Long-range planning is important for a well-managed small business firm.
Today more students think self-employment is a safer haven than working for big
corporations.
If an established business is in a desirable location, it is a good idea to buy it.
Market research can be useful before starting a small firm, but it is not required once
the firm is in operation.
For a small business, the advantage of a product layout includes more efficient
scheduling of equipment and workers.
In the context of small businesses, which of the following statements regarding global
marketing is true?
a) Only large firms can export successfully.
b) Payment for goods sold to foreign buyers is always uncertain.
c) Foreign consumers will not buy American products.
d) Overseas markets represent wide sales opportunities.
Which of the following is an advantage of a process layout?
a) It provides flexibility to take care of change and variety.
b) It requires less movement of material or people.
c) It requires a smaller inventory.
d) It requires less space for aisles and storage.
Employee losses from accidents and occupational diseases are paid for under state
_____ laws.
a) medical leave
b) worker’s compensation
c) social security
d) accident insurance
_____ allows workers to schedule their own hours as long as they are present during
certain required hours.
a) Job splitting
b) Teleconferencing
c) Flextime
d) Job sharing
Using _____, materials are delivered to the user exactly at the time they are needed for
production.
a) supplier-based downsizing
b) just-in-time delivery
c) fully-integrated production networks
d) quality circles
Which of the following defines risk management?
a) It is the process of conserving earning power and assets by minimizing the shock
from losses.
b) It is the process of managing an organization’s workforce.
c) It is the process of increasing productivity by strategically managing the workflow.
d) It is the process of measuring employee performance in organizations.
A(n) _____ resembles a will, but, in addition to providing for distributing personal
assets on the maker’s death, it also contains instructions for managing those assets,
should a person become disabled.
a) living trust
b) promissory note
c) white paper
d) attestation
What is the purpose of specialized small business investment companies?
a) They extend credit by vendors on purchases of inventory, equipment, and supplies.
b) They allow small businesses to reap tax advantages by selling stock shares to
workers.
c) They sell common stock to the public through a regulated board such as Nasdaq
without the hassle of an initial public offering.
d) They assist socially and economically disadvantaged businesses with venture capital.
In the context of small businesses, which of the following statements regarding
common stock is true?
a) Common stockholders have an enforceable claim to dividends.
b) It represents the owners’ interest.
c) Common stockholders are paid before preferred stockholders.
d) It conveys no voting rights to its holder.
Which of the following is an example of computer hardware?
a) Operating system
b) Firewall
c) A computer program
d) A monitor
Which of the following is/are issued by insurers to guarantee that employees and others
with whom the company transacts business are honest?
a) Fidelity bonds
b) Revenue bonds
c) Key person insurance
d) Business insurance
Why is management succession a problem for family-owned businesses?
a) Employees may dislike the chosen successor.
b) Children may choose their own successor.
c) Potential candidates may be groomed too early.
d) There is a defined hierarchy for decision-making.
Which of the following statements defines a line-and-staff organization?
a) The owner has a direct line of command over employees.
b) It has specialists to advise and perform services for other employees.
c) Its owner does all the work.
d) It has employees for producing, financing, and selling the firm’s product, and the
owner is directly responsible for seeing that the employees do these things.
Which of the following constitute taxable income?
a) Total revenues plus deductible expenses
b) Total revenues minus dividends paid
c) Total revenues plus dividends paid
d) Total revenues minus deductible expenses
In the context of small businesses, which of the following is true about selling products
to different ethnic groups?
a) The median age of most ethnic groups is higher than that of whites.
b) Most ethnic groups constitute a good market for durable goods.
c) Ethnic groups cannot be reached through advertising.
d) Traditional markets and ethnic groups must be targeted in the same way.
Which mode of transportation has the disadvantage of operating on fixed routes and on
a fixed schedule?
a) Oil pipelines
b) Trucks
c) Railroads
d) Cables
Compare/contrast the two functions of recruitment and employee selection.
What is database marketing?
What could be the advantages and disadvantages of purchasing an existing small
business?
Describe the two types of franchising systems.
What are the three practical aspects of pricing that a small firm must consider?