Customers can never be a source of risk for businesses.
Limited liability companies’ primary advantage is that owners may easily choose
whether to be taxed as an entity or have tax items pass through.
Disposal value is based on determining the price of either a new asset or a used asset for
which there is an organized market.
For most small businesses existence will follow the success stage.
Leasing is an option with a considerably lower initial cash outlay and is often the only
feasible choice for new businesses.
When a product or service is truly new to everyone, it is considered a pioneering
business.
Skills necessary to identify and exploit elements of the business environment that can
lead to a profitable and sustainable business are called opportunity competencies.
One of the pitfalls small business owners fall into is to fail to build a company culture
that encourages new ideas and embraces change.
Making training an ongoing process is a good way to encourage dialog with employees
when their learning curve goes flat.
The close of a sale is the end of the sale.
Money contributed to businesses in return for part ownership of the business is called
a(n) _____.
A. debt
B. equity capital
C. gift
D. loan
_____ represent either ownership or debt of publicly held firms and government issued
debt, in the form of bonds, notes, and bills.
A. Demand deposits
B. Marketable securities
C. Set-asides
D. Traveler’s checks
_____ is an estimate of what an identical asset would cost to be acquired and readied
for service.
A. Earnings multiple
B. Book value
C. Replacement value
D. Net realizable value
The sum of money that has actually been received and paid out of a depositor’s account
is termed _____.
A. bank ledger balance
B. company book balance
C. bank available balance
D. overdraft balance
The ratio of profits to owner investment in a business is referred to as _____.
A. return on equity
B. return on assets
C. return on sales
D. return on inventory
_____ is an aspect of entrepreneurship which looks at a new thing or a new way of
doing things.
A. Customer-focus
B. Innovation
C. Creation
D. Efficiency
The most common type of disability coverage is _____ which provides funds to the
business to purchase the ownership position of a disabled partner.
A. life insurance
B. medical insurance
C. credit insurance
D. buyout insurance
Which of the following is best avoided in handling a business crisis?
A. Appointing an outside professional, such as a lawyer, as a firm’s spokesperson
B. Communicating facts to the employees and customers
C. Mixing crisis management with the everyday management of a firm
D. Admitting that the company is in trouble as quickly as possible
Which of the following is the idea trigger for the magnify cue of the SCAMPER tool?
A. The opportunities that come as a result of replacing things that already exist
B. The separate products, services, or whole businesses that can be put together to
create another distinct business
C. The products or services that can be imitated from other industries or fields
D. The factor that can be used to make a product different from that of competitors’
products
Which of the following statements is true regarding the balance sheet?
A. It is rarely useful to the owners and managers of businesses.
B. It contains an exhaustive list of a business’s assets and liabilities.
C. It always contains exact amounts.
D. it’s values are considered as historical values.
A situation that occurs when the entrepreneur does nearly everything in the simplest
way possible is known as _____.
A. expert business professionalization
B. specialized business professionalization
C. minimalized business professionalization
D. maximized business professionalization
Which of the following statements is true about coupons?
A. Coupons are delivered more through the Internet than in newspapers.
B. Coupons fail to serve an advertising purpose.
C. Coupons help customers remember the promoted product favorably.
D. Coupons are ineffective in attracting people to try new products.
Revenue-producing tasks and activities related to, but not part of, the primary strategy
of a business, are called _____.
A. discount projects
B. charge backs
C. noncore projects
D. consignments
Mark has developed a novel product and is worried that it might get copied. To address
this concern, Mark must address which of the following aspects of the I2P analysis?
A. The royalty the product is most likely to generate
B. The extent of IP protection for the product
C. The initial set of customers
D. The market and its size
What are the three general forms of legitimacy that small businesses can develop?
What is VIGE? Explain.
Compare between nepotism and meritocracy.
What are the four best practices that can help any online social networking effort
become successful?
Explain the challenges faced by second career entrepreneurs?
– What is market segmentation? What are the most frequently used basis of market
segmentation?
How can a small business owner get into an innovative frame of mind? Explain.
Briefly describe the four philosophies related to ethics a person can use to evaluate
alternatives he or she has generated to solve a problem.
What are fidelity bonds?