It is nearly impossible to design a message that will appeal universally or to find media
that will reach all consumers.
Traditional small businesses’ schedules are defined by the owners’ needs.
Factoring receivables to a commercial lender is usually less expensive than pledging
receivables.
It is a good idea for a start-up company to charge the lowest price in the market for its
products or services.
A product can include goods, services, and ideas.
A situation that occurs when businesses have founders or owners who are passionate
about one or two of the key business functions, such as sales, operations, accounting,
finance, or human resources is known as expert business professionalization.
As the owner of a business, quickly admitting that the firm is in trouble indicates a lack
of accountability.
Serial entrepreneurs ______.
A. are people who open multiple businesses throughout their career
B. are people who open just one business throughout their career
C. are people who measure an entrepreneur’s ability to use minimal resources to sustain
a single business throughout their career
D. are people who enter a partnership agreement with other entrepreneurs to run a
single business throughout their lifetime
Social entrepreneurship primarily involves a person or group:
A. creating new charitable and civic organizations which are financially self-sufficient.
B. bringing new products or services to market.
C. owning their own for-profit business.
D. revitalizing government agencies.
A business owned by an individual or a little group is referred to as a(n):
A. corporate chain.
B. conglomerate.
C. concern.
D. independent small business.
Which of the following is the most appropriate approach to building organization-based
legitimacy?
A. Creating a company’s own code of ethics
B. Sharing the business phone line with home
C. Operating the business on weekends only
D. Personally designing Web sites instead of using professional help
A way to minimize the need for high-pressure ethical decision making situations in
business is by:
A. getting down to every detail of what to permit or prohibit in positively managing a
firm’s external relations.
B. using lapses in external relations as learning experiences for the rest of the firm by
talking openly about the issues.
C. excluding the lessons of legitimacy, social networking, crisis management,
sustainability, and ethical decision making from everyday activities.
D. getting emotional when counseling around external relations issues and by keeping
the consequences of external relations lapses inconsistent.
A(n) _____ is a valuable process that can greatly help an employer with the issues of
keeping risks at acceptable levels. It is strictly a management tool which is not provided
to outsiders; it can be structured and conducted in any systematic manner the owner
finds acceptable.
A. adverse possession
B. internal audit
C. external audit
D. internal control
A type of life cycle growth stage marked by a very rapid increase in sales in a relatively
short time is called the _____.
A. maturity stage
B. retrenchment
C. shake-out
D. boom
Which of the following helps manage risks to physical assets of a business?
A. Employees should be allowed easy access of physical assets to assist them with their
work.
B. Inspections should be deemed necessary only when an item is reported missing.
C. A manager’s signature must be required to confirm that an item has been returned to
its proper storage.
D. Only clerical-level employees need to sign for removing items from storage.
_____ exist for the purpose of addressing some identified social need that cannot be
adequately met by market forces.
A. SBAs
B. Limited Liability Companies
C. EDAs
D. Foundations
Imitation minus one degree of similarity:
A. would be the business equivalent of cloning.
B. is equivalent to the blue ocean strategy.
C. leads to pure innovation.
D. helps in the creation of a unique setting.
A(n) _____ is a nonprofit organization or institution that provides business services by
using handicapped or rehabilitated workers.
A. contract manufacturer
B. e-tailer
C. sheltered workshop
D. fulfillment center
Which of the following statements about entrepreneurial teams is true?
A. Most entrepreneurial teams are family related.
B. The majority of new businesses have an entrepreneurial team of a minimum five
co-owners.
C. The trend is toward even more businesses being developed by a solo entrepreneur.
D. Only 10 percent of teams are spouses or life partners working together.
_____ refers to the fixed and determinable value of an asset that will exist when the
depreciation process is complete.
A. Market value
B. Book value
C. Salvage value
D. Disposal value
Which of the following is a disadvantage of purchasing an existing business?
A. Need for sufficient demand for the products and services to operate profitably.
B. Purchasing a business being significantly more expensive than a start-up.
C. Need to hire many new employees when buying an existing business.
D. Existing managers and employees resisting change.