Assigning a high value to inventory results in increased sales margin and reported
profit, but at the price of paying increased income taxes.
One technique to making bootstrapping work is leveraging low costs with free
expertise.
Giving a gift has tax implications.
Gathering resources for a business is easier during economic recessions than during
economic boom times.
Succession plans deal with the people who will take over, what roles they will fill, and
what supports they will receive.
Current practice is for small businesses to only provide direct credit to customers.
The advantage of separating company name from brand name is that if a product
doesn’t take off, one can drop the product line with minimal impact to the company
image.
If Connie gets her family and friends involved as investors, which of the following is
most likely to be their concern?
A. Cash flow and cash cycle
B. Intellectual property protection
C. Monitoring compliance
D. Amounts and schedules for returns
Which of the following statements about open-ended questions is true?
A. They can only be answered in a “yes” or “no” fashion.
B. They make tabulation and comparison of data easy.
C. They are best used for gathering preliminary information.
D. They are best applied when samples are large.
_____ is an approach to operating a firm or a line of business which identifies, creates,
and exploits opportunities to make a profit in a manner that can minimize the depletion
of natural resources, maximize the use of a recycled material, or improve the
environment.
A. Serial entrepreneurship
B. Venture capitalism
C. Sustainable entrepreneurship
D. Corporate intrapreneurship
Value benefits are important because:
A. they lead to scope savings.
B. they lead to higher prices.
C. they result in scale savings.
D. they lead to reduced costs.
Data gathered by simple observation that involves seeing what customers do rather than
asking them refers to _____ research.
A. focus group
B. survey
C. ethnographic
D. secondary
Which of the following is most likely to increase the odds of successes for a start-up?
A. Starting a business with a sole founder
B. Having experience managing large firms
C. Choosing a business that produces high margins
D. Securing investment from family or friends
A financial plan for the future based on a single level of operations is called a(n):
A. balance sheet.
B. budget.
C. income statement.
D. statement of cash flows.
_____ is the segment or segments a business owner selects to concentrate his or her
marketing efforts.
A. Target market
B. Qualified market
C. Customer vector
D. Optimized market
A business action that has been widely adopted within an industry or occupation is
known as _____.
A. best business practice
B. specialized business professionalization
C. standard business practice
D. expert professionalization
Which of the following forms of business faces double taxation?
A. S Corporation
B. Professional corporation
C. Corporation
D. Limited liability companies
In the SCAMPER tool, “M” stands for:
A. manage.
B. match.
C. market.
D. modify.
EnviroAir Inc. was featured in newspapers for its contribution toward sustainable
environment. Also, the company distributed brochures to prospective customers to
inform them about the company products. Which of the following sections should carry
the press release and brochures in EnviroAir’s business plan?
A. The appendixes
B. The organization
C. The market
D. The financials
_____ is the idea that it is cheaper (per item) to make many of an item than few.
A. Inventory turnover
B. Economy of scale
C. Breakeven point
D. Historical value
The sum of all costs of capital assets, including acquisition, ownership, operation, and
disposal is called _____.
A. acquisition cost
B. cost of owning
C. whole of life cost
D. replacement cost
In general, all forms of business organization can be categorized based on the owners’
responsibilities for the organization’s liabilities, and _____.
A. how the business is taxed
B. how the business is financed
C. the business’s target market
D. whether it is a manufacturing or service organization
The name of a business can be called its doing business as (dba) name.
A(n) _____ refers to a part of a contract in which a party to the contract states that he or
she will not be responsible for certain actions.
A. noncompete clause
B. exculpatory clause
C. hold harmless clause
D. power of sale clause
What are the two market decisions that entrepreneurs need to make early in the process
of going into business?
How can a small business owner manage risk to intangible property?
Describe the three types of terminations – walkaways, workouts, and bankruptcies.
Elucidate on the steps that can be employed to structure a negotiation so as to achieve a
winning solution for both parties.
What is bootstrapping? Explain an idea to make bootstrapping work.
What can a small business owners do to ensure that an internal audit effectively meets
his or her goals?
Briefly summarize low customer contact businesses.