PART I: WRITE (T) OR (F) IN FRONT OF THE FOLLOWING STATEMENTS

1. ( ) Key success factors are the keys to unlocking the secrets of succeeding in a
particular market segment
2. ( ) Developing a strategic plan is crucial to gaining a competitive advantage.
3. ( ) It is unethical behavior to monitor competitors’ employment ads and the
equipment are importing.
4. ( ) Core competencies are what a company does best and it is best to rely on a
natural advantage often linked to a company’s “smallness”.
5. ( ) Feasibility study is an investigative tool that is the same as a business plan
6. ( ) Knowledge has become a critical factor of production as intellectual capital
counts.
7. ( ) The greater the leverage of suppliers, the more attractive the industry is because
switching costs are low.
8. ( ) Sometimes the primary benefit of preparing a plan is the realization that a
business idea just won’t work,
9. ( ) When posting marketing videos on the internet it is best to post them on multiple
social media sites.
10. ( ) The real value in preparing a plan is not as much in the plan itself as it is in the
process of creating it.
11. ( ) Small companies that are prepared can create disruptions that revolutionize their
industries, and, in the process, create a competitive edge.
12. ( ) When using a differentiation strategy, the company focuses on serving a niche or
several niches within that market rather than trying to serve the total market.
13. ( ) Mission, goals, and objectives are the means to an end while strategies are the
desired ends.
14. ( ) Key success factors influence a company’s ability to compete successfully in an
industry
15. ( ) It is unethical behavior to visit competing businesses to observe their operations
and to talk to their customers and suppliers.

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 16. ( ) Feasibility Analysis is performed to generate new business ideas since
entrepreneurs lack creative ideas.
17. ( ) When using a low-cost strategy, the Idea is to be better than the competition at
something customers value.
18. ( ) Buyers’ influence is low when number of customers is small and cost of
switching to a competitor’s product is low.
19. ( ) The real value in preparing a plan is not as much in the plan itself as it is in the
process of creating it.
20. ( ) Negative word of mouth has exponential power many people avoid a store just
because of someone else’s negative experience with it.

PART II: CIRCLE THE CORRECT ANSWER

1. Unique set of skills, knowledge, or abilities that a company develops in key areas such as
superior quality, customer service, and innovation;
a. Weaknesses
b. Core competencies
c. Life skills
d. None of the above
2. Strategy builds on differences among market segments is a;
a. Low-cost strategy
b. Differentiation strategy
c. Focus strategy
3. Cost Leadership strategy works well when:
a. Buyers are sensitive to price changes
b. Competing firms sell the same commodity products
c. A company can benefit from economies of scale
d. All of the above
4. Broad, long-range attributes to be accomplished that are general and abstract;
a. Objectives
b. Goals
c. Means
d. Ends
5. Serves as a filter, screening out ideas that lack the potential for building a successful
business before an entrepreneur commits the necessary resources to build a business plan.
a. The mission and the vision
b. Strategic objectives
c. Feasibility study

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 d. None of the above
6. ___________________________________ is a systematic evaluation of a venture’s
chances for success;
a. Business plan
b. Prototypes
c. Feasibility study
d. None of the above
7. Involves developing, maintaining, and managing long-term relationships with customers
so that they will keep coming back to make repeat purchases
a. Individualized marketing
b. One to one marketing
c. Relationship Marketing
8. Which of the following are some of the key elements of a business plan?
a. Executive summary
b. Mission statement
c. Business and industry profile
d. All of the above
9. Positive internal factors that contribute to accomplishing the mission, goals, and
objectives
a. Strength
b. Weakness
c. Opportunity
d. Threat
10. Which of the following is part of the Marketing Mix?
a. Price
b. Quality
c. Features
11. Companies that seek to build customer loyalty by positioning their goods or services in a
unique or different fashion are using;
a. Low-cost leadership strategy
b. Differentiation strategy
c. Focus strategy
d. None of the above
12. _____________________________________ a game plan for managing a business
successfully
a. Prototypes
b. Business plan
c. Feasibility study
d. None of the above
13. Unconventional, low-cost, creative techniques that allow a company to wring a big
“bang” from its marketing bucks;
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 a. Marketing
b. Guerrilla Marketing
c. Strategic management
d. All of the above
14. The aggregation of factors that sets a company apart from its competitors and gives it a
unique position in the market is;
a. Competitive advantage
b. Strategic management
c. Guerrilla marketing
15. Determines the degree to which a product or service idea appeals to potential customers
and identifies the resources necessary to produce it.
a. Industry and Market Feasibility
b. Product or Service Feasibility
c. Financial Feasibility
d. All of the Above
16. Unique set of skills, knowledge, or abilities that a company develops in key areas such as
superior quality, customer service and innovation is called ______________________
a. Core values
b. Strategic values
c. External strength
d. None of the above
17. Negative external forces that inhibit the company’s ability to accomplish its mission,
goals, and objectives
a. Strength
b. Weakness
c. Opportunity
d. Threat
18. Following are types of forecasts except
a. Pessimistic
b. Most Likely
c. Optimistic
d. Organic
19. Which of the following are some of the key elements of a business plan?
a. Executive summary
b. Mission statement
c. Business and industry profile
d. All of the above
20. A clearly defined vision:
a. Provides direction
b. Determines decisions
c. Motivates people
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d. All of the Above

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