Which of the following is a financial statement that will be checked during due
diligence when buying an existing business?
A. White paper
B. Balance sheet
C. Codicil
D. Amicus brief
_____ is the amount of money left after deducting the operating expenses of the
business.
A. Gross profit
B. Net profit
C. Profit after taxes
D. Generic profit
Which of the following statements is true about the task environment?
A. The task environment of a firm is larger than its general environment.
B. This part of the environment is made up of those people a firm deals with every day.
C. It is extremely easy to recognize new trends and changes among the members of the
task environment.
D. It is a part of the internal environment made up of employees, owners, and board of
directors.
Taking an idea and offering a way to do something slightly better than it is done
presently refers to a(n):
A. imitative strategy.
B. incremental strategy.
C. status quo strategy.
D. innovative strategy.
Maya runs a home-based apparel business called Round Polka catering only to the
needs of pregnant women. Identify the type of marketing strategy involved.
A. Differentiated strategy
B. Concentrated strategy
C. Undifferentiated strategy
D. Mass strategy
Which of the following is an example of a search engine?
A. AOL
B. Facebook
C. LinkedIn
D. MySpace
_____ is a process of communicating within or to an organization about how the
outputs worked or were received.
A. Productivity
B. Valuation
C. Feedback
D. Operations
The primary advantage of the payback period is that:
A. it calculates the amount required to attain a capital asset.
B. it incorporates the time value of money.
C. it allows easy comparisons of alternatives.
D. it incorporates all cash flows that occur after the payback period.
High-growth ventures:
A. use imitation as their metastrategy.
B. start small but are intended to grow rapidly.
C. cannot include a team of partners.
D. do not delegate tasks.
Tammy is talented at craft but lacks the cash flow management skills required to run a
business. She opens a store, Tammy’s Craft Corner, with the help of her son David’“a
business major’“who manages the budgets and expenses of the business. Within a few
months, David notices problems in cash flow. Although not the primary strategy of her
business, Tammy takes up craft projects for kindergarten schools in an effort to increase
cash inflow. This kindergarten project is an example of a(n) _____.
A. consignment
B. noncore project
C. charge back
D. arraignment