Essentials Of Entrepreneurship And Small Business Management 8th Edition

One element of the location decision common to all businesses is the need to locate where customers want to do business. Answer: TRUE Answer: TRUE Answer: TRUE The ideal strategic planning process for a small company should start with setting objectives. Answer: FALSE Answer: FALSE Answer: FALSE Small companies that take the plunge into global business can extend

"Gazelles" are those businesses that grow at 20 percent or more per year for four years and gross at least $100,000 in annual sales. Answer: TRUE Answer: TRUE Answer: TRUE Viewing play as frivolous is a mental block that stifles creativity. Answer: TRUE Answer: TRUE Answer: TRUE One effective technique for improving cash management is to establish a

You should never offer your customers "freebies" unless they are truly valuable and expensive, otherwise you will earn a negative reputation among your customers. Answer: FALSE Answer: FALSE Answer: FALSE Online sales and Internet activity will account for more than 60 percent of total retail sales. Answer: TRUE Answer: TRUE Answer: TRUE The left brain processes information intuitively

The franchisee turnover rate is the rate at which franchisees leave a franchise system. Answer: TRUE Answer: TRUE Answer: TRUE An entrepreneur may find that the business plan indicates that the business concept is not viable. This is another potential benefit of writing a business plan; this revelation occurred before the owner committed significant

After a company's strengths and weaknesses are assessed, the strategic planning process should identify opportunities and threats facing the company and should isolate the key factors for success in business. Answer: TRUE Answer: TRUE Answer: TRUE Only about one-third of the world's purchasing power lies outside the borders of the United States. Answer: FALSE Answer: FALSE Answer: FALSE Retail

Dumping involves selling large quantities of a product in a foreign market below cost. Answer: TRUE Answer: TRUE Answer: TRUE An inventory turnover ratio above the industry average suggests that a business is overstocked with obsolete, stale, overpriced, or unpopular merchandise. Answer: FALSE Answer: FALSE Answer: FALSE For many entrepreneurs, the key barrier to not using the Web

Companies quickly learn that setting up a Web site is only the first investment required. The site leads to an ongoing investment of resources - time, money, energy and talent. Answer: TRUE Answer: TRUE Answer: TRUE The sole proprietorship is the best form of ownership for entrepreneurs launching their first businesses. Answer: FALSE Answer: FALSE Answer: FALSE Job

The Lifestyle Market Analyst matches population demographics with age. Answer: FALSE Answer: FALSE Answer: FALSE The increasing diversity of our population is creating a marketing "threat" to small businesses because they cannot profitably serve small niches. Answer: FALSE Answer: FALSE Answer: FALSE Market research is a valuable tool for defining the firm's target market, its needs, and

When conducting a regional evaluation, one of the first places an entrepreneur should turn for information is the U.S. Census Bureau. Answer: TRUE Answer: TRUE Answer: TRUE Using focus groups is an example of primary research. Answer: TRUE Answer: TRUE Answer: TRUE Because of their size and limited resources, small businesses rarely create innovations that are important to

Women now own 30.4 percent of all privately-held businesses in the United States. Answer: TRUE Answer: TRUE Answer: TRUE Potential lenders and investors believe that an entrepreneur who lacks the discipline to develop a good business plan likely lacks the discipline to run a business. Answer: TRUE Answer: TRUE Answer: TRUE The government of Palmeria placed a high

Secondary research includes customer surveys. Answer: FALSE Answer: FALSE Answer: FALSE One of the rights given to consumers by the Consumer Bill of Rights is the right to safety. Answer: TRUE Answer: TRUE Answer: TRUE The mission statement addresses the first question of any business venture: "What business am I in?" Answer: TRUE Answer: TRUE Answer: TRUE Generally, an industry is more

Interviewers should avoid asking job candidates questions based on hypothetical on-the-job scenarios and how the candidate would handle them because the Equal Employment Opportunity Commission considers such questions to be illegal. Answer: FALSE Answer: FALSE Answer: FALSE The objectives of cash management are to adequately meet the cash demands of the business, to avoid

The right brain is guided by linear, vertical thinking. Answer: FALSE Answer: FALSE Answer: FALSE The U.S. Copyright Office does not require registering the creative work because registering it does not give creators greater protection over their work. Answer: FALSE Answer: FALSE Answer: FALSE Entrepreneurs realize that failure is a possibility, but are not paralyzed by that fear. Answer:

TRIZ is an acronym for a systematic approach to help solve technical problems based on the study of hundreds of the most innovative patents. Answer: TRUE Answer: TRUE Answer: TRUE A feasibility analysis consists of four interrelated components: an industry and market feasibility analysis, a product or service feasibility analysis, a financial feasibility analysis,

The manufacturer's suggested price takes into account the small firm's cost structure and its competitive situation. Answer: FALSE Answer: FALSE Answer: FALSE The faster a small company grows, the greater its appetite for cash. Answer: TRUE Answer: TRUE Answer: TRUE Employees tend to rise or fall to the level of expectations entrepreneurs have of them. Answer: TRUE Answer: TRUE Answer: TRUE There

The Uniform Franchise Disclosure Document (UFDD) is a document that every franchisor is required by law to give prospective franchisees before any offer or sale of a franchise. Answer: TRUE Answer: TRUE Answer: TRUE Because the heart of the cash budget is the sales forecast, the cash budget is only as accurate as the

Driving around and observing competition is called "windshield" research. Answer: TRUE Answer: TRUE Answer: TRUE In a recent survey, 92 percent of consumers say that given the opportunity, they would buy products with a social and/or environmental benefit. Answer: TRUE Answer: TRUE Answer: TRUE The most effective technique by which small companies can gain a competitive edge over

The purpose of a feasibility study is to determine whether a business idea is worth pursuing. Answer: TRUE Answer: TRUE Answer: TRUE Equity capital is also called risk capital because these investors assume the primary risk of losing their funds if the business fails. Answer: TRUE Answer: TRUE Answer: TRUE All the profits of a sole proprietorship are taxed

Float is the net number of days of cash flowing into or out of a company. Answer: TRUE Answer: TRUE Answer: TRUE The business plan helps an entrepreneur assess ideas in a relatively short period of time. Answer: FALSE Answer: FALSE Answer: FALSE The rapidly accelerating rate of change has created an environment in which staying in a

The reality test that a business plan must pass to attract financing from lenders and investors involves proving that a market for the company's product or service actually does exist, and that the company actually can build it for the cost estimates in the plan. Answer: TRUE Answer: TRUE Answer: TRUE Because a majority

Because inventory is not a liquid asset, cash invested there is tied up and cannot be used for other purposes. Answer: TRUE Answer: TRUE Answer: TRUE About 75 percent of the businesses in the U.S. can be considered 'small" businesses. Answer: FALSE Answer: FALSE Answer: FALSE A corporation formed in Taiwan doing business in the United States is a

A tariff is a limit on the amount of a product imported into a country. Answer: FALSE Answer: FALSE Answer: FALSE Developing a cash forecast is essential for new businesses because early profit levels usually do not generate sufficient cash to keep the company afloat. Answer: TRUE Answer: TRUE Answer: TRUE A feasibility analysis is the process of

A security agreement is a contract in which a business selling an asset on credit gets a security interest in that asset, protecting its legal rights in case the buyer fails to pay. Answer: TRUE Answer: TRUE Answer: TRUE When investing surplus cash, the small business owner should seek the highest returns possible on

When filing the corporate charter, a corporation must file in the state in which its headquarters are located. Answer: FALSE Answer: FALSE Answer: FALSE To manage cash efficiently, business owners should strive to accelerate their accounts payable and stretch out their accounts receivable. Answer: FALSE Answer: FALSE Answer: FALSE Company culture is the distinctive, unwritten code of conduct

Corporations must obtain a federal charter before they can conduct any business. Answer: FALSE Answer: FALSE Answer: FALSE In a partnership, profits (and losses) must be shared according to the ratio of capital originally invested in the partnership. Answer: FALSE Answer: FALSE Answer: FALSE A job analysis describes the process by which a firm determines the duties and

The Business Model Canvas consists of six elements. Answer: FALSE Answer: FALSE Answer: FALSE NAFTA includes provisions reducing tariff and nontariff barriers and toughening health and safety standards. Answer: TRUE Answer: TRUE Answer: TRUE Rather than relying primarily on a single source of funds as they have in the past, entrepreneurs today must piece together their capital from

Small business owners should not press customers for payment of their past due accounts for fear of losing them as customers altogether. Answer: FALSE Answer: FALSE Answer: FALSE Alarmingly, 66 percent of all drug abusers and 77 percent of alcohol abusers are employed. Answer: TRUE Answer: TRUE Answer: TRUE Leadership gets a small business going; management keeps it

Small companies have created at least two-thirds of the net new jobs in the U.S. economy. Answer: TRUE Answer: TRUE Answer: TRUE Entrepreneurs build the foundation for ethical decision making by understanding how their personal values come to life in business situations. Answer: TRUE Answer: TRUE Answer: TRUE Social responsibility is a branch of philosophy that studies and

The Business Model Canvas is a dynamic framework to guide entrepreneurs through the process of developing, testing, and refining their business models. Answer: TRUE Answer: TRUE Answer: TRUE Job enlargement is based on the premise that the best way to design a job is to break it down into its simplest form and to

The principle of job enlargement is to make a job more varied and to allow employees to perform a more complete unit of work by broadening its scope. Answer: TRUE Answer: TRUE Answer: TRUE The strongest of the five forces in most industries is the rivalry that exists among the businesses competing in a

Too many marketing plans describe in great detail what an entrepreneur intends to accomplish and pay little, if any, attention to practical and affordable strategies to achieve those targets. Answer: TRUE Answer: TRUE Answer: TRUE Market research requires a business owner to define the objective, collect data, analyze and interpret that data, and draw

Generally, an industry is more attractive when the items suppliers provide the industry account for a relatively high portion of the cost of the industry's finished product. Answer: FALSE Answer: FALSE Answer: FALSE A patent gives the inventor the exclusive right to make, use, or sell an invention for 50 years. Answer: FALSE Answer: FALSE Answer: FALSE In

A typical venture capital firm seeks investments in the $20,000 to $50,000 range and annual returns of 35-50 percent over three to five years. Answer: FALSE Answer: FALSE Answer: FALSE Immoral managers purposely violate law and ethical standards. Answer: FALSE Answer: FALSE Answer: FALSE A company's mission statement defines what it stands for, why it exists, and its

Minority-owned businesses have come a long way in the past decade, and their success rate is climbing. Answer: TRUE Answer: TRUE Answer: TRUE By signing the franchise contract, a franchisee typically surrenders some freedom and autonomy in operating her/his business. Answer: TRUE Answer: TRUE Answer: TRUE About 20 percent of downsized corporate managers have become entrepreneurs. Answer: TRUE Answer: TRUE Answer:

The greatest opportunities for e-commerce lie in the retail sector. Answer: FALSE Answer: FALSE Answer: FALSE Most stores find it most practical to use a flexible markup, which assigns various markup percentages to different types of products. Answer: FALSE Answer: FALSE Answer: FALSE Choosing a location in which many other businesses have failed can create a negative image,

The executive summary serves as the thesis statement for the entire business plan. Answer: FALSE Answer: FALSE Answer: FALSE Captive-product pricing is a technique that involves selling a product for a low price and charging a higher price for the accessories that accompany it. Answer: FALSE Answer: FALSE Answer: FALSE Leadership deals with doing things right; management deals

Roughly 80 percent of the typical business' inventory turns over quickly. Answer: FALSE Answer: FALSE Answer: FALSE Diversity may be considered a characteristic of entrepreneurs, as they don't fit any statistical norm. Answer: TRUE Answer: TRUE Answer: TRUE Only about 20 percent of a typical business' inventory turns over quickly. Answer: TRUE Answer: TRUE Answer: TRUE Since front-line service workers are not

Actions that are legal, however, may not be ethical. Answer: TRUE Answer: TRUE Answer: TRUE Creditors often look for a times-interest-earned ratio of at least 4:1 to 6:1 before pronouncing a company a good credit risk. Answer: TRUE Answer: TRUE Answer: TRUE The Web is one of the most efficient ways of reaching both new and existing customers. Answer:

The best pricing strategy for a small business owner to follow is to charge the manufacturer's suggested retail price. Answer: FALSE Answer: FALSE Answer: FALSE Employee assistance programs (EAPs) are an effective weapon in the battle against workplace substance abuse. Answer: TRUE Answer: TRUE Answer: TRUE The Foreign Corrupt Practice Act, passed in 1977, considers bribing foreign officials

Specialized knowledge is an example of a barrier to entry. Answer: TRUE Answer: TRUE Answer: TRUE To be effective, the small business owner should limit strategic analysis to only the two or three most significant opportunities facing the firm. Answer: TRUE Answer: TRUE Answer: TRUE To project cash receipts, an entrepreneur must analyze accounts receivable to determine the company's

In 2020, members of three different generations will be working side by side in the United States. Answer: FALSE Answer: FALSE Answer: FALSE Zoning is a system that divides a city or country into small cells or districts to control the use of land, buildings, and sites. Answer: TRUE Answer: TRUE Answer: TRUE The reason an entrepreneur should

The "friendliness" of the overall business environment is an important consideration in location selection and information is available to offer objective insight for this assessment. Answer: TRUE Answer: TRUE Answer: TRUE The first phase in selecting a location is determining what regions of the country are experiencing substantial growth. Answer: TRUE Answer: TRUE Answer: TRUE A corporation formed

Although creativity sometimes involves generating something from nothing, it more likely results in elaborating on the present, putting old things together in new ways, or taking something away to create something simpler or better. Answer: TRUE Answer: TRUE Answer: TRUE The value test that a business must pass to attract financing from lenders and

Studies comparing large companies to small ones have found that large companies' inability to react quickly is a major barrier to their growth. Answer: TRUE Answer: TRUE Answer: TRUE By using bootstrap marketing strategies (unconventional, low-cost, creative techniques) small companies can get as much "bang" for their marketing bucks as their larger rivals. Answer: TRUE Answer: TRUE Answer:

When the SBA makes a loan guarantee, banks are willing to consider riskier deals that they normally would refuse. Answer: TRUE Answer: TRUE Answer: TRUE Workers believe the actions of those in charge more than their words. Answer: TRUE Answer: TRUE Answer: TRUE On the income statement, the cost of goods sold represents the total cost, excluding shipping,

Before your Web site can become the foundation of a successful e-business, you must create it with your target audience in mind. Answer: TRUE Answer: TRUE Answer: TRUE The most effective job interviews are unplanned, unstructured interactions between the small business owner and the job applicant. Answer: FALSE Answer: FALSE Answer: FALSE Effective interviewers skip the breaking-the-ice phase

The most effective business plans follow the "cookie cutter approach," following the standard format most preferred by lenders and investors. Answer: FALSE Answer: FALSE Answer: FALSE Narrower product lines, smaller customer bases, and more limited geographic areas give small companies a natural advantage over large businesses when preparing a strategic plan. Answer: TRUE Answer: TRUE Answer: TRUE It

The prices a small business charges influence its image in the marketplace. Answer: TRUE Answer: TRUE Answer: TRUE Capital requirements, estimate earnings, and return on investment are three aspects of the financial feasibility analysis. Answer: TRUE Answer: TRUE Answer: TRUE Globally, one in eight adults is actively engaged in launching a business. Answer: TRUE Answer: TRUE Answer: TRUE A principal advantage of

Generally, an industry is more attractive when substitute products are available for the items suppliers provide. Answer: TRUE Answer: TRUE Answer: TRUE Changing your firm's shipping terms from "F.O.B. buyer" to "F.O.B. seller" can improve your cash flow, as it switches the cost of shipping from you to your buyer. Answer: TRUE Answer: TRUE Answer: TRUE The hidden

Trust is the foundation on which the long-term customer relationships that are so crucial to the Web success are built. Answer: TRUE Answer: TRUE Answer: TRUE Most entrepreneurs have invested the time to develop a sound business plan. Answer: FALSE Answer: FALSE Answer: FALSE Most franchisors provide extensive financial help such as loans and low-rate financing for their franchises. Answer:

Most small businesses begin their global ventures by establishing international locations. Answer: FALSE Answer: FALSE Answer: FALSE Effective leaders know that what they do is more important than what they say because they set the example for their employees. Answer: TRUE Answer: TRUE Answer: TRUE One of the disadvantages of angels is that they are typically not willing

Because small business owners often rely on informal procedures for managing cash, they are most likely to become victims of embezzlement and fraud by their employees. Answer: TRUE Answer: TRUE Answer: TRUE Comparing a company's current income statement to those of prior accounting periods rarely reveals valuable information about key trends. Answer: FALSE Answer: FALSE Answer: FALSE A

Export trading companies are government-owned operations established in countries around the world (including the United States) for the purpose of buying goods there. Answer: FALSE Answer: FALSE Answer: FALSE The balance sheet provides owners with an estimate of the firm's worth for a specific moment in time, while the income statement presents a "moving

A small business whose sales are highly variable, such as a seasonal business, should use a short cash planning horizon. Answer: TRUE Answer: TRUE Answer: TRUE The most reliable method of determining an adequate minimum cash balance is using estimates of similar businesses from trade literature. Answer: FALSE Answer: FALSE Answer: FALSE Businesses typically foster an environment that

The Dictionary of Occupational Titles, a listing of more than 20,000 job titles and descriptions, is a useful tool for getting a small business owner started when writing job descriptions. Answer: TRUE Answer: TRUE Answer: TRUE The "right" price depends on one factor - the value that it provides for customers. Answer: TRUE Answer: TRUE Answer: TRUE Ethical behavior

Employees are at the heart of increases in productivity. Answer: TRUE Answer: TRUE Answer: TRUE Successful entrepreneurs come up with ideas and then find ways to make them work to solve a problem or fill a need. Answer: TRUE Answer: TRUE Answer: TRUE Generally, an industry is more attractive when the opportunity to sell a differentiated product or

Research has isolated a set of characteristics that can predict who will succeed as an entrepreneur. Answer: FALSE Answer: FALSE Answer: FALSE A small business owner can collect a great deal of information about competitors through a number of low-cost competitive intelligence methods. Answer: TRUE Answer: TRUE Answer: TRUE One of the best ways to identify your own

Some financial analysts recommend that new owners estimate cash disbursements as best they can and then add another 25 to 50 percent of the total. Answer: TRUE Answer: TRUE Answer: TRUE A strong leader does not share aspects of his or her company's financial health, its future plans, or her vision for it with

Foreign licensing is when a business buys and sells products in many countries, either in its own name, or as an agent for its buyer-seller clients. Answer: FALSE Answer: FALSE Answer: FALSE Adding innovative products and services is important to a companies' success and small entrepreneurial companies may be able to respond faster than larger

One study conducted by the Global Entrepreneurship Monitor (GEM) reports that nearly one in eight people in the United States is working to start a business. Answer: TRUE Answer: TRUE Answer: TRUE Companies lose billions of dollars each year due to employee theft. Answer: TRUE Answer: TRUE Answer: TRUE Most business owners should avoid leasing as a cash

Most home-based businesses are simple cottage industries such as crafts or sewing. Answer: FALSE Answer: FALSE Answer: FALSE Trademarks are distinctive words, symbols, designs, names, or logos used for company identification. Answer: TRUE Answer: TRUE Answer: TRUE Effective leaders know they must punish workers who take risks and fail so that other workers do not make the same

While most people see what they have always seen, creative entrepreneurs are able to see beyond preconceptions. Answer: TRUE Answer: TRUE Answer: TRUE In a cash budget, credit sales to customers are recorded at the time the sale is made. Answer: FALSE Answer: FALSE Answer: FALSE Flextime is a work arrangement in which two or more people share

Communication in a timely and professional manner is key to effective collection activities. Answer: TRUE Answer: TRUE Answer: TRUE As the domestic market for franchises has become increasingly saturated with outlets, the number of franchisers attracted to foreign markets has grown. Answer: TRUE Answer: TRUE Answer: TRUE The opportunity to reap impressive profits is the primary motivation for

One of the cautions with a niche strategy is that niches change. Answer: TRUE Answer: TRUE Answer: TRUE Even though cost-plus pricing is simple, it does not encourage a small business to use its resources efficiently. Answer: TRUE Answer: TRUE Answer: TRUE Because installment credit absorbs a company's cash, many small businesses rely on financial institutions to provide

A company's trade area can be influenced by intangible factors, such as physical and political barriers. Answer: TRUE Answer: TRUE Answer: TRUE An important guideline for companies wanting to successfully compete internationally is to familiarize yourself with foreign customs, languages, and cultures, including their lifestyles, values, customs, and business practices. Answer: TRUE Answer: TRUE Answer: TRUE Since their

For a new owner of an existing business, physical facilities and equipment costs are very similar to what would have been spent on a startup with all new facilities and equipment. Answer: FALSE Answer: FALSE Answer: FALSE The data shows that writing a business plan increases the odds that a venture will successfully accomplish

E-commerce is replacing traditional retailing. Answer: FALSE Answer: FALSE Answer: FALSE The most important factor when evaluating the labor supply in an area is its prevailing wage rate. Answer: FALSE Answer: FALSE Answer: FALSE Market penetration pricing is a short-term pricing strategy that achieves high profits quickly. Answer: FALSE Answer: FALSE Answer: FALSE A method small businesses might use to achieve more

Having access to capital is called entrepreneurial readiness. Answer: FALSE Answer: FALSE Answer: FALSE American business people can be on their best American behavior and go overseas and offend the locals. This is, in part, due to the fact that business customs that are acceptable, or even expected, in one country may be taboo

Right-brain thinking is much like the image of a kaleidoscope. Answer: TRUE Answer: TRUE Answer: TRUE Pure franchising involves a system of franchising in which a franchisor sells a franchisee a complete business format and system. Answer: TRUE Answer: TRUE Answer: TRUE A company's average collection period ratio tells the average number of days it takes to collect

Hiring a diverse workforce makes it more difficult to achieve creativity in the workplace. Answer: FALSE Answer: FALSE Answer: FALSE The sole proprietorship is the form of ownership with the least ability to accumulate capital. Answer: TRUE Answer: TRUE Answer: TRUE An option for acquiring equity capital is for the entrepreneur to take on partner(s) however, it is

Life cycle pricing is a short-term pricing strategy that assumes that competition will eventually emerge and the price will be lowered. Answer: TRUE Answer: TRUE Answer: TRUE Generally, the higher the current ratio, the stronger the small firm's financial position. Answer: TRUE Answer: TRUE Answer: TRUE The CAPLine Program makes short-term capital loans to growing companies needed to

Large companies have a natural advantage over small firms when it comes to preparing a strategic plan. Answer: FALSE Answer: FALSE Answer: FALSE Effective leaders make sure that workers have both the tangible and the intangible resources they need to do their jobs well. Answer: TRUE Answer: TRUE Answer: TRUE For some retailers, locating near competitors makes sense

One reason joint ventures fail is because entrepreneurs did not select a partner who shares their company's values and standards of conduct. Answer: TRUE Answer: TRUE Answer: TRUE An important factor of e-commerce is speed. Answer: TRUE Answer: TRUE Answer: TRUE About 51 percent of new businesses fail within five years. Answer: TRUE Answer: TRUE Answer: TRUE A technique that greatly simplifies

The Equal Employment Opportunity Commission (EEOC) supplies employers with a list of questions it considers illegal in interviews. Answer: FALSE Answer: FALSE Answer: FALSE Practices that are illegal in one country may be perfectly acceptable, even expected, in another. Answer: TRUE Answer: TRUE Answer: TRUE Today's workforce responds best to a leadership style based on instilling fear and

The most important ingredient that venture capitalists look for in judging the potential success of a small business is a competent management team. Answer: TRUE Answer: TRUE Answer: TRUE "Big box retailers" present an opportunity for many small business owners. Answer: FALSE Answer: FALSE Answer: FALSE Only about half of the companies that attempt a public stock offering

Most firms calculate their quick assets by subtracting the value of their inventory from their current asset total. Answer: TRUE Answer: TRUE Answer: TRUE A limited partner is personally liable only for the amount of money she/he has invested in the partnership. Answer: TRUE Answer: TRUE Answer: TRUE Responsible online merchants should keep shipping and handling charges reasonable,

It may appear in the incubation stage of the creative process that the entrepreneur is loafing, as he is taking time to reflect on the information collected. Answer: TRUE Answer: TRUE Answer: TRUE The most common reason online customers abandon their shopping carts is that the shipping charges are too high. Answer: TRUE Answer: TRUE Answer: TRUE Effective

There is no connection between social responsibility and profitability. Answer: FALSE Answer: FALSE Answer: FALSE When trying to prevent employee theft, business owners should create a "police state" environment and trust no one. Answer: FALSE Answer: FALSE Answer: FALSE With an existing business, the new owner can depend on employees to help him make money while he is

The real benefit to a business owner engaging in barter is the ability to "pay" for goods and services at her wholesale cost and to get credit for the retail price. Answer: TRUE Answer: TRUE Answer: TRUE The majority of first-generation family businesses do not survive into the second generation. Answer: TRUE Answer: TRUE Answer: TRUE One of

Although franchising is a popular way to do business in the United States, it is not a popular strategy in international markets. Answer: FALSE Answer: FALSE Answer: FALSE The executive summary of a business plan should highlight significant financial and operational events. Answer: FALSE Answer: FALSE Answer: FALSE A service mark offers a different kind of protection but

A public stock sale is an effective method of raising large amounts of capital, but it can be an expensive and time-consuming process filled with regulatory nightmares. Answer: TRUE Answer: TRUE Answer: TRUE Ethical behavior is doing what is "right." Answer: TRUE Answer: TRUE Answer: TRUE Publicly-held companies must file periodic reports with the Securities and Exchange Commission. Answer:

Although developing a strategic plan is important for large companies, it is not essential to managing a small company successfully because of its limited resources. Answer: FALSE Answer: FALSE Answer: FALSE Entrepreneurs have three basic strategies to choose from when establishing a new product's price: a penetration pricing strategy; a skimming pricing strategy; and life

The more innovative your domain and name, the better. Answer: FALSE Answer: FALSE Answer: FALSE The customer group that spends the most time in shopping malls is teenagers between the ages of 14 and 17. Answer: TRUE Answer: TRUE Answer: TRUE Although a small business manager must assume a wide range of ideas, tasks, and responsibilities, none is

An assembly line is based on the principle of job simplification. Answer: TRUE Answer: TRUE Answer: TRUE For some businesses, e-mail takes a very low priority. Answer: TRUE Answer: TRUE Answer: TRUE An effective tool used to help assess ideas is the idea sketch pad. Answer: TRUE Answer: TRUE Answer: TRUE Time out of cash is one of the four major elements