In a corporation, personal property of the owners can be taken to pay the debts of the
business.
Employees tend to disbelieve what the owner says, regardless of whether it is true or
not.
Smaller firms tend to spend faster on technology.
Indirect losses are frequently more severe in their eventual cost than are direct losses.
Maintaining a high level of accounts payable requires a business to have a high level of
current assets.
Mission statements should be revised frequently.
Governments and financial businesses provide most of the business for retail stores in
shopping centers.
When selecting human resources, it helps to bring present employees into the process –
in an advisory capacity.
An advantage of a downtown location for a small business is a low crime rate.
In the context of profit planning for small businesses, the more uncertain the future, the
greater the need for planning.
A way to help avoid franchise scams is to carefully review the franchiser’s disclosure
document.
Friends or peers, user groups, and bulletin boards can give more specialized advice and
are good sources of answers to technical questions.
When is a communication process complete?
a) When someone has an idea
b) When a thought is translated into words or symbols
c) When a message is transmitted
d) When the sender gets feedback
Which of the following is an example of operational planning of a company?
a) Formulating the mission statement
b) Setting the personnel policy
c) Selecting the type of business to enter
d) Determining the financial needs
Which of the following is true about the maturity stage of the product life cycle?
a) Promotion costs climb and competitors cut prices to attract business
b) Marketing strategy typically encourages strong brand loyalty
c) Prices are usually high, sales are low, and development, promotion, and distribution
costs are high
d) Management considers pruning items from the product line to eliminate unprofitable
ones
When inventory level determines the time to order, the order quantity is a fixed amount
called the _____.
a) incremental order
b) stockout quantity
c) standing order
d) economic order quantity
The _____ shows how easily a company can pay its short-term obligations.
a) current ratio
b) equity ratio
c) working capital
d) net sales
Which of the following refers to an opportunity available for small firms interested in
global operations?
a) Expansion of markets and product diversification
b) Rapid change in political systems
c) Fluctuating foreign exchange rates
d) Cultural and language barriers