Entrepreneurship Final Exam

Why would a manager of a local business keep track of the prices that

similar businesses in the area are charging?

• To remain competitive

• To improve advertising

• To promote image

• To offer new services

Why do some new companies set their selling prices as low as they can?

• To get market share as fast as possible

• To eliminate all possible competition

• To earn a high return on investment

• To quickly make a large profit

When the costs of raw materials increase considerably, a business is

likely to perform which action?

• Maintain similar profit margins as its competitors

• Implement a long-term markup pricing policy

• Continue following the same marketing strategies

• Increase the selling price of a product

Which is an example of a business using a flexible pricing policy?

• Establishing prices that are competitive

• Lowering prices during bad economic times

• Setting prices as low as possible

• Sharing prices that consumers expect to pay

During the distribution channel selection process, a producer should

consider intermediary services and which other factors?

• Policies

• Theories

• Origins

• Scales

A large car manufacturer purchases materials that it will use to create

parts for automobiles. What is the car manufacturer?

• A retailer

• A wholesaler

• An industrial user

• An agent

A hairstylist cutting the hair of a client is providing which example of a

distribution channel?

• Producer to agent to consumer

• Producer to consumer

• Producer to retailer to consumer

• Producer to wholesaler to consumer

Indirect channels of distribution are usually of which attribute than direct

channels?

• Longer

• Shorter

• Cheaper

• More efficient

Marketers determine distribution intensity so they can achieve which

outcome?

• Ideal market exposure

• Complete market coverage

• Perfect market balance

• Total market saturation

Which is a question that a business might ask when it wants to evaluate

its weaknesses?

• What resources do we lack?

• What is our competition doing?

• What markets have our competitors missed?

• What obstacles do we face?