Small business owners should not press customers for payment of their past due
accounts for fear of losing them as customers altogether.
Alarmingly, 66 percent of all drug abusers and 77 percent of alcohol abusers are
employed.
Leadership gets a small business going; management keeps it going.
The longer an accounts receivable is outstanding, the lower its probability of collection.
In the business and industry profile section of the business plan, the entrepreneur should
provide information on the size of the market, growth trends, and the relative economic
and competitive strength of the industry’s major players.
The right brain relies on kaleidoscopic, lateral thinking.
The real value in preparing a business plan is not so much in the plan itself as it is in the
process the entrepreneur goes through to create the plan.
Patel Industries recently filled an order from one of its customers, Oxmoor Gardens, a
small garden supply store. Oxmoor’s owner recently received an invoice from Patel for
$1,278.64 with selling terms of “2/10, Net 30.” Therefore, ________.
A) the selling terms indicate that Oxmoor must pay 2 percent of the invoice by the 10th
day of the month with the balance due in 30 days
B) the selling terms are offering Oxmoor a 2 percent discount if the bill is paid within
10 days; otherwise the full amount of the invoice is due in 30 days
C) the selling terms indicate that the full amount of the invoice is due within 30 days
and Oxmoor will be subject to a 2 percent finance charge for every 10 days that the bill
is past due
D) the selling terms indicate that Oxmoor has not yet qualified for a quantity discount
and must pay the full amount of the invoice within 30 days
Posting job openings on the Internet has proven to be ________.
A) a relatively ineffective method of recruiting
B) a cost-effective method to attract candidates from other areas
C) an effective method to attract candidates and is relatively expensive
D) problematic for entrepreneurial businesses
A strong determinant of moral behavior is ________.
A) profitability
B) financial success
C) training
D) short-term success
According to the ________, one should “choose the option that offers the greatest good
for the greatest number of people.”
A) television test
B) utilitarian principle
C) family test
D) golden rule
To calculate the IRS, a retailer needs to know the number of customers in the area, the
retail expenditures for her/his product, and the total square feet of space allocated to
selling her/his kind of product in the trading area.
All of the following are characteristics of the typical entrepreneur except ________.
A) confidence in his/her ability to succeed
B) value of money over achievement
C) desire for immediate feedback
D) a future orientation
One of the greatest marketing mistakes small businesses make is ________.
A) failing to identify the target market
B) spending too little on advertising
C) underpricing their products and services
D) spending too little on quality improvement
Entrepreneurs who are considering importing goods and services or outsourcing their
manufacturing to foreign countries should begin by ________.
A) making sure that importing or outsourcing is right for their business
B) do your research before you leave home
C) establish a target market for your product
D) do your groundwork once you arrive
In a recent survey, ________ percent of consumers say that given the opportunity, they
would buy products with a social and/or environmental benefit.
A) 92
B) 82
C) 72
D) 62
The use of credit cards by consumers ________.
A) has little real impact on sales
B) broadens a small company’s customer base
C) costs businesses nothing and adds significantly to their sales
D) has no impact on pricing decisions
The majority of customers who stop patronizing a particular store do so because
________.
A) its prices are too high
B) its quality is too low
C) an indifferent employee treated them poorly
D) it failed to advertise enough
Which of the following statements concerning cash management is false?
A) Cash is the most important, yet least productive, asset a small business owns.
B) Young companies tend to be “cash sponges,” soaking up every available dollar of
cash.
C) Fast-growing businesses are least likely to experience shortages.
D) Cash management involves forecasting, collecting, disbursing, investing, and
planning for a company’s cash needs.
A significant advantage a franchisee has over an independent business is the
participation in the franchisor’s ________ largely due to the ________ the franchise
offers.
A) centralized buying power; buying insight
B) centralized buying power; brand protection
C) centralized buying power; economies of scale
D) economies of scale; territorial protection
Burt is applying for a position as a staff accountant. The job specification for the
position might list all of the following items except________.
A) BBA in Accounting
B) 3 years of experience
C) prepare daily sales reports
D) knowledge of QuickBooks
Which government agency is responsible for enforcing employment laws?
A) The Fair Labor Standards Commission
B) The National Labor Relations Board
C) The Equal Employment Opportunity Commission
D) The Justice Department
Actions that are legal, however, may not be ________.
A) ethical
B) complex
C) profitable
D) doable
Setting prices for products and services requires entrepreneurs to balance a multitude of
complex forces as entrepreneurs determine prices for their goods and services that will
draw customers and ________.
A) position prices lower than all competitors
B) produce a profit
C) effectively compete with online alternatives
D) have high volume/high margin sales