristic of running a business?

A growth segment is an industry with an annual sales increase that is well above average.

Which statement best identifies the market research findings of Crazy Plates trio Greta and Janet Podleski and David Chilton?

Demographics is the study of population characteristics such as age, income, education, and sex.

Which stage of the competitive life cycle would be most likely to see price wars?

Which of the following is a common goal of competitive intelligence?

According to the textbook, direct mail is your best approach if your market is fragmented or diverse.

According to the textbook, personal selling can be quite expensive but it is an effective form of promotion for small business.

Your net rent will include the cost of all services and utilities.

Which statement best describes the "loss factor"?

Which of the following is required for the formation of an incorporated business?

It is advisable to request a NUANS (Newly Upgraded Automated Name Search) report if you want to protect your business name.

Which type of business insurance covers lost earnings and other indirect costs when a business is interrupted because of fire or other catastrophe?

Which of the following would you use on an application of funds statement?

Which of the following can be predicted by an income projection?

What is action step 55?

Balance sheets and income statements are not required in a business plan of you are financing the business yourself.

Return on owner's investment is calculated by dividing investing dollars by the net assets.

Which of the following defines "Impression"?

Which of the following is correct?

According to Industry Canada, the term micro business usually refers to a business that has how many employees?

According to the author, your elevator pitch should have three major questions: what is your business vision? What is your business mission? And who is your main competitior?

A market gap is an area of the market where needs are being met

Which of the following is the least important question when interviewing potential customers

According to the textbook, a driving force or distinctive competency is a major consideration for your competitive positioning strategy

An example of guerilla marketing is the 1-800-GOT-JUNK? junk motorcades (case 6)

Which of the following is a method for a producer to make a product or service available to the consumer?

According to the text, successful entrepreneurs take advantage of multiple distribution channels

As a sole proprietor, under certain circumstances you can deduct your business losses as an expense on your personal income tax statement

Which of the following is an example of the principle of social entrepreneurship?

How often is a worker injured at work in Canada?

A company's balance shows that its current assets equal $100, current liabilities equal $60, and cash on hand equals $25. What is the working capital for this company?

When forecasting sales, you should consider high, low and medium sales projections"

According to the text, which of the following approaches to an organizational structure is one of the most widely used forms in small business?

Return on owner's investment is calculated by dividing investing dollars by the net assets

It is not necessary to profile the business that compete indirectly against you

What is the 15-10-5 hashtag strategy?

How much is the goods and service tax in alberta?

Which of the following is one source for new-eyes research information?

What is the term for the marketplace where replacement items can be purchased?

According to the author, business objectives are rarely measurable

Which of the following is an example of one-on-one marketing?

Which of the following is a way to survive profitably in a mature industry?

What type of marketing is being used when employees have a flash mob in front of their store?

Which of the following are your promotional cornerstones?

In most cases, Statistics Canada and Industry Canada will be your only source of secondary information for your location decision

Succession planning is the process of establishing the procedures to change or transfer ownership or control of a business

A strong corporate shield may allow the corporate officers to protect some of their personal assets

According to the author, how many times should an employee's application, resume, and references be verified to minimize your risk for the theft and fraud?

Which of the following is most important when you start a new business?

Your break-even ratio is calculated by dividing your total saled by your fixed costs

According to the text, an employee could end up costing you what percentage above their salary?

The reader of a business plan needs to be convinced that you understand the market and are capable of success

According to the author, which section of the business plan could be the most important part of all?

What is the maximum number of hashtags instagram allows?

Which of the following would you interpret as a signal that market conditions are becoming negative?

According to business experts, a major part of formulating a business strategy is the analysis of strengths and weaknesses.

What are the three types of customer groups?

Small business owners should be on the lookout for the invisible customer

A mark up is a percentage of your profit, which is added to the cost in order to determine your selling price

What would you use if you wanted a blueprint to help operate and measure the progress of a business?

Which of the following is an example of a market signal?

According to the test, what number of market gaps should you identify?

Relationship marketing emphasizes the market push approach

Which of the following is a way to survive the profitability in a mature industry?

Which of the following best describes what happens as an industry matures?

Which of the following involves setting "no-frills" low prices to increase volume and discourage competition?

A mark up is a percentage of your profit, which is added to the cost in order to determine your selling price.

How many votes might a shareholder in a co-op have if she had 50 shares?

Which of the following provinces have HST?

A completion bond provides insurance coverage to ensure that work on a contract is completed as agreed

Depreciation is part of your cash flow projection

A balance sheet is an indicator of the financial health of your business over a time period

The text recommends that your advisory team should have a formal structure

According to the textbook, if your projected statements show items that are not consistent with industry standards, this discrepancy will need to be explained

Balance sheets and income statements are not required in a business plan of you are financing the business yourself.

Which of the following defines reach?

Which of the following is correct?

According to statistics Canada, most small businesses are located in the service sector

In addition to the primary and secondary customer groups, which of the following groups influences a business?

According to the text, for most small businesses, there are three broad competitive strategies that provide a framework to hone their particular driving force

According to the text, you should first consider the ceiling price strategy and then ensure that this price will cover your costs and yield a desired profit

According to the text, there is little available evidence linking quality and service to increased profit and growth

If you're planning on working out of your home, you really don't need a location checklist

Equity is the owners cash investment

By federal law, a joint health committee is required for all businesses operating in Canada

On an opening balance sheet, pre paid expenses are a current liability

According to the text, why is Canada an entreprenurial hotbed?

According to Tanya Shaw Weeks, which of the following is one of the keys to success in business?

According to Michael Porter, what key factors are external to the company

Which of the following should be included in the first section of a business plan?

Canadian company capabilities is a great magazine to help profile your Canadian business

According to the author, what is a common time frame for high-tech businesses to go from birth to product penetration?

According to the textbook, your direct competitors are those people/organizations that customers perceive to provide the same types of products/services

According to the textbook, branding is a promotional technique that is too expensive for a small business

According to Brian Scudamore of 1-800-GOT-JUNK, "free ink" is one of the best ways to promote your small business

Competition, security, image, and accessibility should all be considered when determining the right location

A distribution channel is where you locate your business

A distribution channel is where you locate your business

If you incorporate, a shareholders agreement is a legal requirement

What is the age requirement for forming a corporation in Canada?

According to the textbook, which of the following applies if you operate a home-based business?

Which of the following records includes the cost of goods sold?

Which of the following organizational structures inhibits risk-taking and the flow of info?

To calculate your break even point, you need to know the value of your fixed and variable costs and your output capacity

Which of the following statements best describes information in the financial section of a business plan?

Regarding GST, which of the following are considered serrated items?

An organic organizational structure would benefit from a transformational leadership style by the owner

What timeframe for listing your business goals is recommended in action step 17?

Business plans help owners measure the progress of their business

According to David Chilton, author and Dragons Den TV celebrity, which of the following was a major reason for the success of Crazy Plates

According to the textbook, most marketers tell us that the product-push strategy works well in today's marketplace

According to the author, what number of people will an unhappy customer complain about poor service

According to the text, the best home based business to go into depends mainly on emerging market trends, such as personal health care and elder care

According to the author, most small business start out as which of the following business structures?

Entrepeneurs have similar personalities and temperaments

Trust in and concern for others are examples of the mission objectives for a business

What is SRI International's acronym VALS used to describe?

The desire to be financially independent or to own half million dollar house are examples of financial objectives

According to the textbook, traditionally, most small businesses have been organized on the basis of function, geography, or type of customer.

How does the cost leadership strategy successfully compete?

which pricing strategy is a business using when it initially sets a higher selling price and then reduces the price as competition begins to grow

3 major types of distribution channels are retailing, wholesaling, and franchising

According to the author, most small businesses start out as which of the following business structures

A personal guarantee, which is signed by the president of a corporation does not protect a creditor

which of the following factors should be included in a shareholder agreement

which of the following best defines working capital

A mind map is often used by entrepreneurs to generate ideas

what is the term for the ability of a company to meet its long-term debt obligation

Charlene Webb had a successful woman's specialty store because she hired and trained committed full time employees

the executive summary is of little importance if you plan to contact lenders or investors

which of the following does NOT make an effective social media post

Psychographics involves segmenting the population by lifestyle behaviour

Your competitive analysis should be part of your marketing strategy

According to the text, which approach did Mina Cohen use to make her travel with a purpose business grow?

Penetration pricing occurs when you set the highest price your target consumers will pay for a product or service given their needs and values and competitive options

A gross rent is a rental arrangement in which the tenant pays for services and utilities

Some retail landlords, especially in large malls, want a base rate plus a percentage of gross sales

Studies have shown that only about 10% of small businesses survive in their first year

A pro forma income statement will tell you you how much cash you have to operate your business

the business life-cycle has three major stages: embryo, growth, and maturity

according to the text, strategic alliances or partnerships between competitors are growing trends

Profits are a form of equity

Which of the following would most likely be required to sign a completion bond?

which of the following competitive marketing strategies is exemplified by the establishment of a "dollar store" that offers low retail prices?

Which of the following is a possible advantage of using a PERT chart

according to the author, who should your sales people be

which of the following is used to calculate the selling price

you must incorporate federally under the Canada business corporations act

As a sole proprietor, you will be required to pay CPP premiums on self-employed income

workplace health and safety are the sole responsibility of the employee

how many ways are there to calculate break even

As determined in the chapter 7 case study, which of the following should Mick Beatty have included in his lease to protect himself from the situation he was faced with after buying Eddie's pub?

By what date do self-employed people have to have their taxes in to the CRA?

Which of the following is characteristics of personal selling in a small business?

according to the author, who should dictate the changes required to stay competitive?