Entrepreneurial Management Chapter 3

Statement 1: The customer base will determine the success of a business venture.

Statement 2: A unique service needs an effective distribution strategy to get suppliers into demand.

• Both are true.

• Both are false.

• Only Statement 1 is true.

• Only Statement 2 is true.

Statement 1: When launching a product with existing competitors, strengths and weaknesses need to be identified.

Statement 2: Landscape of business is changing everytime.

• Both are true.

• Both are false.

• Only Statement 1 is true.

• Only Statement 2 is true.

Statement 1: The cost of rent is a regular annual expense and must be sustained with possible income that may or may not be generated.

Statement 2: Retail outles need a site that is convenient with supplies.

• Both are true.

• Both are false.

• Only Statement 1 is true.

• Only Statement 2 is true.

Statement 1: High density sales need to be located in low-density areas.

Statement 2: Quick and easy access store should be primary consideration in business location.

• Both are true.

• Both are false.

• Only Statement 1 is true.

• Only Statement 2 is true.

Statement 1: Technology is an important component in producing the product in view of the economies of scale.

Statement 2: The constant supply of raw materials is an important factor in the production of goods.

• Both are true.

• Both are false.

• Only Statement 1 is true.

• Only Statement 2 is true.

Statement 1: Continuous production will eliminate distribution disruption.

Statement 2: Capital investment is optional in operating and machinery expenditures.

• Both are true.

• Both are false.

• Only Statement 1 is true.

• Only Statement 2 is true.

Statement 1: The source of raw materials must be of low-cost quality.

Statement 2: Supply chain management is optional for products designed for customers.

• Both are true.

• Both are false.

• Only Statement 1 is true.

• Only Statement 2 is true.

Statement 1: Supply is the essence of profit.

Statement 2: The product must be of superior quality.

• Both are true.

• Both are false.

• Only Statement 1 is true.

• Only Statement 2 is true.

Statement 1: Focus only on innovation and the competition in identifying market problems.

Statement 2: Management must set a vision and mission.

• Both are true.

• Both are false.

• Only Statement 1 is true.

• Only Statement 2 is true.

Statement 1: In your business plan, you will need to identify who your target customer is and how you will keep them.

Statement 2: A business plan is helpful not only in the initial stages of your company but also in future decision making.

• Both are true.

• Both are false.

• Only Statement 1 is true.

• Only Statement 2 is true.