Online marketing is not a realistic option for small businesses because customers
hesitate to use credit cards over the Internet.
Commissions are given to employees as a reward on special occasions.
Small firms generate most new private employment.
Motivation alone is generally enough to increase productivity.
SWOT analysis is a useful tool to aid the process of strategic planning and can be
organized into the form of a matrix.
Enlightened employee relations involves a concern for employee rights.
Important factors in choosing a manufacturing location are nearness to customers and
vendors, and availability and cost of transportation.
The process of planning is time-consuming.
The Uniform Commercial Code is a set of uniform model statues to govern business
and commercial transactions in all states.
To meet the declining supply of potential employees, many small businesses are
spending more money on technology.
An advantage of a corporation is that large amounts of capital can be raised easily.
Scheduling is setting the times and sequences needed to perform specialized activities.
Family-owned businesses run so smoothly that there is rarely any conflict among
family members.
RFID tags are used for efficient inventory control.
Strategic planning consists of two parts: the firm’s mission and objectives, and its
strategies.
Which of the following is true about proprietorship?
a) It is frequently used in finance, insurance, and real estate.
b) It is the most popular form of business in the United States.
c) The owner of the business has to share the profits with his partner.
d) It is owned by two persons who have unlimited liability for its debts and obligations.
Which of the following employers are covered under the Executive Order 11246, as
amended?
a) Employers with federal contracts and subcontracts
b) Employers with 15 or more employees
c) Employers with 20 or more employees
d) All employers who fall under the small business owners category
_____ are the institutions in the channel of distribution that either take title to or
negotiate the sale of the product.
a) Publicists
b) Intermediaries
c) Manufacturers
d) Sales prospectors
_____ is the amount of current assets less current liabilities.
a) Return on investment
b) Working capital
c) Quick ratio
d) Return on net assets
The Small Business _____ Act requires each federal agency to set up compliance
centers to help small businesses deal with pending legislation.
a) Emergency Supplemental Appropriations
b) Community Learning Centers
c) Regulatory Enforcement Fairness
d) Worker Adjustment and Retraining
A family limited partnership allows business owners to:
a) choose people who could be considered owners of the business in their absence.
b) remain part of the ownership group when the business is sold.
c) pass assets to heirs with a minimum of income and estate tax costs while retaining
control of assets during their lifetime.
d) name a family member as the successor when the business is up for sale.
A building contractor would be most likely to use a _____ pricing strategy.
a) break-even
b) unit
c) loss leader
d) cost-plus
Which of the following is an example of current asset?
a) Motor vehicles
b) Furniture
c) Inventory
d) Office equipment
The transition of a family-owned business to a successor can be made easier for the
former owner by:
a) devoting lesser time to hobbies and other outside activities.
b) keeping the owner engaged in a top management position.
c) narrowing his/her skills to focus on a single task.
d) handing over to the successor in phases.
_____ is the amount of money available at a given time to pay expenses.
a) Equity
b) Cash flow
c) Line of credit
d) Fixed capital
Which government organization grants awards for the “Small Business Persons of the
Year”?
a) Small Business Administration
b) Production Credit Association
c) U.S. Department of Commerce
d) Small Business Development Center