Saying something is backward compatible means that existing programs will run on the
new hardware while still allowing newer software to take full advantage of the recent
technological advancements.
A buy-sell agreement provides for the corporation to buy back a shareholder’s stock
when he/she leaves the company.
Market research is the systematic gathering, recording, and analyzing of data relating to
the marketing of goods and services.
Businesses that use a single source of supply for a material receive better service from
the supplier than those that use many sources of supply.
RFID tags are free of security risks.
The Small Business Administration in the United States is a particularly effective
source of local information for prospective business owners because it is familiar with
an area’s needs.
Most of the growing industries are dominated by large companies.
Fully integrated production networks aid U.S. companies in global operations.
Which of the following is a risk for small firms interested in global operations?
a) Economic fluctuation
b) Expansion of markets
c) Product diversification
d) Higher labor costs in most countries
A(n) _____ is an additional tax on certain items imposed by the federal government.
a) excise tax
b) income tax
c) incorporation tax
d) value added tax
Acute Business Corp., a small business firm, has $500,000 in assets and $300,000 in
liabilities. What is the value of the owners’ equity?
a) $1,500,000
b) $200,000
c) $175,000
d) $800,000
In order to cope with the daily challenges of a family-owned business, the family
should:
a) hire more relatives to work in the business.
b) keep children out of the decision-making process.
c) reduce time spent on home activities.
d) develop an appropriate family mission statement.
A limitation of a small family-owned business is that a family manager may:
a) refuse to hire family members who want to enter the business.
b) lack general management skills, being proficient in a specific activity.
c) ignore top family members when a matter needs to be cleared.
d) guard against letting past successes lead to trying to maintain the status quo.
In a franchise, which of the following is an advantage for a franchiser?
a) Brand recognition
b) Lower operating costs
c) Financial assistance
d) Share in local or national promotion
Which of the following is true of police power?
a) It allows the state to regulate commerce with foreign nations and among the several
states.
b) It is the right to use the force of the state to promote the general welfare of citizens.
c) It is an unwritten law derived from judicial decisions based on acceptable customs.
d) It deals with the rights and powers of the government.
Which of the following constitutes a white-collar crime?
a) Kidnapping
b) Shoplifting
c) Physically assaulting one’s neighbor
d) Falsifying accounts
Promotion efforts may be cut and plans may be made to phase out the product during
the _____ stage of the product life cycle.
a) introduction
b) growth
c) maturity
d) decline
Which of the following is an advantage of a partnership?
a) The partners have limited liability for the debts of the business.
b) Each partner is responsible only for his or her acts.
c) A partner can obtain bonding protection against the acts of other partners.
d) More capital can be raised since good credit may be available.
_____ are inexpensive sources of information, data services, consultant referrals, and
possibly even funding, but might not include the most recent technology.
a) Industry associations
b) Computer stores
c) Government publications
d) Computer consultants
What is a business that is owned by and operated for the benefit of patrons using its
services called?
a) Joint venture
b) Fractional ownership
c) Cooperative
d) Proprietorship
Describe the ways to organize a small business.
What are the techniques that can be used to select and develop managers?
Discuss how taxes affect small businesses.
What are business ethics?
What is the importance of accounting for small businesses?
How would a potential entrepreneur use market research in order to obtain information
about the market?
What is consumerism?
Describe the guaranteed loans provided by the Small Business Administration to small
business owners.