Which of the following is true of financial management for a business exit?
A. Its main emphasis is on conserving what little cash the business has.
B. Its main emphasis is on maximizing the value of the business for successors.
C. Its main emphasis is to obtain increasing amounts of cash inflows to pay for added
inventory.
D. Its main emphasis is on increasing amounts of cash inflows to pay for added
inventory, productive assets, and employees.
Which of the following is an excellent way to find businesses for sale?
A. Statistical surveys
B. Local community center
C. Networking
D. Universities
Which of the following is the most frequently occurring element of the BRIE model?
A. Intention
B. Boundary
C. Exchange
D. Resources
In factor-driven economies:
A. entrepreneurship levels are in the middle range.
B. entrepreneurship levels are very high.
C. entrepreneurship levels are very low.
D. entrepreneurship is not given any consideration.
Which of the following is a tactical action?
A. New distribution channels
B. Mergers
C. New product introductions
D. Entering new markets
In the lease agreement signed by Arthur Fraser, a _____ clause exempts him from
paying any restitution in case he causes accidental damage on the property. Which of
the following types of contractual clauses protects Arthur Fraser from paying for such
damages?
A. hold harmless
B. exculpatory
C. noncompete
D. power of sale
In an imitative strategy, an entrepreneur:
A. creates a new product or service which has no competitors.
B. considers prospective customers before creating a product or service.
C. seeks to do something that is very different from what others are doing.
D. does more or less what others are already doing.
The sum of all profits and losses, less all dividends paid since the beginning of the
business is called:
A. liabilities.
B. retained earnings.
C. net income.
D. tax liability.
In an industry life cycle, the shake-out phase ends when:
A. the firms introduce new products or services.
B. the competition between firms increases.
C. the rapid die-off of firms stops.
D. the growth phase begins.
Which of the following psychological contract items would fall under the factor of an
employee’s autonomy and growth?
A. Health care benefits
B. Retirement benefits
C. Tuition reimbursement
D. Increasing responsibilities
Which among the following is an example of an on-the-job training method?
A. Lectures
B. Case studies
C. Coaching
D. Role playing
_____ is an indicator of the business’s ability to manage cash flows so that the company
has the fiscal ability to respond appropriately if an unexpected opportunity or problem
arises.
A. Liquidity
B. Financial flexibility
C. Absorbability
D. Equitability
Sue, the owner of a small business which bakes and sells homemade butter cookies,
plans to close down the business and leave the country. If Sue arranges to pay off all
debts after the business is officially closed, which of the following methods of business
termination is being used here?
A. Walkaway
B. Bankruptcy
C. Estate freeze
D. Workout
Economic order quantity (EOQ) helps a business to think in terms of:
A. factoring receivables.
B. ordering costs and carrying costs.
C. pledging receivables.
D. ordering costs and operating lease.