The ________ rule says that an offeree’s acceptance must be the mirror image of the
offeror’s offer.
A) mirror image
B) promissory estoppel
C) mailbox
D) consideration
________ is the money that moves through the business in a continuous cycle.
A) Profit
B) Net income
C) Cash
D) Cash flow
The best way to determine where to place merchandise, what a store’s “hot” and “cold”
spots are, is to:
A) conduct a kinesiology study.
B) hire a market research firm to study your business.
C) conduct focus groups with former customers.
D) simply observe customers in the store.
Research suggests that innovative companies are structured like ________ rather than a
traditional pyramid.
A) boxes
B) circles
C) linguini
D) spaghetti
A(n) ________ layout arranges displays in a rectangular fashion with parallel aisles. It
is a formal layout that controls the traffic flow through the store.
A) free-form
B) grid
C) angled
D) boutique
________ is the degree of effort an employee exerts to accomplish a task.
A) Empowerment
B) Job performance
C) Motivation
D) Open book management
To maintain control over their ownership, many closely held corporations exercise this
right, known as:
A) right of first refusal.
B) right of refusal.
C) control rights.
D) corporate rights.
The business and industry profile section of the business plan includes:
A) significant financial and operational events in the life of the company.
B) how the entrepreneur intends to accomplish the company’s goals and objectives.
C) the nature and characteristics of the target market.
D) the historical evolution of the market, market size, ease of entry, etc.
Manufacturing layout decisions take into consideration:
A) customer buying behavior, the types of product sold, and the physical dimensions of
the building.
B) the product, the process, the facility, and key economic considerations.
C) the status of the building; built, bought, or leased and the type of product sold.
D) the employees, the customer, and the mechanical process used to produce the
product.
Customer service, convenience, speed and quality are all examples of:
A) learning to manage people effectively.
B) generating more revenue.
C) small businesses.
D) setting your business apart from others.
Generally speaking, most small business owners tend to:
A) overestimate cash disbursements.
B) underestimate cash receipts.
C) underestimate cash disbursements.
D) try to count unpaid cash disbursements as cash that can be spent.
Small businesses go global:
A) for very different reasons than large businesses do.
B) through joint ventures with large companies.
C) when they realize their success and survival depends on them going global.
D) often between their fifth and seventh year of existence as a domestic company.
The ________ approach to valuing a business assumes that a dollar earned in the future
is worth less than that same dollar is today.
A) balance sheet
B) capitalized earnings
C) excess earnings
D) discounted future earnings
Which of the following times would be considered radio “prime time”?
A) 7 p.m. to midnight
B) 6 a.m. to 10 p.m.
C) 4 p.m. to 7 p.m.
D) Both A and C
What are the options for repairing a poor gross profit margin?
A) Raise prices
B) Cut manufacturing or purchasing costs
C) Refuse orders with low profit margins
D) All of the above
What is the competitive test?
A) It evaluates the company’s relative position to its key competitors.
B) It identifies the competitors only.
C) It finds their address and phone numbers.
D) None of the above
Which of the following is correct?
A) A tariff is a tax, or duty, that a government imposes on goods and services imported
into that country.
B) A quota is a tax, or duty, that a government imposes on goods and services imported
into that country.
C) A quotais a limit on the amount of a product imported into a country.
D) Both A and C
To have an agreement, a contract must have:
A) a promise by one party to do something in the future.
B) the ability to contract.
C) an intention to be bound by the contract.
D) an offer and an acceptance.
Thanks to ________, the cost of failed attempts at innovation has never been lower.
A) globalization
B) distance
C) technology
D) localization
The capital access programs (CAPs) were first introduced in:
A) Iowa.
B) Michigan
C) Wisconsin.
D) New York.
________ is (are) an asset-based financing technique.
A) Discounted installment contracts
B) Inventory financing
C) Installment lending
D) Floor planning
The act that is the foundation on which antitrust policy in the United States is built is:
A) the Clayton Act.
B) the Sherman Anti-Trust Act.
C) the Robinson-Patman Act.
D) the Miller-Tydings Act.
The ultimate decision on whether to abide by ethical principles in any given situation
rests with:
A) the manager.
B) the business owner.
C) the individual.
D) stakeholders.
Venture capitalists look for all of the following except:
A) competent management.
B) industry stagnation.
C) viable exit strategy.
D) competitive edge.
Maria writes a letter offering to sell some office furniture to Lee. Lee, in a distant city,
sends a telegram to Maria accepting the offer. Because of an error in the Western Union
Office, the telegram never reaches Maria. What is the result?
A) There is no contract since Lee responds by telegram instead of by mail.
B) There is no contract since Maria never actually receives Lee’s acceptance.
C) A contract is formed as soon as Lee gave the telegram to the Western Union office.
D) A contract is formed as soon as Maria writes the letter to Lee.
A corporation doing business in the state in which it is incorporated is considered to be
a(n) ________ corporation.
A) alien
B) domestic
C) foreign
D) local
Which of the following businesses would be eligible for an SBA loan?
A) A small computer manufacturer
B) A nonprofit business
C) A magazine publisher
D) A casino
Research on the implementation of TQM programs shows that it takes ________ to
completely implement a TQM program.
A) three to four years
B) eight to ten years
C) six months to two years
D) one to three years
These ________ are wealthy individuals, often entrepreneurs themselves, who invest in
business start-ups in exchange for equity stakes in the companies.
A) venture capitalists
B) rich family members
C) angels
D) public investors
The cash budget is based on the ________ method of accounting.
A) cash
B) financial
C) accrual
D) hybrid
The ________ serves a large trading area (10 to 15 miles or more), contains from 50 to
100 stores, and has several major department stores as its anchors.
A) neighborhood shopping center
B) community shopping center
C) regional shopping mall
D) central business district
Approximately how many orders will Albemarle place over the next six months if it
uses the EOQ point?
A) 28
B) 50
C) 74
D) 82
What are the steps to creating a cash budget (not necessarily in order)?
A) Determining an adequate minimum cash balance
B) Forecasting sales & forecasting cash receipts
C) Forecasting cash disbursements & estimating the end-of-month cash balance
D) All of the above
A firm’s ________ expresses the number of times per year the business sells all of its
inventory.
A) liquidity ratio
B) inventory turnover ratio
C) operating ratio
D) quick ratio
A firm’s reorder point for an item takes into consideration its ________, which is the
difference between the time an order is placed and the time it is actually received.
A) minimum level of stock allowable
B) EOQ
C) usage rate
D) lead time