Which of the following is true of the differential revenues and expenses method?
A. It is used to increase the magnitude and complexity of the information that must be
considered in making an appropriate investment decision.
B. It is estimated by only using cash flows.
C. It is based on the concept that a dollar to be received right now has more value than
does a dollar to be received at some time in the future.
D. It comprises of estimating the changes in revenues and expenses from current
operating results that will occur if an alternative is chosen.
Which of the following types of entrepreneurship typically concentrates on innovation
and customer-focus among all aspects of entrepreneurship?
A. Public entrepreneurship
B. Corporate entrepreneurship
C. Independent entrepreneurship
D. Social entrepreneurship
Which of the following has low overhead and unlimited shelf space and thereby can
afford to take on an unknown firm or product?
A. An e-tailer
B. A wholesaler
C. A retailer
D. An agent
An overall strategic approach in which a firm patterns itself on other firms, with the
exception of one or two key areas is referred to as _____.
A. pure innovation
B. niche strategy
C. incremental innovation
D. blue ocean strategy
Which of the following accounting functions ensures that the employment taxes are
kept current?
A. Leasehold records
B. Investments records
C. Payroll records
D. Accounts receivable records
All of the following are success factors to ‘stand retail” EXCEPT that:
A. it tends to be either semipermanent ones or movable ones.
B. it needs to be built in places where there is less foot or vehicle traffic.
C. it can be quickly established.
D. it does not require a lot of investment in inventory.
Which of the following statements is true about elastic products?
A. An elastic product does not have many substitutes or alternatives.
B. A change in price of elastic products makes very little difference in quantity
purchased.
C. During economic bad times businesses that sell inelastic products close down more
often than those that sell elastic products.
D. Customers will respond to price increases for elastic products much more negatively
than for inelastic products.
Which among the following is a critical-point planner?
A. Amanda does not have a very long-term approach to planning and she plans only for
those business aspects that are of paramount importance.
B. Andrew looks at all aspects of the business, from launch to the complete working of
it.
C. Cathy looks for a good chance to achieve her goal and acts according to a routine.
D. Joshua acts on what he has been doing and does not believe in planning.
Which of the following would avoid intrafamily strife when the family business is
passed down to the next generation?
A. Providing each member of the family business with the opportunity to obtain
education and experience within the business.
B. Allowing each family member who does wish to enter the business to find out and do
those functions and activities that he or she does best.
C. Being certain that all family members know and accept that they must join the
business to continue the family business.
D. Always assume that the leadership of the business must come from within the family.
Shoe Pica Inc., a retailer of shoes, advertises that it is selling a particular type of
jogging shoes at a very low price of $50. These shoes are kept at the end of the store
and before reaching those shoes, customers have to walk by all the other shoes that
have many more features and better quality. Several times, this causes the consumers to
buy other better brands even though they are costlier that the one advertised. This is a
typical example for _____.
A. captive pricing
B. partitioned pricing
C. price lining
D. bait pricing
When compared to large businesses, small business owners start their business typically
to take advantage of:
A. the caveat emptor business philosophy.
B. an innovative idea.
C. the large amounts of resources they have.
D. their ability to scan the environment better.
Which of the following is true of high customer contact businesses?
A. Remote location services are examples of high customer contact businesses.
B. Traffic generators reduce customer traffic to the target market area.
C. Businesses providing a strong contrast to existing competition in the same area
increase customer traffic.
D. Customer ease is not critical in high customer contact businesses.
Which of the following ethical philosophies do questions like, “What if everyone did
what I want to do and what kind of world would that be” best summarize?
A. Caveat emptor
B. Universalism
C. Utilitarianism
D. Imitative strategy
The proof of a CRM effort is seen in:
A. high levels of cognitive dissonance in customers.
B. more tracked prospects making initial purchases.
C. low levels of customer loyalty in new customers.
D. high levels of inconsistency among customers in terms of experience and belief.
Which of the following pricing strategies is considered the most aggressive from the
competition point of view?
A. Offering a sale on merchandise
B. Offering a rebate or a discount coupon to promote a product
C. Indulging in a price war
D. Pricing a product higher than the industry average