When filing the corporate charter, a corporation must file in the state in which its
headquarters are located.
To manage cash efficiently, business owners should strive to accelerate their accounts
payable and stretch out their accounts receivable.
Company culture is the distinctive, unwritten code of conduct that governs the behavior,
attitudes, relationships, and style of an organization.
The shift to a service economy has not had a significant impact on entrepreneurial
opportunities.
Fixed expenses are those that do not vary with changes in the volume of sales, but do
vary with production.
In a domestic joint venture, a domestic company forms an alliance with a company in
the target nation.
Paid or sponsored listings are long, heavy-text advertisements with links to the
sponsoring company’s Web site that appear on the results page of a search engine when
the user types in a keyword or phrase.
As a company’s debt-to-net worth ratio approaches 1:1, its creditors’ interest in that
business approaches that of the owners.
The SBA’s Section 504 Certified Development Company Program (CDC), which
provides long-term, fixed-asset financing, is designed to encourage small businesses to
expand their facilities and to create jobs.
A company credo offers general guidance in ethical issues.
The triple bottom line covers “profits, products, and planet.”
As business and competitive conditions change, so should a small company’s mission
statement.
The concept of a traditional marketing strategy is not necessary in building a successful
e-business.
Loans made under the SBA’s Disaster Loan Program carry below-market interest rates
and are designed to provide assistance to small businesses that have been the victims of
a variety of disasters, such as hurricanes, floods, earthquakes, and tornadoes.
The job ________ design strategy involves building motivators into a job by increasing
the planning, decision-making, organizing, and controlling functions workers perform.
A) simplification
B) enlargement
C) enrichment
D) rotation
Which company has the worst location?
A) Your company
B) Competitor 1
C) Competitor 2
D) Impossible to tell from the information given.
When examining a state’s available labor force, the potential business owner needs to
know ________.
A) the state’s labor relations history
B) the demographics of the target customers
C) both the number and education of the available workforce
D) the proximity to its customers
One of the requirements to be able to offer ________ credit is to make certain that the
firms’ cash position is ________.
A) installment; positive
B) installment; strong enough to support the additional pressure
C) trade; positive
D) trade; strong enough to support the additional pressure
Shopping malls typically average ________ parking spaces per 1,000 square feet of
shopping while a typical central business district offers ________ space(s) per 1,000
square feet of shopping space.
A) 20; 1
B) 3; 6
C) 5; 3.5
D) 3; 8
Some of the most successful companies interact with their customers regularly,
intentionally, and purposefully to create meaningful and lasting ________.
A) relationships
B) sales
C) obligations
D) memories
More than ________ percent of those holding patents win their infringement suits.
A) 15
B) 30
C) 45
D) 66
Which of the following statements about price is true?
A) Price measures what the customer must exchange to obtain goods and services in the
marketplace.
B) Target market, business image, and price are closely related.
C) For most goods and services, there is an acceptable price range and not a single
“ideal price.”
D) All of the above
________ is the practice of selling substantial quantities of a product in a foreign
market at prices that are below either the home-market price or below the full cost of
producing it.
A) Exporting
B) Bartering
C) Dumping
D) Price discrimination
Franchise royalty fees typically range from ________ to ________ percent with an
average of 6.7 percent.
A) 3; 13
B) 1; 21
C) 1; 11
D) 3; 11
“Copreneurs” are defined as ________.
A) entrepreneurs that work part-time
B) highly successful entrepreneurs with prior company experience and background
C) those entrepreneurs that will eventually combine their business with another venture
D) entrepreneurial couples that work together as co-owners of their business
Which of the following is not a suggestion for using time compression management
(TCM) to turn speed into a competitive advantage?
A) Instill speed in the company’s culture.
B) Use technology to find shortcuts wherever possible.
C) Pay workers more if they do their jobs the same way € only faster.
D) Set aggressive goals for time reduction and stick to them.
Which of the following types of questions should a business owner ask a candidate in a
job interview?
A) Questions calling for “yes or no” answers.
B) Questions about the candidate’s religious beliefs.
C) Questions based on on-the-job scenarios that require open-ended answers.
D) Questions about the candidate’s physical traits, characteristics, and family life.
Unlike television ads, uploading a video to YouTube costs ________.
A) a lot
B) nothing
C) less
D) plenty
A method of franchising that gives the right to create a semi-independent organization
in a particular territory is a ________ franchise.
A) conversion
B) master
C) product distribution
D) area development
________ is the process of communicating a company’s unique selling proposition to its
target customers in a consistent and integrated manner.
A) Branding
B) Selling
C) Entertailing
D) Marketing
In addition to reading the franchisor’s UFDD, it would be wise for the potential
franchisee to seek a franchise that offers which of the following?
A) A unique concept or marketing approach
B) A registered trademark
C) A positive relationship with franchisees
D) All of the above
The ________ merely establishes the minimum standard of behavior.
A) mission
B) law
C) strategic plan
D) financial plan
One “natural” advantage small businesses have over large businesses, which can be a
significant competitive advantage, is ________.
A) building a community with customers and connecting with them on an emotional
level
B) their ability to conduct market research
C) their lower costs
D) their ability to serve many highly diverse target markets
Your friend Maria is experiencing declining sales in the business she has owned and
successfully operated for three years. She has asked for your guidance in determining
the course(s) of action she should take. Your recommendation to her is to undertake a
marketing research project. Briefly outline the steps involved in market research. She is
concerned that market research will be too expensive and sophisticated for a small
business such as hers. Is this true? Explain.
Your friend Jake owns a business that is achieving phenomenal growth. Explain why it
is said that: “Fast-growing companies are most likely to experience cash shortages.”
What is the Franchise Disclosure Document? How can this document be of value to a
potential franchisee?
Explain at least two functions or purposes of preparing a business plan.
Identify the guidelines for building a successful Web strategy for a small e-company.
List five ways individuals can enhance their own creativity.
Help Jim compute the break-even point for his brake service.
Assume that you are a consultant to a small independent hardware store in a town
where a retail giant such as Wal-Mart, Kmart, or Target is about to open. The large
retailer sells many of the same items the small hardware store sells, but at lower prices.
What advice would you offer the owner concerning the hardware store’s strategy?
Explain.