Your mother prompting you to “act like a lady (gentleman)” is the result of which
sociological influence?
a. culture
b. opinion leaders
c. reference groups
d. social class
Generally speaking, a strategy is
a. an action plan that guides resource investments.
b. a formal statement of what the firm intends to do.
c. an expanded description of the firm’s mission statement.
d. most effective when it is designed to reflect the tactics that are common within an
industry.
Maintenance that is intended to restore equipment or a facility to good condition is
called
a. corrective maintenance.
b. full-scale maintenance.
c. preventive maintenance.
d. partial maintenance.
The number one challenge in a growing business according to Joshua Schechter,
founder of Online Business Services, is
a. overcoming inadequate resources.
b. attracting management talent.
c. transferring your entrepreneurial spirit.
d. growth that creates a leadership vacuum.
One of the disadvantages of leasing employees is that
a. the leasing company determines who gets promoted.
b. some leasing companies have run into financial trouble, leaving the small businesses
liable for unpaid claims.
c. benefits are not as good for the employees, although the firm saves money.
d. the company receiving the employee loses control of his or her career path.
In a limited partnership, which of the following remains bound by all debts of the
business?
a. Limited partner
b. Special partner
c. Partner with the greatest capital investment
d. General partner
Less-than-professional management behavior on the part of an entrepreneur can
a. provide a spark to the business because of the spontaneity it introduces.
b. be interpreted as evidence of creativity.
c. act as a drag on business growth.
d. normally provide a competitive edge to the firm.
In its general form, a self-insurance program
a. designates funds for property.
b. designates funds for workers’ compensation.
c. is a contingency fund for potential losses, regardless of their source.
d. is administered by an insurance company.
The consumer-oriented approach to marketing
a. is just one more business philosophy.
b. focuses solely on customer satisfaction.
c. recognizes first and foremost the need for attaining production efficiency goals.
d. the generally preferred philosophy for all types of businesses.
Life insurance purchased by a company with the company as sole beneficiary is
a. key-person insurance.
b. a surety bond.
c. business interruption insurance.
d. credit insurance.
With regard to market demand estimation, _____ determines whether the sales
forecasting process is direct or indirect.
a. the industry orientation of the firm
b. the nature of the predicting variable
c. the ultimate goal of the entrepreneur
d. the marketing philosophy of the startup
Which of the following is a very important question to ask as a firm moves toward a
harvest?
a. Why do the owners want to harvest?
b. What is the value of the firm?
c. Does the firm have a leadership succession plan in the event that the firm sells?
d. Will the owners change their minds?
Josh is concerned that the snacks he bought are the ones that his friends will enjoy
when they come over to watch the game. He is in the ________ stage of the consumer
decision making process.
a. information search and evaluation
b. problem recognition
c. post-purchase evaluation
d. purchase decision
Credit cards are usually based on a ____________ account system.
a. an open charge
b. an installment
c. a revolving
d. a selective
An example of an industry especially vulnerable to efforts to protect the environment is
the _____ industry.
a. glass manufacturing
b. military construction
c. restaurants
d. pet-food processing
The exercise of reasonable care in the evaluation of a business opportunity is
a. customary caution.
b. due diligence.
c. scrupulous surveying.
d. duty of care.
Keys to developing effective bonus plans include all of the following EXCEPT
a. Setting attainable goals.
b. Including employees in planning.
c. Keep updating the goals.
d. Discontinuing the bonus plan periodically.
The spouse of the head of a family business may serve the family firm by
a. making impartial decisions on controversial business matters.
b. filling the role of a company director.
c. mediating family disputes.
d. staying out of the business.
The description of potential customers in a target market is commonly called a
a. customer profile.
b. demographic detailing.
c. Simpkins matrix.
d. target picture.
To avoid a stifling atmosphere for nonfamily employees in a family business, the owner
should
a. promote only nonfamily members.
b. avoid all special consideration for family members.
c. make clear the extent of opportunity for nonfamily members.
d. minimize discussion about future management changes.
Which of the following is not one of the basic objectives of the business plan?
a. It identifies the nature and context of the business opportunity.
b. It outlines the approaches other entrepreneurs have taken in the same industry.
c. It serves as a tool for raising financial capital.
d. It highlights factors that will determine whether the venture will be successful.
Import Properties, a small firm that imports trade goods from South America, ships
purchased goods on one of two company-owned vessels. Import Properties operates as
a
a. common carrier.
b. public carrier.
c. private carrier.
d. contract carrier.
The “lasting medium” is a term that refers to which of the following?
a. Contests
b. Sampling
c. Specialties
d. Free merchandise
If a firm’s current ratio improves from 1.5 to 2.0, what has likely happened?
a. Current liabilities have decreased.
b. Fixed assets have increased.
c. Ownership equity has increased
d. Long-term debt has decreased.
Workers act on their own and to make decisions about the processes they”re involved
with are considered to be
a. empowered employees.
b. policy-capable subordinates.
c. work-team ready.
d. nascent managers.
Which of the following is not included on a cash flow statement?
a. Collections from customers
b. Payments to suppliers
c. Cash tax payments
d. Existing fixed assets such as machinery
The John E. Long family was charged by the IRS with income tax fraud for failing to
record the cash they collected for admission to their country folk art shows. This illegal
practice is known as _______.
a. cash diversion
b. gunkholing
c. skimming
d. mattress-stuffing
Which of the following is not one of the services ad agencies provide?
a. Furnishing design and artwork
b. Evaluating the effectiveness of different advertising appeals
c. Analyzing the balance of a firm’s marketing mix
d. Advising on sales promotions
The basic types of credit cards include all of the following except
a. entertainment credit cards.
b. retailer credit cards.
c. bank credit cards.
d. collective establishment credit cards.
Development of international franchise operations usually involves
a. fewer resources than anticipated.
b. more personnel than resources.
c. little patience and much perseverance.
d. diversion of surplus domestic resources.
A small firm that is profitable but provides only a very modest return to the
entrepreneur is
a. an attractive small company.
b. a high-potential venture.
c. a franchise.
d. a microbusiness.
The interests of small business owners and environmentalists are not always in conflict.
Because some foreign markets are not accustomed to high quality goods and services,
small firms in the U.S. are finding that an emphasis on quality is much more important
to being competitive in the American market than in overseas markets.
The payback period technique measures how long it will take to recover the initial cash
outlay of an investment.
Net cash flow should be equated with net profit.
List and briefly explain the four common methods of earmarking funds for promotion.
What are the advantages and disadvantages of the cash method of accounting compared
to the accrual method of accounting?
In using the net present value method, one does not consider the time value of money.
Attitudes are forces that organize and give direction to the tension caused by unsatisfied
needs.
When criteria are evaluated in selecting the location for a new business, one factor may
be more important in a given situation, but each factor always has an influence.
Small businesses are particularly vulnerable to employee fraud because their control
systems are characteristically ineffective.
A business plan should project marketing, operational, and financial aspects of a
business for the first five to seven years.
Contrast penetration price and skimming price strategies.
Learning effects are the direct result of economies of scale in operations.
Because of the considerable cost, time, and effort associated with pre-testing, it is
generally considered necessary only in the case of extensive, complex questionnaires.
The effectiveness of banner ads is obviousthat’s why they are so prevalent on the
Internet.
Prospecting is the ongoing search for new customers.
Employee stock ownership plans have become popular but still carry many tax
disadvantages.
Entrepreneurial teams are formed by bringing together two or more persons who
together function as entrepreneurs.
Capital financing with no established marketplace is financing from commercial banks.