Incompetent family members working in a family-owned business may be handled by
placing them in jobs which involve frequent interaction with other employees.
Employee performance is a product of the employee’s ability to do the job and the
application of positive motivation.
For small business owners, compliance with government regulations is simple and
inexpensive.
Income from sales is also called revenue.
You can reduce the costs of insurance by raising your deductible.
Independent insurance agents represent more than one insurance company.
The reason for carrying inventory is to disconnect one segment of the operating process
from another so each part can operate at its optimum level.
If the business is small and unincorporated, a tight, formal organization structure
encourages creativity and reduces initiative.
_____ refers to product characteristics and the probability of meeting established
standards.
a) Quality
b) Stockout
c) Variety
d) Economic order quantity
A _____ is a contract that permits use of someone else’s property for a specified time
period.
a) trade credit
b) bond
c) lease
d) bill of lading
_____ convert materials into products in considerable volume for others to sell to the
ultimate consumer.
a) Wholesalers
b) Retailers
c) Producers
d) Telecommuters
_____ consists of two or more companies exchanging items of roughly equal value.
a) Venture capital
b) Barter
c) Equity
d) Trade credit
Which of the following is a job specification?
a) Days and hours of work
b) Machines and tools used
c) Educational background and knowledge
d) Working conditions, including psychological conditions
Which of the following is an advantage of government regulations on one industry or
business?
a) They are clear and easy to understand.
b) They often generate opportunities for other small businesses.
c) They require very little paperwork.
d) They encourage small firms to hire more workers.
_____ is a marketing system based on a legal arrangement that permits one party to
conduct business as an individual owner while abiding by the terms and conditions set
by the second party.
a) Joint venture
b) Turnkey projects
c) Wholly owned subsidiary
d) Franchising
In franchising, which of the following is a benefit to the franchisee?
a) Share in local or national promotion
b) Lower operating costs
c) Faster expansion
d) Increase in royalty fees
A website’s ability to tailor itself to each user is called _____.
a) branding
b) backward compatibility
c) forward compatibility
d) customization
Which of the following best describes leader pricing?
a) A strategy wherein certain products are chosen for their promotional value and priced
low to entice customers into retail stores
b) A strategy of setting of high prices used, say, by fur retailers
c) A strategy aimed at obtaining the “cream” of the target market at a high price before
dealing with other market segments
d) A strategy of offering the same products and quantities to different customers at
different prices
Which of the following is an advantage of a corporation?
a) It is a legal entity separate and distinct from its owners as individuals.
b) It gives unlimited powers to the owners.
c) The procedures required by the government are simple.
d) This legal form of business has tax advantages.
What is bankruptcy?
a) It is a wrongful act by one party that results in injury to a second party’s person,
property, or reputation, for which the first party is liable.
b) It is a legal process by which the lender takes away the borrower’s right to a property.
c) It is a body of laws passed by state governments.
d) It is a formal legal condition of inability to repay debts.
Describe transportation in the context of small businesses.
Write a short note on management information system (MIS).
What is franchising?
Define the term “quality.” How is it significant to a small business owner?
In the context of small businesses, what is the purpose of business incubators?