New Ent. Ch 2

Extrapolation means:

• a. projecting new values based on facts known about similar situations.

• b. obtaining money by threats.

• c. using more good manners than necessary.

• d. making up numbers out of thin air.

The specific address where a business can be found, refers to the:

• a. location.

• b. site.

• c. market area.

• d. drawing area.

Commonly, for a manufacturing business, the first priority for location is:

• a. being close to customers.

• b. being close to wholesalers.

• c. being close to sources of supply.

• d. being close to service industries

Which of the following is a source of primary marketing research information?

• a. government statistics.

• b. business publications.

• c. trade journals.

• d. a questionnaire survey.

The first marketing research priority for a new business is to determine:

• a. consumer lifestyle and trends.

• b. customer buying behaviour.

• c. market potential.

• d. advertising effectiveness.

Leasehold Improvements are usually paid for by the:

• a. landlord.

• b. lessee.

• c. real estate agent.

The sales forecast for a brand new business is not based on:

• a. industry statistics.

• b. how long it takes to get new customers.

• c. expert opinion.

• d. past sales of the company.

In an “on-line” or “web-based” business, the location is usually irrelevant.

• True

• False

It is generally better for a new business to lease, rather than own, their premises.

• True

• False

A new business should use several methods of estimating sales forecast.

• True

• False