The primary focus of corporate entrepreneurship is creating new civic organizations
which are financially self-sufficient.
Most small businesses-even part-time ones-need to have a website regardless of
whether or not they use it for actual sales.
Primary disadvantages of stand retailing are that it requires a significant amount of
capital and time investment.
Bankruptcy is an illegal form of insolvency.
Delays in transferring money among banks due to internal procedures is called
processing float.
Identifying competition helps a business get an idea of how crowded a market is.
Follow-up refers to the contacts you periodically make with customers in order to
remind them of your business, and your interest in their business.
The process of dividing the market into smaller portions of people that have certain
common characteristics is called stereotyping.
Brokers advertise and facilitate the sale of business for a fee, usually a percentage of the
ultimate selling price.
For an owner, the main financial management emphasis while transferring a business to
family members must be to:
A. increase the cash-to-cash cycle to the highest time possible.
B. increase asset value.
C. optimize capital structure for profits.
D. maximize debt.
Pledging receivables will get an owner about one-half of the amount that can be
collected, whereas, factoring can immediately get an owner _____ percent of the
amount due.
A. 90-95
B. 75-80
C. 40-45
D. 20-25
Interacting with others in order to build relationships useful to a business refers to
_____.
A. networking
B. moonlighting
C. brainstorming
D. bootstrapping
A system of values people use to determine whether actions are right or wrong is
referred to as _____.
A. bootstrapping
B. pathos
C. green auditing
D. ethics
The product/service component of the feasibility study typically includes which of the
following aspects?
A. Stage of development
B. Competition
C. Market penetration
D. Cost forecast
An organization authorized by the SBA to make insured loans to small businesses that
are expected to increase economic activity within a specific geographic area is referred
to as a(n) _____.
A. community development organization
B. accelerator
C. economic cooperation organization
D. limited partnership
According to the poll conducted by the National Federation of Independent Business
(NFIB), small business faced cash flow problems because of:
A. delayed payments from customers.
B. lack of seasonal fluctuation in sales.
C. delayed payments from vendors.
D. unexpected increases in taxes.
An entity that processes checks and electronic fund transfers for banks and other
financial organizations is called a _____.
A. credit union
B. clearinghouse
C. float
D. bearer
Which of the following statements is true of the financials section of a business plan?
A. A typical financials section for investors has two subsections: organizational
structure and R& D plans.
B. The critical risks subsection addresses existing investments and the current
ownership situation.
C. The assumptions subsection explains computations, inclusion or exclusion of items,
and any other special considerations.
D. The deal subsection mentions the parts of the business that exposes the firm to loss.
Restrictions imposed by loan contracts on the operations of a business, such as
requiring that a specific minimum net worth be maintained, a specific debt-to-equity
ratio not be exceeded, no dividends be paid to stockholders and so on, are known as
_____.
A. loan amortizations
B. loan yields
C. loan covenants
D. credit assurance
Reconciliation of bank and book balances helps to:
A. estimate the bank ledger balance for managing the cash flow of a business.
B. identify any mistakes made by either a bank or by a business.
C. provide an approximate value of cash held by a business.
D. exclude items on a bank statement that are not included in a business’s accounting
records.
Which of the following countries is one of the most litigious societies in the world?
A. France
B. Japan
C. Switzerland
D. United States
Which of the following is true of a private placement memo?
A. It provides information to potential licensees.
B. It is a complex legal document and should be drafted by a lawyer.
C. It is a special form of informational plan posted on the Internet.
D. It is designed to be used internally for management purposes.
Which of the following statements is true of low customer contact businesses?
A. Customer access is relatively important when compared to high customer contact
businesses.
B. Some examples of low customer contact businesses are restaurants and dry cleaners.
C. Empowerment zones offer businesses low-cost space and tax advantages.
D. Business incubators are expensive and offer limited small business support services.
Depreciation is based on which of the following assumptions?
A. The period of utility of an asset is not fixed or determinable.
B. The value of an asset declines in a predictable manner over the period of utility.
C. The salvage value of an asset will not exist when the depreciation process is
complete.
D. The value of an asset is not fixed or determinable.
The purchase of substantially less than 100 percent of a business is called a(n):
A. takeover.
B. buy-in.
C. spin-off.
D. earn-out.
Which of the following is a characteristic feature of sales packets?
A. They are usually large enough to read by passing traffic.
B. They provide potential customers an education in a firm’s product or service.
C. They generally consist of pens or small calendars which are printed with the name
and slogan of the company.
D. They are generally hand-written.
_____ comprises companies that provide alternatives that are dissimilar to a firm’s
product/service that consumers might choose to meet a similar need.
A. Support industry
B. Direct competition
C. Related industry
D. Indirect competition
What is meant by industry analysis? How does industry analysis help an individual in
the strategy process?
How can a business use its accounts receivable as a source of financing?
An approach to building organization-based legitimacy is through the creation and
display of a company code of ethics. Explain.
Briefly describe the three universally mentioned and four rarely mentioned rewards.
What are the three sources from which cash can be obtained for a business?
Discuss briefly the various sources of entrepreneurial success.
Explain how to develop a fair compensation and benefit plan.
Discuss the advantages and disadvantages of start-ups.
How can a business achieve sustainability? How can a business make profits out of
enhancing others’ sustainability efforts?
Describe the process of creating a cash budget.