In a process layout, the facilities are laid out according to the sequence of operations to
be performed.
The profit margin indicates the relationship between revenues and expenses.
Business ethics are the standards used to judge the rightness or wrongness of a
business’s relations to others.
Working capital can be calculated by subtracting current assets from total assets.
With so much time, money, and energy devoted to the business, small business owners
tend to have more zeal and devotion than managers of big companies.
Family-owned businesses need an appropriate mission statement to cope with the
demands of business operation.
Small businesses usually select one product niche because they do not have sufficient
resources to cover the whole market.
Rapid growth, instead of stability, is emphasized in a well-managed small business
firm.
Web-based research is not effective in doing marketing research.
Which of the following is true of assigning responsibility for purchasing?
a) Generally, one person should be given the overall purchasing responsibility.
b) The authority to order should only be with the business owner.
c) The person assigned the responsibility should not ask for help.
d) Responsibility for purchasing should not be assigned to anybody in case of
stockouts.
Which of the following is a characteristic of successful fractional ownership?
a) The co-owners require a professional license.
b) The co-owners establish it for religious purposes.
c) The co-owners must be related to each other.
d) The co-owners must be honest in their dealings.
_____ project working capital needs by estimating what out-of-pocket expenses will be
incurred and when revenues from these sales are to be collected.
a) Cash budgets
b) Dividend statements
c) Capital account statements
d) Expense accounts
_____ gives the U.S. Congress the right to “regulate commerce with foreign nations,
and among the several states.”
a) Dual federalism
b) Interstate commerce clause
c) Layer cake federalism
d) Contracts clause
Which of the following is true about small service companies?
a) The owner prefers to start the company from a rented office.
b) They should be located away from the city, where rental space is too costly.
c)They cannot take their activities “on the road” to obtain more income.
d) They have some characteristics of both retailers and producers.
Which of the following is true about small businesses?
a) The manager usually owns the business.
b) The area of operations is not necessarily local, although the market is primarily local.
c) Capital is supplied and ownership is held by a large number of individuals.
d) In the European Union (EU), more than 70 percent of the workforce is employed in
firms with 10 or fewer employees.
AMF Systems uses certain standards to judge the rightness or wrongness of its
business’s and its personnel’srelations to others. These standards are called _____.
a) business ethics
b) personal ethics
c) employee relations
d) consumer relations
What is the relationship between leadership and management?
a) Leadership and management are synonymous.
b) Leadership includes staffing and controlling, whereas management includes
influencing prospective customers.
c) Managing is an important part of leading.
d) Leadership is the ability to influence others to attain objectives, whereas
management requires the use of leadership.
Which of the following is true about communication?
a) Employees generally disbelieve what the owner says, regardless of whether it is true
or not.
b) Messages of higher-status people automatically tend to carry greater credibility than
those of lower-status people.
c) Individuals in authority always listen to people who are closer to a problem rather
than to other members of the team.
d) The use of buzzwords facilitates communication.
Leased manpower refers to _____.
a) rehired former employees who are a potential source of trained workers
b) employees upgraded by training them to do increasingly complex work
c) employees obtained from an outside firm that specializes in performing a particular
service
d) employees moved from one location to the other
The sales of a product are rising rapidly and profits are peaking. This product is in the
_____ stage of the product life cycle.
a) introduction
b) growth
c) maturity
d) decline
Which of the following is true of the Small Business Administration?
a) It offers environmentally friendly products for commercial sale.
b) It generally requires a substantial return as either equity or profit.
c) It helps small firms find financing at reasonable rates.
d) It allows small businesses to reap tax advantages by selling stock shares to workers.
What does a franchiser do?
a) Owns the company’s name and licenses others to sell its products
b) Provides a licensing fee to the owner of the business
c) Runs the day-to-day operations of the local business
d) Agrees to sell the product according to the franchisee’s requirements
Which of the following is true of combination franchising?
a) It is opposed to the concept of synergy.
b) Cultural clashes can lead to the breakup of this arrangement.
c) The firms in this arrangement should be competing against each other.
d) This type of merger weakens the participating firms.
In the context of small businesses, which of the following is true of business
incubators?
a) They reap tax advantages from selling shares to workers.
b) They nurture young firms and help them survive.
c) They are run by the Federal Small Business Administration.
d) They require a substantial return as either equity or profit.
What is the function of the Small Business Administration?
What is an operating system? What are the productive elements of an operating system?
Describe some of the current trends challenging small business owners.
What are the four methods used for setting an advertising budget?
Why are setting objectives important to a small business? Give an example.