Midterm

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Author:
SeanHatfield
ID:
297617
Filename:
Midterm
Updated:
2015-03-05 01:19:27
Tags:
Entreprenuership Business Management
Folders:
Entrepreneurship
Description:
Entrepreneurship midterm
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  1. The MTSU bookstore buys a book for $18 and sells it for $34. What is: 

    The % (of retail) markup?

    The % (of cost) markup?
    16/34 = 47.06%

    16/18 = 89%
  2. XYZ company estimates its variable costs of a product to be $22.52 per unit. The company plans to make 53,000 units and desires a profit of $75,000. Their fixed costs are $165,540.

    1.) What is the required selling price to achieve this profit?

    2.) What is the desired price to break even?

    3.) If they require a profit of $105,500, what would the selling price need to be?
    1.) ((22.52 x 53,000) + 165,540 + 75,000) / 53,000 = $27.06

    2.) ((22.52 x 53,000) + 165,540) / 53,000 = $25.64

    3.) ((22.52 x 53,000) + 165,540 + 105,500) / 53,000 = $27.64
  3. True or False:
    Feasibility analysis is the process of determining if a business idea is viable.
    True
  4. True or False:
    Primary research is research that is collected by the person or persons completing the analysis.
    True
  5. True or False:
    Product / service feasibility analysis is an assessment of the overall appeal of the product or service being proposed.
    True
  6. True or False
    A concept statement should be two-three pages long.
    False
  7. True or False:
    A buying intentions survey is used to gauge customer interest in a product or service.
    True
  8. True or False:
    Industry / target market feasibility is an assessment of the overall appeal of the industry and the target market for the product or service being proposed.
    True
  9. True or False:
    The focus in organizational feasibility analysis is on financial resources.
    False
  10. True or False:
    A new venture team is the group of founders, key employees, and advisers that either manage or help manage a new business in its start up years.
    True
  11. True or False:
    For financial feasibility analysis, a very detailed and comprehensive financial analysis is required.
    False
  12. True or False:
    The most important issues to consider in financial feasibility analysis are: total start up cash needed, financial performance of similar businesses, and overall financial attractiveness of the proposed venture.
    True
  13. True or False:
    Industry analysis is business research that focuses on the potential of an industry.
    True
  14. True or False:
    A comparison analysis is a detailed evaluation of a firm's competitors.
    False
  15. True or False:
    The two trends that are most important to focus on in an industry analysis are business trends and environmental rends.
    True
  16. True or False:
    Business trends include economic trends, social trends, technological advances, and political and regulatory changes.
    False
  17. True or False:
    The 5 competitive forces model is a framework for understanding the structure of an industry.
    True
  18. True or False: 
    In most industries, the major determinant of industry profitability is the level of competition among the firms already competing in the industry.
    True
  19. True or False:
    If the buyers are concentrated and they buy from a large number of suppliers, then the bargaining power of buyers is increased.
    True
  20. True or False:
    A mature industry is an industry that is experiencing slow increases in demand, numerous repeat customers, and limited product innovation.
    True
  21. True or False:
    The first step in a competitor analysis is to determine who the competition is.
    True
  22. True or False: 
    A firm's future competitors are its most important ones.
    True
  23. What are Porter's 5 Competitive Forces?
    • -Threats of Substitutes 
    • -Threats of New Entrants
    • -Rivalry of Existing Firms
    • -Bargaining Power of Suppliers
    • -Bargaining Power of Buyers
  24. Most important parts of Business Plan are...
    • -Section 1: Executive Summary
    • -Section 9: Management Team and Company Structure: (strength of the people starting the firm)
  25. Pricing Techniques 

    Odd Pricing
    $9.99 instead of $10.00
  26. Pricing Techniques

    Price Lining
    Price categories relating to product line items - good, better, best)
  27. Pricing Techniques

    Leader Pricing
    • (Loss Leader)
    • Selling items for less than costs to get people in the store and buy other things.
  28. Pricing Techniques

    Discounts
    • (Markdowns)
    • For slow moving products.
  29. Pricing Techniques

    Bundling
    MS Office vs Word, Excel, PP, Publsiher, etc... separate.

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