SMALL BUSINESS MANAGEMENT EXAM 2 [2026]
UPDATED ACTUAL Exam | Question and Answer |
DETAILED ANSWER EXPLANATIONS
• Which of the following statements best describes the process of idea screening in
new product development? -✓✓ Idea screening is the process of selecting the most
promising ideas to be further evaluated.
• Tony is a whiz in the kitchen. Not only does he make great food but he has
invented about a dozen time-saving kitchen gadgets along the way. These are all
home-made inventions made either by using new materials or by modifying
existing gadgets to work in new, better ways. He has made duplicate gadgets for
friends and some say they use the gadget every day. Tony quit his construction job
to concentrate on his kitchen gadgets—he started his own company, Kitchen
Helpers.
An approach to researching based on the used of existing information, often from
government, commercial or academic databases and research efforts is -✓✓
secondary research.
• The concept of total products includes how customers think about your product. -
✓✓ True
• A marketing plan includes a table of contents, executive summary, and
appendixes similar to fully developed business plan. -✓✓ True
• If you have started a business, or are doing a business where you do not expect to
prepare a full business plan, a stand-alone marketing plan might be useful. -✓✓
True
, • People who receive a promotional impression and who give some thought to
buying the product are considered -✓✓ sales leads.
• ________ is often used to support the corporate identity and value propositions
that are established through public relations efforts. -✓✓ Advertising
• The term for measures or metrics that identify the outcomes that are most
important to the success of a business are known as -✓✓ KPIs.
• "Which credit card would you like to use to pay for that?" is an example of -✓✓ a
trial close.
• Sales leads who actually make some sort of effort to learn more about the
product, service, or business in anticipation of a possible purchase are known as
prospects. -✓✓ True
• Considering the personal selling formula for generating interest in your product
or service, cognitive dissonance occurs during the close of the sale. -✓✓ False
• An established company can come up with sales forecasts by looking at their
sales for the past week, month, or quarter - called organic traffic - and project
forward. -✓✓ False
• Which of the following is not one of the four key factors considered when
determining an optimum price? -✓✓ supply chain costs
• ________ is setting a price at the highest level the market will bear, usually
because there is no competition at the time. -✓✓ Skimming
UPDATED ACTUAL Exam | Question and Answer |
DETAILED ANSWER EXPLANATIONS
• Which of the following statements best describes the process of idea screening in
new product development? -✓✓ Idea screening is the process of selecting the most
promising ideas to be further evaluated.
• Tony is a whiz in the kitchen. Not only does he make great food but he has
invented about a dozen time-saving kitchen gadgets along the way. These are all
home-made inventions made either by using new materials or by modifying
existing gadgets to work in new, better ways. He has made duplicate gadgets for
friends and some say they use the gadget every day. Tony quit his construction job
to concentrate on his kitchen gadgets—he started his own company, Kitchen
Helpers.
An approach to researching based on the used of existing information, often from
government, commercial or academic databases and research efforts is -✓✓
secondary research.
• The concept of total products includes how customers think about your product. -
✓✓ True
• A marketing plan includes a table of contents, executive summary, and
appendixes similar to fully developed business plan. -✓✓ True
• If you have started a business, or are doing a business where you do not expect to
prepare a full business plan, a stand-alone marketing plan might be useful. -✓✓
True
, • People who receive a promotional impression and who give some thought to
buying the product are considered -✓✓ sales leads.
• ________ is often used to support the corporate identity and value propositions
that are established through public relations efforts. -✓✓ Advertising
• The term for measures or metrics that identify the outcomes that are most
important to the success of a business are known as -✓✓ KPIs.
• "Which credit card would you like to use to pay for that?" is an example of -✓✓ a
trial close.
• Sales leads who actually make some sort of effort to learn more about the
product, service, or business in anticipation of a possible purchase are known as
prospects. -✓✓ True
• Considering the personal selling formula for generating interest in your product
or service, cognitive dissonance occurs during the close of the sale. -✓✓ False
• An established company can come up with sales forecasts by looking at their
sales for the past week, month, or quarter - called organic traffic - and project
forward. -✓✓ False
• Which of the following is not one of the four key factors considered when
determining an optimum price? -✓✓ supply chain costs
• ________ is setting a price at the highest level the market will bear, usually
because there is no competition at the time. -✓✓ Skimming
