The two key factors in traditional leadership theories are task and person.
Patents are essentially monopolies granted to inventors by the U.S. government giving
patent owners the exclusive rights to make, use, or sell that invention for a certain
period of time.
A direct mail approach needs major inventory investment.
Being a small business makes managing organizational culture harder than in larger
businesses.
The slowest growing sector of all U.S. businesses is women-owned businesses.
From a marketing standpoint, in the introduction stage, the more innovative a product,
the higher the sales.
Many small businesses experience problems in cash flow management because of the
mismatch between the timing of the receipt of cash and the timing of the need to
expend cash.
The Age Discrimination in Employment Act makes it illegal to:
A. discriminate against people who are older than 40 years of age.
B. employ minors at a workplace.
C. provide preferential treatment to employees over 50 years of age.
D. provide work opportunities to school students.
Alana, the owner of a small dress-making establishment called Mantua Fab, decides to
hire assistants for design, sewing, and other tailoring jobs. If Alana posts an ad in the
newspaper, which of the following is correct?
A. She will incur very low expenses.
B. She is using a networking type of recruitment method.
C. She can use filters to search through the resumes of applicants.
D. She will experience a long turnaround time.
Which of the following is true of promotional novelties?
A. They explain the competitive strategies of the company to the readers.
B. They must be large enough to read by passing traffic.
C. They include stories of customers whose problems were solved.
D. They are given to key customers or as gifts to employees.
Bill runs a small business and is in the process of revising out his company’s
compensation plan. After researching the market and determining the salary range, Bill
starts to plan how much of an increase in pay he can offer each employee subsequently.
In the context of increasing pay, which of the following is the most appropriate course
for Bill to follow?
A. Bill should determine this based on an employee’s performance, value, and
contribution to the small business.
B. Bill should check salary surveys and want ads.
C. Bill should pay the amount needed for a person or family of a particular size to meet
the basic necessities of life as an increase.
D. Bill should take no more than 3 percent of the annual personnel budget and allocate
it to pay increment.
According to Jill Kickul’s research, which of these factors is most important to
employees?
A. Autonomy and personal growth
B. Benefits
C. Rewards and opportunities
D. Job security
Which of the following is true of niche markets?
A. They are broad markets.
B. They target all the customers in the entire market.
C. They are specific and narrow.
D. They involve large portions of the population.
_____ is an estate planning strategy which focuses on generating cash to cover likely
estate taxes.
A. Liquidity enhancement
B. Tax management
C. Estate freeze
D. Transfer
Which of the following is an example of a generic marketing strategy?
A. Formula facilities
B. Craftsmanship
C. Customization
D. Differentiation
Which of the following describes the significance of an overall growth strategy?
A. It represents a driver of the variety of entrepreneurship.
B. It allows for one small business enterprise to incorporate in multiple states at the
same time.
C. It provides the owner a stake in the family business.
D. It helps buyers to get familiar with new products.
A(n) _____ focus refers to an entrepreneur’s attention to minimizing losses, with a bias
toward inaction or protective action to avert loss.
A. external
B. promotion
C. effectuation
D. prevention
If a business offers its assets as collateral, lenders are most interested in the _____
value.
A. book
B. fair market
C. replacement
D. disposal
A _____ is a unit recognized as having rights and duties apart from the owners of the
company.
A. retainer
B. utility patent
C. legal entity
D. sole proprietorship
Which of the following is one of the most common behaviors found in successful
entrepreneurs?
A. Preemption
B. Frigidness
C. Personalization
D. Passion
Crux Inc. and Synapse Inc. are two competing businesses in the same city. They use the
services of the same insurance company and have taken the same policy. Crux has a
higher deductible than Synapse for the policy. Which of the following statements would
be true in this case?
A. Both companies are not paying any premium.
B. Synapse pays a higher premium than Crux.
C. Both the companies pay the same premium.
D. Crux pays a higher premium than Synapse.
Activities through which cash is obtained from and paid to lenders, owners, and
investors are called _____ activities.
A. operating
B. investing
C. financing
D. marketing
Sylvia had helped Jonathan, one of her previous subordinates, in establishing his
business by referring him to an important venture capitalist. As an appreciation of her
help, Jonathan has now agreed to hire and personally mentor her son as a trainee in his
company. Both Sylvia and Jonathan are typically exhibiting _____.
A. collectivism
B. bicameralism
C. mutuality
D. autocracy
_____ often represents an owner’s last major return from a firm and a key pool of
money for retirement or further businesses.
A. Transfer
B. Harvest
C. Franchising
D. Consolidation
Product expansion is a strategy whose goal is growth, based on:
A. selling more of the firm’s product or service to the existing customer base.
B. selling in areas or to groups previously not served by the business.
C. selling existing customers a product or service they have never bought before.
D. adding new products or services to the firm’s existing collection of offerings.
Martin runs a successful house painting business. He runs his business out of his
garage, which he got converted into an office space. Martin, who had previously
worked as a house painter in another company had good know-how of how to run a
house-painting business. After a storm destroyed public properties in his neighboring
town, he contracted with the mayor of that town to fulfill any painting jobs required
during the town’s reconstruction. In order to meet this demand and expand business, he
hired more house painters. According to the BRIE model, which of the following is an
example of Martin’s opportunity competency?
A. Martin hiring more house painters to meet demand
B. Martin contracting with the mayor to help paint during reconstruction
C. Martin setting up the business’s office in his garage
D. Martin deciding to set up his own business after quitting his previous job
Define the five Ps of entrepreneurial behavior.
Describe the pros and cons of offering credit to customers.
Briefly explain the components of a marketing plan.
Differentiate between on-the-job and off-the-job training methods.
Differentiate between follow-through and follow-up.