It is now illegal for employers to arrange for background investigations of job
applicants.
Holding stock issued pursuant to Section 1244 of the Internal Revenue Code (i.e.,
Section 1244 stock) offers no financial protection against corporate failure.
List the five factors that determine the nature and degree of competition in an industry,
as presented by Michael Porter in his book Competitive Advantage.
In a survey of employees of small firms, approximately two-thirds of the respondents
said they did not feel any pressure to compromise their own ethical standards.
The marketing strategy section provides the most detailed information in a formal
marketing plan.
Distribution is essential for tangible goods, but not for intangible goods.
Even if family members lack the capability to run the business, an entrepreneur should
always select a successor from this pool of talent.
An investigation of culture with a narrow definitional boundary (e.g., by age,
geographic location, etc.) is called perceptual categorization.
Without a strong commitment to integrity on the part of small business leadership,
ethical standards can easily be compromised.
Long-term transactional relationships with customers are fostered by good information.
Net working capital includes cash and accounts receivable, among other things.
The textbook identifies a number of sources of current debt. Name these sources and
describe the nature of each.
Cash flows that investors either provide to or receive from the business are called cash
flows from owners’ equity.
Price lining refers to the systematic determination of the right price for a product or
service.
Buyers, suppliers, substitute products, competitive rivalry, and new entrants all
represent forces within an industry.
Experience curve efficiencies refers to the savings that arise from spreading activity
across more units of output and from acquiring more specialize plants, equipment, and
employees.
More than 75 percent of the world’s population lives outside of the United States.
Because they are in contact with a much larger body of employees, the ethical influence
of a leader in a large business is more pronounced than is that of a leader in a small
firm.