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.
The sole proprietorship is the best form of ownership for entrepreneurs launching their
first businesses.
Job enrichment increases the planning, decision-making, organizing, and controlling
functions in a job.
New entrants to an industry can erode existing companies’ market share and profits.
The U.S. Department of Commerce and the International Trade Administration have the
market research available for locating the best target markets for a particular company
and specific customers in those markets.
In a business plan, both company goals and objectives should relate to the company’s
mission.
When two small businesses in the target nation form an alliance, they have formed a
foreign joint venture.
In general, stakeholders have consistent demands.
Many central business districts suffer from intense competition, high rental rates, traffic
congestion, and inadequate parking facilities.
Successful entrepreneurs recognize that their most valuable asset is their time, and they
learn to manage it effectively to make themselves and their companies more productive;
having passion about their businesses, products, and customers enables them to stay
motivated.
Small business managers need not be concerned about investing surplus cash since
small amounts of cash sitting around for a few days or weeks are not worth investing.
The Community Advantage Loan Program provides loans to communities that have
suffered a natural disaster.
Before launching into the design of their Web sites, entrepreneurs must develop a clear
picture of their target customers.
Liquidity ratios (such as the current and the quick ratios) tell whether a small business
will be able to meet its short-term obligations as they come due.
Acme Corporation is chartered in Delaware, but its primary area of operation is in
South Carolina. In South Carolina, Acme would be considered a(n) ________
corporation.
A) alien
B) domestic
C) foreign
D) local
According to Porter’s 5-forces model, a substitute for Coca-Cola, the carbonated cola
drink, would be ________.
A) Pepsi
B) Mountain Dew
C) Dr. Pepper
D) bottled water
Which of the following statement(s) is/are true?
A) Closely held corporations are owned by only a few shareholders € often family
members.
B) Most closely held corporations require shareholders interested in selling their stock
to offer it first to the corporation. This is known as the right of first refusal.
C) Shares of stock the corporation itself owns are called treasury stock.
D) All of the above
One direct way to lower annual operating costs is to locate in a state where ________.
A) there is an attractive business climate
B) the labor market is highly competitive
C) taxes and regulatory costs are lowest
D) the key markets are relatively accessible
________ is a system that divides a county or city into small cells or districts to control
the use of land, buildings, and sites.
A) An enterprise zone
B) Zoning
C) Apportioning
D) Redistricting
When developing a company’s mission statement, an entrepreneur should remember to
________.
A) write the statement alone without anyone else’s interference
B) omit statements about her/his values because they may turn some stakeholders off
C) keep it short and simple
D) All of the above
On a company’s statement of cash flows, depreciation is ________.
A) the difference between the total sources available to the owner and the total uses of
those assets
B) listed as a source of funds because it is a noncash expense, already deducted as a
cost of doing business
C) the owner’s total investment at the company’s inception plus retained earnings
D) creditors’ total claims against the firm’s assets
________ are the broad, long-range attributes the small business seeks to accomplish;
________ are the more specific targets for performance.
A) Goals; objectives
B) Goals; strategies
C) Objectives; goals
D) Strategies; goals
The recent number of job losses in large corporations compared to the jobs created by
small business has changed the perception of ________ for launching a new business.
A) prestige
B) risk
C) financing opportunities
D) short-term potential
Which of the following is nota recommended guideline for developing questions to ask
candidates in job interviews?
A) Develop a series of core questions and ask them of every candidate.
B) Ask only questions calling for “yes or no” answers to avoid any controversy
regarding the direction the job interview took; this way, you have better control of the
situation.
C) Create hypothetical situations candidates would likely encounter on the job and ask
how they would handle them.
D) Ask candidates to describe a recent success and a recent failure and how they dealt
with them.
Bettina has just calculated her company’s current ratio. To calculate the quick ratio, she
should ________.
A) subtract current liabilities from current assets before dividing by total liabilities
B) subtract total liabilities from current assets before dividing by current liabilities
C) subtract inventory from current assets before dividing by current liabilities
D) subtract depreciation expense from current assets before dividing by current
liabilities