The marketing concept emphasizes that the survival of any business depends on
providing service.
Profits are not necessarily in the form of cash.
Most small businesses use advertising agencies to develop their ad programs.
The primary advantage of railroads is the capacity to carry large volumes of goods,
fairly quickly, at a low cost.
Organizing should be the first management function performed as it sets the future
course of action for all aspects of the business.
An informal organization always exists within the formal structure of a business.
An MIS can be designed to take care of immediate feedback.
The process of finding a small – but profitable – demand for something and producing a
custom-made product for that market is known as:
a) lead marketing.
b) challenge marketing.
c) follower marketing.
d) niche marketing.
Organizing is:
a) determining the activities that are necessary to achieve a firm’s objectives.
b) transferring meaning from one person to another.
c) getting employees to do the things that the employer wants them to do.
d) activating a person, including drives and desires.
Which of the following is true of articles of incorporation?
a) They govern the operations of partnerships in the absence of other expressed
agreements.
b) They provide for protection of limited liability for shareholders.
c) They combine the advantages of a corporation with the benefits of a partnership.
d) They are the instruments by which a corporation is formed.
_____ are marketing intermediaries who market a product to others for a fee.
a) Wholesalers
b) Brokers
c) Agents
d) Retailers
Technology-mediated exchanges between parties as well as the electronically based
intra- or interorganizational activities that facilitate such exchanges are referred to as
_____.
a) e-commerce
b) backward compatible systems
c) market penetration
d) branding
Which of the following refers to supplier-base downsizing?
a) Achievement of high standards by suppliers in a supply chain
b) Assigning the responsibility of supplying to one person
c) Reducing the number of suppliers to concentrate purchasing
d) Integrating supply and demand between many companies
Which of the following is true about debt securities?
a) Debt securities are usually in the form of preferred stocks.
b) When companies are growing faster than they can make money, many prefer
asset-based financing.
c) Publicly issued debt (such as bonds or commercial paper) is more commonly used by
smaller companies.
d) Financial institutions, such as insurance companies, prefer to make short-term loans.
Which of the following is true of benchmarking?
a) It involves setting up standards and then measuring performance against them.
b) It is a series of prescribed steps to be taken to ensure that a profit will be made.
c) It sets cost targets for all phases of design, development, and production of a product
for each accounting period.
d) It describes the relative proportions of a firm’s assets, liabilities, and owners’ equity.
The _____ is the ratio of current assets, less inventory, to current liability.
a) current ratio
b) debt ratio
c) acid test ratio
d) cash ratio
Which of the following is true of venture capital firms?
a) They rely more heavily on the business plan than on the executive summary in
making investment decisions.
b) They are a source of debt financing.
c) They prefer to back fast-growth industries.
d) They are engaged in assisting disadvantaged businesses.
Which of the following is true of a limited partnership?
a) General partners conduct the business.
b) Limited partners are held liable for debts of general partners.
c) Limited partners do not contribute any capital to the business.
d) General partners have limited liability for the debts of the business.
Which of the following is a characteristic of an effective control system?
a) It should not be the responsibility of any one individual.
b) It should be outsourced.
c) It should indicate cause-and-effect relationship.
d) It should not be quantifiable.
Which of the following is a characteristic of apprenticeship training?
a) It blends on-the-job training with learning of theory in the classroom.
b) It combines on-the-job training with learning at a cooperating school or college.
c) It involves workers learning many job skills so they are more versatile.
d) It is usually used for students who are prospective employees for marketing
positions.
Retailers sell goods and services directly to ultimate _____.
a) wholesalers
b) producers
c) brokers
d) consumers
A change in the number of competitors of a firm leads to a change in the firm’s:
a) internal environment.
b) strengths.
c) external environment.
d) competitive edge.
_____ means employers may hire or fire employees with or without cause at any time
they choose.
a) Positive discipline
b) Judicial due process
c) Right-to-work
d) Employment at will
Which of the following will a small business owner consult to locate a lawyer to help
with government regulations?
a) The Martindale-Hubbell Law Directory
b) The General Accounting Office
c) The National Small Business Association
d) Case Law Information Services
Where can a small business owner look for a lawyer to deal with government
regulations?
Explain the basic management function of staffing.
In the context of small firms, differentiate between common stockholders and preferred
stockholders.
What is business insurance and what is its importance?
What are the strengths and weaknesses of computers for small firms?
List some measures that small business owners can take to prevent crime and reduce
workplace violence.
Describe the people who govern a corporation.
Explain the purpose and the use of a business’s mission statement.
What should owners of small businesses do to ensure the safety of their workers?