Which of the following components, as suggested by Zig Ziglar, involves staying in
touch with customers on a regular basis via visits, phone calls, e-mails, newsletters, and
so on?
A. Urgency
B. Frequency
C. Potency
D. Recommendations
The fourth step of a small business’ strategic planning process involves:
A. considering the customers and the benefits to offer them.
B. refining the firm’s capabilities in order to maintain a competitive advantage.
C. determining the best strategic direction and strategy for the firm.
D. studying the dynamics and trends of the industry.
A business formed by an individual who is responsible for all debts and claims against
the business is called a:
A. limited liability company.
B. conglomerate.
C. partnership.
D. sole proprietorship.
In which of the following stages of personal selling does an entrepreneur collect
background information before selling the actual product or service?
A. Prospect and evaluate
B. Prepare
C. Present
D. Close
Which of the following is true of an LLC?
A. LLCs are the same as partnerships.
B. LLCs have a choice of being taxed as either corporations or partnerships.
C. LLCs are a legal form of business that have no flexibility regarding taxes.
D. LLCs are the same as S-corporations.
Which of the following has been observed about the emergence stage of a small
business life cycle?
A. Typically, fewer people think about starting a firm than actually take steps to do so.
B. Getting from entrepreneurial action to entrepreneurial thinking is the challenge of the
emergence stage.
C. The emergence stage is characterized by a person thinking about and taking actions
toward starting a firm.
D. Getting into business part time does not lead to future entrepreneurial action.
Which of the following should be included in an employee contract for a key
employee?
A. Offer rewards for providing adequate termination notice
B. Specify that the employee must work at the organization for a minimum of two years
C. Detail the consequences of insubordination within the workplace
D. Encourage employees to poach clients from competitors
All of the following are major concerns of moonlighting EXCEPT:
A. conflict of interest.
B. bootstrapping.
C. cannibalizing sales.
D. poisoning the well.
_____ is the determination of the amount of assets held by the firm for sale or
production.
A. Inventory valuation
B. Capital budgeting
C. Factoring
D. Depreciation
Patents and trade secrets are examples of:
A. employee stock option plans.
B. heuristics.
C. franchising.
D. intangibles.
_____ analysis is based on the concept that a dollar to be received right now has more
utility than does a dollar to be received at some time in the future.
A. Liquidity
B. Net present value
C. Financial strength
D. Budget
Which of the following should be avoided while coming up with a company or brand
name considering the possibility of future expansion?
A. Selecting a company or brand name that describes the firm or the product
B. Using one name for the company and a separate brand name for the products
C. Using names that are relatively easy to spell and pronounce
D. Selecting a company or brand name that’s too narrow
The price at which a buyer is indifferent about buying or not buying the business is
called:
A. the balance point.
B. the point of indifference.
C. caveat emptor.
D. the reversing point.
Which of the following would implicate employee empowerment?
A. Providing learning opportunities at every level of the organization through training
B. Letting employees make on-the-spot decisions for the companies’ best interest
C. Providing meaningful work for employees and keeping them occupied
D. Showing appreciation for a job well done or giving credit to an employee who
introduced a great idea
How much of each message conveyance a business owner uses to sell his or her product
as well as his or her objective in using each one is known as:
A. promotional mix.
B. marketing mix.
C. AIDA.
D. CRM.
Services at a _____ often have too much specialized equipment to be readily
transported and a need for at least some client involvement.
A. client’s location
B. competitor’s location
C. remote location
D. mutually accessible location
In innovation-driven economies:
A. entrepreneurship levels are in the middle range.
B. entrepreneurship levels are very high.
C. entrepreneurship levels are lower compared to factor-driven economies.
D. entrepreneurship is not given any consideration.
Cash payments received before a product is completed or delivered are called _____.
A. overdrafts
B. discounted payments
C. payables
D. deposits and progress payments
The question “On a range of 1 to 10, how would you rate the service in this restaurant?”
is an example of a(n) _____.
A. categorical question
B. scalar question
C. dichotomous question
D. open-ended question