A uniform marketing strategy is beneficial for people of all age groups.
Since the financial position of a small business is constantly changing, these changes
need not be recorded for further analysis.
When a business owner buys insurance, he or she is trading a potentially large but
uncertain loss for a small but certain one.
One result of the current trends in business is the decreasing number of large and small
U.S. businesses that are or become foreign owned.
Owners’ equity is the owners’ share of the business after financial obligations are
subtracted from the things that the business owns.
Theft by employees is referred to as shoplifting.
Technological advances in automation, computers, robotics, and electronic
communication, along with changing markets resulting from cultural, demographic, and
economic changes, have affected traditional ‘smokestack” industries.
In theory, a regulatory agency is more flexible and sensitive to the needs of society than
the U.S. Congress can be.
While the usual incubation period of a business is two to three years, 30 percent of
incubator clients typically graduate each year.
When a small business owner chooses a location for operations, he or she generally
expects to move every few years.
Market segmentation simulates the conditions under which a product is to be marketed.
Kaizen costing refers to a cost reduction method aimed at improving profits.
The role of equity financing is to serve as a buffer that protects creditors from loss in
case of financial difficulty.
How can copreneurs efficiently manage their family-owned business?
a) Keep personal issues aside while holding business arguments.
b) Let one spouse work for the other as an employee.
c) Make major decisions independently, without having to consult the other,
d) Spend more time tending to the business and less time in personal matters.
Credit management involves:
a) forecasting sales and allocating expenses to achieve them.
b) developing new products to achieve a deeper market penetration.
c) deciding how customers will pay for purchases.
d) examining a company’s financial records.
What is the function of a management information system (MIS)?
a) It runs existing programs designed for older equipment.
b) It collects, records, processes, reports, and converts data into a usable form.
c) It transmits data about a product when scanned.
d) It is a collection of computers and computer networks.
The _____ is a nongovernmental bridging organization that establishes global
barometers for quality.
a) World Trade Organization
b) National Institute of Quality
c) International Organization for Standardization
d) Small Business Administration
Prospective entrepreneurs can access _____ data for information on subjects such as
population, business, and housing.
a) MIT Enterprise Forum
b) International Franchise Association
c) Census Bureau
d) Federal Trade Commission
The two most important groups of information that are needed in developing an MIS
for a small business are records of service provided to customers and _____.
a) records of the software used in transactions
b) records of government regulations
c) records of recent technological innovations
d) records of services performed for the business
Which of the following is the output in the restaurant business?
a) Menu display
b) Food
c) Order
d) Happy customer
Most property insurance contracts have a coinsurance provision to:
a) ensure reimbursement for the full amount of covered losses.
b) protect a business from losses resulting from the use of its product.
c) protect a small business from suits resulting from mistakes made by someone in a
professional context.
d) facilitate the continuation of a business following the death of its owner.
What is the function of cash flow budget?
a) It plans expenditures for obtaining, expanding, and replacing physical facilities.
b) It forecasts sales and allocates expenses for achieving them.
c) It forecasts the amount of money needed to pay expenses and make other purchases.
d) It plans and controls revenue and expenses in order to obtain desired profits.
Land, cash, accounts receivable, inventory, equipment, building and other things of
value that a company owns are its _____.
a) profits
b) assets
c) revenues
d) expenses
Which of the following features must a business have to be classified as ‘small”?
a) Management is independent, and the area of operation is primarily local
b) Dominant in its field of operation, and it employs 100-200 people
c) Ownership is held by one or few individuals, and the market is primarily local
d) Capital is provided by a federal institution, and the objectives are profitability and
growth
Which of the following is a characteristic of an informal organization?
a) It always exists within the formal structure of a business.
b) It is present only within a line organization.
c) It is present only within a line-and-staff organization.
d) It stifles creativity and reduces initiative.
_____ protects a business from losses due to suits resulting from mistakes made or bad
advice given by someone in an official context.
a) Professional liability insurance
b) Workers’ compensation policy
c) Business interruption coverage
d) Surety bond