The attitudes of incompetent relatives working in a family-owned business can be
changed by formal or informal education.
Insurance companies treat large and small businesses alike.
A product layout can use the same general-purpose machines and equipment for several
steps in the operation.
Packaging can influence customers in making buying decisions.
Small businesses have not yet started using intermodal shipping for transporting their
goods.
Counseling means assigning responsibility to subordinates for doing certain activities,
giving them the authority to carry out the duties, and letting them take care of the
details of how the job is done.
Which of the following is a characteristic of on-the-job training?
a) It involves low out-of-pocket costs.
b) It requires production to be stopped during the training.
c) It prevents excessive waste caused by mistakes.
d) It involves employees learning many job skills so they are more versatile.
The absolute cost of an advertising media is the:
a) relationship between the actual cost and the number of consumers the message
reaches.
b) ratio between the cost of commercial time and the program rating.
c) actual expenditure of running an ad.
d) cost of ad space compared to its circulation.
_____ provide employees with standing instructions for performing their jobs, comprise
detailed explanations of how to do the work properly, and in what order it should be
done.
a) Methods and procedures
b) Policies
c) Budgets
d) Mission statements
If a family-owned business is a corporation, replacement of ownership is decided by:
a) the spouse of the former owner.
b) a court-appointed attorney.
c) the board of directors.
d) family law.
John, who needs funding for his small business, approaches a few lenders for funds.
Which of the following will be true in this situation?
a) The lenders should have a voice in managing his business.
b) John’s ability to attract money does not depend on the lender’s perception of his
character.
c) John’s credit history will not be checked when he requests funding, because his
business is small.
d) Since the money being borrowed is for an existing business, the lender(s) will
typically look at its track record.
An organized MIS is necessary for:
a) the efficient operation of any business.
b) transmitting data about a product when scanned.
c) the development of a strong organizational culture.
d) running existing programs on new hardware.
Which of the following is true about a family limited partnership?
a) The family limited partnership has the same advantages and disadvantages as a
proprietorship.
b) In a family limited partnership, the majority of the partners are related to each other
as spouses, parents, grandparents, siblings, cousins, nieces, or nephews.
c) The family limited partnership has fewer benefits than other limited liability
partnerships.
d) Only spouses, parents and siblings can form a family limited partnership.
Which of the following is an advantage of selling a family-owned business to family
members?
a) Fewer family members are hired in the business.
b) The former owner has to take some responsibility toward the business.
c) Family bonds are strengthened and additional friction is reduced.
d) The former owner still owns the business until retirement.
What will the net income of a company be if its revenue is $600,000 and expenses
$200,000?
a) $800,000
b) $200,000
c) $400,000
d) $1,200,000
Which of the following helps increase the assets or decrease the liabilities of a
company?
a) Retained earnings
b) Long-term mortgages
c) Accrued payables
d) Inventory
Sometimes advancements in technology move so quickly that software cannot keep up.
This is shown graphically by the _____.
a) technology S-curve
b) demand curve
c) supply curve
d) progression curve
A disadvantage of a partnership is that:
a) financial resources are available from one person only.
b) each partner is responsible for the acts of the other partners.
c) only limited capital can be raised.
d) there are inadequate management and employee skills.
Which of the following is true of taxes on amounts withdrawn from a business?
a) Salaries and bonuses received from the business corporation are not considered as
expenses to the business.
b) When one withdraws cash from a proprietorship or partnership, these sums are also
taxable to that person as an individual.
c) When owners receive a dividend from a corporation, it is taxed only once.
d) The payment of pension plans is not deductible by the business.
According to the SBA’s Office of Advocacy (www.sba.gov), only _____ tend to be
dominated by larger businesses.
a) specialized delivery and catering services
b) health care and knowledge services
c) construction and personnel/supply services
d) management, business, and financial services
Which of the following is true about small businesses, entrepreneurship, and
educational institutions?
a) Universities have discovered that by teaching entrepreneurship they are able to tap
into a vast pool of funds to support such programs.
b) Community colleges are reluctant to offer courses for small business owners.
c) Today more students think working for big corporations is a safer haven than
self-employment.
d) Small business management is not an academically respected discipline.
Define white collar crime. What are the different ways to minimize white collar crimes?
What is risk management? How can it help a firm?