Cluster Exam

Question 1

Direct Distribution

Answer 1

Manufacturer to the consumer

Question 2

Indirect Distribution

Answer 2

Manufacturer to middleman to consumer

Question 3

Intensive Distribution

Answer 3

Maximizing coverage of product

Question 4

Selective Distribution

Answer 4

Limited, but specific, distribution of product

Between intensive and exclusive

Question 5

Exclusive Distribution

Answer 5

Very few stores have the right to sell product

Question 6

Industrial User

Answer 6

Purchases goods in order to manufacture other goods

Question 7

Associations with color are most important for

Answer 7

Businesses

Question 8

Capital resource

Answer 8

Assets used to manufacture goods

Question 9

When to plan for an exit strategy?

Answer 9

In the beginning of the business / business plan

Question 10

Debt Factoring

Answer 10

Selling a company’s account receivables

Question 11

How many categories, at least, does an income statement have, and what are they?

Answer 11

5- Revenue, COGS/COS, Gross profit, Operating expenses, and Net profit

Question 12

Zero based budgeting

Answer 12

Rebuilding budget for every budgeting period

Question 13

Common-sized statements

Answer 13

Uses percentages for comparing
companies to others/industry

Question 14

Vertical analysis

Answer 14

Shows relative size of one thing to the total amount

Ex: Clothes account for 8% of all sales

Question 15

Horizontal analysis

Answer 15

Compares company performance over time

Question 16

Legal questions to ask on a job application

Answer 16

Job availability
Ability to fulfill job req.
Criminal history
Experience
Military history

JACEM

Question 17

Sales promotion

Answer 17

Short-term incentive to purchase product

Ex: Person who buys the most gets free car

Question 18

Marketing goal

Answer 18

Specific and measurable objective in context of marketing

Ex: Increase sales by 5%

Note: It’s a GOAL, not a strategy.

Question 19

Rate of use (marketing segmentation)

Answer 19

Marketing that categorizes customers based frequency of usage

Ex: Heavy, moderate, and light drinkers

Question 20

Why do advertisers develop customer profiles?

Answer 20

To understand customers’ interests, activities, and concerns

Question 21

The first question that a new business owner should ask when determining the
venture’s technology needs

Answer 21

What software programs will help the business operate efficiently?

Question 22

Process thinking

Answer 22

Analyzing steps, stages, and/or components of a business process, and improving them

Question 23

Contraction (product mix)

Answer 23

Removing products from product mix

Question 24

Advergaming

Answer 24

Advertising through gaming

Question 25

Enterprise risk management

Answer 25

Analyzing combined impact of all risks in a company Note: Not all risks are negative

Question 26

Risk management plan

Answer 26

Separates risks into categories to be able to manage them Note: Doesn't reduce risk in itself

Question 27

Inside-Out analysis

Answer 27

Looks at businesses internal strengths/resources, and how those can be leveraged externally

Question 28

What phase of prod. life cycle do copycats appear?

Answer 28

Growth

Question 29

Corporate responsibility (or Corp. Social Resp.)

Answer 29

The responsibility of businesses to act to improve society

Question 30

Point-of-sale (POS) promotion

Answer 30

Advertising other products while a customer that has made the decision to buy

Question 31

Continuous production

Answer 31

Producing products continuously for high demand products Think Economies of Scale

Question 32

Calculate business cash receipts

Answer 32

Cash Receipts = Sales + Change in Acc. Rec.

Question 33

Primary stakeholder(s) affecting corporate governance

Answer 33

Board of directors

Question 34

Preventive discipline

Answer 34

Managing people so that they do not need to be disciplined (love over fear)

Question 35

Corrective discipline

Answer 35

Discourages further violations after infractions have already occurred (Fear over love)

Question 36

Gap analysis

Answer 36

Compares business’ current state with its target state

Question 37

4 parts of product mix

Answer 37

Width (#of lines) Length (total product) Depth (# of product variations) Consistency

Question 38

Market Segmentation

Answer 38

Segmenting markets based of specific qualities

Question 39

Revenue Streams

Answer 39

Different ways businesses make money and raise revenue

Question 40

Break-even Analysis

Answer 40

Finding point where total revenue equals total costs

Question 41

Cash Flow Statement

Answer 41

Shows how cash entered and exited a company

Question 42

Branding

Answer 42

Creating a distinct image/identity for a company

Question 43

Value chain

Answer 43

Illustrates steps in a business process that add value to product or service

Question 44

Business Ecosystem

Answer 44

Network of partners, suppliers, and customers that interact and support your business

Question 45

Consumer Acquisition Cost

Answer 45

Cost to convince a customer to buy a product or service

Question 46

Brand Equity

Answer 46

Social/Emotional importance of brand to consumer

Question 47

Brand Value

Answer 47

Financial value of brand to consumers

Question 48

Corporate Social Responsibility

Answer 48

Expectation that a company should act to improve society

Question 49

How to analyze if resources are necessary | PASE

Answer 49

Productivity/Profitability Affordability Sustainability Ease of acccess

Question 50

Creative ways to market

Answer 50

User generated content Personalized mktng. messages Influencer mktng. Fundraiser/Charity Contests

Question 51

Wrongful termination examples | DROWL

Answer 51

Discrimination Retaliation OSHA violation complaints Whistleblowing Lie Detector test refusal

Question 52

Benefits of joining a professional community

Answer 52

Spreading brand Access to more resources New perspectives Mentoring More business

Question 53

How to lower insurance premiums

Answer 53

Check deductibles Discontinue extra coverage Ask for discounts

Question 54

When to “fast fire”

Answer 54

When unethical actions are related to job / poses great risks Theft Drug/Alcohol usage Dishonesty

Question 55

Business analyst

Answer 55

Recognizes weak areas in business, then introduces and manages change in an organization

Question 56

Characteristics of effective Board members

Answer 56

-Independent from business -Provide external perspectives -Educated / Experts

Question 57

10 most common business objectives GMV 4C 2P 2S

Answer 57

1. Profitability 2. Productivity 3. Customer Service 4. Employee attraction and retention 5. Values 6. Growth 7. Cash flow 8. Change 9. Market 10. Competition

Question 58

Supply Chain Management Benefits

Answer 58

Better CRM, efficiency, risk, and costs

Question 59

What is promotion

Answer 59

HOW you market