Which of the following is true regarding the introduction stage of the product life
cycle?
A. Traditional marketing techniques raise profits at the start more than they do at later
stages.
B. The risks from competition in the introduction stage are generally high.
C. Most small businesses can only afford to launch a product on a small scale, so profits
are not likely when a product emerges into the market.
D. Imitative products have a hard time gaining customer acceptance as customers are
comfortable with innovative products.
After determining an organization’s compensation philosophy, the next step in
developing a compensation plan is to:
A. develop a job description.
B. find comparison factors for salary.
C. provide stock options or stock grants to employees.
D. offer employer-sponsored health insurance.
When one firm absorbs another through purchase, it is called a(n):
A. merger.
B. acquisition.
C. transfer.
D. termination.
The question “What is your ethnicity?” with answer options such as White, African
American, Hispanic, Asian, and other, is an example of a(n) _____ question.
A. open-ended
B. categorical
C. dichotomous
D. scalar
Which of the following statements about certification with regard to women- or
minority-owned small business is true?
A. Most corporate certification programs require a business to be in operation at least
five years.
B. Certification is for every women or minority-owned small business.
C. For those businesses that qualify, certification provides a ready means of access to
opportunity and to networks of businesses and government agencies.
D. For corporations, certification is handled by organizations that are affiliated with the
government or big business.
According to Jill Kickul’s study, which of these factors is least important to employees?
A. Work facilitation
B. Benefits
C. Rewards and opportunities
D. Autonomy and personal growth
Attempting to make oneself seem more accomplished than reality is referred to as:
A. aggrandizing.
B. poisoning the well.
C. moonlighting.
D. cannibalizing.
Market scope is important because:
A. it helps business owners in determining the size of the target market.
B. it helps business owners to decide where to focus their sales and advertising efforts.
C. it helps business owners in designing a product.
D. it helps business owners in calculating their magic number.
_____ refer to permanent changes made to the location to fit business’s needs.
A. Rent defaults
B. Hidden charges
C. Leasehold improvements
D. Signage requirements
Expert business professionalization is a situation that occurs:
A. when only the most critical aspect of business is met.
B. when most aspects of the business meet or exceed the industry’s standards.
C. when one or two aspects of the business are met.
D. when none of the business can achieve the industry standard.
_____ is a schedule of the amounts and timings of the cash coming into a business.
A. Cash disbursements budget
B. Cash receipts budget
C. Comprehensive budget
D. Capital budget
Love Polka Inc., a clothing brand, realized after a market research that the clothing
needs of pregnant women and new mothers were not met adequately. Hence, it
launched the first ever maternity-based store in the market under the brand name
Maternity and More. Thus, the company, by tapping a marginally served market, has
typically gained _____.
A. volatility
B. differential advantage
C. replacement value
D. liquidity
Which of the following statements is true of an executive summary?
A. It is written in an informal style for investors and lawyers.
B. It gives fewer details about the business than an elevator pitch.
C. It is the single most widely distributed written description of a business.
D. It is typically put at the end of a business plan.
Which of the following rewards refer to the money made from owning a business?
A. Growth rewards
B. Flexibility rewards
C. Income rewards
D. Performance rewards
Which of the following planners do best in terms of getting a start-up launched, keeping
it going, and making a living from it?
A. Comprehensive planners
B. Habit-based planners
C. Opportunistic planners
D. Reactive planners
Which of the following terms refers to the profits that are available to be used to satisfy
the preferences of the owner in how the business is run?
A. Slack resources
B. Liability of newness
C. Takeoff
D. Depreciated assets
RecycleAll Inc. is a company in Memphis, Tennessee, which recycles all the
biodegradable waste in the city. Being a staunch environmentalist, Francine, a resident
of Memphis, started up a small business that had tie-ups with all the schools and
colleges in the city to spread awareness on the importance of recycling. Which of the
following factors most likely led Francine to her business idea?
A. A similar business
B. A hobby
C. An education
D. A chance happening
Which of the following is the most common noncash incentive given to an employee?
A. Stock options
B. Autonomy
C. Benefits packages
D. Telecommuting
The _____ requires employers to complete I-9 forms for each employee.
A. Fair Labor Standards Act
B. Title VII of the Civil Rights Act of 1964
C. Worker Adjustment and Retraining Notification Act
D. Immigration Reform and Control Act of 1986
A _____ is a document issued by a bank that guarantees a buyer’s payment for a
specified period of time upon compliance with specified terms.
A. documentary draft
B. letter of credit
C. mail order
D. bill of lading