Roughly 80 percent of the typical business’ inventory turns over quickly.
Diversity may be considered a characteristic of entrepreneurs, as they don’t fit any
statistical norm.
Only about 20 percent of a typical business’ inventory turns over quickly.
Since front-line service workers are not able to predict the causes of customer
complaints, managers must be the ones to identify potential customer service problems.
A small business must carefully assess its own cash position before offering trade credit
to its customers.
Research shows that each hemisphere of the human brain processes information
differently and that one side of the brain tends to be dominant over the other.
The company’s mission statement expresses in words the entrepreneur’s vision for what
her/his company is and what it is to become.
Although sound cash management principles call for a business owner to keep her/his
cash as long as possible, slowing accounts payable too drastically can severely damage
a company’s credit rating.
Benefits of involvement in a franchise experience include ________.
A) management training and support
B) brand name appeal and standardization of goods and services
C) national advertising exposure and financial assistance
D) All of the above
The “Das Spelunker” corporation, formed in Germany and conducting business in the
U.S., is considered to be a(n) ________ corporation.
A) alien
B) domestic
C) foreign
D) distant
One of the major trends in franchising is the ________ of American franchise systems.
A) replication
B) conversion
C) internationalization
D) reduction
Rather than trying to compete head to head with the dominant players on the Web with
greater access to resources, entrepreneurs should consider focusing on ________.
A) serving a market niche
B) serving a geographic niche
C) only brick-and-mortar retail channels
D) building a Web site in-house
Steps in the patent process include ________.
A) establishing whether it is a novelty
B) documenting and verifying the date the idea was first conceived
C) searching existing patents
D) All of the above
A ________ is a company’s “face” in the marketplace and communicates a key message
to the target market.
A) blog
B) logo
C) unique selling proposition (USP)
D) brand
Ultimately, the “right” price for a product or service depends on one factor – ________.
A) the lowest price possible
B) premium prices
C) the value that it provides for a customer
D) the most effective advertising campaign
The driving force behind immoral management is ________.
A) the law
B) culture
C) greed
D) education
CD Connection sells popular CDs at three price levels: $11, $14, and $17. This
illustrates which of the following pricing techniques?
A) Odd pricing
B) Leader pricing
C) Price lining
D) Suggested retail pricing
Advantages to buying an existing business that you do not have with a startup include
________.
A) greater access to venture capital
B) the opportunity to participate in a national advertising campaign
C) inventory is in place and trade credit is established
D) easy implementation of innovations and changes from past policies
A limited liability company ________.
A) is similar to an S corporation in that it is a cross between a partnership and a
corporation
B) prevents owners who want to maintain their limited liability status from actively
managing the company
C) can have a maximum of 50 owners
D) All of the above
An entrepreneur who is considering purchasing a business is analyzing a company’s
accounts receivable. The following table summarizes her findings.
How much should this potential buyer be willing to pay for these accounts receivable?
A) Nothing; a buyer should never purchase existing accounts receivable.
B) $20,700
C) $17,877
D) Not enough information given to determine
The Fair Debt Collection Practices Act prohibits business owners from ________.
A) harassing people who are past due
B) sending invoices the same day product is shipped
C) hiring debt collection attorneys
D) referring past due bills to collection agencies
The average conversion rate for e-commerce sites is just ________ percent.
A) 9.35
B) 6.67
C) 2.55
D) 1.1
Gathering competitive intelligence, such as “dumpster diving” in a competitors’ trash,
may raise questions regarding ________.
A) the integrity of the data
B) the competitive profile matrix
C) a cost benefit analysis
D) ethical standards
Which of the following is an effective way to trim overhead?
A) When able, buy instead of leasing.
B) Hire more full-time employees; reduce the number of part-timers.
C) Eliminate zero-based budgeting.
D) Negotiate fixed loan payments to coincide with company cash flow.