Personal selling decreases business owners’ flexibility in their presentation.
The competency suggested by exchange relates to the organizational and business
processes of a firm called basic business competency.
Advertising costs are usually based on cost per hundred.
A typical Idea To Product (I2P) analysis consists of a one-page response to eight
questions-four about the product, three about the process, and one about the people.
If the business is a corporation or an LLC, the owner can only lose what he or she has
invested in the business.
Lines of communication means having a way for the person who has failed to meet a
metric, or made a mistake, or is facing firing to have their side of the story heard.
Setting up a short-term lease initially is one of the ways to handle an early termination
of business.
CSFs are important because they come from sources external to entrepreneurs.
Which of the following is typically a part of a firm’s general environment?
A. The media of a country
B. The firm’s board of directors
C. The politics and laws of a country
D. The firm’s corporate allies
Getting the business organized and registered is an example of _____ competency.
A. opportunity
B. resource
C. industry-specific
D. boundary
Which of the following forms of direct mail is the least expensive?
A. Catalog
B. Sales letter
C. Leaflet
D. E-mail
Typically, for a start-up business the financials:
A. give the monthly income and cash flow for the first year.
B. give the quarterly income and cash flow for the third year.
C. offer two-year projections for the income, cash flow, and balance sheet.
D. report the last five years of actual data.
_____ refers to the highest price of a product that will produce the desired level of sales
in the intended market.
A. Marginal price
B. External reference price
C. Optimum price
D. Reserve price
Which of the following is most likely to be true of people with highly innovative
businesses?
A. They implement an imitative strategy to their business.
B. They are persistent about asking questions.
C. They give more importance to the problems they face rather than identifying
opportunities.
D. They typically are people with political connections.
According to the BRIE model, which of the following sets a firm off from the buying or
selling or bartering done casually by nonmerchants?
A. Resources
B. Boundary
C. Intention
D. Exchange
When people find a way to turn their hobbies into successful businesses, which of the
following is most likely to be the source of their business idea?
A. Family and friends
B. Education and expertise
C. Serendipity
D. Personal interest
The amount of time it takes a business to earn back the funds it paid out to obtain a
capital asset is referred to as the _____.
A. payback period
B. synodic period
C. chargeback period
D. grace period
Which of the following is not generally considered to be very useful for any purpose
other than accounting and income taxes?
A. Book value
B. Salvage value
C. Replacement value
D. Disposal value
Which of the following is a strategic action?
A. Price cutting
B. Product enhancements
C. New product introductions
D. Increased marketing efforts
Raven has been researching for product ideas by interacting with children, young
mothers, and by carefully studying the competitors’ toys. This has helped her generate
several ideas. Which of the following is most likely to be the next step for Raven?
A. Test marketing
B. Product development
C. Idea screening
D. Commercialization
Seizing of control of a business by purchasing its stock to be able to select the board of
directors refers to a(n):
A. buy-in.
B. takeover.
C. merger.
D. earn-out.
Which of the following pricing practices is the most inappropriate?
A. Pricing a product, advertised for high quality and prestige, lower than the
competition
B. Lowering prices during happy hour, hence discriminating against those who work
during that time period
C. Lowering prices to capture maximum market share as the patent for a product
approaches its termination
D. Pricing a product low when a business is operating below capacity
Which of the following forms of business requires no government permission to set up?
A. Limited partnerships
B. C Corporation
C. Professional corporation
D. Sole proprietorship
Martha got billed by her lawyer for 40 minutes of consultation. Which of the following
ways did the lawyer charge Martha?
A. Hourly fee
B. Flat fee
C. Contingency fee
D. Retainer
The Age Discrimination in Employment Act prohibits employment discrimination
against individuals who are _____ years old and older.
A. 30
B. 40
C. 20
D. 35
Martin, an employee at a boutique store, is required to handle store displays and also
ensure that all the sales records tally at the end of each business day. However, he
committed fraud by recording fake sales and then keeping the products to himself.
Which of the following managerial concepts would have helped the store avoid this
deception?
A. Adverse possession
B. Separation of duties
C. Accession
D. Rule against perpetuities
The most typical form of aggrandizement in part-time businesses is:
A. implying that a firm is a full-time one when it is only part time.
B. creating a positive impression among one’s employers’ customers.
C. working on own part-time business after regular job.
D. finding a low-cost or no-cost way to do something.
What is the role of small businesses in creating new jobs?
Briefly describe the five types of business planning presentations.
What is the difference between small businesses and high-growth ventures?
What are trade secrets? What are the steps businesses can take to protect their trade
secrets?
Discuss the four accounting methods to value capital assets.
What are the four key factors for determining an optimum price?
Explain the pros and cons of direct response advertising forms.
What is a pilot test?
How can the problems facing women-owned and minority-owned firms be solved?