Generally, an industry is more attractive when substitute products are available for the
items suppliers provide.
Changing your firm’s shipping terms from “F.O.B. buyer” to “F.O.B. seller” can
improve your cash flow, as it switches the cost of shipping from you to your buyer.
The hidden market of companies (those companies that might be for sale and are not
advertised) is one of the richest sources of top quality businesses to purchase.
If a partnership agreement does not exist, the partnership will be governed by the
Uniform Partnership Act.
A high inventory turnover ratio relative to the industry average could mean that a
business has too little inventory and is experiencing stockouts.
Although not required by law, a written partnership agreement that spells out the terms
of operating the partnership and the status of each partner should be developed.
Amoral managers see the law as a minimum standard for ethical behavior.
Technology offers a significant advantage for entrepreneurs.
Ambiguity tends to destroy creativity.
The three components of intellectual capital are human, structural, and customer.
Research into the operation of the human brain shows that each hemisphere of the brain
________.
A) develops symmetrically
B) controls similar functions
C) does not dominate the other hemisphere
D) processes information differently
________ is a transaction in which a company selling goods and services in a foreign
market agrees to help promote investment and trade in that country.
A) Countertrading
B) Bartering
C) Foreign licensing
D) Exporting
Old assumptions regarding global business assumptions for exporting include
________.
A) I am “too small” to go global and my product or service won’t sell outside the U.S.
B) Exporting is too risky for my small company and my domestic market is currently
secure.
C) Getting paid is difficult and this will impede my success.
D) All of the above
The recent turbulence in the financial markets has caused banks to ________ their
lending standards, making it ________ for small businesses to qualify for loans.
A) tighten; easier
B) tighten; more difficult
C) relax; easier
D) relax; more difficult
The three parts of the triple bottom line are ________.
A) processes, profits, and people
B) profit, people, and planet
C) processes, profit, and predominance
D) profit, processes, and planet
Nearly ________ of entrepreneurs start their businesses between the ages of 20 and 44
and the number of Americans in that age range currently is ________ .
A) one-half; 8.5 million
B) two-thirds; 85,000
C) three-fourths; 103 million
D) one-fourth; 85 million
Which of the following represents capital?
A) Inventory
B) Equipment and machinery
C) Cash
D) All of the above
The ________ test that a business plan must pass to attract financing from lenders and
investors involves proving that a market for the company’s product or service actually
does exist and that the company actually can build it for the cost estimates included in
the plan.
A) reality
B) competitive
C) value
D) profitability
The Internet offers entrepreneurs tools to provide existing and potential customers with
meaningful information ________.
A) in a passive, one-directional manner
B) for those with advanced high-tech skills
C) in a complex and difficult-to-manage method
D) in an interactive rather than passive setting
According to the U.S. Small Business Administration, a common delineation of a small
business is one that employs fewer than ________ people.
A) 50
B) 100
C) 250
D) 500
Warren Cassell, owner of Just Books, a very small book store, makes special orders for
customers at no extra charge, provides free gift-wrapping, conducts out-of-print book
searches, offers autographed copies of books, hosts “Meet the Author” breakfasts, and
publishes a newsletter for book lovers. By offering his customers lots of “extras” they
do not get at larger bookstores, Cassell has won a growing base of loyal customers.
Cassell is relying on which marketing strategy?
A) Demographic marketing
B) Transaction selling
C) Individualized marketing
D) Bootstrap marketing
For an entrepreneur, a business plan ________.
A) is of relatively little importance due to the dynamic nature of the marketplace
B) is synonymous with the marketing plan
C) tends to stress how the entrepreneur will operate rather than detailing what she/he
wants to accomplish
D) contains both a marketing plan and a financial plan
The ________ represents a ‘snapshot” of a business, showing an estimate of its value on
a given date, while the ________ is a “moving picture” of the firm’s profitability over
time.
A) balance sheet; income statement
B) income statement; balance sheet
C) statement of cash flows; income statement
D) balance sheet; statement of cash flows
One of the most valuable benefits of giving customers a reason to return to your site is
that it can be an effective tool to ________.
A) deter competitive action
B) increase traffic
C) build customer loyalty
D) establish online habits
________ cannot monitor personal email accounts.
A) Spouses
B) Employers
C) Trade associations
D) Colleagues
When developing creative solutions to modern problems, entrepreneurs must ________.
A) go beyond merely using whatever has worked in the past
B) limit the creative process to only profitable ventures
C) remember what has worked in the past
D) pay attention to limiting factors
Tools that measure a Web site’s ability to attract customers, generate sales, and keep
customers coming back are ________.
A) Web analytics
B) recency
C) cost per acquisition tools
D) conversion tools
Pandecker, Inc., estimates the variable costs of producing one unit to be $11.26. The
company plans to produce 26,500 units. The fixed costs the company expects to incur
are $82,770. If Pandecker’s profit target is $75,000, what price should it charge?
A) $14.38
B) $35.17
C) $17.21
D) $11.26
Who are an organization’s stakeholders and why are they important?
What is strategic management? What role does a strategic plan play in a small
company?
Compute a break-even point in dollars.
Outline the benefits and drawbacks of buying a franchise.
What are the four major elements to be included in a financial feasibility analysis?
Select six of the features that are important to a lean, efficient manufacturing layout and
identify a potential benefit that they may offer the business.
Outline the incorporation process.
List and discuss the eight options where retail and service businesses can serve their
customers. What are their advantages and disadvantages?