The manufacturer’s suggested price takes into account the small firm’s cost structure
and its competitive situation.
The faster a small company grows, the greater its appetite for cash.
Employees tend to rise or fall to the level of expectations entrepreneurs have of them.
There is concern over the future of entrepreneurship because so few high school and
college students want to start their own companies.
Business ethics is a sensitive and highly complex issue, but it is not a new one.
Quality is so important in franchising that most franchisors retain the right to terminate
the franchise contract and to repurchase the outlet if a franchisee fails to maintain
quality standards.
Generally, an industry is more attractive when quality substitute products are not readily
available, the prices of substitute products are higher, and buyers’ costs of switching
products is high.
Only about ________ percent of a typical business’ inventory turns over quickly.
A) 20
B) 40
C) 60
D) 80
A company’s culture manifests itself in ________.
A) how workers dress
B) the language workers use
C) the way workers behave
D) All of the above
A technique that involves selling a product for a low price and charging a higher price
for the accessories that accompany it is called ________.
A) multiple-unit pricing
B) optional product pricing
C) captive-product pricing
D) by product pricing
One of the most important determinants of customers’ response to a price is whether
they perceive the price to be a fair exchange ________.
A) compared to what they have paid in the past
B) regardless of their actual experience with the product
C) based on their expectation, not reality
D) for the value they receive from the product or service
A ________ environment usually requires a pattern of offensive sexual behavior rather
than a single, isolated remark or display.
A) hostile
B) benign
C) supportive
D) clandestine
The company history section of the business plan typically includes ________.
A) significant financial and operational events
B) highlights of the key goals and objectives the company has accomplished in the past
C) a brief description of when and how the company was formed and how it has
evolved over time
D) All of the above
The region from which a business can expect to draw its customers over a reasonable
time span is called its ________.
A) enterprise zone
B) zoning area
C) trading area
D) retail draw
Which of the following is not a macro force that creates change in industries?
A) Sociocultural
B) Economic
C) Technological
D) Entry barriers
Which of the following is NOT one of the forces driving the entrepreneurial trend in
our country?
A) Shift away from a service economy.
B) Independent lifestyle.
C) International opportunities.
D) E-commerce and the World Wide Web.
An entrepreneur considering two sites for a men and boys shop determines that she/he
needs sales of $158 per square foot to be profitable. Site #1 has 13,500 potential
customers who spend an average of $160.20 per year on men and boys wear. Two
competitors occupy 14,200 square feet of space. Site #2 has 10,800 potential customers
who spend an average of $152.10 per year on men and boys wear. One competitor has
10,000 square feet.
The index of retail saturation for site #1 is $________.
A) 150.21
B) 168.51
C) 152.30
D) 166.19
The “wait to go effective” is the time period when ________.
A) the SEC registration statement is being prepared
B) the underwriter decides what regulation to file under
C) the firm prices the stock for the offering
D) the company is waiting for SEC approval after filing the registration statement