Proprietorship is the oldest and most prevalent form of ownership in the United States.
Employees in large workplaces have higher job satisfaction than those in smaller firms.
Preferred stockholders usually retain the right to vote for company directors.
In the context of small firms, operating systems in different businesses are dissimilar.
In order to prepare children to take over the family-owned business, it is essential to
hire them for higher-level positions in the business.
The external environment does not affect the operation of a small business.
Unlike the U.S. Department of Commerce, the U.S. Department of Agriculture does not
offer any assistance to small business owners.
_____ provides protection for an employee’s estate when he or she dies while still in the
income-producing years.
a) Workers’ compensation policy
b) Life insurance
c) Health insurance
d) Business insurance
A(n) _____ price is one set relatively high initially in order to obtain the “cream” of the
target market before competitors enter.
a) skimming
b) penetration
c) predatory
d) bait
What are articles of copartnership?
a) They are the instruments by which a partnership is formed under the business laws of
a given state.
b) They state what the business can do and provide other organizational and financial
information.
c) They are drawn up before the formation of a partnership to show the rights, duties,
and responsibilities of each partner.
d) They explain how stockholders can buy out each other’s interest in the business.
In the context of small businesses, which of the following is true of asset-based
financing?
a) All asset-based loans are financed against inventory.
b) It accepts the assets of a firm as collateral in exchange for a loan.
c) Of all assets, inventory is considered the most liquid of a service company’s assets.
d) It is a form of debt security with a standard denomination and method of interest
payment.
The process of building and maintaining customer relationships through online
activities to facilitate the exchange of ideas, products, and services that satisfy the goals
of both parties is known as _____.
a) Internet marketing
b) decision engineering
c) traditional marketing
d) data mining
_____ is carried to disconnect one segment of the operating system from another so that
each part can operate at its optimum level.
a) Purchasing
b) Scheduling
c) Controlling
d) Inventory
Which of the following typifies internship training?
a) It involves workers learning many job skills so they are more versatile.
b) It combines on-the-job training with learning at a cooperating school or college.
c) It results in low out-of-pocket costs.
d) It is usually used for workers performing skilled, craft-type jobs.
In the context of family-owned businesses, which of the following can be used to
minimize estate taxes?
a) Buy-sell agreement
b) Family limited partnership
c) Formal succession planning
d) Selling stock to outsiders
What is estate planning?
a) Planning for a new buyer of a family-owned business that is up for sale
b) Compensating the owner of a family-owned business when the family wants to sell it
c) Preparing for the orderly transfer of the owner’s equity when death occurs
d) Assessing the real-estate value of a family-owned business before it is sold
Which of the following is true about franchising?
a) The parties in a franchising arrangement usually compete with each other for success.
b) The franchiseeis the company that owns the franchise’s name and distinctive
elements and grants others the right to sell its product.
c) A franchise is an agreement whereby an independent businessperson is given
exclusive rights to sell a specified good or service.
d) The franchiseris usually an independent local businessperson who agrees with the
franchise owner to operate the business on a local or regional basis.
The most common type of industry for a _____ is agriculture.
a) nonprofit corporation
b) professional service corporation
c) joint venture
d) family limited partnership
Describe the introduction stage of the product life cycle.
In the context of small businesses, how can the products and methods of operation be
improved?
What is credit management? What is its objective?
In the context of small businesses, what is trade credit?
What are the benefits and drawbacks of buying a franchise?
What are the seven elements needed for a good web page?
Explain the purpose of a business plan and enlist the key components of a written
business plan.