Leading is an important part of managing, but not the whole of it.
Receiving the ordered goods and placing them in inventory are the last steps in the
purchasing procedure.
“Off-the-shelf” programs rarely provide cost-effective solutions to small businesses.
Employees find themselves treated less fairly in a family-owned business that is
organized into a corporation.
Deceptive advertising is an essential component of consumerism.
Simple start-up businesses do not need records and information systems.
When customers walk out of the store without buying anything, it may be an indication
that the business is in trouble.
Gemini Inc. earned a net income of $250,000 in the year 2000. If its expenses for that
year amounted to $50,000, what was the revenue that Gemini Inc. earned in the year
2000?
a) $300,000
b) $250,000
c) $350,000
d) $200,000
Which of the following is a characteristic of performance appraisal?
a) It does not depend on personal habits.
b) It is independent of the job description.
c) It is used for merit rating.
d) It cannot be used for disciplinary actions.
In the context of small businesses, which of the following is true of a line of credit?
a) It permits a business to borrow up to a set amount without red tape.
b) It represents ownership in a corporation.
c) It permits use of someone else’s property for a specified time period.
d) It is an owner’s share of the assets of a company.
In the context of small businesses, which of the following is true of retailers?
a) They are concerned with people who come to, or are drawn into, the store to make a
purchase.
b) They emphasize selling products through intermediaries to the ultimate consumer.
c) They convert, usually in considerable volume, materials into products.
d) They bring the buyer and seller together to negotiate purchases or sales but do not
take title to, or possession of, the goods.
A disadvantage of a corporation is that:
a) it is difficult to raise capital.
b) its life is dependent on its owners.
c) it is subject to double taxation.
d) it is considered separate from its owners.
Which form of conservation involves reprocessing used items for future use?
a) Updating
b) Recycling
c) Afforesting
d) Reducing
Which of the following refers to introspective personal analysis that can help a small
business owner determine whether the combination of qualities he or she has will help
him or her succeed as a small business owner?
a) Analyze one’s attitude.
b) Analyze if one has enough money to start and to run the business.
c) Analyze the value of the products to be sold.
d) Analyze the capacity of the facility to be used.
White-collar crimes are primarily committed by _____.
a) managerial employees
b) factory workers
c) habitual shoplifters
d) laborers
Market segmentation refers to the:
a) change in a brand’s status due to its failure in the marketplace.
b) mix of the uncontrollable elements of a marketing plan.
c) simulation of the conditions under which a product is to be marketed.
d) process of identifying and evaluating various layers of a market.
Which of the following is an example of a fixed asset?
a) Cash
b) Prepaid expense
c) Equipment
d) Inventory
Which of the following is true about database marketing?
a) It does not require someone with the technology know-how to keep the system up
and running because it is fairly easy to use.
b) It is a quick and efficient process for acquiring customers that involves obtaining
meaningful consumer information and making marketing decisions.
c) It is the act of simulating the conditions under which a product is to be marketed.
d) It refers to the act of promoting the sale of a product at the point of purchase.