Question 1

Small firms develop significantly more innovations than large companies.

Accepted Answer

A) True 
 B)False

Question 2

Strategies for goods marketing and services marketing are essentially identical.

Accepted Answer

A) True 
 B)False

Question 3

A direct channel of distribution is one that involves only one intermediary.

Accepted Answer

A) True 
 B)False

Question 4

Distribution includes only the physical movement of products.

Accepted Answer

A) True 
 B)False

Question 5

Match the term with its definition.
-The registered, exclusive right of an inventor to make, use, or sell an invention

Accepted Answer

A) channel of distribution 
B) copyright 
C) patent 
D) product 
E) product item
F)product life cycle
G)product line
H)product mix
I)product mix consistency
J)product strategy
K)sustainable competitive advantage 
A) channel of distribution 
B) copyright 
C) patent 
D) product 
E) product item
F)product life cycle
G)product line
H)product mix
I)product mix consistency
J)product strategy
K)sustainable competitive advantage

Question 6

When a product mix has more product lines, it has greater

Accepted Answer

A)  breadth. 
B)  consistency. 
C)  depth. 
D)  lines. 
A)  breadth. 
B)  consistency. 
C)  depth. 
D)  lines.

Question 7

Patricia has developed a new product that she would like to patent and produce. What can she do to reduce the risk of failure?

Accepted Answer

•	Base innovative efforts on experience.

Question 8

Thanks to the national press, Wonderful Gifts has had 100 percent more orders placed in this quarter than in the last quarter. The company could be caught in a _____ if proper planning does not occur.

Accepted Answer

A)  growth net 
B)  growth trap 
C)  profit net 
D)  profit trap 
A)  growth net 
B)  growth trap 
C)  profit net 
D)  profit trap

Question 9

Match the term with its definition.
-A value-creating position that is likely to endure over time

Accepted Answer

A) channel of distribution 
B) copyright 
C) patent 
D) product 
E) product item
F)product life cycle
G)product line
H)product mix
I)product mix consistency
J)product strategy
K)sustainable competitive advantage 
A) channel of distribution 
B) copyright 
C) patent 
D) product 
E) product item
F)product life cycle
G)product line
H)product mix
I)product mix consistency
J)product strategy
K)sustainable competitive advantage

Question 10

The profit curve is the lowest in which of the following stages of the product life cycle?

Accepted Answer

A)  Decline 
B)  Growth 
C)  Introduction 
D)  Maturity 
A)  Decline 
B)  Growth 
C)  Introduction 
D)  Maturity

Question 11

Packaging has very little to do with increasing the value of the total product by creating a distinctive impression.

Accepted Answer

A) True 
 B)False

Question 12

Trade dress describes those elements of a firm's distinctive operating image that are specifically protected under a trademark, patent, or copyright.

Accepted Answer

A) True 
 B)False

Question 13

Match the term with its definition.
-A brand that can be spoken

Accepted Answer

A) brand 
B) brand image 
C) brandmark 
D) brand name 
E) design patent
F)direct channel
G)indirect channel
H)service mark
I)trade dress
J)trademark
K)utility patent
L)warranty 
A) brand 
B) brand image 
C) brandmark 
D) brand name 
E) design patent
F)direct channel
G)indirect channel
H)service mark
I)trade dress
J)trademark
K)utility patent
L)warranty

Question 14

Products must be carefully analyzed in terms of financial considerations in the _____ stage of the new product development process.

Accepted Answer

A)  business analysis 
B)  idea accumulation 
C)  product testing 
D)  development of the physical product 
A)  business analysis 
B)  idea accumulation 
C)  product testing 
D)  development of the physical product

Question 15

Small businesses should view distribution costs as

Accepted Answer

A)  prohibitive. 
B)  sunk costs. 
C)  an investment. 
D)  a necessary evil. 
A)  prohibitive. 
B)  sunk costs. 
C)  an investment. 
D)  a necessary evil.

Question 16

If a firm extends a janitorial cleanser from the industrial market to reach the home market, it is following a one product/multiple markets strategy.

Accepted Answer

A) True 
 B)False

Question 17

Match the term with its definition.
-Registered protection for the appearance of a product and its inseparable parts

Accepted Answer

A) brand 
B) brand image 
C) brandmark 
D) brand name 
E) design patent
F)direct channel
G)indirect channel
H)service mark
I)trade dress
J)trademark
K)utility patent
L)warranty 
A) brand 
B) brand image 
C) brandmark 
D) brand name 
E) design patent
F)direct channel
G)indirect channel
H)service mark
I)trade dress
J)trademark
K)utility patent
L)warranty

Question 18

Match the term with its definition.
-The similarity of product lines in a product mix

Accepted Answer

A) channel of distribution 
B) copyright 
C) patent 
D) product 
E) product item
F)product life cycle
G)product line
H)product mix
I)product mix consistency
J)product strategy
K)sustainable competitive advantage 
A) channel of distribution 
B) copyright 
C) patent 
D) product 
E) product item
F)product life cycle
G)product line
H)product mix
I)product mix consistency
J)product strategy
K)sustainable competitive advantage

Question 19

According to the Food and Drug Administration regulations, food products must have a standard nutrition label listing the amounts of calories, fat, salt, and nutrients in the product.

Accepted Answer

A) True 
 B)False

Question 20

Celestina Pugliese, creator of Ready Check Glo, felt her product served an overlooked market.

Accepted Answer

A) True 
 B)False

Exam 15: Product Development and Supply Chain Management

Small firms develop significantly more innovations than large companies.

Strategies for goods marketing and services marketing are essentially identical.

A direct channel of distribution is one that involves only one intermediary.

Distribution includes only the physical movement of products.

Match the term with its definition. -The registered, exclusive right of an inventor to make, use, or sell an invention

When a product mix has more product lines, it has greater

Patricia has developed a new product that she would like to patent and produce. What can she do to reduce the risk of failure?

Thanks to the national press, Wonderful Gifts has had 100 percent more orders placed in this quarter than in the last quarter. The company could be caught in a _____ if proper planning does not occur.

Match the term with its definition. -A value-creating position that is likely to endure over time

The profit curve is the lowest in which of the following stages of the product life cycle?

Packaging has very little to do with increasing the value of the total product by creating a distinctive impression.

Trade dress describes those elements of a firm's distinctive operating image that are specifically protected under a trademark, patent, or copyright.

Match the term with its definition. -A brand that can be spoken

Products must be carefully analyzed in terms of financial considerations in the _____ stage of the new product development process.

Small businesses should view distribution costs as

If a firm extends a janitorial cleanser from the industrial market to reach the home market, it is following a one product/multiple markets strategy.

Match the term with its definition. -Registered protection for the appearance of a product and its inseparable parts

Match the term with its definition. -The similarity of product lines in a product mix

According to the Food and Drug Administration regulations, food products must have a standard nutrition label listing the amounts of calories, fat, salt, and nutrients in the product.

Celestina Pugliese, creator of Ready Check Glo, felt her product served an overlooked market.

The Entrepreneurial Lifethe Entrepreneurial Life

Integrity, Ethics, and Social Entrepreneurship

Starting a Small Business

Franchises and Buyouts

The Family Business

The Business Plan: Visualizing the Dream

The Marketing Plan

The Organizational Plan: Teams, Legal Structures, Alliances, and Directors

The Location Plan

Understanding a Firms Financial Statements

Forecasting Financial Requirements

A Firms Sources of Financing

Planning for the Harvest

Building Customer Relationships

Pricing and Credit Decisions

Promotional Planning

Global Opportunities for Small Businesses

Professional Management and the Small Business

Managing Human Resources

Managing Small Business Operations

Managing the Firms Assets

Managing Risk

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