Many owners of consulting companies took their own skills and launched businesses by
selling those skills to other companies or individuals who needed them. This is an
example of which of the following sources of business ideas?
A. Family and friends
B. Serendipity
C. Education and expertise
D. Personal interest
Ted, a 46-year-old IT professional, recently attended a job interview at Acton Org. He
was not offered the job. Ted tried to find the reasons for his disqualification and the
company could not provide a satisfactory explanation. He later learned that he was
refused the job due to his age as the job position was offered to a 23-year-old who had
just graduated from college. Which of the following laws protect Ted from such
discriminations?
A. ADA
B. OSHA laws
C. Sarbanes-Oxley Act
D. ADEA
_____ refers to selling goods or services to consumers without intermediaries, typically
to select customer groups and typically with tracking of the results.
A. Nondirect distribution
B. Direct marketing
C. Benchmarking
D. Contract manufacturing
_____ is the ability to stick with some activity even when it takes a long time, and when
a successful or unsuccessful outcome is not immediately known.
A. Compatibility
B. Competence
C. Sustenance
D. Perseverance
An inconsistency between experience and belief refers to:
A. value proposition.
B. segmentation.
C. trendiness.
D. cognitive dissonance.
The SBIR and the STTR programs require that every U.S. agency that makes research
grants provide a minimum of 2 percent of its grant budget to small businesses, as
defined by the SBA.
If Sarah were to buy an existing business, which of the following disadvantages would
you point out?
A. Difficulty in determining the worth of the business.
B. Possibility of established customers leaving due to change.
C. Need for establish production processes.
D. Buying a business being more expensive than starting one.
Borrowing money is a better alternative to investing additional personal funds because
obtaining equity investment from others:
A. reduces the potential loss for any single investor.
B. allows lesser debt to be included in the capital mix.
C. increases the cost of capital for the business.
D. increases the weighted average cost (WAC) of the business.
In the context of accounting functions, which of the following is true of accounts
receivable?
A. It tracks what one owes and helps to make timely payments.
B. It is independent of the extension of credit.
C. It records all checks written and payments made.
D. It records provision of credit to customers.
An approach to selling in which the salesperson recruits customers to become
distributors of the product or service to others is known as _____.
A. network marketing
B. auctioning
C. catalog selling
D. online marketing
Which of the following business costs of ethical failures causes the least damage?
A. Government penalty
B. Loss of reputation
C. Loss of employee morale
D. Customer defection
Which of the following parts of a business plan is focused on creating new products or
services and preparing new technologies, ideas, products or services for the firm’s
market?
A. Preselling
B. Research and Development
C. Test marketing
D. Proprietary technology