The right brain is guided by linear, vertical thinking.
The U.S. Copyright Office does not require registering the creative work because
registering it does not give creators greater protection over their work.
Entrepreneurs realize that failure is a possibility, but are not paralyzed by that fear.
Pure franchising involves the right to use all the elements of a fully integrated business
operation.
Foreign licensing is a relatively simple way for even the most inexperienced business
owner to extend his reach into global markets.
How a company integrates the Web into its overall business strategy is a major factor in
determining how successful it ultimately will become.
An excessively high average payable period ratio indicates the possibility of the
presence of a significant amount of past-due accounts payable.
Before engaging in foreign licensing, a business owner should secure patent, trademark
and copyright protection.
“Convergent thinking” is the ability to see the differences among data and events.
Selling to a resident buying office is just like selling to domestic customers since the
buying office handles all of the details of exporting the products.
Total quality management (TQM) works best when it becomes an integral part of a
small company’s strategy and focuses on continuous improvement in the quality the
company delivers to customers.
Measuring the success of its Internet-based sales effort is essential if a company is to
remain relevant to customers whose tastes, needs, and preferences are always changing.
One of the biggest changes entrepreneurs face is the shift in the economy from a base of
financial to intellectual capital.
Web-based companies should not be concerned with supply-chain management,
warehouses, or typical customer service policies.
Bootstrapping is a process in which entrepreneurs tap their personal savings and use
creative, low-cost start-up methods to launch their businesses.
The ________ ratio measures the percentage of total assets financed by a small
company’s creditors compared to its owners.
A) debt
B) times-interest-earned
C) net sales to total assets
D) total asset turnover
When creating a Web site, the goal is to create a design ________.
A) in which customers ‘see themselves” when they visit
B) that is flashy
C) in which customers cannot relate
D) that is inclusive of everyone in most every situation
The amount of time the average person spends online is ________ than she/he spends
watching television.
A) less
B) about the same
C) almost one-half
D) more
Women play a minor role in the entrepreneurial arena.
A ________ combines the drawing strength of a large regional mall with the
convenience of a neighborhood shopping center.
A) power center
B) community shopping center
C) central business district
D) strip mall
The first step to create a sound export strategy is to ________.
A) recognize that even the smallest companies and least experienced entrepreneurs have
the potential to export
B) analyze your product or service
C) analyze your commitment
D) research markets and pick your target
Small companies have the following three options for selling to customers on credit
________.
A) credit cards, manufacturer credit, and trade credit
B) credit cards, installment credit, and trade credit
C) credit cards, installment credit, and poor credit
D) debit cards, installment credit, and trade credit
Which of the following is not an advantage of the corporate form of ownership?
A) Limited liability for the owners.
B) It is the easiest and least expensive form of ownership to create.
C) Easy transfer of ownership.
D) Perpetual life.
________ is a short-term strategy that assumes that competition will eventually emerge.
A) Life cycle pricing
B) Odd pricing
C) Price lining
D) Penetration pricing
One of the most valuable attributes of the Web is the ability to ________.
A) provide companies with instantaneous customer feedback
B) enable the site to create an appearance that the organization is able to meet customer
needs that, in fact, are not possible based on its actual resources
C) eliminate advertising expenses and the amount of printed materials needed to
facilitate promotional efforts
D) encourage the use of credit cards as a means of paying for the online transaction
One common mechanism to attract international visitors is to include several ________.
A) alternative forms of payment options
B) language buttons
C) images reflecting multiple cultures
D) colors and symbols reflective of international cultures
Harvard’s Ted Levitt says that creativity is ________ new things, and innovation is
________ new things.
A) thinking; doing
B) doing; thinking
C) seeing; doing
D) thinking; applying
Which of the following is a common problem in joint ventures?
A) Incompatible management styles among partners.
B) Failure of partners to establish common goals.
C) Failure of partners to carefully determine each party’s contributions and
responsibilities, distribution of earnings, etc.
D) All of the above
Generally, entrepreneurs should avoid head-to-head price competition with other firms
that can more easily achieve lower prices through ________.
A) offering lower value products and services
B) a better designed Web site
C) geographic advantages
D) lower cost structures
________ is a graphical technique that encourages thinking on both sides of the brain,
visually displays the various relationships among the ideas, and improves the ability to
view a problem from many sides.
A) Brainstorming
B) Mind mapping
C) Prototyping
D) Groupthink
Which hemisphere of the brain processes information all at once and by relying heavily
on images?
A) Right hemisphere
B) Left hemisphere
C) Vertical hemisphere
D) Logical hemisphere
Rather than build the current year budget on increases from the previous year’s budget,
________ evaluates the necessity of every item.
A) zero-based budgeting
B) zero-based accounting
C) ground-up budgeting
D) year-one budgeting
The ________ is the narrowest level of ethical standards.
A) mission
B) law
C) strategic plan
D) financial plan
The “Best and Worst States for Doing Business” indicates that California is one of the
least attractive states in which to do business based on these factors ________.
A) wage costs based on hourly and salaried compensation
B) tax costs and electricity costs
C) industrial and office rent costs
D) All the above
Refer to the following break-even chart to answer the question(s) below:
The area labeled ________ is the “loss area.”
A) W
B) X
C) Y
D) Z