The Small Business Administration provides direct and guaranteed loans for small
firms.
Small Business Development Centers provide counseling, training, and technical
assistance in small business management.
Staffing involves compensating employees and providing for their health and safety.
In the communication process, the source decodes or retranslates the idea that is being
communicated.
The Federal Acquisition Streamlining Act prohibits government agencies from
purchasing off-the-shelf items.
A software engineer is part of the company’s _____ resources.
a) human
b) physical
c) financial
d) intangible
Which of the following is covered by business insurance?
a) Health insurance of the employees
b) Loss from the use of a business’s product
c) Economic loss to a business when a key employee dies
d) Loss to a business due to bankruptcy
_____ is the transfer of meaning from one person to another.
a) Instrumentation
b) Communication
c) Motivation
d) Conservation
_____ is the systematic gathering, recording, and analyzing of data about the
merchandising of goods and services.
a) Competitor analysis
b) Market research
c) Competitive intelligence
d) SWOT analysis
Which of the following does the technology S-curve represent?
a) The industry lifecycle
b) The law of supply as applied to technological devices
c) The relationship between the price of a device and the rate of purchase
d) The product life theory as applied to technological devices
An effective business plan should be about _____.
a) 25 to 30 pages long or less
b) 40 to 50 pages long
c) 50 to 65 pages long
d) 70 to 75 pages long or more
_____ is moving an employee from one location or department to another, without
necessarily changing job title or pay.
a) Upgrading
b) Promoting
c) Delegating
d) Transferring
______ stores are often large department stores, usually located at the ends of the arms
of a mall, where they generate heavy traffic for the small stores between them.
a) Convenience
b) Freestanding
c) Anchor
d) Specialty
Which of the following is true about bankruptcy?
a) When one or more creditors file the bankruptcy petition against the debtor, it’s called
ordinary bankruptcy.
Chapter 11 of the Bankruptcy Reform Act of 1978 contains a provision for reorganizing
the bankrupt business only when the bankruptcy petition is filed voluntarily.
c) Involuntary bankruptcy occurs when a debtor files an application with a court
claiming that debts exceed assets and asks to be declared bankrupt.
d) Under bankruptcy law, people or businesses can petition the courts to be relieved of
the obligation to pay debts they cannot repay.
In the context of small businesses, what is financial leverage?
a) Making a financial claim to the profit left after all other claims against the business
have been met
b) Employing a form of debt security with a standard denomination
c) Financing the extension of credit to customers
d) Using fixed-charge financing to fund a business’s operation
_____ are small work groups meeting periodically to find ways to improve features and
performance.
a) Zero-defects teams
b) Informal groups
c) Quality circles
d) Standing committees
Mark wants to track his inventory from purchase to sale. He wants to automate this
process. For this, he should use _____, which are derived from a language called
symbologies and are used for specific identification of the objects.
a) bar codes
b) radio-frequency identifications
c) Six Sigma certifications
d) quality circles
A _____ brings the buyer and seller together but does not take actual possession of the
goods.
a) retailer
b) broker
c) wholesaler
d) merchandiser
In the context of small businesses, _____ are the buildings, machines, and other
equipment needed to produce and distribute a product.
a) operations
b) layouts
c) markets
d) facilities
Which of the following is an advantage of a product layout?
a) It requires more movement of material or people.
b) In this layout, less space is needed for aisles and storage.
c) It provides flexibility to take care of change and variety.
d) It uses the same general-purpose machines and equipment for several steps in the
operation.
_____should be the first management function performed.
a) Planning
b) Organizing
c) Staffing
d) Controlling
Which of the following is an effective way of minimizing white-collar crime?
a) Conducting audits of sales transaction data
b) Curtailing corporate crime prosecution budgets
c) Restricting disclosure
d) Terminating the pension system
Cirrus Inc., a firm manufacturing automobile parts, is currently trying to reduce costs
per unit in a drive to improve profits. It uses the concept of _____ that sets cost targets
in advance and requires each cost center to set specific cost reduction plans for each
accounting period.
a) activity-based costing
b) contract costing
c) batch costing
d) kaizen costing