Rebates appeal to many manufacturers because few consumers actually redeem them.
One of the unique contributions of small businesses is that they keep larger firms
competitive.
Risk management is the process of increasing productivity by strategically managing
the workflow.
Opportunity costs are profits lost because money is tied up in inventory.
It is impossible to determine the optimum lot size for items the company produces for
itself.
Air transport is appropriate for products with a low unit value and high weight.
Planning to start one’s own business begins with searching for a good or service to sell.
Which of the following is a characteristic of merit increases?
a) They refer to the extra compensation given for all production over a specified
standard amount.
b) They base a person’s salary on ability and performance.
c) They are given as a reward on special occasions.
d) They are a form of profit sharing.
After lightweight laptops, further miniaturization has resulted in _____.
a) RFID tags
b) personal data assistants
c) barcodes
d) QR codes
What is the purpose of the Uniform Partnership Act (UPA)?
a) It legally terminates the business upon the death of a partner.
b) It governs partnerships in the absence of other expressed agreements.
c) It provides the protection of limited liability for shareholders.
d) It combines the advantages of a corporation with the benefits of a partnership.
A _____ provides the protection of limited liability for shareholders, but its earnings are
taxed at both the corporate and shareholder levels.
a) cooperative
b) C corporation
c) nonprofit corporation
d) joint venture
According to Chapter 11 of the Bankruptcy Reform Act of 1978:
a) the firm that files for bankruptcy protection cannot operate while its debts are being
repaid.
b) society should compensate those who have suffered an injury as a result of wrongful
action(s) by others.
c) if the business is so far gone that it cannot keep operating, it must be liquidated.
d) the bankrupt business can be reorganized only when the bankruptcy petition is filed
voluntarily.
Which of the following is true of freestanding stores in the United States?
a) These stores have limited parking space.
b) The cost per square foot of the location is very high.
c) Considerable advertising may be required to attract customers.
d) These stores have restricted shopping hours.
_____ are long, usually half-hour TV ads that help small firms keep growing and enter
markets once dominated by giant competitors.
a) Circulars
b) Infomercials
c) Display ads
d) Product placements
Which of the following is essential for effective communication?
a) Use of buzzwords
b) Giving more credibility to people of higher-status
c) Clarifying ideas
d) Being a good talker rather than listener
Which of the following is true about the Federal Sentencing Guidelines for
Organizations?
a) It outlines programs for effective ethics.
b) It tells one what to do if the codes of ethics are silent.
c) It specializes in helping people develop their business ideas.
d) It provides the “Four Way Test” of the things we think, say, or do.
What should a manager do for handling employee complaints?
a) The manager must assure the employees that their complaint will not jeopardize their
employment.
b) The manager must analyze the complaint and dismiss it if it seems to be without
foundation.
c) The manager must avoid making written records of the incident.
d) The manager must immediately make a decision.
A developing trend in family businesses is that young people:
a) offer an executive position to their parents in their company in return for funding.
b) show disinterest in continuing the work of their parents.
c) prefer to look for jobs in major corporations rather than focus on the business.
d) are not interested in gaining experience by working part-time.
A(n) _____ is given to customers for accepting less of something or as an adjustment
for variation in quality.
a) discount
b) rebate
c) allowance
d) subsidy
Which of the following is an example of current liability?
a) Accounts payable
b) Prepaid expenses
c) Inventory
d) Mortgage payable
_____ is moving a person to a higher position, frequently with increased
responsibilities, greater status or prestige, a new title, and a higher salary.
a) Promoting
b) Deputing
c) Upgrading
d) Transferring
_____ play an important role in shipping because of their flexibility and the improved
highway systems.
a) Cables
b) Trucks
c) Railroads
d) Oil pipelines
Which of the following defines the areas in which an employer has the right to act
freely as an employer, without interference from the union?
a) Management prerogatives clause
b) Collective bargaining
c) Right-to-work law
d) Judicial due process
Employee performance is generally the product of an employee’s:
a) qualification to fit in the job and the ability do the job.
b) eligibility to do the job and the number of years of work experience.
c) ability to do the job and the seniority level.
d) ability to do the job and the application of positive motivation.
Which of the following is an example of long-term liability?
a) Accounts payable
b) Accounts receivable
c) Accrued payable
d) Mortgage payable
_____ is the process of establishing and maintaining contacts with key persons in one’s
own or another organization as informal development or promotion systems.
a) Outsourcing
b) Networking
c) Advertising
d) Leasing
What is telecommuting and what are its disadvantages?
Why is a system of controls necessary in small businesses?
How can family members working in a family-owned business be compensated?
How can a small business control inventory?
How can strategies help a small business reach its mission?
Mention the characteristics of successful owners of small businesses.
Which types of inventories do small firms carry? What is an ideal inventory mix?