The incubation process involves which of the following?
a. working harder
b. letting the subconscious work
c. talking with friends
d. changing jobs
When should a potential franchisee receive the FDD (Franchise Disclosure Document)?
a. two days before signing a contract or paying any money
b. at least ten days before signing a contract or paying any money
c. two days before signing a contract
d. at least ten days before paying any money
In handling questionable costs, the cost in question is substituted first as a _____ and
then as a _____.
a. fixed cost; variable cost
b. mixed cost; fixed cost
c. variable cost; total cost
d. total cost; fixed cost
Researchers have described a ‘fully developed new firm’ with a number of
characteristics, including:
a. full-time commitment
b. formal financial support
c. minimal hiring
d. a and b both apply
Equity capital is
a. paid back within one year.
b. paid back after five years.
c. not a loan but a form of stock.
d. loans from family.
Which of the following traits is not that of an entrepreneur?
a. drive
b. shyness
c. willingness to take risks
d. human relations skills
An inventory turnover ratio of 9.80 means that the average dollar volume of inventory
is used up almost _____ times during the fiscal year
a. 10
b. 100
c. 1
d. 1.2
Which of the following is not an example of pressures or interests from within a firm
that affect succession issues?
a. rivalry among various branches of the family
b. pressure from a family member to start his/her own business
c. employee wanting a percentage of the business in the owner’s will
d. pressure on the owner/manager to designate an heir
All of the following are ways of invalidating a trademark except
a. cleaning-out proceedings.
b. clearing-out proceedings.
c. abandonment.
d. generic meaning.
Which of the following methods of valuation was developed by the U.S. Treasury to
determine a firm’s intangible assets?
a. market value
b. replacement value
c. excess earnings
d. multiple of earnings
Developing corporate entrepreneurial managers involves teaching them to
a. Conduct business as usual
b. Break out of the box.
c. Give across-the-board raises.
d. Think of new ad campaigns.
Water well strategies refer to:
a. unique resources
b. unique products
c. unique markets
d. unique products
Happenings that cause the replacement of the owner-manager of a family business are
called
a. abrupt happenings.
b. forcing events.
c. legal events.
d. unforeseen difficulties.
Capital budgeting is designed to show
a. how many projects, in total, should be selected.
b. which project is most profitable.
c. which of several mutually exclusive projects should be selected
d. how to evaluate projects based on rates of return.
When is the size of the labor force in Africa expected to top that of China?
a. by 2015
b. by 2020
c. by 2030
d. by 2040
Business owners normally prefer Chapter 7 bankruptcy over any other form of
bankruptcy.
A healthy environment for corporate entrepreneurship exists when employees feel a
sense of ownership in the company.
One of the principal advantages of a corporate form of ownership is that liability (the
most money a person can lose) is limited to an individual’s investment.
Institutionalization is a deliberate step to incorporate the ethical objectives of society
with the economic objectives of the venture.
Insufficient controls signify strength when analyzing the business being valued.
Vertical analysis is the application of ratio analysis to all of the financial statements to
find accounting mistakes.