1.

An entrepreneur's ability to pursue an opportunity and turn the opportunity into

a viable entrepreneurial firm hinge largely on the
A) availability of money
B) availability of human resources
C) availability of networks
D) availability of right people
E) availability of right CEO
2. In financial management, profit is regarded as
A) stand-alone item
B) more like liquidity
C) more like firm's efficiency
D) more like firm's effectiveness
E) None of the above
3. As a manager, you are DRAFTING financial management and, in that process,
the last step you need to do is:
A) Preparation of Pro-forma financial statements
B) Forecast preparation
C) Cash flow forecast
D) Ongoing analysis financial results
E) Seem to be none of the above
4. Forecast-based projections for future periods, usually covering two to three years
ahead of time, are known as:
A) profit and loss account forecasts
B) liquidity ratio forecasts
C) pro-forma financial statements
D) cash flow forecasts
E) None of the above
5- Segmentation is the process to select potential
A) target markets
B) industry
C) industry and potential market
D) target market and differentiation product
E) all of the above
6- Positioning means:
A) position venture in the market.
B) position venture in the industry.
C) position venture regionally.
D) position venture locally.
E) none of the above.
7. Which of the following statements is true?
A) Niche market is the target market.
B) Niche is much broader term than target market.
C) Niche market means is a place within a target market, a narrow group of customers
with similar interests.
D) Niche is narrow group of merchants within a few segments.
E) none of the above.
8. To support their positioning strategy, firms often develop a memorable term that
is frequently employed by a business to support the position it has taken in the
market. It can be used in literature, ads, stationery, and even bills. It is a(n)
A) marketing campaign
B) cliché
C) tagline
D) invitation
E) none of the above
9. The major categories of liabilities listed on a balance sheet are
A) two
B) three
C) four
D) five
E) six
10. Newly-established firms typically base their forecasts on a good-faith estimate of
sales and on industry averages (based on a percentage of sales) or the experiences of
similar start-ups for cost of goods sold and other expenses. As a result, a newly-
established firm's forecast should be preceded in its business plan by an explanation
of the sources of the numbers for the forecast and the assumptions used to generate
them. This explanation is called a(n):
A) forecast
B) assumption sheet
C) projection sheet
D) due diligence paper
E) fact sheet
11. Marketing driving strategies, or a marketing process is the first step ventures do
when they want to develop a new product or service. These steps or these strategies
are implemented in the following way
A) segmentation, targeting, positioning, differentiation
B) segmentation, targeting, positioning
C) segmentation, positioning, targeting, differentiation
D) segmentation, targeting, differentiation, positioning
E) only targeting, differentiation and positioning
12. Borrowing money to pay for routine operating expenses, or extremely tight
profit margins, or declining product quality, are signs of
A) weak venture
B) venture needs money
C) growing too fast
D) slow growth
E) none of the above
13. A firm's core strategy is largely determined by its
A) experts
B) СЕО
C) skilled employees
D) core competencies
E) financial resources
14. Primary reasons for the firm's growth are
A) economies of scope.
B) market leadership.
C) economies of scale.
D) influence, power, and survivability.
E) all of the above
15. There is a consistent set of challenges that affect each and every stage of a firm's
growth. The first of these challenges is known as
A) managerial capacity problem.
B) price stability.
C) quality control.
D) cash flow management
E) none of the above
16. Which one is NOT one of disadvantages of internal growth strategies of the
firm?
A) Slow form of growth
B) Need to develop new resources
C) Incremental, even-paced growth
D) Adds to industry capacity
E) Investment in a failed internal effort can be difficult to recoup

17. Marketing facilitates and encourages people to pass along a marketing message
about a particular product. A well-known example of such marketing is Hotmail.
When Hotmail first started distributing free e-mail accounts, it put a tagline on
every message sent out by Hotmail users that read "Get free e-mail with Hotmail."
Within less than a year, the company had several million users. Every e-mail
message that passed through the Hotmail system was essentially an advertisement
for Hotmail. This type of marketing is known as:
A) guerrilla marketing
B) word of mouth marketing
C) viral marketing
D) advertising
E) positioning
18. Selling via intermediaries (from producer to end user) means that a product is
sold via
A) 3 intermediaries.
B) 4 intermediaries.
C) 2 intermediaries.
D) 5 intermediaries.
E) no intermediaries at all.
19. Sales process has__ steps.
A) 4
В) 6
C) 7
D) 3
E) 8
20. The best definition among those below, is that sustainable growth means a(n)
A) at least one year growth
B) more than 2 years
C) 4 or more years
D) growth of a pronged time
E) none of the above

21. What a customer is willing to pay is determined by the perceived value of the
product and by the number of choices available in the marketplace. Sometimes, to
make this determination, a company has to work backwards by testing to see what
its target market is Willing to pay. A firm influences its customers' perception of the
value through positioning, branding, and the other elements of the marketing mix.
This statements the best implies
A) price-quality attribution
B) value based-pricing
C) quality based-pricing
D) modern based-pricing
E) none of the above
22. The purpose of advertising is to raise consumer awareness of a product and
encourage purchases. Major objectives of advertising are to:
A) Raise customer awareness of a product
B) Explain a product's comparative features and benefits
C) Create associations between a product and a certain lifestyle
D) All of the above
E) None of the above

23. Marketing mix, or 4Ps are used in one of the following steps of marketing
strategies:
A) segmentation
B) targeting
C) differentiation
D) positioning
E) none of the above
24. The most effective ads tend to be those that are memorable and support a
product's brand. However, advertising has some major weaknesses, including the
following:
A) Low credibility
B) The possibility that a high percentage of the people who see the ad will not be
interested
C) Relative costliness compared to other forms of promotions
D) The perception that advertising is intrusive
E) all of the above

25. Borrowing money to pay for routine operating expenses, or extremely tight
profit margins, or declining product quality, are signs of
A) weak venture
B) venture needs money
C) growing too fast
D) slow growth
E) none of the above
26. A firm's core strategy is largely determined by its
A) experts
B) СЕО
C) skilled employees
D) core competencies
E) financial resources
27. Primary reasons for the firm's growth are
A) economies of scope.
B) market leadership.
C) economies of scale.
D) influence, power, and survivability.
E) all of the above
28. There is a consistent set of challenges that affect each and every stage of a firm's
growth.
The first of these challenges is known as
A) managerial capacity problem.
B) price stability.
C) quality control.
D) cash flow management
E) none of the above
29. Which one is NOT one of disadvantages of internal growth strategies of the
firm?
A) Slow form of growth
B) Need to develop new resources
C) Incremental, even-paced growth
D) Adds to industry capacity
E) Investment in a failed internal effort can be difficult to recoup
30. All the following belongs to the advantages of internal growth strategies,
EXCEPT:
A) Encourages internal entrepreneurship
B) Allows firms to promote from within
C) Adds to industry capacity
D) Preserves organizational culture
E) Provides maximum control
31. Which one is not the one of the five reasons why new product fail?
A) The potential market was underestimated.
B) Customers saw the product as too expensive.
C) The product was poorly designed.
D) The product was no different than the competition's ("me too" products).
E) The costs of developing the product line were too high.
32. Improving an item means increasing its value and price potential from the
customer's perspective. For example, smartphone companies routinely increase
revenues by coming out with "new" versions of their existing phones. Therefore,
enhancing quality, making it larger or smaller, making it more convenient to use,
improving its durability, or making it more up to date, refers to:
A) improving a new product or service
B) improving an existing product or service.
C) improving a future product or service
D) improving an old product or service
E) none of the above
33. An increase in a product's market share is typically accomplished by increasing
advertising expenditures, offering sales promotions, lowering the price, increasing
the size of the sales force, or increasing a company's social media efforts. Therefore,
based on the above, actions taken to increase the sales of a product or service
through greater marketing efforts or through increased production capacity and
efficiency is called
A) advertising strategy
B) product capacity
C) market penetration strategy
D) testing marketing strategy
E) none of the above
34. The____is the company that owns the intellectual property.
A) franchisor
B) franchise
C) franchisee
D) licensee
E) licensor

35. Which ones are the Foreign-Market Entry Strategy?

A) Exporting
B) Licensing
C) Franchising
D) Joint ventures
E) All of the above
36. Read this statement: "A firm in effect "teaches" a foreign company how to
produce its proprietary product. Eventually, the foreign company will probably
break away and start producing a variation of the product on its own". This refers
to
A) primary disadvantage of licensing
B) primary advantage of exporting
C) primary advantage of franchising
D) primary disadvantage of franchising
E) primary disadvantage of joint ventures
37. The following statement, "it is usually a one-time activity, and the relationships
that are established in a foreign market may not be valuable to facilitate future
projects", refers to
A) primary disadvantage of licensing
B) primary disadvantage of new ventures
C) primary disadvantage of wholly owned subsidiary
D) primary disadvantage of exporting projects
E) primary disadvantage of turnkey projects
38. Pooling of interests to combine two or more firms into one is knows as a(n)
A) joint venture
B) merger
C) acquisition
D) partnership
E) sole proprietorship
39. The process of completing the acquisition of another firm has
A) 7 steps
B) 8 steps
C) 6 steps
D) 9 steps
E) 10 steps
40. ___is a set of qualities, either favorable or unfavorable, that consumers connect
with a business. Positive qualities like being dependable, inventive, trustworthy, or
easy to get along with are examples of these qualities. Alternately, they could be bad-
cheap, untrustworthy, haughty, or challenging to work with. One of a company's
most precious assets that is cultivated among firm's customers.
A) tagline
B) brand
C) firm's name
D) firm's value
E) none of the above
41. The majority of experts advise against depending too much on advertising to
establish a company's brand. Relying on word-of-mouth, the media, and creativity
to generate goodwill about a business is a less expensive strategy. It is called a
A) brand management strategy
B) brand strategy
C) buzz strategy
D) brand protection strategy
E) all of the above
42. Imagine the effect of a spokesperson for Apple Inc. saying that Apple used a new
computer hardware firm's products and was pleased with their performance. A
testimonial such as this would pave the way for the sales force of this new firm's
hardware, and the new firm could use it to reduce fears that it was selling an
untested and perhaps ineffective product. The above statement best describes
A) a brand.
B) a brand image.
C) a reference account.
D) a product quality
E) none of the above

43. The top managers of the firms involved in an acquisition, an alliance, a licensing
agreement, or a franchise organization may clash, making the implementation of the
44. initiative difficult. This statement refers to
A) primary advantage of clash of corporate cultures.
B) primary advantage of operational problems.
C) primary disadvantage of diversification of business risk.
D) primary advantage of increased business complexity
E) primary advantage of incompatibility of top management.
45. Granting of permission by one company to another company to use a specific
form of its intellectual property under clearly defined conditions. This statement
refers to a(n)
A) franchising.
B) licensing.
C) licensor.
D) acquirer.
E) none of the above.