When an individual buys products like shoes, music, or cell phones online, it is referred
to as _____ type of e-commerce.
A. business-to-business (B2B)
B. business-to-consumer (B2C)
C. consumer-to-consumer (C2C)
D. business-to-Internet (B2I)
The difference between an actual and budgeted revenue or cost is called:
A. liquidity.
B. financial flexibility.
C. variance.
D. investing activities.
_____ refers to the fixed, determinable period of utility of an asset.
A. Useful life
B. Salvage value
C. Payback period
D. Disposal value
Which of the following is true of the growth of a typical traditional small business?
A. It tends to quickly level off after the owners operate long enough to learn the basics
of making money.
B. It levels off after operations settle into a consistent, money-making pattern
generating income to provide a living for the owner.
C. It grows at rates between 5 to 15 percent a year.
D. It grows at rates of 25 percent or more a year.
_____ segmentation typically divides customers into groups based on what advantages
they seek when making product or service decisions.
A. Geographic
B. Demographic
C. Benefit
D. Ethnographic
Growth stage is an industry life cycle stage in which:
A. customer purchases increase at a dramatic rate.
B. a product or service is being invented and initially developed.
C. sales and profits of the firms in the industry begin a falling trend.
D. an industry eventually reaches a relatively stable number of firms.
The time required for a business to acquire resources, convert them into a product, sell
the product, and receive cash from the sale is referred as the _____ cycle of a business.
A. seasonal
B. operating
C. credit
D. chargeback
Direct reductions in the amount of taxes that must be paid, dependent upon meeting
some legal criteria are referred to as _____.
A. tax abatements
B. grants
C. tax credits
D. debts
_____ is the amount needed for a person to meet the basic necessities of life from a
single job.
A. Incentive
B. Employee benefit
C. Living wage
D. Benefit plan
_____ refers to a set of rules and procedures that work to limit the opportunity for
employee theft or malfeasance.
A. Internal audit
B. Internal control
C. Malfeasance in office
D. Insider trading
_____ means taking business away from one’s employer.
A. Bootstrapping
B. Licensing
C. Cannibalizing
D. Aggrandizing
Which of the following is an example of a high customer contact business?
A. Manufacturing businesses
B. Legal offices
C. Business incubators
D. Remote location services
Which of the following is true with regard to pricing of legal services?
A. Pricing of legal services is based on supply and demand.
B. Being diplomatic with the attorney is not at all recommended in negotiations on the
issue of pricing.
C. The attorney’s fee schedule in all four types of pricing of services is non-negotiable.
D. Pricing of legal services is mainly constant and fixed.
The _____ is a series of acts by Congress that prohibit discrimination on the basis of
race, color, religion, sex, or national origin.
A. Civil Rights Act of 1991
B. Age Discrimination in Employment Act of 1967
C. Americans with Disabilities Act of 1990
D. Rehabilitation Act of 1973
Which of the following should be undertaken in order to reduce a business’s exposure to
the risk of violating tax regulations?
A. Understate revenues and overstate deductible expenses
B. Reconcile the cash register tape to the cash register contents every day
C. Take cash from the businesses before it is recorded as revenue
D. Borrow from tax money in order to make payments to creditors