Printable Flash Cards

Term 1

In franchising ______ pay fees and royalties to a _______ in return for the right to sell its product or services und the franchiser's trad name and often use its business format system.

Definition 1

franchisee, franchiser

Term 2

Franchising is currently dominated by:

Definition 2

Retail Outlets

Term 3

_____________ franchising exists when a frachisee is licensed to sell specific products under the franchiser's brand name throught a selective distribution system.

Definition 3

Product Distribution

Term 4

In _______ franchising, a franchisee purchases only the right to become identified with the franchiser's trade name.

Definition 4

Trade Name

Term 5

_____________ franchising involves providing the franchisee with a complete busines system-- the established name, the building layout and design, accounting systems, etc.

Definition 5

Pure

Term 6

Most gasoline products are sold throught the _______ system of franchising.

Definition 6

product distribution

Term 7

McDonald's is and example of a ______ franchise.

Definition 7

Pure

Term 8

The success of franchising is largely due to:

Definition 8

the neutral benefits it provides to the franchiser and the franchisee.

Term 9

McDonald's worldwide success as a franchise can be attributed to a few simple strategies,

Definition 9

ability to obtain prime locations in hight trafic areas.

Term 10

A significant advantage a franchisee has over the independent small business owner is participation in the franchiser's ________.

Definition 10

centralized and large-volume buying power.

Term 11

In view of the cause of most new business failures, probably the most valuable service provided franchisees by the franchiser is:

Definition 11

Management Training and Experience.

Term 12

The franchising boom spearheaded by ____ in the late 1950s brought with it many prime investment opportunities.

Definition 12

McDonalds

Term 13

In franchising, the reputation of the franchiser is dependent on:

Definition 13

The quality of the goods and services provided.

Term 14

When buying and existing business, the potential buyer should remember that:

Definition 14

It is a long process and the buyer should be patient.

Term 15

One advantage of buying an existing business is:

Definition 15

Equipment is installed and production capacity is known.

Term 16

When it comes to buying an existing business, it is not uncommon to find it:

Definition 16

bargain priced.

Term 17

When buying an existing business, one should remember that:

Definition 17

The real reason for selling is seldom stated honestly.

Term 18

The inventory in an existing busines:

Definition 18

needs to be checked for age and salability.

Term 19

Definition 19

Term 20

Accounts receivalve in an existing business:

Definition 20

are rarely worth thier face value.

Term 21

The first step and entrepeneur should take when acquiring an existing business is to:

Definition 21

analyze his/her skills, abilities, and interests in an honest self audit.

Term 22

Once an entrepreneur has evaluated him/herself the next step in the acquisition process would be to:

Definition 22

prepare a list of potential candidates and investigate them.

Term 23

When conduction a self evaluation it is important to consider:

Definition 23

What kind of business you want to have and want to advoid.

Term 24

The biggest source for the best companies to buy is:

Definition 24

the hidden market.

Term 25

The process of gathering information about the company, valuing the company, and performing a detailed review of all records, agreements, and compliance is called:

Definition 25

due diligence.

Term 26

When negotiating the deal, the most important thing to remember is:

Definition 26

terms are more important than price paid.

Term 27

Perhaps the ideal source of financing the purchase of an existing business is:

Definition 27

The seller

Term 28

Which of the following statements concerning the financing of a business purchase is true?

Definition 28

The buyer should be able to make the payments on the loans out of the company's cash flow.

Term 29

For entrepreneurs, a business plan is:

Definition 29

All the above

Term 30

A business plan performs a number of functions including:

Definition 30

Attracting capital for the start-up

Term 31

The _____ becomes the document that summarizes the analysis that has been done to justify a new business.

Definition 31

business plan

Term 32

A business plan:

Definition 32

forces and entrepreneur to think a business idea through, considering both its positive and its negative aspects.

Term 33

A well-developed business plan provides the entrepreneur with a number of benefits, such as:

Definition 33

Determining the principle risks confronting the business.

Term 34

The primary purpose of building a business plan is to:

Definition 34

provide direction, to create a "target" to shoot for.

Term 35

A business plan for the small business owner:

Definition 35

Contains both a marketin plan and a financial plan.

Term 36

_____ is the process of creating and delivering desired goods and services to customers, and involves all of the activities associated with winning and retaining loyal customers.

Definition 36

Marketing

Term 37

Small businesses can compete with larger rivals with bigger budgets by employing unconventional, low-cost creative techniques known as:

Definition 37

guerilla marketing techniques

Term 38

The focus of the small company's marketing plan is:

Definition 38

The customer.

Term 39

The marketing plan builds a strategy for success:

Definition 39

from the customer's point of view.

Term 40

The marketing plan should include certain key objectives, such as:

Definition 40

pinpointing the specific target markets a small business will serve.

Term 41

Shifting patterns in the age, income, education, race, and other characteristicsof the population are the subject of ______ and exert a potent force on a company's marketing plan.

Definition 41

demographics

Term 42

A demographic trend is like a train for the small business owner in that:

Definition 42

he/she needs to discover where it is going early and decide whether or not to get on board.

Term 43

Market Research:

Definition 43

Provides the information that is foundational to the marketing plan.

Term 44

Market research answers what important question for the small business onwer?

Definition 44

Who are my customers and what are they looking for?

Term 45

The primary goal of marketing research is to:

Definition 45

Reduce risks associated with business decisions

Term 46

THe first, and most critical, step in conduction market research is to:

Definition 46

Define the research problem clearly.

Term 47

John wants to answer the question, "What drives my customers' buying behavior?" The best information to adress this question comes from:

Definition 47

Psychographics Data

Term 48

When it comes to gathering market research on customers, most small companies tend to be:

Definition 48

data rich, lots of facts, but information poor, little in useful form.

Term 49

One-to-one marketing is a marketing strategy that:

Definition 49

gathers data on individual customers and then tailors an appeal to their needs and tastes.

Term 50

For the results of market research to provide a solution to a small business onwner's problem:

Definition 50

the owner must attach meaning to it.

Term 51

Effective one-to-one marketing involves:

Definition 51

all of these

Term 52

______ is a process in which computer software that uses statistical analysis, database technology, and artificial intelligence find hidden patterns, trends, and connections in data so that business owners can make better marketing decisions and predictions about customer's behavior.

Definition 52

Data Mining

Term 53

Most marketing experts contend that the greatest marketing mistake small businesses make is:

Definition 53

failing to identify the target market.

Term 54

When it comes to the target market, most succesful businesses:

Definition 54

have well-defined "portraits" of the customers they want to attract.

Term 55

The key to marketing success is:

Definition 55

understanding customers' unique needs, wants, and preferences.

Term 56

ACT!, Clementine, DataScope Pro, GoldMine, MineSet, Nuggets are what type of software packages:

Definition 56

Data Mining

Term 57

A company's competitive edge is:

Definition 57

based on customers' perceptions of it products and services.

Term 58

A "natural" advantage small businesses have over large business, which can be a significant competitive advantage, is:

Definition 58

relationship marketing.

Term 59

______ puts the customer at the center of a company's thinking, planning, and action and shifts the focus from a product or service to customers and their needs and wants.

Definition 59

Customer Relationship Management (CRM)

Term 60

______is the notion of drawing customers into a store by creating a kaleidscope of sights, sounds, smells, and activities, all designed to entertain-and, of course, sell.

Definition 60

Entertaining

Term 61

The majority of customers who stop patronizing a particular store do so because:

Definition 61

an indifferent employee treated them poorly.

Term 62

In reality, advertising:

Definition 62

is an investment in the future; without steady advertising the customer base will dry up.

Term 63

Tami is developing an advertising strategy fo her small business. The first step in this process is to:

Definition 63

Identify her target audience.

Term 64

Effective ads are built on:

Definition 64

A unique selling proposition

Term 65

The most meaningful unique selling proposition:

Definition 65

describes the primary benefit of the product.

Term 66

The choice of advertising medium is primarily determined by:

Definition 66

The target audience and the message

Term 67

There are a number of tips a small business owner can follow to build effective advertising including:

Definition 67

limit the content of each ad.

Term 68

_____ is any commercial news covered by the media that boosts sales but for which the small business does not pay.

Definition 68

Publicity

Term 69

The Last Hole, a small golf shop, sponsors a hole-in-one contest in a golf tournament to raise money for charity. Anyone scoring a hole-in-one on #16 wins a complete set of clubs; the golfer closest to the pin on #16 wins a golf wardrobe. The Last Hole is the subject of several reports and stories in the local media. This is an example of:

Definition 69

Sales Promotion

Term 70

When Chapters, a small book store, brings in a famous author for a special autogtraph session promoting her latest book and gets her on the local radio station, Chapters is using;

Definition 70

Sales Promotion

Term 71

A recent study of top salespeople found that they:

Definition 71

Work from the customer's perspective and use past "success stories."

Term 72

________ is any sales presentation that is nonpersonal in nature and is paid for by an identified sponsor

Definition 72

Advertising

Term 73

The _______ cost of an advertising medium compares the actual dollar cost of an ad with the number of potential customers it reaches.

Definition 73

relative

Term 74

When selecting the advertising vehicle the small business owner should ask him/herself:

Definition 74

Who are my target customers?

Term 75

Definition 75