GMetrix Marketing Practice Exam

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• Which description best describes a business plan?
• A company starts with 500 customers, gains 25 new customers during the period, and ends with 520 customers. What is the customer retention rate for the period?
• In a pitch deck, which component discusses the customer problem the products or services solve?
• A minimum viable product is a prototype used to test ease-of-use and _______
• Which data type is statistical information about customers like their age, gender, ethnicity, income, and employment?
• In a pitch deck, which component determines the size of the market and describes potential customers to provide a customized plan to reach them?
• Which term is defined as: 'Decision-making based on morals and doing the right thing'
• If current monthly revenue is $8,000, what is the annual run rate?
• Which intellectual property protects a band's song from being stolen or reproduced?
• Which pricing strategy targets customers who want to save as much money as possible?
• Which pricing strategy sets high prices when a product is introduced and then gradually lowers the price?
• Which stage is described as 'Develop an idea for a product or service'?
• A typical purpose of an operating budget is to project which of the following for a period?
• The statement 'COVID pandemic restrictions disallow large family gatherings' is an example of which SWOT element?
• Which characteristic is defined as trusting one's self, one's goals, and one's progress?
• Which expense is a fixed cost for a small office?
• Tom owns a hat shop. His total monthly cost is $1,850. Each hat costs $50. How many hats must Tom sell to break even each month?
• Which term is defined as: 'Preventing and removing any corruption and unethical behavior that could harm a business, the community, or the environment'
• Which of the following is NOT one of the three things to consider regarding the mass delivery of your lawncare service?
• In the Design Thinking Process, which description corresponds to 'Try Your Solutions'?
• Kevin owns a toy company. How should he ensure that his customers are receiving a high-quality product?
• An executive summary should briefly explain everything in a business plan in how many pages?
• Which stage is described as 'Identify how a product or service solves customers' problems'?
• Which role is responsible for managing cash flow, budgets, and forecasts?
• Which formula correctly calculates gross income?
• Anytime someone wants to use a ______ on their products, they must obtain a license to use them.
• Factors that aid in determining whether a business opportunity is viable include market size, _____________ manage of cash flow, management skillets, and passion.
• Which of the following is an example of primary data?
• A law increased the minimum wage by 30%. What is the minimum percent the owner must raise labor charges to balance higher expenses?
• What is the value of unearned revenues on the balance sheet?
• Which channel sells primarily to business customers?
• Which activity is part of setting up a test marketing strategy?
• Which marketing channel usually occurs when customers have subscribed to receive promotional materials?
• Rose ordered a package of macaroons from an out-of-state bakery. She received the cookies the following week. What type of e-commerce product did Rose order?
• In a pitch deck, which component talks about the traction that a company has gained, such as crowdfunding?
• Which type of transaction describes a sale between businesses?
• Which statement about equity funding is correct?
• A local restaurant tracks a loyalty program with 100 starting customers, 120 ending customers, 40 new customers, and $240 in free dinners redeemed. What was the customer retention cost?
• If income is 5000, cost of goods sold is 1500, and expenses are 1200, what is net income?
• If Net profit is $20,000 and Cost of investment is $100,000, what is ROI?
• A sandwich shop wants to send out a coupon to people and plans to utilize the United States Postal Service age and income demographics to determine who will receive a coupon. Which marketing method is the sandwich shop using?
• What should the landscaper do first to assess the viability of adding water features?
• Which of the following is a source of equity funding?
• According to the year-end balance sheet, what is the equity in the business?
• Which term describes a market segment based on age, income, education, and family size?
• Which trait is about the amount of loss one is willing to take when making investment decisions?
• A value hypothesis explains the reasons why a customer may choose not to use a product.
• An operating budget projects which of the following?
• Which corporate form is subject to a double layer of taxation?
• What is the formula for determining ending cash balance?
• Which of these is a characteristic of a successful entrepreneur mindset?
• Which pricing strategy sets prices low to establish a reliable customer base and then raises prices later?
• Which is one of the greatest risks of being an entrepreneur?
• Which form of advertising is the most dominant medium?
• A company starts the period with 500 customers, gains 120 new customers, and ends with 580 customers. What is the customer retention rate for the period?
• Dylan owns a small grocery store. The store has not been receiving a lot of business during the last few months and has been making a low profit. Dylan has a meeting scheduled to discuss these issues with other employees of the grocery store. In which business life cycle stage is Dylan?
• What is the purpose of a minimum viable product?
• Which statement best describes a Pitch Deck?
• In the Design Thinking Process, which description corresponds to 'State Your Users\' Needs and Problems'?
• Which statement about the role of customer service in a sales strategy is true?
• In a SWOT analysis, 'Large gallery of stock photos' would be categorized as which element?
• Which stage is described as 'A business starts to earn revenue'?
• Which of the following segments focuses on geographic location such as city or region?
• Which of the following is an asset?
• Which statement best describes how a quality control process should be treated after results are obtained?
• Which statement describes the Pivot or Persist stage?
• Which funding option involves pre-selling products on an online platform to raise capital?
• John's company acquired 5,000 new customers last year. They spent $20,000 in marketing costs and $15,000 in sales costs. What is John's CAC?
• Which statement best defines a Market/Fit Hypothesis?
• In the Design Thinking Process, which description corresponds to 'Create Solutions'?
• Which compensation type is defined as a fee paid to an employee for completing a task?
• When starting a new business, which type of cost should be separated from one-time costs?
• _______ marketing is accomplished by companies using specific technical elements to ensure that search engine crawlers easily find and index the content, placing their article in the top search results.
• Which is one of the greatest benefits of being an entrepreneur?
• If total revenue stays the same and expenses increase, which of the following happens to net income?
• Which design thinking stage involves creating multiple inexpensive versions of the product, known as minimum viable products (MVPs)?
• An affiliate marketing campaign cost $1,000 and generated $1,200 in sales. What was last month's ROI?
• Which action best describes the purpose of follow-up in sales?
• Deidre owns a pet store. Last month, her income was $5,500, her cost of goods was $800, and her total expenses were $2,600. What are Deidre's net income and gross income for last month?
• Which option lists the correct order of the following business life cycle stages from first to last?
• Which data type provides companies with their customers' locations to see the areas with high or low sales volumes?
• What type of data allows companies to anticipate their customers' needs and behaviors by observing their buying habits?
• Bank loans are categorized under which balance sheet category in the example?
• Which description matches an S corporation?
• Which pairing correctly matches the distribution type to its description?
• Which formula best represents return on investment (ROI) in the examples provided?
• Which of the following is an example of secondary data?
• What is a primary benefit of starting a new business without purchasing a franchise or buying an existing business?
• What is the correct order of the first three steps in the sales process?
• If income is 8000 and cost of goods is 2500, what is gross profit?
• Which marketing activity is considered offline?
• On a balance sheet, which category does Equipment belong to?
• Which activity would be considered collecting primary data?
• A key example of a prebuilt _______ service many companies use is a Software as a Service (SaaS) platform.
• Which trait refers to tackling goals with courage and perseverance, even when it is challenging?
• Which statement best describes what a high customer acquisition cost (CAC) could indicate?
• Which source is commonly considered secondary data?
• Direct distribution is the same as a zero-level channel.
• A startup employee agrees to receive some of their pay in company stock. Which form of compensation is this?
• Which channel is primarily used for broad-reach marketing via physical mail campaigns?
• What is the total assets figure on the balance sheet example?
• Which statement best describes the break-even point?
• Which option best describes psychographic segmentation?
• Which of the following is NOT an online marketing platform?
• Companies mitigate the risk of employees sharing trade secrets by often requiring employees to sign which type of document?
• You opened a for-profit adult technical school and want to advertise it to potential students across your state. Which marketing method would be most appropriate?
• Which IP protection helps protect brand names, logos, and business names?
• Which form of compensation is based on hours worked and paid at a fixed rate?
• Which of the following is a factor considered in Fair Use analysis?
• Which financial plan includes a budget, 12-month profit and loss projection, cash flow statements, a breakeven analysis, and capital requirements to show investors how their money will be spent?
• Which term matches the definition: 'Solving problems in the best way by considering a variety of potential solutions to the problem'
• Which statement is NOT a correct description of market/fit hypothesis?
• Which statement best describes how fulfillment centers differ from direct distribution?
• Which description best matches the Chief Financial Officer (CFO) in a business management team?
• Which step involves contacting a client or potential client?
• Using a product once is an indicator of product/market fit.
• Which document is commonly used as a concise, one-page overview of a business model and plan?
• Which form of marketing lets marketers place ads on websites within search engines?
• Harvey owns a restaurant. He had 425 customers at the end of the second quarter, 455 customers at the beginning of the second quarter, and 17 new customers in the second quarter. What is his customer retention rate for the second quarter?
• Amanda's equity is calculated from her assets and liabilities. If total assets are $30,000 and total liabilities are $6,800, what is equity?
• What is the formula for determining run rate?
• Which of the following is a valid way to determine a customer's service needs?
• A rancher retiring and considering selling half his land and adjacent ski development; which viable opportunity does he foresee?
• Variable costs ______ depending on production.
• In a pitch deck, which component highlights key team members' skills, expertise, and experience?
• Which of the following is a way customer service and support can affect sales?
• Clare sells gourmet boxes of chocolates. One box of chocolates costs Nancy $6.75 to produce. She sells her boxes of chocolate for $10.00. What is Clare's return on investment (ROI)?
• How many years is the SBA equipment/inventory loan payback?
• Sarah works at an auto shop. She performs car repairs and maintenance while abiding by the safety guidelines outlined at the shop. She is paid an hourly wage. Which best describes the role Sarah plays in the auto shop?
• Which characteristic means thinking about and planning for the future?
• Which of the following is a key component of establishing a Product Quality Control Process?
• A bakery is testing a new artisan bread. Which criterion best indicates the quality of the new product after taste samples?
• Which of these is a benefit of entrepreneurship?
• SWOT analysis threats refer to:
• Which component provides an overview of the employees and others that are part of a business?
• What should be done with the results of internal quality assurance testing?
• What statement best defines indirect competitors?
• What is a primary purpose of customer service?
• What is the formula for determining a break-even point?
• Which term best matches the definition: 'Bringing new and unconventional ideas to the table and finding creative and new solutions to the way things are done'
• Which category would a downloadable software license most likely fall into?
• Which of the following is a common characteristic of angel investors?
• Which characteristic describes the way one approaches new ideas and ventures?
• Which expense is a variable cost?
• In the described sales process, which step corresponds to getting a client's decision to purchase or not to move forward?
• Fixed costs change depending on the volume of production. True or False?
• Ronda owns a food truck; which intellectual property law best protects her recipe from being stolen or replicated by competitors?
• James manufactured his own bicycle brand and needs to set a selling price. The manufacturing cost per bike is $65, and his desired profit margin is 15%. What is James's selling price?
• If revenue is $9,000 and cost of goods sold is $1,200, what is gross income?
• What is value engineering?
• Which statement describes a characteristic of debt financing?
• Product/market fit occurs when a business continues to grow due to customer demand.
• Jake owns a garden supply store. His revenue at the end of last month was $12,200. What is Jake's run rate?
• Which characteristic is about turning one's ideas into action or bringing in new ideas to generate more or better business?
• In a growing business life cycle, which stage involves rapid growth and financing needs and is exemplified by the company taking off?
• What is the purpose of an employment contract?
• _______ is measured by how well the product or service successfully serves its users' purpose.
• In the Design Thinking Process, which description corresponds to the element 'Research your users\' needs'?
• What does RO stand for in the given example?
• In a pitch deck, which component discusses how a business works, how it makes money, and describes some of the marketing strategies?
• Which statement best defines direct competitors?
• What formula is used to determine a company's customer retention rate?
• Billboards are commonly seen on the sides of freeways, on _________, and on benches throughout cities.
• Barry owns a small business. He spent $15,000 on marketing expenses and $5,000 in sales costs last year. He obtained 1,000 new customers. What is his CAC?
• In a pitch deck, which component provides a brief overview of the company's mission and the value provided to customers?
• What is a value proposition?
• In the described business life cycle, which stage is associated with rapid growth and the need for financing?
• Holden's equity is calculated from his assets and liabilities. If total assets are $31,900 and total liabilities are $18,200, what is equity?
• When setting one's own quality standards, one must ensure they are _______
• Which channels are heavily used in digital advertising and sometimes utilize influencers?
• Which of the following best describes the burn rate in a cash flow context?
• A nonprofit has a _____ status.
• Which CC license requires credit to the creator?
• Which stage is described as 'Sales gain momentum and a business starts to grow'?
• Which design thinking stage involves spending time empathizing with customers to understand their experiences and needs better?
• Which funding option uses the owner's own savings to fund the business?
• Which of the following is considered a main type of distribution channel?
• In the handyman services business, given the following data, what is the projected ending cash balance for the month?
• Which step involves demonstrating to the customer how a product or service meets their needs?
• Which of the following is typically a fixed cost?
• It is becoming more and more common to sell products and services ______.
• Product/market fit automatically results in high-volume sales.
• What is a key difference between small business owners and entrepreneurs?
• Which trait is about believing that one can accomplish anything if one works hard?
• Which term matches the definition: 'Working with others towards a common goal'
• Arrange the phases of product/market fit in the correct order.
• Which term describes a transaction that occurs between two businesses?
• Which stage of the business life cycle is commonly associated with Take-off?
• What is the formula for determining net income?
• Which data type provides information about customers' values, personality traits, motivations, and how they view the world?
• Which description best matches Lean Canvas?
• Which stage is described as 'The business is legally formed, and sales start to occur'?
• Which of the following is NOT listed as one of the three characteristics that help identify a business opportunity?
• Arrange the quality control process steps in correct order.
• Billie manages the budget for a toy manufacturing company. In addition to this, she also negotiates financial matters with other companies on collaborative projects. Which best describes the role Billie plays in the toy manufacturing company?
• In addition to identifying the problem a product solves, a value hypothesis should promote things like product features, pricing, and the ______ as a means of enticing potential customers to purchase the product.
• Starting balance $20,000; ending balance $14,000; what is burn rate?
• In the Design Thinking Process, which description corresponds to 'Challenge Assumptions and Create Ideas'?
• Beth is the chief marketing officer for a large law firm. After reviewing sales data, she notices most cases come from clients in a neighboring city. She decides to boost advertisements in that city to increase case numbers. What concept did she identify?
• Which Sales Channel has been opened to manufacturers because of digital tools?
• Before offering a new service, one of the first steps you must take is to identify what?
• Which funding option provides free money that does not have to be paid back?
• Melody owns a dog grooming business. Her total monthly cost is $2,750. She charges $25 per grooming service. How many dogs must Melody groom to break even each month?
• When an employee is hired, the contract outlines the employee's and the employer's _________ and the terms of employment.
• What is an effective way to measure your teaching performance during an online course?
• Which characteristic means adapting to change, loss, and disappointment?
• In the design thinking process described, what is the correct order of the stages?
• In the lawncare service strategy described, which core action is essential?
• Which tool is most useful in helping Customer Service support sales strategies?
• A business spent 30,000 on marketing and 10,000 on sales last period and gained 2,000 new customers. What is the CAC for that period?
• Which statement best defines entrepreneurship?
• Which term is defined as: 'Working toward achieving a goal without someone directing and ensuring it is being done'
• Which statement is true about digital products compared to physical goods?
• Which CC license permits only noncommercial uses of the work?
• A company's _____ may play a role in pricing.
• Which marketing medium makes it easy to target a specific geographic location?
• What is the formula for determining income tax expense?
• For a startup with plans to grow and possibly sell shares to the public, with international founders and a desire for liability protection, which structure is appropriate?
• For a worker paid a fixed amount for each lawn completed, which form of compensation best describes this pay structure?
• Indirect distribution channels use ________ to sell their products to the end customers.
• A regional sales map shows low sales in the Midwest. To boost performance, where should the company focus its future sales efforts?
• Korryn works at a convenience store. When she was hired, she would work 40 hours per week and receive $15 per hour of work. The company also gives all employees partial ownership in the form of shares. Which form of compensation does Korryn receive for her work?
• If value of investment is $50,000 and cost of investment is $40,000, what is net profit?
• A lean canvas should only be ________ page long, discussing key information, without all the details one would see in a business plan.
• Which two types of compensation would be appropriate for lawn care employees with variable hours?
• Which phase comes last in the product/market fit sequence?
• If Sales Revenue Last Year was $350,000 and Current Year is $402,500, what is the sales growth percentage?
• If a business reports monthly revenue of $12,200, what is the annual run rate?
• Which business plan component summarizes what one wants to accomplish with a business, the products and services offered, financial outlook, funding needed, goals, and achievements?
• Which element should be included in a sales strategy?
• What is one of the first steps you must do before creating a product prototype?
• What is the formula for determining gross profit?
• Which phase follows Launch in the product/market fit sequence?
• How many years is the SBA real estate loan payback term?
• Which statement best describes opportunities in a SWOT analysis?
• Which executive is primarily responsible for overseeing day-to-day operations?
• What should marketing plans include?
• Which term is defined as: 'Coming up with solutions to solve a problem'
• Which term describes maintaining a relationship with customers to obtain repeat business and potential referrals?
• A business has assets of $12,000 cash, $5,000 inventory, $8,000 equipment, and liabilities of $4,000 loan and $1,000 credit line. What is equity?
• Which option is NOT a suggested tip for dealing with negative customer feedback?
• A common financial risk that entrepreneurs encounter is _________
• Which term describes a segment based on lifestyle and values?
• Which two characteristics generally define a small business?
• Lauren owns a restaurant. She had a beginning cash balance of $2,500, $57,250 in total cash sales, $5,300 for utilities, $7,500 in loan payments, and $3,200 for marketing costs. What is Lauren's ending cash balance for the year?
• Which of the following is an example of a direct distribution channel?
• Terri owns a computer repair shop. Her revenue at the end of last month was $7.450. What is Terri's run rate?
• Which characteristic is commonly used in demographic segmentation?
• Which description matches the BY license in Creative Commons?
• Which of the following is not typically reported on a balance sheet?
• Tina owns a car dealership. She paid $50,000 for each vehicle and wants to make 25% on each car sale. What is Tina's selling price?
• Which outside entity might set quality control standards in some industries?
• What is the main drawback of a sole proprietorship?
• Ben owns a print shop. Last quarter, income was $8,000, cost of goods sold was $650, and total expenses were $4,300. What are Ben's net income and gross income for the last quarter?
• Franchises will generally have higher ______ but they offer ongoing support and training.
• What is a Target Market?
• Which item is typically considered an ongoing operating expense?
• If you want some benefits enjoyed by large corporations but avoid double taxation and protect from liabilities, which structure fits you with four partners who won't sell shares publicly?
• A barber charges $20 per haircut. With total monthly expenses totaling $5,000 and 200 haircuts, what price per haircut is required to break even after increasing the salary to $4,000 per month?
• What should happen after one determines a company's quality control process meets the company's quality standards?
• Which statement describes the Maturity stage of the business life cycle?
• Joey has opened a restaurant. He paid a large amount of money up front to get the business started. He only sells products that are licensed by someone else. What type of business opportunity is Joey a part of?
• Which step involves developing a presentation tailored to a potential client and their specific needs?
• Which design thinking stage involves analyzing observations and information to identify the core problem?
• What is the description for the Take-off stage in the business life cycle?
• During the design thinking process, what is a common step teams should perform?
• Which IP protection protects an invention from being copied for a limited time?
• Which CC license requires that adaptations be shared under the same terms?
• Which statement is an eligibility requirement for an SBA grant?
• Which term describes a business purchasing goods for use in its operations or for resale?
• A prebuilt service such as Software as a Service (SaaS) is best described as which type of service?
• Place the stages of the business life cycle in the correct order.
• Which funding option typically involves the investor taking a stake in the company in exchange for funding?
• Kelly purchased a rug at a local home decor store. What type of transaction is this?
• Elizabeth sells makeup and has a team of distributors that she has recruited to sell makeup with her. She earns a percentage from all of the sales that the distributors make. What type of business opportunity is Elizabeth a part of?
• Which step involves finding potential customers?
• Which statement about indirect distribution is true?
• Which step involves alleviating concerns presented by the customer?
• Buying office space is ______ in the long run in comparison to leasing.
• Which pricing strategy involves pairing several products together and selling them for less than their individual prices?
• In a SWOT analysis, the example 'Increase in weddings expected as COVID restrictions ease' belongs to which element?
• A hair salon acquired 100 new customers. Marketing costs = $1,000; Sales costs = $10,000; Salaries = $96,000. What is the customer acquisition cost?
• Which statement is a key requirement for something to be considered a trade secret?
• What is the formula for determining selling prices?
• Which metric best measures the efficiency of turning marketing spend into new customers?
• What is the primary function of fulfillment centers?
• Which Creative Commons license is abbreviated as CC and identifies it is a Creative Commons license?
• Which of the following is an example of a physical sales channel?
• Break-even point if total cost is 6000 and price per unit is 60?
• In a pitch deck, which component specifies how the investors' money will be used and why the funds are necessary to grow the company while using data to back up the stated information?
• What does CAC stand for in marketing metrics?
• _______ marketing lets marketers place ads on websites within search engines.
• Direct distribution is also known as a zero level channel.
• What formula is used to determine a company's CAC?
• When considering the reliability of the management for a business opportunity, what else should one consider at this time?
• A startup founder accepting some compensation in company stock is receiving which form?
• Sharon owns a law firm. She has recently begun earning more money, and the firm's finances are doing well. In which business life cycle stage is Sharon?
• A target market is the _______ markets its products and/or services to which a company
• Which of the following is NOT one of the three characteristics typically possessed by successful entrepreneurs' mindsets?
• Jonas owns a pizza shop. He had 300 customers at the end of June, 310 customers at the beginning of June, and 20 new customers in June. What is his customer retention rate for June?
• Danny sells skateboards. One skateboard sells for $55, and the cost to produce a skateboard is $35. What is Danny's return on investment (RO)?
• In a pitch deck, which component discusses what the competition is doing and how to improve upon what the competition is doing without being disrespectful toward the competing companies?
• Larry owns a shoe store. His starting balance last month was $17,300. His ending balance was $14,700. What is Larry's burn rate?
• Which document is typically used to pitch to investors and includes visuals and slides?
• Which funding option must be repaid with interest and has maturity terms that vary by loan type?
• Which statement about angel investors is commonly true?
• In the design thinking process, which stage involves coming up with solution ideas?
• In a SWOT analysis, 'Working alone, no skilled help' is best categorized as which element?
• Which best describes the role of a person who owns stock in a company but does not manage daily operations?
• What is the formula for determining burn rate?
• Which statement best describes weaknesses in a SWOT analysis?
• Which item is typically included when calculating start-up costs?
• Network marketers make their money through _______
• Which description best fits a Franchise?
• Which of the following is NOT a segment typically included in a Marketing Plan?
• Which statement describes a characteristic of direct distribution compared to fulfillment centers?
• Jerry owns an ice cream parlor. His starting balance last month was $1,900. His ending balance was $2,200. What is Jerry's burn rate?
• Net income is defined as which of the following?
• A tested and proven process is valuable to companies; they may want to use which materials?
• Which statement best describes strengths in a SWOT analysis?
• Which pricing strategy uses high quality products marketed to high-income individuals?
• What is the formula for determining net profit?
• Which corporate form is commonly associated with double taxation in traditional tax practice?
• Which type of e-commerce product refers to a downloadable file or streaming content?
• What is the formula for determining a return on investment (ROI)?
• What type of e-commerce product did Tim purchase from a streaming service?
• Jean owns a printing company. She had 100 customers at the end of the third quarter, 101 customers at the beginning of the third quarter, and five new customers in the third quarter. What is her customer retention rate for the third quarter?
• SBA grants are best described as free money that does not have to be paid back.
• What is the total liabilities value on the balance sheet?
• One value of using ________ material is that they are usually well-recognized, which may help to boost sales.
• Which is a disadvantage of S corporations?
• Investors use customer acquisition costs (CAC) to determine if a company is _______.
• Which of the following is a current asset in the example balance sheet?
• Which description best matches the Direct-to-Consumer sales channel?
• You create a new type of electric shaver that is light-weight, portable, and holds a longer charge. Which action is essential when mass-producing the product?
• Temporary storage is associated with a distribution center.
• Linda's company acquired 6,000 new customers last year. They spent $40,000 in marketing costs and $20,000 in sales costs. What is Linda's customer acquisition cost (CAC)?
• Devin owns a clothing store. He paid $23 for each pair of jeans, and his desired profit margin is 18%. What is Devin's selling price?
• Which term describes an investor who owns shares but does not engage in daily management?
• Which description best defines a Non-profit?
• What should you research before creating a product?
• Which is a characteristic of a business opportunity?
• What is the formula for determining equity?
• CAC is calculated as total marketing and sales costs divided by the number of new customers. Which option represents this formula?