Quiz 6
Question 1 ________ tells what portion of the total revenues
remains after covering variable costs to contribute toward meeting fixed
expenses and earning a profit.
Question 2 A firm sells small-ticket items to their regular
customers on customer charge accounts and then bills the customers each month.
This type of credit arrangement is called:
Question 3 A variation of geographic pricing in which the
small company sells its merchandise to customers on the condition that they pay
all the shipping is called:
Question 4 ________ is a pricing strategy under which local
customers “subsidize” the shipping charges the firm incurs when
transporting merchandise to distant customers.
Question 5 ________ pricing strategy introduces a new
product at a low price to gain quick acceptance and extensive distribution in a
mass market.
Question 6 In ________ pricing, a type of geographical
pricing, a small firm charges customers located in different territories
different prices for the same products.
Question 7 A common “me-too” pricing policy by
which the small business owner establishes his/her prices by monitoring
competitor’s prices and then matching them is called:
Question 8 When pricing products, it is important to
remember that:
Question 9 ________ is a technique which greatly simplifies
the pricing function by setting the same price for items with similar characteristics.
Question 10 Absorption costing:
Question 11 When a small business is faced with price
competition from a much larger competitor, it should consider:
Question 12 When a small business owner doesn’t want to make
a pricing decision, he/she can use a(n) ________ pricing strategy.
Question 13 Which of the following factors is vital to
determining the effects of competition on the small firm’s pricing policies?
Question 14 ________ costing includes only those costs that
vary directly with the volume of an item produced.
Question 15 The most commonly used pricing technique for
manufacturers is:
Question 16 Of the three domestic barriers exporters face,
________ is the biggest.
Question 17________ participating companies get antitrust
immunity, allowing them to cooperate freely.
Question 18 A relatively easy way of getting into
international marketing, which currently handles about 10% of all U.S. exports,
is through ________ who act as distributors in foreign countries for domestic
companies of all sizes.
Question 19 The type of companies that are an important
channel of foreign distribution for small companies just getting started in
international trade or for those lacking the resources to assign their own
people to foreign markets are referred to as:
Question 20 A(n) ________ is a government- or
privately-owned company established in a foreign country for the purpose of
buying goods made there.
Question 21 An embargo is:
Question 22 The reality of “going global” is that
the entrepreneur must understand the needs of the:
Question 23 Expanding a small business into international
markets:
Question 24 A ________ is a document the seller draws on the
buyer, requiring the buyer to pay the face amount (the purchase price of the
goods) either on sight (a sight draft) or on a specified date (a time draft)
once the goods are shipped.
Question 25 A(n) ________ is a business that buys and sells
products in a number of countries, offering a range of services–importing,
exporting, shipping, distributing, and others–to their clients.
Question 26 A type of non-tariff barrier to trade that
consists of selling large quantities of products in foreign countries below
cost is referred to as:
Question 27 Currency: inflation rate, availability,
controls, stability of exchange rate; Balance of payments; Per capita income
and distribution; Disposable income and expenditure patterns are components of:
Question 28 The first step to becoming a truly global
company is to:
Question 29 Small businesses go global:
Question 30 The U.S. Commerce Department, the SBA, and the
Trade Administration provide a number of services. TOP–the trade opportunity
program–is one and through it entrepreneurs can:
