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Chapter 1 The Apparent Reward Seeks Isa Community Service b
ANS: F PTS: 1 DIF: Difficulty: Easy REF: p. 6 OBJ: LO: 1-2b NAT: BUSPROG: Analytic KEY: Bloom’s: Knowledge ANS: F PTS: 1 DIF: Difficulty: Moderate REF: p. 6 OBJ: LO: 1-2b NAT: BUSPROG: Analytic KEY: Bloom’s: Knowledge ANS: T […]
Chapter 10 Agreements Repay Cash Amounts Borrowed From Banks
d. statement of financial position 42. The cash flow activities on the cash flow statement are divided into these categories: a. cash from operations, buying or selling assets, and financing the business. b. payments on accounts receivable, payments on accounts […]
Chapter 10 Total assets less outstanding debt equals ownership equity
Chapter 10—Understanding a Firm’s Financial Statements TRUE/FALSE 1. Total assets less outstanding debt equals ownership equity. 2. The income statement shows a firm’s financial position on a specific date. ANS: F The income statement indicates the amount of profit or […]
Chapter 11 The projection of profits, asset requirements, financing requirements
ANS: T Both lenders and investors want to know how they will be paid back. PTS: 1 DIF: Difficulty: Easy REF: p. 291 OBJ: LO: 11-1 NAT: BUSPROG: Analytic STA: DISC: Finance KEY: Bloom’s: Comprehension ANS: F Pro forma financials […]
Chapter 12 Harlan’s customers have been a little slow in paying
44. Harlan’s customers have been a little slow in paying their invoices and he is short on cash to pay his quarterly taxes. Harlan should consider: a. sending the late payers to a collection agency. b. factoring. c. putting his […]
Chapter 12 The basic factors that determine how a firm is financed are restricted
Chapter 12—A Firm‘s Sources of Financing TRUE/FALSE 1. The basic factors that determine how a firm is financed are restricted to the firm’s past economic performance, the nature of its assets, and the personal preferences of owner(s) with respect to […]
Chapter 13 Harvesting is the method entrepreneurs and investors use to
ANS: T PTS: 1 DIF: Difficulty: Easy REF: p. 348 OBJ: LO: 13-1 NAT: BUSPROG: Analytic STA: DISC: Dynamics KEY: Bloom’s: Knowledge ANS: F The harvest (exit plan) is vitally important to investors. PTS: 1 DIF: Difficulty: Easy REF: p. […]
Chapter 14 Lifestyle And Psychographic Data This Would Include
ANS: T PTS: 1 DIF: Difficulty: Easy REF: p. 368 OBJ: LO: 14-1 NAT: BUSPROG: Analytic STA: DISC: Value Creation KEY: Bloom’s: Comprehension ANS: T PTS: 1 DIF: Difficulty: Easy REF: p. 369 OBJ: LO: 14-2 NAT: BUSPROG: Analytic STA: […]
Chapter 15 Both the physical movement of products and the establishment
c. merchant middlemen. d. supply chain managers. 33. Both the physical movement of products and the establishment of intermediary relationships to guide and support the movement of the products are included in a. channels. b. distribution. c. intermediaries. d. logistics. […]
Chapter 15 Inc Magazine Reports That Company Founders Reported
Chapter 15—Product Development and Supply Chain Management TRUE/FALSE 1. All small firms want to grow. 2. If inventory needs grow with higher sales, the increase in accounts receivables will cover this cost. ANS: F While increased sales will cause a […]
Chapter 16 Necessities Such Toilet Paper sugar Toothpaste Typically Have
d. adaptive pricing strategy. 25. For a price lining strategy, a company’s inventory levels for each line will depend directly on the ____ of the customers. a. buying desires and income level b. personal demographics c. credit worthiness d. product […]
Chapter 16 The best pricing practice is to undercut competitors’ prices
Chapter 16—Pricing and Credit Decisions TRUE/FALSE 1. Setting a price for a product or service is as much art as science. 2. The best pricing practice is to undercut competitors’ prices. ANS: F This practice can be very dangerous PTS: […]
Chapter 17 Promotion consists of marketing communications that inform
Chapter 17—Promotional Planning TRUE/FALSE 1. Promotion consists of marketing communications that inform and persuade. 2. A key decision in developing a promotional strategy is to decide how much you want to spend on it. ANS: F A key decision in […]
Chapter 17 William Could also Examine The Minimum And Maximum
a. customer-initiated contacts b. impersonal referrals c. marketer-initiated contacts d. personal referrals 25. Will is a salesperson for a small appliance store. In an attempt to locate potential new customers, he decides to poll Facebook visitors; they are entered into […]
Chapter 18 Fan Irrevocable Letter Credit States Changes Require
Chapter 18—Global Opportunities for Small Business TRUE/FALSE 1. International dissimilarities in language and culture, business practices, and government regulations are increasing over time. 2. Globalization explains the increasing similarity of markets around the world. ANS: T PTS: 1 DIF: Difficulty: […]
Chapter 18 Most small Companies Start Locating Facility Sales Office
b. extend a product life. c. find raw materials. d. reduce transportation costs. 28. Edward is a young entrepreneur with grand plans, including international expansion of his new company. Once that decision is made, Edwards next step is to: a. […]
Chapter 19 Individuals who are launching promising startups need
ANS: F This personality type is not the norm and not required to be a successful leader. PTS: 1 DIF: Difficulty: Easy REF: p. 503 OBJ: LO: 19-1c NAT: BUSPROG: Analytic STA: DISC: Dynamics KEY: Bloom’s: Knowledge ANS: F The […]
Chapter 2 A baker looking for new retail space has returned from
c. to report relevant information to law enforcement agencies. d. to impose penalties on companies that engage in unethical business practices. 53. In order to make an ethical decision, the key to problem definition is to a. go with the […]
Chapter 2 Integrity And Ethics Foundations For Success
Chapter 2—Integrity and Ethics: Foundations for Success in Small Business MATCHING Match the term with its definition. a. code of ethics g. social responsibilities b. environmentalism h. skimming c. ethical imperialism i. stakeholders d. ethical relativism j. sustainable small business […]
Chapter 20 Planned Efforts Help Workers Master The
Chapter 20—Managing Human Resources TRUE/FALSE 1. Human resource management of small firms should be identical to large companies but adjusted for size. 2. The goal of recruitment is to obtain a pool of applicants large enough to contain a number […]
Chapter 20 Questions Are Asked Judge How Persons Reacts
d. workforce diversity. 21. A systematic step-by-step method for training non-managerial employees on the job is known as a. On-the-Job Training. b. Employee Development Training. c. Job Instruction Training. d. Intensive Job Orientation. ANS: C PTS: 1 DIF: Difficulty: Easy […]
Chapter 21 A reason to buy component parts isa. closer coordination
d. quality of incoming raw materials. 34. Service businesses are typically more concerned with _____ costs than with the cost of materials for operations. a. equipment b. fixed asset c. labor d. leasing ANS: C PTS: 1 DIF: Difficulty: Easy […]
Chapter 21 Work groups tend to be better at coordination than
Chapter 21—Managing Operations TRUE/FALSE 1. Work groups tend to be better at coordination than specialization. 2. Operations refers to the processes used to create and deliver a good or service. ANS: T PTS: 1 DIF: Difficulty: Easy REF: p. 564 […]
Chapter 22 A company with accounts payables of $35,000 and cost of goods
b. reduce the amount of c. have no effect on the d. represent all of the 22. Nicholas would like to improve the management of his company’s accounts payable. One metric he might find useful is: a. days in credit. […]
Chapter 22 Working capital management focuses on the attractiveness of long-run
Chapter 22—Managing the Firm’s Assets TRUE/FALSE 1. Working capital management focuses on the attractiveness of long-run investment opportunities. 2. A firm’s working capital cycle refers to the flow of cash to purchase and sell fixed assets. ANS: F A firm’s […]
Chapter 23 Risk is the possibility of suffering harm or pain
Chapter 23—Managing Risk in the Small Business TRUE/FALSE 1. Risk is the possibility of suffering harm or pain. 2. Market risk is uncertainty associated with a situation where only loss or no loss can occur. ANS: F Market risk is […]
Chapter 23 When considering the feasibility and affordability of insuring small
38. When considering the feasibility and affordability of insuring small potential losses, which company program will impact this decision? a. ACV b. FICA c. Self-insurance d. Workers’ compensation 39. Identifying in an insurance policy the specific perils covered is a […]
Chapter 3 He didn’t understand how he could have this problem
d. strong buyers. 46. Careful analysis of the competitive environment can result in: a. failure of a new business. b. unexpected response from a rival. c. loss of the startup’s supplier base. d. greater financial success of the startup. ANS: […]
Chapter 3 Starting Small Business Matching Match The
Chapter 3—Starting a Small Business MATCHING Match the term with its definition. a. capabilities f. differentiation strategy b. competitive advantage g. entrepreneurial alertness c. competitive environment h. fatal flaw d. core competencies i. feasibility analysis e. cost-based strategy 1. A […]
Chapter 4 The cost of a franchise may includea. royalty payments
34. RST, Inc., a franchisor, is requiring its franchisee, Raymond, to make significant changes to the equipment and interior appearance of his business as a condition of renewing the contract. RST claims this is necessary because: a. RST has changed […]
Chapter 4 The practice of putting one franchise right next to another
Chapter 4—Franchises and Buyouts TRUE/FALSE 1. The Pepsi-Cola Company is an example of a product and trade name franchisor. 2. A franchising strategy whereby a single franchisee owns more than one unit in a given area is typically referred to […]
Chapter 5 Betty Views Her Brother A Predator Parasite b
ANS: T PTS: 1 DIF: Difficulty: Easy REF: p. 119 OBJ: LO: 5-1 NAT: BUSPROG: Analytic STA: DISC: Dynamics KEY: Bloom’s: Knowledge | Bloom’s: Comprehension ANS: F The family’s primary goals are the development of members as well as equality […]
Chapter 6 A business plan is a written document that sets out
ANS: T PTS: 1 DIF: Difficulty: Moderate REF: p. 143 OBJ: LO: 6-1 NAT: BUSPROG: Communication STA: DISC: Dynamics KEY: Bloom’s: Comprehension ANS: F It is important for both internal and external purposes. PTS: 1 DIF: Difficulty: Moderate REF: p. […]
Chapter 7 Small business marketing is best defined as the performance
Chapter 7—The Marketing Plan TRUE/FALSE 1. Small business marketing is best defined as the performance of distribution activities that affect the flow of goods and services from producer to consumer or user. 2. In order to achieve market success, a […]
Chapter 7 Specific Characteristics That Describe Customers Their Purchasing
47. The _____ method is probably the oldest form of research in existence. a. questioning b. secondary research c. observational d. interpretive 48. ___________ and ____________ are questioning methods that involve contact with respondents. a. Questionnaires, telemarketing b. Observations, surveys […]
Chapter 8 Limited Partnership Which Partner Remains Bound
Chapter 8—The Organizational Plan: Teams, Legal Structures, Alliances, and Directors TRUE/FALSE 1. Effective leadership is more important for prospective managerial personnel than for investors. 2. A management team is often stronger than an individual entrepreneur because it provides a diversity […]
Chapter 8 Which organizational form would be best if the new company
52. Lauren, a partner in Jales & Jales Bonding Company, manages its day-to-day operations. She is considered to be a _____ partner. a. directing b. general c. limited d. operating ANS: B PTS: 1 DIF: Difficulty: Moderate REF: p. 209-210 […]
Chapter 9 A brick-and-mortar store is actually a general term that refers
Chapter 9—The Location Plan TRUE/FALSE 1. A brick-and-mortar store is actually a general term that refers a retail outlet dealing in building supplies. 2. For many entrepreneurs, choosing a location for a small business is a one-time decision—made only when […]
Chapter 9 Garland uses the family room of his home for his business
36. Garland uses the family room of his home for his business. The children share his computer for their homework and games. The family room also contains the TV and homework space for the children. The IRS is likely to […]