ME11 - Final Exam Review 5

An individual who takes action when he or she is unsure of the outcome is able to perform which action?

• Tolerate ambiguity

• Demonstrate sincerity

• Show empathy

• Resolve conflicts

When a business presents a service to the marketplace by emphasizing its economic value, the business is positioning the product on the basis of which factors?

• Benefits

• Price

• Features

• Competitors

Which statement is true regarding training for entrepreneurial ventures?

• Once entrepreneurs are educated or trained in their business field, they rarely need further education.

• Most successful entrepreneurs have degrees from four-year colleges or universities.

• The type of training and education that entrepreneurs need depends on the nature of the start-up business.

• Most entrepreneurs must pass state-mandated exams to operate their business.

What behavior is exhibited when an individual recognizes the possibility of an undesirable outcome and continues to work toward a goal?

• Creativity

• Self-discipline

• Risk-taking

• Flexibility

Which is an external threat that a company might identify while conducting a situation analysis?

• Declining unemployment

• Failing interest rates

• Increasing GDP

• Raising inflation rates

To appeal to a target market with slightly different needs, a business added a group of related items to its product mix. What is this group of items?

• Service expansion

• Product replacement

• Line extension

• Product enhancement

What is the final cost to the business of a product priced at $40 with a 20% trade discount?

• $35

• $25

• $22

• $32

One factor that an entrepreneur should consider while assessing a venture opportunity is whether it will encounter which situation?

• Lead to more opportunities

• Require employee loyalty

• Involve complicated paperwork

• Satisfy the needs of vendors

Local governments strongly promote and support small businesses mainly due to which factor?

• Businesses serve only the local communities

• Businesses are owned by one person

• Businesses may become big businesses

• Businesses are important to the economy

Businesses should set their selling prices at a level that will cause which situation?

• Be lower than that of the competitors

• Cover expected markdowns and expenses

• Be equal to the cost of the goods

• Ensure a high percent of profit