The research and development team of Leonide Inc. has generated five different
product ideas. All five ideas are being rated against each other on their characteristics
such as product uniqueness, idea profitability, protectable intellectual property, and
product team quality. Based on their ranking in this stage, only three ideas will make it
to the immediate next step which will be the stage of _____.
A. idea generation
B. commercialization
C. feasibility study
D. market introduction
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. Jane purchases a picture frame from Tammy using a credit card. She
notices a crack in the frame and returns it to Tammy. Jane contacts the credit card
service provider for a refund. The credit card company removes the sale amount from
Tammy’s account which is referred to as a(n) _____.
A. incentive
B. liquidity
C. overdraft
D. charge back
Partnerships through which two or more businesses combine to undertake a specific
economic activity are called _____.
A. corporations
B. sole proprietorships
C. joint ventures
D. S-corporations
Raven created the sample versions of her toy products and tested them in kindergartens
and play parks. These sample versions of the toys are referred to as _____.
A. hybrids
B. pure goods
C. me-too products
D. prototypes
All of the following are situations in which it might make better sense to undertake a
part-time business EXCEPT:
A. when someone is new to business and needs to gain basic experience.
B. when someone lacks resources to pursue a full-scale business.
C. when there is a narrow window of opportunity.
D. when there is too much competition.
A(n) _____ refers to the sum of cash inflows and cash outflows recorded in a firm’s
accounting records.
A. company book balance
B. bank ledger balance
C. overdraft balance
D. bank available balance
Wholesalers, retailers, distributors, agents are commonly referred to as ______.
A. freight forwarders
B. intermediaries
C. born internationals
D. traffic generators
_____ refers to a situation that occurs when a check is returned to a depositor because
the writer of the check did not have a bank available balance equal to or greater than the
amount of the check.
A. Charge back
B. Nonsufficient fund
C. Reconciling
D. Overdraft
Which of the following is true of offering direct credit to customers?
A. It discredits the business’s reputation.
B. It always decreases business risk.
C. It ensures on-time payment from customers.
D. It increases sales for the business.
In new product development process, the product development stage typically involves:
A. testing the feasibility of product ideas.
B. creating a marketing plan for the final product.
C. introducing product prototypes to test markets.
D. commercializing the new product.
A clothing company that divides its market using characteristics of clothing such as
practical, stylish, or for a particular sport, etc., is segmenting the market _____.
A. demographically
B. economically
C. geographically
D. by benefits sought
Selling the rights to collect accounts receivable to an entity outside the business is
called _____.
A. factoring
B. pledging
C. reconciling
D. outsourcing
A firm will be recognized for its industry leadership, a product-based legitimacy
building characteristic, typically when:
A. its employees dress in casual attire to work.
B. its service standards are benchmarked by competitors.
C. it refuses to use outdated technology.
D. it uses common technologies of the industry.
The percentage amount that the payout of an investment differs from original cost is
known as:
A. dividend on capital.
B. gain on investment.
C. risk on investment.
D. interest on the principle.
Born and raised in India, Rashmi has always enjoyed Indian cooking. As a matter of
fact, cooking was her passion and she always enjoyed reading, learning, and
experimenting with different ethnic cuisines. Ever since Rashmi’s family moved to the
United States, her cousins, friends, and other people at dinner gatherings have always
commented that Rashmi should start a catering business. Realizing that her American
friends may not be able to handle or like the Indian food because of its spiciness,
Rashmi decided to make changes to the recipes to suit the local taste. Rashmi is
seriously contemplating whether she should start a catering business-Tastes of India.
Rashmi appears to be applying which element of the SCAMPER tool in her
entrepreneurship ideas?
A. Modify
B. Substitute
C. Restitute
D. Eliminate
Which of the following is a protected class established by the EEOC?
A. Age
B. Sex
C. Marital status
D. Political affiliation
The most common form of institutional gift financing is in the form of _____.
A. state loans
B. reduced taxes
C. state grants
D. donated capital
The most common form of institutional gift financing is in the form of reduced taxes,
either through tax abatement or in the form of a credit against taxes payable.
As a firm gets more experience, it can often work with fewer mistakes and greater
efficiencies, thereby lowering costs. This leads to the cost benefit of _____.
A. personalization
B. scope savings
C. learning
D. altruism