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978-0133767186 Chapter 01 Part 1
Entrepreneurship and Small Business Management, 2e (Mariotti) Chapter 1 Entrepreneurs Recognize Opportunities 1) Based on the idea of cost and benefits, which of the following activities is most beneficial? A) Playing video games B) Watching a PBS special about nature […]
978-0133767186 Chapter 01 Part 2
25) Which of the following could be considered an internal opportunity? A) Changes in the buying habits of potential customers B) New technology C) New competition D) Foreclosure of homes in the United States E) An interest or hobby Learning […]
978-0133767186 Chapter 02 Part 1
Entrepreneurship and Small Business Management, 2e (Mariotti) Chapter 2 Franchising 1) Franchises are governed by ________ laws and regulations. A) State and federal B) State C) Federal D) International E) Federal and international Learning Obj.: LO 4 AACSB: Application of […]
978-0133767186 Chapter 02 Part 2
25) The formula provided by the franchise does which of the following? A) Guarantees brand recognition B) Eases the issues of start-up development C) Ensures ongoing support D) Removes the creativity and freedom E) All of the above Learning Obj.: […]
978-0133767186 Chapter 03 Part 1
Entrepreneurship and Small Business Management, 2e (Mariotti) Chapter 3 Finding Opportunity in an Existing Business 1) It is ________ to buy a going concern for less than it would cost to start a similar company. A) Possible B) Impossible C) […]
978-0133767186 Chapter 03 Part 2
25) ________ is not a sign of potential problems when practicing due diligence. A) Inconsistent information B) Refusal to provide contact names C) Hesitancy to open up to questions D) Conflicting information E) Accurate information Learning Obj.: LO 1 AACSB: […]
978-0133767186 Chapter 04 Part 1
Entrepreneurship and Small Business Management, 2e (Mariotti) Chapter 4 The Business Plan: Road Map to Success 1) A ________ is a company’s plan to generate revenue and make a profit from operations. A) Business plan B) Feasibility plan C) Business […]
978-0133767186 Chapter 04 Part 2
25) A(n) ________ is a 15- to 30-second summary of your business. A) Elevator pitch B) Story C) Advertisement D) Sales pitch E) Financing presentation Learning Obj.: LO 6 AACSB: Analytical thinking 26) Your business plan projections should be ________. […]
978-0133767186 Chapter 05 Part 1
Entrepreneurship and Small Business Management, 2e (Mariotti) Chapter 5 Creating Business from Opportunity 1) Business leaders create wealth by ________. A) Hiring employees in order to sell more units and generate more profit B) Reducing their gross margins C) Charging […]
978-0133767186 Chapter 05 Part 2
22) A competitive advantage can be based on any of six factors. Which of the following is not one of the six? A) Selection B) Opportunity C) Quality D) Cost E) Service Learning Obj.: LO 3 AACSB: Analytical thinking 23) […]
978-0133767186 Chapter 06 Part 1
Entrepreneurship and Small Business Management, 2e (Mariotti) Chapter 6 Exploring Your Market 1) An entrepreneur’s market is ________. A) The building where his or her business is located B) A three-square-block area surrounding his or her location C) His or […]
978-0133767186 Chapter 06 Part 2
23) Research carried out indirectly through other existing resources is called ________. A) Secondary research B) Tributary research C) Ancillary research D) Literature analysis E) Primary research Learning Obj.: LO 2 AACSB: Analytical thinking 24) By teaching customers how to […]
978-0133767186 Chapter 07 Part 1
Entrepreneurship and Small Business Management, 2e (Mariotti) Chapter 7 Developing the Right Marketing Mix and Plan 1) Which of the following is one of the four Ps of marketing? A) Product B) Population C) Publicity D) Profit Learning Obj.: LO […]
978-0133767186 Chapter 07 Part 2
25) Tanika is planning to open a consulting practice based in a shared office facility. Her monthly fixed costs will total $2,500 plus she must earn at least $7,500 per month to replace her salary and benefits. She plans to […]
978-0133767186 Chapter 08 Part 1
Entrepreneurship and Small Business Management, 2e (Mariotti) Chapter 8 Pricing and Credit Strategies 1) Which of the following is not included in the eight steps to better pricing in the text? A) Assess what value your customers place on the […]
978-0133767186 Chapter 08 Part 2
24) Which of the following statements are not true regarding credit cards? A) They can be issued directly by a merchant. B) They can be issued through a third party. C) Cardholders may be eligible for special discounts. D) Cardholders […]
978-0133767186 Chapter 09 Part 1
Entrepreneurship and Small Business Management, 2e (Mariotti) Chapter 9 Integrated Marketing Communications 1) ________ advertising provides information about an organization rather than a specific product and is intended to create awareness about the firm and enhance its image. A) Institutional […]
978-0133767186 Chapter 09 Part 2
24) Promotion has expanded beyond advertising, sales promotions, and personal selling to include ________. A) Database marketing B) Direct marketing C) Alternative marketing D) E-active marketing E) All of the above Learning Obj.: LO 1 AACSB: Analytical thinking 25) The […]
978-0133767186 Chapter 10 Part 1
Entrepreneurship and Small Business Management, 2e (Mariotti) Chapter 10 Marketing Globally 1) For many companies, cost reductions have been attained by all of the following except ________. A) Locating a facility abroad B) Securing raw material abroad C) Manufacturing suppliers […]
978-0133767186 Chapter 10 Part 2
24) Which of the following is not a management issue in the decision to export? A) Management objectives B) Experience C) Personnel D) Production capacity E) Personal philosophy Learning Obj.: LO 3 AACSB: Analytical thinking 25) Reasons to export include […]
978-0133767186 Chapter 11 Part 1
Entrepreneurship and Small Business Management, 2e (Mariotti) Chapter 11 Smart Selling and Effective Customer Service 1) An appointment with a potential customer to explain or demonstrate your product or service is called a ________. A) Sales call B) Prequalification C) […]
978-0133767186 Chapter 11 Part 2
25) Everything that a business does to keep its customers happy is called ________. A) Customer service B) Customer appreciation C) Postsale service D) Purchaser service E) Customer amenity Learning Obj.: LO 5 AACSB: Analytical thinking 26) The best sales […]
978-0133767186 Chapter 12 Part 1
Entrepreneurship and Small Business Management, 2e (Mariotti) Chapter 12 Understanding and Managing Start-Up, Fixed, and Variable Costs 1) A litmus test for profitability is the ________. A) Economics of one unit (EOU) B) The money borrowed (IOU) C) A focus […]
978-0133767186 Chapter 12 Part 2
24) A suggested allowance for contingencies and emergencies at start-up is ________ percent of estimated start-up costs, although more is better. A) 5 B) 10 C) 25 D) 40 Learning Obj.: LO 1 AACSB: Analytical thinking 25) You should keep […]
978-0133767186 Chapter 13 Part 1
Entrepreneurship and Small Business Management, 2e (Mariotti) Chapter 13 Using Financial Statements to Guide a Business 1) What must balance with assets on the balance sheet? A) Liabilities and owner’s equity B) Net worth and owner’s equity C) Capital and […]
978-0133767186 Chapter 13 Part 2
25) How would you express a ratio as a percentage? A) Multiply it by 100 B) Divide it by 100 C) Add a percentage sign D) Subtract 100 E) This is impossible to do. Learning Obj.: LO 4 AACSB: Analytical […]
978-0133767186 Chapter 14 Part 1
Entrepreneurship and Small Business Management, 2e (Mariotti) Chapter 14 Cash Flow and Taxes 1) ________ is the amount an investment is worth discounted back to the present. A) Present value of money B) Time value of money C) Future value […]
978-0133767186 Chapter 14 Part 2
24) What are the two steps in making a cash flow projection? A) Projecting cash receipts and subtracting expected cash expenses B) Projecting expected cash expenses and subtracting inventory cost C) Projecting receipts and paying bills before they are due […]
978-0133767186 Chapter 15 Part 1
Entrepreneurship and Small Business Management, 2e (Mariotti) Chapter 15 Financing Strategy: Debt, Equity, or Both? 1) Financing with earnings is an option under what circumstances? A) A company is profitable and has positive cash flow from operations. B) A company […]
978-0133767186 Chapter 15 Part 2
25) Legal reduction in taxes is called ________. A) Tax abatement B) Tax evasion C) Tax avoidance D) Tax cheating E) Tax planning Learning Obj.: LO 3 AACSB: Analytical thinking 26) Which of the following is not one of the […]
978-0133767186 Chapter 16 Part 1
Entrepreneurship and Small Business Management, 2e (Mariotti) Chapter 16 Addressing Legal Issues and Managing Risk 1) In a corporation, all profits go to ________. A) The owners and the shareholders B) Reduce the surplus C) The stockholders as salaries D) […]
978-0133767186 Chapter 16 Part 2
24) ________ insurance compensates employees for loss of income and for medical expenses due to job-related injuries. A) Worker’s compensation B) Injury C) Disability D) Liability E) Life Learning Obj.: LO 5 AACSB: Analytical thinking 25) Every corporation is recognized […]
978-0133767186 Chapter 17 Part 1
Entrepreneurship and Small Business Management, 2e (Mariotti) Chapter 17 Operating for Success 1) ________, an American economist, argued that business should focus on making quality products instead of maximizing profits-and that profits would follow. A) W. Edwards Deming B) Conrad […]
978-0133767186 Chapter 17 Part 2
25) Retail point-of-sales systems, restaurant menu order systems, and concert venue ticketing systems are all examples of ________. A) Industry-specific technology B) Systems for large businesses C) Custom software applications D) Operational systems E) Point-of-sale applications Learning Obj.: LO 6 […]
978-0133767186 Chapter 18 Part 1
Entrepreneurship and Small Business Management, 2e (Mariotti) Chapter 18 Location, Facilities, and Layout 1) Location strategy has critical impacts on which of the following? A) Revenues B) International trade policy C) Family activities D) Social security E) News Learning Obj.: […]
978-0133767186 Chapter 18 Part 2
25) Changes to adapt a leased building for a particular business are called ________. A) Leasehold improvements B) Leasehold developments C) Building improvement funds D) Client developments E) Expensive Learning Obj.: LO 5 AACSB: Analytical thinking 26) For manufacturing, warehousing, […]
978-0133767186 Chapter 19 Part 1
Entrepreneurship and Small Business Management, 2e (Mariotti) Chapter 19 Human Resources and Management 1) The ________ function includes everything from finding resources to hiring employees to buying/leasing equipment. A) organizing B) planning C) controlling D) leading E) motivating Learning Obj.: […]
978-0133767186 Chapter 19 Part 2
23) A ________ organization is a business structure in which each person reports to a single supervisor. A) line B) staff C) flat D) tall E) bureaucratic Learning Obj.: LO 5 AACSB: Analytical thinking 24) A relatively “________” organization may […]
978-0133767186 Chapter 20 Part 1
Entrepreneurship and Small Business Management, 2e (Mariotti) Chapter 20 Leadership and Ethical Practices 1) An authoritative leader takes a ________ approach. A) “Come with me” B) “Get out of my way” C) “Get over here” D) “Work harder” E) “I’ll […]
978-0133767186 Chapter 20 Part 2
25) The balancing act between ________ and ________, and being inaccessible is a difficult situation that each individual addresses differently. A) Being accessible, creating a positive environment B) Being busy, creating a positive environment C) Being accessible, creating a negative […]
978-0133767186 Chapter 21 Part 1
Entrepreneurship and Small Business Management, 2e (Mariotti) Chapter 21 Franchising, Licensing, and Harvesting: Cashing in Your Brand 1) A ________ represents the company’s promise to consistently deliver a specific set of benefits to customers. A) Product line extension program B) […]
978-0133767186 Chapter 21 Part 2
22) It typically requires at least ________ years to develop a company worth harvesting. A) Ten B) Five C) Two D) Twenty E) Eight Learning Obj.: LO 3 AACSB: Analytical thinking 23) If you buy a McDonalds franchise and agree […]