Covenants are government specifications for acceptable use of land and buildings in
particular areas.
To prepare a cash flow statement, the cash inflows and outflows are categorized under
cash from operations, cash from investing, and cash from financing.
Planning, organizing, and staffing are primarily the responsibility of operations
management.
Using low-cost or free techniques to minimize cost of doing business is referred to as
bootstrapping.
Trade name franchising provides an organization through which interdependent
businesses may combine resources.
Payments of profits to the owners of corporations are called dividends.
Statement of cash flows is also referred to as the statement of financial position.
Even if a competitor matches a sale or offers some other promotion to match one’s
offering, it’s not as aggressive an action as a price war.
Buyouts are restricted to businesses that have a formal legal form of organization.
Social networking helps build long-lasting relationships into a person’s day-to-day
business operations.
Consumers find telemarketing to be an agreeable method of selling a product or service.
A cash budget is the essential starting point for all financial and accounting
considerations in a small business.
Copyright involves the expression of ideas as well as the ideas themselves.
Which of the following terms refers to the recovery of value through the sale of a firm
or its assets?
A. Harvest
B. Invest
C. Transfer
D. Franchise
Paying for a local organization’s needs in exchange for recognition is referred to as
_____.
A. publicity
B. donation
C. personal selling
D. sponsorship
Which of the following is a feature of maturity-stage products?
A. Price competition starts to drop.
B. Manufacturers find ways to cut costs or introduce new features.
C. Competitors wait to see if the product is a threat and has staying power before they
act.
D. Products begin to gain customer acceptance.
_____ businesses have diverse operations and three critical site selection
considerations: traffic, customer ease, and competition.
A. Home-based
B. Low customer contact
C. E-tailer
D. High customer contact
Which of the following is a common idea among the different models for the life cycle
of the small business firm?
A. There are multiple stages in all models of the life cycle of the small business firm.
B. Every business invariably passes through the same stages of the life cycle.
C. The level of risk the business faces remains constant from stage to stage.
D. Businesses face the same issues in each stage.
A manufacturing company is planning to test market its new product, a shampoo. It has
tied up with a retailer to research on the product’s packaging. The retailer has hired
students as interns to observe customers’ reactions toward the new shampoo in its
stores. All of the research is conducted without directly interacting with the customers.
This is a typical example of _____.
A. focus group research
B. survey research
C. ethnographic research
D. secondary research
Which of the following legitimacy-building features is indicated through the sale of
merchandise or services by giving it a brand identity?
A. Public listing
B. Product/service name recognition
C. Media product/service visibility
D. Customer service
The term _____ is associated with objectively evaluating how well someone is doing
their job.
A. line of appeal
B. job metrics
C. transparent procedure
D. job basics
Which of the following is most likely to be included in the title page of a classic
business plan?
A. Proprietary statement
B. Financial information
C. Sales plan
D. Employee code of conduct
Josh, the owner of a software company, is facing cash flow problems. To control the
cash outflow, he avoids paying the bills to his vendors. After much delay, he sends a
check in payment but intentionally forgets to sign the check. To prevent the cash from
going out of his business, Josh is applying the strategy of _____.
A. gaming the payment process
B. timing the purchases
C. noncash incentives
D. trade discount payments