Small companies have created at least two-thirds of the net new jobs in the U.S.
economy.
Entrepreneurs build the foundation for ethical decision making by understanding how
their personal values come to life in business situations.
Social responsibility is a branch of philosophy that studies and creates theories about
the basic nature of right and wrong, duty, obligation, and virtue.
Information gathered during a job analysis provides the foundation for creating job
descriptions and job specifications.
If a country’s currency is not convertible into any other currency, companies exporting
to that country usually engage in either countertrading or bartering.
Research indicates that younger audiences do not take the time to seek product
information before they make a purchase.
FOB is when the seller must deliver goods to the carrier, obtain export licenses, pay
export taxes, and bear the risk of loss until the goods are delivered to the buyer.
Trade dress is the unique combination of elements that a company uses to create a
product’s image and to promote it.
According to the utilitarian principle, one should choose the option that offers the
greatest good for the greatest number of people.
Some foreign countries place limitations on joint ventures with host companies within
their borders, for example by requiring the host company to own at least 51 percent of
the venture.
Companies really are not ethical or unethical; ________ are.
A) goals
B) strategies
C) individuals
D) departments
Which of the following combinations of ratios would indicate that a company is
financially mismanaged and is not a good credit risk?
A) High liquidity; high leverage
B) Low liquidity; high leverage
C) High liquidity; low leverage
D) Low liquidity; low leverage
Studies of shifting patterns in age, income, education, race, and other population
characteristics are the subject of ________.
A) psychographics
B) demographics
C) sociographics
D) paleontology
The goal of the SEC’s Regulation D is ________.
A) to discourage small companies from trying to “go public”
B) to make it easier for the SEC to detect companies whose stock would be bad
investments for consumers
C) to minimize the expense and time required to raise equity capital for small
businesses
D) to make the standards for making a public stock offering more stringent
A partnership agreement defines how the partners will be compensated. Normally,
________.
A) partners are not entitled to salaries or wages, but are compensated by a share of the
profits of the business
B) the general partner’s salary is set at two times the salaries of the limited partners
C) both general and limited partners are permitted salaries, but all silent or dormant
partners are compensated only by sharing in the profits
D) while the agreement establishes payout schedules, it does not spell out what
constitutes profit
The fee that banks collect from retailers whenever customers use a credit or a debit card
to pay for a purchase is known as the ________ fee.
A) interchange
B) chargeback
C) processing
D) installment
Regarding Gunther’s Emporium, refer to the following to answer the question(s)
below:
Gunther’s Emporium expects net sales of $2,396,919 for the upcoming year, with
variable expenses totaling $1,813,443 and fixed expenses of $412,190.
Using break-even analysis, what is Gunther’s contribution margin?
A) 4 percent
B) 32 percent
C) 24 percent
D) 12 percent
________ entrepreneurs are finding the resources to tackle challenging problems such
as habitat destruction, AIDS, hunger, and poverty.
A) Serial
B) Social
C) Most
D) All of the above
The first obstacle an entrepreneur must overcome on the way to creating a truly global
business is ________.
A) finding a joint venture partner
B) learning to think globally
C) locating motivated, multilingual managers for overseas assignments
D) finding overseas distributors for the company’s products
Which of the following is a way to improve customer service?
A) Encourage customers to complain.
B) Ask employees for feedback on improving customer service.
C) Develop a service theme that communicates the importance of customer service in
the company.
D) All of the above
Entrepreneurs may find benefit from the Internet due to its potential ________.
A) if the organization is willing to invest millions of dollars in this effort
B) only if the entrepreneur has a high level of technical abilities
C) as a relatively low-cost solution to expand its revenue-generating abilities
D) to take all pressure off other attributes of the business venture
The ________, published by the Department of Labor, lists more than 20,000 job titles
and descriptions and serves as a useful tool for getting a small business owner started
when writing job descriptions.
A) Title IX Handbook
B) Team Handbook
C) Job Listing Directory
D) Dictionary of Occupational Titles
Entrepreneurs using the Census Bureau’s Web site to evaluate potential locations have
access to which of the following information about the residents in those locations?
A) Income levels
B) Age distributions
C) Occupational data
D) All of the above
In a partnership, the ________ partner(s) has (have) unlimited liability for the
partnership’s debts.
A) limited
B) dormant
C) nominal
D) general
Secondary research data is less time consuming and less costly to gather than primary
research data.
________ thinking is the ability to see similarities and ________ thinking is the ability
to see differences among various data and events.
A) Divergent; convergent
B) Convergent; divergent
C) Convergent; transformational
D) None of the above
How significant are the Internet and a Web site presence to small businesses of the
twenty-first century? How have they transformed the way we do business?
What is the entrepreneurial ‘secret” for creating value in the marketplace?
Mini-Case 4-1: The Need For A Plan
Andrew Sycamore has spent more than ten years in the human resources department of
a large management consulting company. During his tenure, he was often put in charge
of training new recruits, where he arranged for various company managers to address
the recruits and teach them skills important in the workplace. What Andy had noticed
was the one skill that was often the hardest to teach involved problem identification and
problem solving. Even the best recruits from well-known universities found it hard to
assess a situation to determine what the problem was and how to develop solutions for
it. In his heart, Andy was an entrepreneur and he was dying to quit his corporate job and
be his own boss. He was convinced there was a business opportunity in developing an
interactive, online problem identification and problem solving tool.
Andy’s idea, which he titled “Nested Learning,” involved software that included a
screen where a scenario was presented to the user and the user was asked to first
identify the problem and then develop solutions for it. What was unique about “Nested
Learning” was that the initial scenario was specifically written so as not to be sufficient
enough to generate a problem. In other words, the user (or the trainee) had to ask the
software questions that would be responded with additional facts about the situation.
Andy argued that problem solvers don’t get all the facts handed to them at the very
beginning and that they had to “tease” more out of the situation to identify the problem.
Andy’s idea was to develop a prototype of the software with a small number of generic
scenarios. He then hoped to meet with training managers of different companies and
‘sell” them the idea of using “Nested Learning” as a better training tool. Once a client
agreed to use it, Andy would then work with the client to develop client-specific
scenarios.
How important is a prototype for Andy Sycamore to succeed with his “Nested
Learning?”
The profits your small business is generating are high; however, you never seem to have
enough cash to pay your bills on time. Are cash and profit the same thing? Why or why
not?
Describe briefly the three levels of ethical standards.
What is the difference between immoral and amoral management?
Assume the role of a consultant to a small business owner who is about to conduct a job
interview for the first time. Identify the guidelines that will help him develop interview
questions. Also, explain the three phases of an effective interview.
Your text describes a variety of common sources of equity capital. Outline and briefly
describe five.
What is a sole proprietorship? Explain the advantages and the disadvantages of a sole
proprietorship.
Mini-Case 11-7: Sharps and Flats
Anthony Gray has been interested in music since he was old enough to sit at the piano.
He literally grew up with music, and he used his talent to earn his way through college.
Anthony has grown tired of his job at a large music house in Houston and is seriously
considering moving back to his hometown in Massachusetts to open his own small
music shop. In researching this venture, Anthony notices that he must include a
projected income statement in his loan application. Use the following statistics from
Robert Morris Associates’ Annual Statement Studies to answer the following
question(s).
Suppose that a market survey indicates that Anthony’s proposed business is likely to
generate only $190,000 in sales. What net profit should Anthony expect to earn?