Which of the following is true of payment procedures?
A. A letter of credit can be exercised only with specified shipping documents.
B. Providing credit to customers is a risk to the customers.
C. Up-front cash payment is a risk to the customers.
D. A documentary draft involves only two parties-the company and the customer.
Which of the following relates to the skills necessary to identify and exploit elements of
the business environment that can lead to a profitable and sustainable business?
A. Determination competencies
B. Basic business competencies
C. Resource competencies
D. Opportunity competencies
In door-to-door selling, _____ refers to getting the customer to agree to buy.
A. opening
B. promoting
C. auctioning
D. closing
“Buy one large pizza and get a 25 percent off on the next purchase,” is an example of
_____.
A. partitioned pricing
B. a loyalty program
C. a referral discount
D. reference pricing
_____ refers to business owners doing what they said they would do.
A. Trendiness
B. Cognitive dissonance
C. Follow-up
D. Follow-through
Identify the type of service location in which face-to-face meetings with clients are
infrequent.
A. Mutually accessible location
B. Remote location
C. The client’s location
D. The competitor’s location
Which of the following statements is true regarding the success stage of the small firm
life cycle?
A. Firms develop the information, skills, and the routines to grow the business’s profits.
B. Profits are invariably taken in the form of money.
C. For most small business owners, this is the stage that follows takeoff.
D. Firms face the liabilities of newness in this stage.
Which of the following terms refers to a concept in public importance which alludes to
the degree to which the issue is immediate in its impact?
A. Proximity
B. Currency
C. Power
D. Cultural resonance
In terms of new jobs, which of the following is true of a small business?
A. It does not employ people looking for part-time work.
B. It is of no importance to existing jobs.
C. It offers jobs to people with atypical work histories.
D. It pays taxes on behalf of the people it hires.
According to the I2P approach to organizing an opportunity screen, which of the
following aspect provides information about the specific individuals, groups, or
organizations that entrepreneurs approach first to buy their product or service?
A. The initial set of customers
B. The value-creation for customers
C. The market and its size
D. The extent of IP protection for the product or service
_____ refers to the machinery, tools, or materials used in the performance of the work
of a business.
A. Property
B. Plant
C. Inventory
D. Equipment
Which of the following statements is true of exporting?
A. Agents and export trading companies are extensively used in direct exporting.
B. Unstable governments and economies are a good market to export goods.
C. Shipping documentation and paperwork are generic to all products and countries.
D. Insurance is essential for export payments to overcome the risk of default.
According to the BRIE model, which of the following is true of a resource?
A. It includes a business name or government registration.
B. It refers to moving goods or services to others for money.
C. It is the most frequently occurring element of the BRIE model.
D. It includes the product or service to be offered.
The amount by which sales prices exceed product costs refers to:
A. high margins.
B. synergy.
C. spin-off.
D. asset.
Which of the following ratios is used to estimate the liquidity of a business?
A. Inventory turnover ratio
B. Total assets to total liabilities ratio
C. Current ratio
D. Quick ratio
In an attempt to become more innovative, a major pitfall that business owners are most
likely to become victim to is:
A. judging ideas slowly.
B. asking for support after failing the first time.
C. obeying all the rules to get investors.
D. using the first good idea as a business opportunity.
The first good idea is rarely the best. Stopping with the first good idea is one of the five
major pitfalls that business owners become victim to when trying to become more
innovative.
_____ questions provide data that are difficult to tabulate and compare.
A. Categorical
B. Open-ended
C. Scalar
D. Dichotomous
The social capital of a firm is high when:
A. legitimacy of the firm is high.
B. the firm has an underdeveloped social network.
C. the firm fails to make ethical decisions.
D. external relations of the firm are ill-managed.
One powerful but rarely used source of business ideas are:
A. family and friends.
B. work experiences.
C. existing customers.
D. government agencies.