Employee benefits are also referred to as fringe benefits.
Small businesses should usually leave primary market research to experts.
In a SWOT analysis, strengths and weaknesses are part of a company’s external
environment.
The owners of a corporation are the corporate officers.
The small company owner’s need for ways to train a person to become a supervisor or
manager is often overlooked.
One must use different incentives to motivate different people at different times in their
working lives.
Starting a small service business out of the owner’s home is not economical.
If a firm is making profits, it is impossible for that firm to fail financially.
From a legal standpoint, a business and its owner are one in a proprietorship.
Small business owners need not tell their employees the reasons for being in business.
Under bankruptcy law, people can petition the courts to be relieved of the obligation to
pay debts they cannot repay.
Consumerism is reprocessing used items for future use.
A lease is a contract that permits use of someone else’s property for a specified period
of time.
Which document provides information to possible new franchisees on twenty items
required by the Federal Trade Commission?
a) Business plan agreement
b) Disclosure statement
c) Marketing statement
d) Accounting statement
Rob Bateman, the owner of a small business, bought a basic fire insurance cover to
insure his business against losses caused by accidental fires. Bateman’s fire insurance
policy can additionally be supplemented by a(n) _____ as an insurance against
explosion, smoke damage, and windstorms.
a) professional liability insurance
b) fidelity bond
c) surety bond
d) extended-coverage endorsement
What is the advantage of using external sources for filling job openings?
a) It raises morale and improves employees’ motivation.
b) It saves time, effort, and money.
c) It provides new ideas and perspectives.
d) It leads to stability.
Which of the following is true of the marketing concept?
a) The survival of any business depends solely on making a profit.
b) Special consideration must be given to the needs, desires, and wishes of present and
prospective customers.
c) Being consumer oriented often involves coercing consumers to buy a product,
irrespective of its quality.
d) Use of the systems approach is not a part of the marketing concept.
_____ is the process of ensuring that organizational goals are achieved.
a) Audit
b) Acid test
c) Control
d) Credit management
The _____ is the part of the business plan that outlines the entire plan, its major
objectives and the expected results.
a) cover sheet
b) executive summary
c) table of contents
d) appendix
When can an optimum inventory level be maintained?
a) When the sum of the costs of carrying inventory and the costs of stocking out are
high
b) When the costs of carrying inventory are high and the costs of stocking out are low
c) When the costs of carrying inventory are low and the costs of stocking out are high
d) When inventory carrying costs and stockout costs are zero
Which of the following is a feature of RFID tags?
a) RFID tags can only be read by pointing a device at the code.
b) RFID tags can be scanned by just being near it.
c) Passive RFID tags are costlier to produce.
d) All RFID tags have a long range of readability.
Which of the following is an attribute of e-commerce?
a) It is a form of traditional marketing.
b) It is about the exchange of digitized information between parties.
c) It does not involve the use of Internet in transaction cycles.
d) It heavily relies on real rather than virtual storefronts.
Which of the following is true about small businesses?
a) They get easy financing resulting in too many choices for funding.
b) Small businesses provide low employee job satisfaction owing to a lower volume of
transactions.
c) They are not subject to burdensome government regulations and paperwork.
d) Inadequate management in small businesses creates problems for small business
owners and entrepreneurs.
Which of the following is a reason for the drastic changes in small business
management trends?
a) Accounting departments become independent of computer support
b) Diverse shift toward less people-related activities
c) Improvements in communications and computer technology
d) Excess supply of managerial talent
A(n) _____ is a tax added to the gross amount of the sale for goods sold within the
taxing jurisdiction.
a) use tax
b) excise tax
c) sales tax
d) income tax
Which of the following is a characteristic of a downtown location, in the context of
small businesses?
a) It has the distinction of having low crime rates.
b) It suffers due to inadequate public transportation.
c) The shopping hours are limited.
d) There is ample parking space.
_____ is extended by vendors on purchases of inventory, equipment, and/or supplies.
a) Venture capital
b) Asset-based financing
c) Mortgage loan
d) Trade credit
Which of the following industries is expected to produce the most new jobs by the year
2018?
a) Professional and related
b) Service
c) Office and administrative support
d) Sales and related
According to the Family Firm Institute of Boston:
a) family-owned businesses in the U.S. are predominantly small.
b) a majority of family-owned businesses in the U.S. flourish.
c) family-owned businesses in the U.S. must hire college graduates.
d) emotions and business do not mix in a family-owned business.
_____ refers to setting aside funds to meet losses that are uncertain in size and
frequency.
a) Risk avoidance
b) Risk prevention
c) Risk transfer
d) Risk assumption
What is RFID? How is it useful in inventory control?
In the context of small businesses, what is the difference between a product layout and a
process layout?
Explain why purchasing is important to a small business.
What are the repeated areas that create problems for small business owners and
entrepreneurs?
Explain how a poorly planned growth and the threat of failure limit the success of small
firms.
What are the characteristics of effective control systems?
What are the current trends in purchasing that are causing problems for small business
owners?
What is a family limited partnership?