Family-owned businesses run by husband-and-wife teams are referred to as copreneurs.
Examples of software include Firefox and Microsoft Windows.
Borrowing from creditors is divided into current and long-term liabilities.
Internal audits furnish the owner(s), creditors, potential and current investors, and
regulatory agencies with information on the company’s financial status and operations.
The partnership is easier to form, operate, and terminate than a proprietorship.
Surety bonds provide protection against the failure of a contractor to fulfill contractual
obligations.
Many “unsecured” loans that banks extend to small businesses require personal
guarantees by the managers of the firm.
What is due diligence?
a) The research and analysis of the company that is done before a business transaction
b) The efforts of managers from all walks of life to help people develop their business
ideas
c) The process of producing a custom-made product for that market
d) The agreement whereby a businessperson is given exclusive rights to sell a product
The _____ approach to motivation uses pride in workmanship to get workers to do their
work right the first time.
a) zero-defects
b) quality circle
c) job enrichment
d) management by objectives
Which of the following is a reason for starting a new business?
a) The owner has freedom to select his/her own competitive environment.
b) It is easy to find the right business.
c) The chances of succeeding are higher in small business start-ups than in acquiring a
franchise.
d) The owner does not have to experience problems in establishing basic management
systems and controls when starting his/her own business.
Which of the following is true of S corporations?
a) They can issue only one class of stock – common.
b) They are subject to multiple taxations.
c) They require excessive paperwork.
d) They are governed by simple tax rules.
_____ means assigning responsibility to subordinates for doing certain activities, giving
them the authority to carry out the duties, and letting them take care of the details of
how the job is done.
a) Specialization
b) Appraisal
c) Delegation
d) Counseling
Institutional advertising:
a) is selling an idea about the company.
b) refers to promoting a product that is banned by law.
c) conveys socially relevant messages.
d) must be used only while introducing a new product.
______ consist of the goods and services required by customers.
a) Inputs
b) Operations
c) Outputs
d) Layouts
_____ are wealthy individuals who invest part of their assets in high-risk, high-return
ventures.
a) Business incubators
b) Debt creditors
c) Trade creditors
d) Angel capitalists
In order to maintain control, the owner should:
a) include securities dealers in the business to finance the startup costs.
b) use venture capital funds.
c) invest more personal funds than all other sources combined.
d) borrow funds for the startup capital from external lenders.
In which part of the business plan should the expected revenues be included?
a) Financial data
b) Company background
c) Definition of the market
d) Management structure
_____ is using a combination of truck, rail, or ship to transport goods.
a) Trans shipping
b) Trailer swapping
c) Distribution modality
d) Intermodal shipping
Which of the following is true about selling in today’s world?
a) Advertising entices customers to desire a product, and it alone is usually sufficient to
complete a sale.
b) Self-service increases retail costs by having less effective use of store space.
c) Now many retailers are using salary or salary plus commission, rather than straight
commission, to pay their salespeople.
d) Personal selling is one activity where small firms, particularly retailers, can compete
with larger competitors – and win.
What are the consequences of employee theft? What are the different techniques that
retailers can use to help prevent theft?
What is Internet marketing and how does it aid small businesses in their marketing
success?
Why do small firms import products?
Describe the different types of budgets. Provide examples for each type.
What are the drawbacks of locating a small business in a shopping center?
How can performance standards be set in small business firms?