Off-the-job techniques include apprenticeships, internships, and job rotation.
Direct competition refers to a strategy where companies provide alternatives that are
dissimilar to a firm’s product/service that consumers might choose to meet a similar
need.
Deciding when to place an order to purchase inventory is determined by (1) the rate of
sales and (2) the time required to receive new stock.
The new NAICS covers more industries than the SIC.
Part-time self-employment refers to working for self for 50 or fewer hours a week.
By agreeing to an exculpatory clause in a contract, one party is agreeing not to hold the
other responsible for his or her actions.
Small-scale entrepreneurs are only allowed to trade in sale of goods and not in trades of
service.
Taking an idea and offering a way to do something slightly better than it is done
presently is an imitative strategy.
A measure of the amount of debt relative to total investment is called cost of capital.
Cash flow statements can be either direct statements or indirect statements.
All businesses within an industry have to pay the same amount, as decided by the state,
as unemployment insurance.
Meritocracy is the management philosophy of selecting and promoting people based
solely on their being the most capable person for the job.
Radio advertisements provide both geographic and demographic segmentation of a
product or service.
One reason why accounting is important to a small business is that it shows how much
your business is worth.
Managing risks to tools, equipment, inventory, and other physical assets is largely a
function of developing and enforcing appropriate business policies and procedures.
In the situational analysis of a marketing plan, companies that provide the same product
or service are referred to as _____.
A. supporting industries
B. direct competition
C. stakeholder industries
D. indirect competition
_____ are assets that are expected to provide economic benefits for periods of time
greater than one year.
A. Accounts receivables
B. Hard assets
C. Contingent assets
D. Capital assets
The owner of Elixir Force Inc. received the most prestigious corporate award and was
also titled as “the most outstanding new entrepreneur of the year.” In the context of
people-based legitimacy, this is typically an indicator of:
A. brand equity.
B. public recognition.
C. business network membership.
D. experiential supports.
Which of the following is true with regard to home-based businesses in the United
States?
A. Home-based businesses are specific only to making furniture, toys, clothing, or food.
B. Home-based businesses give U.S. customers the strongest sense of legitimacy.
C. Home-based businesses in the United States represent only 5 percent of all firms.
D. Home-based businesses are inexpensive and quick to start.
Which of the following goals need to be addressed for extending credit to customers?
A. Getting as many customers as possible
B. Arranging a loan and making regular payments of interest
C. Keeping the number of bad accounts as low as possible
D. Increasing the time between a credit sale and cash receipt
The sales at Pizza Power have lately been declining due to a new Chinese restaurant in
the same neighborhood. This is typically known as _____.
A. direct competition
B. indirect competition
C. concentric diversification
D. conglomerate diversification
A new business that has begun from scratch is called a:
A. buyout.
B. franchise.
C. start-up.
D. buy-in.
In a _____ layout, the store is laid out in sections with aisles that angle or meander
through the store.
A. production line
B. free-form
C. grid
D. process
In _____, an advertisement is placed in a magazine, newspaper, radio, billboard, or
television and includes an order blank with a phone number, e-mail, or snail-mail
address, using which customers can place immediate orders.
A. telemarketing
B. direct response advertising
C. guerilla marketing
D. direct selling
Which of the following is one of the disadvantages of the return on investment (ROI)
analysis?
A. The profits received are not the same as cash.
B. The calculations involved in the method are complex.
C. It does not consider annual profits in its calculations.
D. It does not rely on accounting information with which investors are comfortable.
A(n) _____ typically means the core product plus features that tend to differentiate the
product from competition.
A. pure good
B. hybrid product
C. augmented product
D. me-too product
Returns above costs intended as a secondary income for entrepreneurs are referred to as
_____.
A. substitution profits
B. supplemental profits
C. success profits
D. marginal profits
Which of the following statements is true regarding a trademark?
A. A trademark can sometimes also function as a service mark.
B. A trademark once granted lasts for 25 years.
C. A trademark can only be renewed every 5 years.
D. A trademark is not an exclusive right to its creator.
In a _____, the buyer seizes control of the business without the permission of all
owners.
A. takeover
B. joint venture
C. spin-off
D. merger
Discuss the advantages and disadvantages of purchasing an existing business.
What is segmentation? What are the typical ways of dividing the market into different
segments?
Briefly discuss LaRue Hosmer’s model for making ethical decisions in business.
Compare and contrast the product life cycle with the service life cycle.
Define the terms liquidity, financial flexibility, and financial strength. Explain the
difference between financial flexibility and financial strength.
– Define differential advantage. What are the ways in which a firm can gain such an
advantage?
Elaborate on the two major types of questions used in surveys.
Explain the major factors at play when deciding what form the business organization
must take.