Which of the following forms of direct marketing is the most expensive?
A. Direct sales
B. Telemarketing
C. Direct mail
D. Guerilla marketing
Which of the following terms best represents something a business owns that has
economic value or is expected to have economic value in the future?
A. Asset
B. Revolving credit
C. Cash flow
D. Synergy
Which of the following will be an example of odd-even pricing?
A. Buy a T-shirt for $19.89.
B. Buy four sandwiches and take the fifth one for free.
C. For purchases above $20 get a gift worth $5.
D. Market price is $25 and our price is $22.
_____ refers to the contacts business owners periodically make with customers in order
to remind them of their business, and their interest in customers’ business.
A. Follow-up
B. Customer service
C. Follow-through
D. Mat release
Tammy has just opened a donut shop called The Rabbit Hole. Given that The Rabbit
Hole is in its start-up phase, which of these would be Tammy’s immediate financial
management need?
A. Building owner’s wealth
B. Conserving what little money the business has
C. Obtaining increasing amounts of cash inflows
D. Minimizing debt and increasing asset value
The rule of thumb for evaluating current ratio is that the minimum acceptable ratio is:
A. 3.0.
B. 1.0.
C. 2.0.
D. 4.0.
Which of the following is true of leasing issues?
A. Landlords do not have the right to move a business elsewhere at their discretion.
B. It costs more to limit the landlord’s ability to lease to competing businesses.
C. It is irrelevant to look for stores in a landlord’s property that match your business
hours.
D. There are no penalties or problems for rent default.
The direct cost incurred in using an asset for the purpose for which it was intended is
termed as _____.
A. cost of operating
B. cost of owning
C. whole of life cost
D. cost of disposition
Tammy is talented at craft but lacks the cash flow management skills required to run a
business. She opens a store, Tammy’s Craft Corner, with the help of her son David€a
business major€who would manage the budgets and expenses of the business. Tammy
buys her craft materials on credit from her supplier but clears all her debts at the end of
every month. The amount that Tammy owes her supplier is referred to as _____.
A. payables
B. charge backs
C. deposits
D. receivables
_____ rewards are those which people get from facing and beating or learning from
challenges.
A. Recognition
B. Flexibility
C. Income
D. Growth
Which of the following is a myth about small businesses?
A. That failed entrepreneurs can succeed if they try again
B. That a small business will never have enough financing
C. That students have skills to start small businesses
D. That small businesses can start during recession
Which of the following is a technique used by a small business to increase cash
inflows?
A. Making deposits and progress payments
B. Forgoing any receivables
C. Offering discounts for prompt payment
D. Refusing any noncore paying projects
_____ is the source of the largest amount of employee theft.
A. Employee collusion
B. Employee intoxication
C. Adverse possession
D. Employee nonfeasance