Small-claims courts work only when a person or firms are owed money that can be
proved and have exhausted other procedures like calls and letters to the customer.
Money borrowed for the purpose of investment in a business is called debt capital.
Intellectual property refers to original works like inventions, visual and performing art
works, books, and computer programs.
Cash flow management only involves steps to increase cash outflows.
Flexibility rewards refer to the money made from owning a business.
Equifax is one of the four primary CRAs in the United States.
In managing risk from violation of tax regulations, small business owners should make
paying taxes their first financial priority.
Majority of small business start-ups are funded by bootstrapping.
The three primary inventories of manufacturing are raw materials, work in process, and
finished goods.
Hobbies cannot be turned into successful businesses.
Which of the following is the first stage of the new product development process?
A. Test marketing
B. Commercialization
C. Feasibility study
D. Idea generation
Service or product quality is most likely to be crucial in a business plan for _____.
A. bankers
B. potential customers
C. joint venture partners
D. angel investors
The Kent Automobile Company segments its cars as sports cars, safety cars, capacity
cars, and premium cars based on the gains or the utility consumers seek. Which of the
following segmentation types has the Kent Automobile Company adopted?
A. Psychographic
B. Geographic
C. Ethnographic
D. Benefit
Which of the following is most likely to be an example of a good-dominated product?
A. Purchasing a sewing machine with a warranty
B. Leasing a sewing machine
C. Hiring the services of a tailor
D. Renting a sewing machine
_____ is often used to support the corporate identity and value propositions that are
established through public relations efforts.
A. Personal selling
B. A corporate newsletter
C. Advertising
D. A press kit
Bob has been running the Handy Hardware Store for a few years now. As the business
grew, he hired several mechanics who are now middle-aged and good at their jobs.
Bob’s son, Billy, is just out of college. Bob would like his son to take over the business,
but is concerned that the middle-aged workforce might not receive the right guidance
for the execution of the business from young Billy. He is also concerned about the
displeasure the other employees might have at hiring Billy to run the business. If Bob
hands over the business to inexperienced Billy in spite of having several well-qualified,
deserving, and experienced successors among his other staff, his management
philosophy would be an example of:
A. meritocracy.
B. nepotism.
C. benchmarking.
D. hedonism.
Bob has been running the Handy Hardware Store for a few years now. As the business
grew, he hired several mechanics who are now middle-aged and good at their jobs.
Bob’s son, Billy, is just out of college. Bob would like his son to take over the business,
but is concerned that the middle-aged workforce might not receive the right guidance
for the execution of the business from young Billy. He is also concerned about the
displeasure the other employees might have at hiring Billy to run the business. Which
of the following is the best course for Billy to take so that he can be hired in his father’s
company?
A. Billy should urge his father to give him the top position immediately.
B. Billy should turn down other job offers remain unemployed until he is hired at
Handy Hardware Store.
C. Billy should promise to work longer and harder than anyone else as it is the family’s
business.
D. Billy should seek a job in another company of the same industry, gain experience,
and then join Handy Hardware Store.
Which of the following elements of the BRIE model represents the desire to start a
business?
A. Intention
B. Boundary
C. Exchange
D. Resources
Factors such as the ages, races, and gender of customers would be an element of the
firm’s _____ environment.
A. general
B. internal
C. task
D. ownership
North American industry classification system (NAICS) codes have _____ digits.
A. three
B. six
C. eight
D. nine
_____ are the cash flows that have been reduced in value because they are to be
received in the future.
A. Book value cash flows
B. Replacement value cash flows
C. Free cash flows
D. Discounted cash flows
The “business entity” concept of accounting indicates that:
A. a successful business will stay in business.
B. assets = liabilities + owners’ equity.
C. a business has an existence that is separate from its owner.
D. accounting information must be useful to the owners and managers of businesses.
Which of the following kinds of planners generally tend do very poorly in business,
even if they do manage to get their firms started?
A. Comprehensive planners
B. Habit-based planners
C. Opportunistic planners
D. Critical-point planners
Which of the following is the best example for price discrimination?
A. Half price for children below five years in adventure parks
B. Prices variance between high-end cars and mid-end cars
C. 10 percent rebate for a pack of three bar soaps
D. Buy nine sandwiches and the tenth one is free
During the start-up phase of a business, the emphasis is on:
A. finishing all outstanding projects, collecting all money due, disposing of all business
assets, and finally paying off any outstanding debt.
B. removing all surplus cash and tightening the cash-to-cash cycle to the shortest time
possible.
C. piggybacking with other successful firms.
D. conserving what little cash the business has.
A key employee/partner plan is also called a _____ plan.
A. summary
B. sales
C. mini
D. growth
When a product or service is sold in a limited area, for a limited time, it is referred to as
_____.
A. a pioneering business
B. test marketing
C. preselling
D. parallel marketing
Briefly describe the industry life cycle.
– How can a firm differentiate between its direct and its indirect competitors? What are
the advantages of identifying competition in situation analysis?
What is the difference between key business functions and industry-specific
knowledge?
Differentiate between value and cost benefits. Provide examples for each type of
benefit.
What are the challenges faced by team entrepreneurs?
Describe techniques to manage and improve the operations of a business.
Define a product, and differentiate between goods and services.
What is reconciling? What are the four purposes for reconciling differences in the bank
and book balances?
What are the benefits of borrowing money for capital investment?