Question

1. Question : (TCO 5) Signs are important to the small business owner because they

are a medium that is not subject to regulation, thereby permitting maximum flexibility.

provide the maximum space for relatively complex messages.

are easy to use and to change.

grow in effectiveness the longer they are in place.

Question 2. Question : (TCO 5) The first phase in determining where to locate a business is

determining what regions in the country have what the new business needs to succeed.

conducting an Internet search for information on the cities of choice and competitors in those cities.

determining which city has the demographics that fit the business best.

choosing to what state the business owner wants to move.

Question 3. Question : (TCO 3) A small business owner would conduct a competitive analysis in order to

scan the environment for weaknesses and strengths on which to capitalize.

influence customers’ perceptions of the company and products’ image.

avoid surprises from existing competitors and to identify potential new competitors.

divide the market into smaller, homogeneous units.

Question 4. Question : (TCO 3) A mission statement should answer which of the following questions?

What are the needs and wants of the target customers?

How will we finance our growth and expansion?

How much money will we make?

Who are our competitors?

Question 5. Question : (TCO 1) “Copreneurs” are

business magazines targeted towards entrepreneurs.

entrepreneurial couples who work together as co-owners of their business.

personality traits of entrepreneurs.

None of the above

Question 6. Question : (TCO 1) Which of the following is not a common characteristic of entrepreneurs?

High energy level

Business plan expertise

Preference for moderate risk

Desire for responsibility

Question 7. Question : (TCO 3) A well-developed business plan provides the entrepreneur with a number of benefits, such as

a way to identify probable financial backers.

assisting the entrepreneur in going public with his or her new venture on the stock market.

determining the principle risks confronting the business.

a valuable tool for recruiting management to help in running the business.

Question 8. Question : (TCO 5) The value of the floor space in a retail store depends upon

the type of store and customer.

the number of salespeople servicing the area.

its proximity to aisles and entrances.

the merchandise in that area.

Question 9. Question : (TCO 3) Strategic management is a process that involves

developing a vendor list.

developing a vision and mission statement.

developing goals and objectives.

both B and C.

Question 10. Question : (TCO 3) A small business owner needs to remember that when it comes to employee involvement in the strategic planning process,

the delegation of authority is not as important as communicating a clear vision.

involvement is a prerequisite for the achievement of total employee commitment.

his or her employees look to him or her for leadership and do not want to be involved.

employees do not need to be involved in the strategic process, but do need to be involved in the operational process.