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Homework answers / question archive / San Jose State University - MARKETING 155 Chapter 9 Financing Strategy 1)A share of stock represents _________ in a company

San Jose State University - MARKETING 155 Chapter 9 Financing Strategy 1)A share of stock represents _________ in a company


San Jose State University - MARKETING 155

Chapter 9 Financing Strategy

1)A share of stock represents _________ in a company.

a. interest

b. a right to discounts on products

c. a concept like insurance

d. ownership



2. Business failure is defined by Dun and Bradstreet as "business termination ________."

a. with no notice

b. because of owner illness

c. with losses to creditors

d. with loss of sales in three continuous quarters



3. The amount of risk or threat of loss that an entrepreneur is willing to sustain is ________.

a. risk acceptance

b. risk tolerance

c. risk aversion

d. risk allowance



4. The amount you will have to pay over a given period of time until the loan is repaid is called __________.

a. payback

b. principal

c. present value

d. debt service



5. No matter what way you approach raising money for your business, you will need a ________.

a. written business plan

b. family investment

c. winning lottery ticket

d. bank loan



6. Land or buildings that are bought and sold represent a class of investment called ________.

a. stock

b. mutual funds

c. real estate

d. intangible investments



7. Corporations sell equity in the form of ________.

a. debt

b. ownership

c. stock

d. perks



Chapter 10 Addressing Legal Issues and Marketing Risk

8. The time period in which legal action may be taken is the ________.

a. limit of liability

b. statute of legal obligations

c. statute of limitations

d. None of the above.



9. Infringement of intellectual property is ________.

a. a business tactic

b. a crime

c. profitable

d. legal in some states



10. ________ insurance is designed to cover in the event that a business (its employees) fails to do something that causes harm to a customer.

a. Negligence

b. Errors and omissions

c. Product liability

d. Casualty



11. A low deductible will yield a ________.

a. lower premium

b. higher coverage plan

c. has no impact on the premium

d. higher premium



12. The form of protection offered under U.S. law to the authors of "original works of authorship" is a(n) ________.

a. patent

b. electronic right

c. trademark

d. copyright



13. What is used to identify and distinguish the source of a service rather than a product?

a. sales mark

b. trademark

c. service mark

d. intellectual property



Chapter 11 Management, Leadership, & Ethical Practices

14. When a business grows too big for the entrepreneur to run it alone, he/she should consider


a. franchise the business

b. taking management classes to become a better manager

c. slowing down marketing efforts to bring the business's growth back under control

d. raising capital and using it to hire managers



15. The department that hires, trains, and develops company employees is called ________.

a. employment office

b. hiring and firing

c. human resources

d. personnel



16. The act of Congress that requires employers to pay men and women the same amount for the same work is called ________.

a. The Equal Opportunity Act

b. The Equal Pay Act

c. The Work Compensation Act

d. Anti-discrimination Act



17. Which of the following is an example of an employee incentive program?

a. profit sharing

b. health insurance

c. fair salary

d. 401-k



18. By running your business in a way that is consistent with your ethics and core values, you will be running a ________ business.

a. high revenue

b. profitable

c. socially responsible

d. None of the above.



19. To get the most from your employees, one should ________.

a. provide a fair salary, good working conditions, and give them control over their work

b. hire the right people and place them into a position that maximizes their impact on the organization

c. give employees incentives to work and definite responsibilities

d. All of the above.





Chapter 12- Franchising, Licensing, & Harvesting: Cashing in Your Brand


20. Licensing is ________.

a. the right to sell knockoffs of a product

b. the right to start a business and run it exactly as the licensor wants it run

c. the right to operate a business

d. renting your brand or other intellectual property to increase sales



21. A ________ is a business that markets a product or service in the exact manner prescribed by the person who developed the business.

a. portfolio extension

b. franchise

c. license

d. None of the above.



22. A brand is a combination of name, logo, and design that ________.

a. identifies the owner of a company

b. expresses the philanthropic intentions of a company to consumers

c. puts people in the mood to buy the product or service

d. becomes associated in the minds of consumers with the products or services of a company



23. Harvesting options include ________.

a. an IPO

b. merging or being acquired

c. increasing cash flows and a management buy-out

d. All of the above.




24. Benefits of franchising for the franchisor include ________.

a. lower marketing and promotional costs     

b. growth with minimal capital investment

c. royalty payments

d. All of the above.



25. The harvest or exit strategies set out in a business's plan is important not only to the entrepreneur but also to ________.

a. consumers

b. the IRS

c. investors

d. employees





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