It costs five times as much to get a purchase from a new customer compared to an
existing one.
Creating and distributing a catalog online saves the cost of printing and mailing.
Reconciling the differences between the bank and book balances gives a corrected bank
balance and a corrected book balance which are identical.
Tactical actions are competitive responses with low resource requirements.
A stand-alone marketing plan will include financial data and projections in the form of
balance sheets and income statements.
High-growth ventures are also known as main street businesses.
Customer vector summarizes information by groups of customers.
Most successful entrepreneurs exhibit hard work, but completely lack in competencies.
People who open multiple businesses throughout their career are called unsatisfied
entrepreneurs.
As a small business adds employees, the importance of its owner increases.
An undifferentiated marketing strategy is used when a firm targets one particular
segment on which to focus all its efforts.
Formal summaries of the content of an accounting system’s records of transactions are
called financial instruments.
One of the most ancient forms of small business is:
A. stand retailing.
B. auctioning.
C. mail order.
D. licensing.
Adam owns a software development company. He and his team developed and licensed
new software that could help many organizations strengthen their Web security. Any
organization that wishes to use Adam’s licensed software would most likely have to pay
him in the form of a(n) _____.
A. pay-off
B. royalty
C. lump sum payment
D. payout
Financial statements containing estimated or hypothetical information are called:
A. pro forma statements.
B. assumed income statements.
C. tentative balance sheets.
D. annual report statements.
Which of the following is the biggest problem with simulated test markets?
A. They cannot be computer-generated.
B. They make it easy for competitors to ‘steal” one’s ideas.
C. They do not always reflect actual buying behavior.
D. They can be used only in the commercialization stage and not in the product
development stage.
The difference between original acquisition cost and the amount of accumulated
depreciation is called the:
A. replacement value.
B. book value.
C. earnings multiple.
D. discounted cash flow.
Which of the following is true with regard to the consignment approach of selling?
A. They permit full-time sales only with full-time involvement from a person.
B. They are high-risk level undertakings.
C. They have low profitability because of agent’s fees.
D. They have no flexibility despite variety of consignment agents and agencies
available.
Which of the following is a way to start business with established customers?
A. Synergizing
B. Effectuation
C. Spin-off
D. Earn-out
A start-up cannot:
A. provide the owner with the opportunity to use the most up-to-date technologies.
B. provide new, unique products or services.
C. begin with a “clean slate.”
D. provide positive cash flows immediately.
_____ are persons working to achieve a certain goal without being subjected to
substantial controls by another.
A. Independent contractors
B. Partners
C. Defendants
D. Retainers
Questions that allow respondents to express themselves as they choose are called _____
questions.
A. open-ended
B. categorical
C. dichotomous
D. scalar
To treat family and nonfamily employees as similarly as possible in a business, it is
important to:
A. have separate personnel policies for family and nonfamily members.
B. create career ladders for nonfamily members.
C. provide favorable treatment to nonfamily members.
D. guarantee the possibility of employee ownership.
Which of the following legal forms of business is typically considered the least
legitimate?
A. Corporation
B. Limited liability company
C. Sole proprietorship
D. Partnership
______ is a contract requirement that works to prevent property owners from
deliberately underinsuring.
A. Benchmarking
B. Co-insurance
C. Adverse possession
D. Separation of duty
A business termination in which the entrepreneur ends the business with its obligations
met is called a:
A. sell off.
B. workout.
C. pass off.
D. walkaway.
_____ plans are designed to be used internally for management purposes.
A. Summary
B. Informational
C. Operational
D. Invention
_____ refers to money that is owed to a business by its customers who purchased a
product on credit.
A. Pledging receivable
B. Accounts receivable
C. Factoring receivable
D. Accounts payable
Which of the following is a type of informational plan that solicits information on
customer interests?
A. Invention plan
B. Proof-of-concept Web site
C. Private placement memorandum
D. Operational plan
What are some of the common management decisions that can be aided by the use of
accounting information and procedures? Explain.
How can business ideas be screened for their viability?
Describe the SCAMPER tool. How does it help entrepreneurs identify new
opportunities?
– Elaborate on the key components to be included in a written marketing plan. Do you
agree that marketing plan is a one-time process?
What is marketing research?
Identify the Four Cs of Borrowing.
Briefly explain the pros and cons of buying, building, and leasing.