BUSN 115 Final Exam

1. (TCO 1) A(n) _____ is a framework of how a business intends to generate revenue. (Points : 5)

business model
strategic management tool
profitability analysis
competitive advantage
entrepreneurial mindset

Question 2.2. (TCO 1) People who stand to gain or lose by the policies and activities of a business and whose concerns the business needs to address include which of the following? (Points : 5)

Bankers
Government employees
Surrounding/competing businesses
Foreign business leaders
Domestic business leaders

Question 3.3. (TCO 1) You are fairly good at various and sundry home repairs. You aren’t very good at electrical things, or anything having to do with plumbing. But you’re great with painting, patching, and general maintenance on a home. You’re contemplating starting a home repair business in your town. What are some issues that you can influence and should be concerned with in launching a new small business start-up? (Points : 5)

Current local council actions
Local school board policies
Government control
Collecting and remitting sales and use taxes
Training for what you don’t know how to do

Question 4.4. (TCO 3) A small business is defined as a company that _____. (Points : 5)

is newly launched and has fewer than 100 shareholders
is dominant in its field and employs fewer than 1,500 employees
has a revenue of less than $750,000
is independently owned and operated and not dominant in its field
is funded through personal lines of credit and has fewer than 1,000 employees

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Question 5.5. (TCO 1) You own Wash This Way Laundromat in a busy part of town. ABC Laundry, a chain store competitor, opened across the street in a busy shopping strip. You decide to improve your business by adding an internet café offering free Wi-Fi. Why? (Points : 5)

To promote private ownership of businesses
To improve quality of life
To exceed customer expectations
To expand your market

Question 6.6. (TCO 2) These are government policies aimed at shielding a country's industries from foreign competition. (Points : 5)

Tariffs
Free-market capitalism
Protectionism
Import quotas

Question 7.7. (TCO 3) One advantage of offshore outsourcing is _____. (Points : 5)

less strategic tasks can be sourced so that companies can focus on sales and marketing
communication among company members, suppliers, and customers is problematic.
outsourced work allows companies to create efficiencies that in fact let them fire more workers
consumers benefit from lower prices generated by effective use of global resources and developing nations
offshore outsourcing may reduce product quality and can therefore cause damage to a company’s reputation

Question 8.8. (TCO 3) The reason(s) a company pursues a strategic alliance is to _____. (Points : 5)

enhance the ability to expand internationally
gain access to new technologies and know-how
increase credibility or brand awareness
All of the above

Question 9.9. (TCO 2) It can be difficult to balance ethics and other goals, such as pleasing stakeholders or advancing your career. According to management writer Ken Blanchard and religious leader Norman Vincent Peale, it helps to ask oneself which one of the following questions when facing an ethical dilemma? (Points : 5)

How will this course of action be evaluated by others?
Is my proposed action legally defensible?
Is this course of action based on principle?
Is this course of action based on the truth?
How will this course of action make me feel about myself?

Question 10.10. (TCO 3) Starting your own business (Points : 5)

is an alternative to unemployment.
is not risky.
allows others to control your future.
is not difficult and does not require sacrifice.

Question 11.11. (TCO 4) Which of the following pairs represent an advantage and a disadvantage of marketing to a mobile phone rather than a fixed computer? (Points : 5)

Mobile phone users are accustomed to advertising interruptions while fixed computers have limited links to retailer websites.
The mobile phone is operating most of the time, but the interactivity is less than a fixed computer.
The screen size of fixed computers is larger, but screen enlargement overcomes that limitation in mobile phones.
Fixed computers can provide advertising based on where you happen to be while mobile phone advertisements are limited to product categories

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Question 12.12. (TCO 4) The rapid spread of brand communities has been one of the major impacts of social media. The Harley Davidson Owners Group is one example of an informal network of people with similar interests who use social media to bond and share information. Why are these brand communities effective? (Points : 5)

The cost of consumer-oriented publications is too expensive.
Consumers now trust their peers more than any source for product information.
Consumers no longer trust salespeople.
State and local consumer protection agencies no longer review products.

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Question 13.13. (TCO 4) The marketing mix refers to (Points : 5)

product, distribution, coupons, and place.
product, demographics, price, and distribution.
product, price, place, and promotion.
price, product, elasticity, and promotion

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