Buy-ins can be made in any form of business.
Price skimming involves setting a price above that of the competition so as to indicate a
higher quality or that a product is a status symbol.
A business can make a profit by focusing on ways to enhance others’ sustainability
efforts.
Reviewing employees’ performance is a one-time process.
A start-up never has existing employee problems, debts, lawsuits, contracts, or other
legal commitments that must be satisfied.
Pricing is not seen as a challenge by part-time businesses.
The best prevention method for avoiding a cash flow problem is attending to and
understanding the operations of a business€its patterns of generating cash inflows and
outflows.
The absolute lowest price that a buyer would be willing to pay is called the ‘²point of
indifference’ in the negotiation process.
Currency is the most common form of cash.
Financial accounting is forward-looking and attempts to predict the results of
management decisions.
Employee collusion has never been found to be a source of employee theft.
Differentiation strategies target a niche segment of the market.
Imitation minus one degree of similarity is the business equivalent of an innovative
strategy.
Competitors of a company are not a source of business ideas.
_____ is the cost incurred to substitute one asset with an identical asset.
A. Disposal value
B. Replacement value
C. Fair market value
D. Book value
Small businesses differ from high-growth ventures in that in small businesses:
A. the focus is on effectiveness rather than efficiency.
B. the preferred source of funding is the owner’s own money rather than other people’s
money.
C. the delegation of responsibilities is easy and necessary rather than difficult.
D. the metastrategy is for novelty rather than imitation.
What is a credit reporting agency (CRA)?
_____ refer to other businesses that bring customers to a target market area.
A. Traffic generators
B. Freight forwarders
C. Fulfillment centers
D. Contract manufacturers
Effectuation refers to:
A. the degree of attention a target market pays to an idea or organization.
B. an approach used to create alternatives in uncertain environments.
C. transforming a high-growth venture into a small business.
D. a process of a person becoming an owner by inheriting or getting a stake in a family
business.
_____ is a general approach to website design intended to result in the site being
displayed toward the beginning of a search engine’s listing for that term.
A. Sponsored link
B. Embedded placement
C. Trackback submitter
D. Search engine optimization
A _____ is a form of direct mail.
A. door-to-door sale
B. party sale
C. brochure
D. vending machine
If the owner plans to _____ a business, he or she should be removing all surplus cash
and tightening the cash-to-cash cycle to the shortest time possible.
A. transfer
B. sell
C. terminate
D. start
One of the first steps in developing a compensation plan is:
A. to carry out a pay review and present it to the newly hired employees.
B. to track employee performance.
C. to determine whether hiring is to be done for an hourly or salaried position.
D. to pay an above-market salary to create loyalty.
Which of the following is a benefit of leasing?
A. It is usually much easier to replace owned assets than it is to replace leased assets.
B. The cost of leasing an asset is less than the cost of purchasing it.
C. There are no restrictions on the use, maintenance, and disposal of leased assets.
D. An asset can be leased at a very low down payment.
Which of the following is true regarding buyout insurance?
A. It is usually provided as a stand-alone policy.
B. It is only applicable for large businesses.
C. It is a type of disability insurance.
D. It is the most highly desired form of insurance for most employees.
_____ involves contacting customers via telephone for the express purpose of selling a
product or service.
A. Telecasting
B. Guerilla marketing
C. Telemarketing
D. Teleprocessing
Telemarketing refers to contacting via telephone for the express purpose of selling a
product or service. It remains a viable form of direct marketing because it works.
Which of the following is true of using internal audits to manage risk?
A. Every small business owners conduct internal audits on their own.
B. Internal audits have a fixed structure decided by the government and all employers
are required to comply.
C. The owner should provide sufficient authority to the auditor to ensure that he or she
can accomplish the goals of the audit.
D. The owner should accept that the auditor has final authority when it comes to
approving the audit plan.
Shop Sure Inc. sells five bars of bathing soap for the price of four and three bottles of
room freshener for the price of two. This is an example of _____.
A. price skimming
B. premium pricing
C. bonus-pack pricing
D. price signaling
By adopting the pricing technique of loss leaders, a firm most likely aims to:
A. attract traffic toward its products.
B. imply superior quality to a competitor.
C. signal that its products are a status symbol.
D. reward repeat customers.