Chapter 3 Entrepreneurship

What does it mean to outsource in a business context?

• To hire more employees within the company.

• To contract with other companies for services.

• To sell products internationally.

• To form a new department within the company.

What is a strategic alliance?

• A merger between two companies.

• A partnership formed with another company.

• A hostile takeover of a competitor.

• A new marketing strategy.

Which of the following best describes innovation?

• Copying successful business models.

• Finding new ways of doing things.

• Reducing production costs.

• Increasing the number of employees.

What are demographics used for in business?

• To determine employee salaries.

• To identify consumer markets.

• To calculate annual profits.

• To set product prices.

What is the primary purpose of trade magazines?

• To entertain the general public.

• To publish celebrity news.

• To provide information for specific types of businesses or industries.

• To offer travel advice.

What distinguishes specialty magazines from other periodicals?

• They are published daily.

• They target people with special interests.

• They are only available online.

• They focus on political news.

What is the main function of trade shows?

• To sell tickets for entertainment events.

• To allow vendors and manufacturers to introduce new items and promote established products and services.

• To provide free samples to consumers.

• To conduct market research surveys.

What does goodwill represent in a business context?

• The financial assets of a company.

• The customers' approval and support of a business.

• The company's annual revenue.

• The number of employees in a company.

What is a franchise?

• A type of business loan.

• A legal agreement to begin a new business in the name of a recognized company.

• A government grant for small businesses.

• A temporary business license.

Who is a franchisee?

• The seller of a franchise.

• The buyer of a franchise.

• A consultant for franchise businesses.

• An employee of a franchise.