Regular and systematic reduction in income that transfers asset value to expense over
time is called _____.
A. appreciation
B. contribution margin
C. depreciation
D. benchmarking
Walter Bradham, the owner of Bradham Corporation muddled his personal finances
with his business accounts. Following a suit into the financial irregularities at Bradham
Corporation, a court subjected the Corporation to the decision of piercing the veil.
Which of the following course is the court most likely to take in this case?
A. It will convert Bradham Corporation into a separate legal entity.
B. It will dissolve the corporation into a sole partnership under Bradham.
C. It will change Bradham’s liability in the business to one that of a limited partner.
D. It will hold that Bradham has no personal liability for Bradham Corporation’s debt.
All of the following are the key ideas of bootstrapping EXCEPT:
A. cutting your personal and business expenses.
B. seeing if you can get things which you need for free.
C. seeing if you can substitute a lower-cost alternative before you buy.
D. borrowing heavily from banks while keeping your money untouched.
Which of the following statements is true of price skimming?
A. It should be followed when there are many substitutes for a product.
B. It should be typically applied at the decline stage of the product life cycle.
C. It is not a long-term strategy for businesses to follow.
D. It helps establish a barrier to the entry of competitors.
Working on one’s own part-time business after a regular job is referred to as:
A. moonlighting.
B. bootstrapping.
C. outsourcing.
D. licensing.
____ refers to the process of intergenerational transfer of business.
A. Role conflict
B. Succession
C. Certification
D. Access
Which of the following is a disadvantage of renting capital assets?
A. It does not protect a business from unexpected costs of repairs.
B. It is not easily available.
C. It requires the business to make regular, timely payments.
D. It requires a major cash investment.
A _____ is a narrowly defined segment of the population that is likely to share interests
or concerns.
A. niche market
B. mass market
C. primary market
D. parallel market
Which of the following is an example of sales promotion?
A. Tara’s Attire adds kids clothing to its existing range of clothes.
B. Sammy Jams advertises about its new jam through billboards.
C. Treats Today gives away samples of its new healthy donuts for free.
D. Yen Yoga passes out flyers to advertise about a new yoga center in the Holmesville.
In _____ sales, one firm sells to another firm.
A. business-to-business (B2B)
B. business-to-consumer (B2C)
C. consumer-to-consumer (C2C)
D. business-to-Internet (B2I)
Which of the following best exemplifies close-ended questions?
A. What aspects about a spa appeal the most to you?
B. How can we improve this spa?
C. Is this your first visit to the spa?
D. How has the spa helped improve your life?
_____ is best described as the process of selling prototype of a product in either a real
or simulated market environment.
A. Test marketing
B. Moonlighting
C. Bootstrapping
D. Commercialization