“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.
Viewing play as frivolous is a mental block that stifles creativity.
One effective technique for improving cash management is to establish a firm credit
policy in writing and let customers know in advance what it is.
A marketing niche can be defined by customer profile, product, product usage, and
many other ways.
The practice known as servant leadership was coined by Robert Greenleaf and states
that leaders are servants first and leaders second, putting their employees and their
employees’ needs ahead of their own.
Creativity is the ability to apply creative solutions to problems and opportunities to
enhance or enrich people’s lives.
Providing low prices is the most effective way for a small business to attract and
maintain a growing customer base.
The key to entrepreneurial success over time is to build a ________ competitive
advantage.
A) defensible
B) sustainable
C) coherent
D) random
A job ________ identifies the duties and responsibilities of a position and its working
conditions, while a job ________ identifies the qualifications required of the job
candidate in terms of skills, education, and experience needed.
A) specification; description
B) description; specification
C) analysis; specification
D) analysis; description
The only people who ________ are those who never do anything or never attempt
anything new.
A) succeed
B) prosper
C) profit
D) fail
On a projected income statement, a business owner’s target income is ________.
A) the sum of a reasonable salary for the time spent running the business and a normal
return on the amount invested in it
B) the income at which the company’s total revenues and its total expenses are equal
C) the income that will produce a 10 percent return on the owner’s financial investment
in the business
D) the income that the owner could earn working for someone else
A toy manufacturer is sued based on the claim of injuries caused by a product it makes.
This is an example of a ________.
A) product liability lawsuit
B) promissory estoppel lawsuit
C) restrictive covenant lawsuit
D) contingent liability lawsuit
The most blatant and most potentially damaging form of ________ harassment is quid
pro quo.
A) organizational
B) corporate
C) sexual
D) employer
The ________ ratio measures a company’s ability to generate sales in relation to its
assets.
A) net sales-to-working capital
B) net sales to total assets
C) average collection period
D) average inventory turnover
Conducting ________ research involves collecting data firsthand and analyzing it while
________ research involves gathering data that has already been complied and is
available.
A) primary; secondary
B) secondary; primary
C) primary; industry
D) product; secondary
The typical ________ is relatively small (contains from 3 to 12 stores) and serves a
population that lives within a 10-minute drive.
A) neighborhood shopping center
B) community shopping center
C) regional shopping mall
D) central business district
Franchises total annual sales represent more than ________ and employ nearly
________ workers in the Unities Sates in more than 300 industries.
A) $17 billion; 17 million
B) $120 billion; 8 million
C) $800 billion; 8.1 million
D) $225 billion; 21 million
The first section of a balance sheet lists ________.
A) assets
B) liabilities
C) claims creditors have against the firm’s assets payable within one year
D) the owner’s equity in terms of initial capital invested and retained earnings
A process in which computer software that uses statistical analysis, database
technology, and artificial intelligence finds hidden patterns, trends, and connections in
data so that business owners can make better marketing decisions and predictions about
customers’ behavior is known as ________.
A) guerilla marketing
B) data mining
C) individualized marketing
D) total quality management
Which of the following is a security software that can trace a hacker’s location?
A) Virus detection software
B) Intrusion detection software
C) A firewall
D) A viral site
Of the 28 million businesses in the United States, more than ________ percent are
considered small.
A) 50
B) 75
C) 88
D) 99
One hallmark of successful entrepreneurs is the ability to ________.
A) be willing to gamble
B) fail intelligently
C) overlook past successes
D) repeat the same mistake
Which of the following was not identified as one of the suggestions for small business
success?
A) Develop a business plan as you grow your business.
B) Manage your financial resources and understand financial statements.
C) Know your business in depth.
D) Learn to manage people successfully.
You are to prepare a projected income statement for a proposed business venture. Your
desired income is $28,000 and you have the following published statistics:
Costs of Goods Sold = 56.9 percent of net sales
Operating Expenses = 37.1 percent of net sales
Gross Profit Margin = 43.1 percent of net sales
This information indicates the net sales on your pro forma “P & L” (income statement)
would be:
A) $466,667.
B) $491,228.
C) $500,000.
D) None of the above
The executive summary section of the business plan ________.
A) should be a concise summary of the business venture
B) should be no more than two pages long
C) must capture the reader’s attention and entice her/him to read the rest of the plan
D) All of the above