A tariff is a limit on the amount of a product imported into a country.
Developing a cash forecast is essential for new businesses because early profit levels
usually do not generate sufficient cash to keep the company afloat.
A feasibility analysis is the process of determining whether an entrepreneur’s idea is a
viable foundation for creating a successful business.
The concept of empowering employees is based on the principle of job enrichment.
The first level of the location decision is the selection of a particular region of the
country.
SBA Express loans typically are between five and ten years, but loan maturities for
fixed assets can be up to 25 years.
Giving customers a chance to complain about a problem usually is fruitless; once a
business makes a customer angry, she/he typically will not buy from that company
again under any circumstances.
A manufacturer can force a small business to charge the “manufacturer’s suggested
retail price.”
Sexual harassment is a violation of Title VII of the Civil Rights Act of 1964.
Watching the top ten TV shows, seeing the top ten movies, or listening to her children
are all ways a small business owner could conduct market research.
A basic principle of cash management is verifying all invoices before paying them.
Every business influences and is influenced by a multitude of stakeholders.
The most common form of business ownership in the United States is the partnership.
Entrepreneurs must embrace traditional assumptions and perspectives about how things
ought to be because they support creativity.
Entrepreneurs tend to be overly ________ and commonly misjudge the ________
requirements of going into business.
A) optimistic; personal
B) optimistic; financial
C) pessimistic; financial
D) optimistic; professional
Examples of ________ include a presence on Facebook, LinkedIn and Twitter.
A) Web sites
B) blogging
C) social media marketing
D) online advertising
The ________ sets behavioral boundaries for decision makers.
A) strategic plan
B) strategy
C) ethics
D) financial plan
Which of the following was not identified as a way for the typical small business to
establish a competitive advantage?
A) Lowering prices
B) Providing higher quality goods or services
C) Improving customer service
D) Doing whatever the company does for its customers better than its competitors
The type of job design that breaks work down into its simplest form and standardizes
tasks is known as ________.
A) job simplification
B) job enlargement
C) job rotation
D) horizontal job loading
Asset-based borrowing permits small businesses ________.
A) to borrow up to 100 percent of the value of their inventory or their accounts
receivable for the money they need for long-term goals
B) to use normally unproductive assets such as accounts receivable and inventory
C) to obtain loans more easily but with less borrowing power than using unsecured
lines of credit
D) access to a source of funds ideally suited for long-term financing needs
Case 8-2: TQM and TV in Omaha
Nobody who knew Marvin Tollison ever met a man who liked television better. In the
Navy, he had the opportunity to learn a great deal about his trade. When he finished his
tour of duty, Marvin opened a television repair shop back home in Omaha, Nebraska.
Over the years the quality of his workmanship, his fair prices, and his general overall
good nature made his business flourish. Marvin had a way of finding men and women
like himself when expansion was needed.
Over 17 years, the business had grown from a one-man shop operating in his garage to
a 38-employee television repair staff that was dispatched to customers by two-way
truck radio. Over the years, the time between a customer’s call and the television
repairman getting to the home had increased to about two days because the repairmen
were taking longer with each call. Call-backs (having to “re-repair” equipment) are up
significantly. Marvin wasn’t sure, but he thought some of his customers were going
elsewhere for service.
How can Marvin develop ‘stellar” customer service?
Barter offers business owners the benefit of ________.
A) buying materials, equipment, and supplies without spending valuable cash on them
B) transforming slow-moving inventory into much-needed goods and services
C) “paying” for goods and services at wholesale cost and getting credit for retail price
D) All of the above
Which of the following is an effective method of collecting information about
competitors?
A) Ask customers and suppliers what competitors are doing.
B) Talk to employees, especially sales representatives and purchasing agents, about
competitors.
C) Attend trade shows and collect competitors’ sales literature.
D) All of the above
________ is the key to future success and small companies can detect and act on new
opportunities faster than large companies.
A) Innovation
B) Speed
C) Convenience
D) Technology
Getting traffic counts at local competitor outlets is an example of ________ research.
A) in-home
B) prototype
C) windshield
D) focus group
Luisa, the director of human resources, is discussing the duties and responsibilities of a
new position and its working conditions with Delmar, the supervisor of the position.
Luisa and Delmar are discussing a ________.
A) job description
B) management audit
C) job specification
D) job analysis
Mini-Case 16-4: Plumbers Don’t Want Recognition
“If I ever went out to those guys and asked them if they wanted a little more
recognition, they would laugh me out of the shop. People work for money.” Norm
Schultz had been a plumber himself for 18 years before he saved enough money to open
a small plumbing contractor business. The men who worked for Norm knew what was
expected of them – a fair day’s work for a fair day’s pay. “You don’t need to tell a person
that he or she is doing a good job; the person is either doing the work or not working for
me!”
Norm’s son-in-law was taking a management course at a local college. When Norm
asked him what he was learning in class, he told him the management of people. Norm
was very emphatic about managing the plumbers who worked for him. “Tell an
employee what you expect from the beginning. Watch to see if they perform the job
properly. Treat your people fairly and never cheat them.” Norm went on to tell his
son-in-law that this was the way good managers did things. “Recognition won’t put
bread on the table.”
Is Norm Schultz correct in his attitude about workers not wanting recognition?
Develop a list of interview questions to help Wallace select the right person for the
following jobs:
– Head chef
– Wait staff
– Dishwasher
– Host/Hostess
Why is it important for an entrepreneur to use techniques like mind-mapping, which
uses both sides of the brain?
Explain the procedure for constructing a graph that visually portrays the firm’s
break-even point (the point where revenues equal expenses).
What are sociocultural changes and why are they important?