Because small business owners often rely on informal procedures for managing cash,
they are most likely to become victims of embezzlement and fraud by their employees.
Comparing a company’s current income statement to those of prior accounting periods
rarely reveals valuable information about key trends.
A strong determinant of moral behavior is training.
By 2039, the majority of the workforce in the United States will be a member of a
minority.
Each partner in a limited liability partnership is a limited partner; there are no general
partners.
Before presenting a business plan to potential lenders and investors, an entrepreneur
must be well informed and well prepared.
Criteria for a “good location” are universal and apply to all types of small businesses.
A table of contents that allows lenders to navigate a business plan easily is an important
element of any business plan.
Successful bartering is easier than countertrade but requires finding a business with
complementary needs.
If their companies are to grow and reach their potential, entrepreneurs must learn to be
effective leaders.
Right-brain thinking draws on the power of divergent reasoning, which is the ability to
create a multitude of original, diverse ideas, while left-brain thinking counts on
convergent reasoning, the ability to evaluate multiple ideas and choose the best solution
to a given problem.
Tracking ________ patterns can enable entrepreneurs to adjust their strategies
accordingly to better position them to take advantage of the opportunities these trends
may create.
A) population
B) demographic
C) weather
D) traffic
Your ________ competitors offer the same products and services, and customers often
compare prices, features, and deals from these competitors as they shop.
A) significant
B) direct
C) indirect
D) All of the above
In your training program, you stress to all new employees the importance of customer
satisfaction, citing the fact that ________ of the average company’s sales come from
present customers.
A) a small amount
B) about one-half
C) a majority
D) an undetermined percentage
Strengths and weaknesses are ________ to the organization.
A) internal factors
B) external factors
C) internal and/or external factors
D) factors not belonging
Less than ________ percent of all U.S. companies are publicly-held corporations.
A) 1
B) 5
C) 10
D) 12
________ is the difference between the cost of a product or service and its selling price.
A) Markup
B) Break-even price
C) Contribution margin
D) Absorption costing
When done correctly, the due diligence process will ________.
A) reveal both the positive and negative aspects of an existing business
B) be time consuming and expensive
C) most often result in the purchase of the business
D) rarely prove to be beneficial
International opportunities are ________.
A) clearly out of reach for entrepreneurial businesses
B) now within the reach of entrepreneurial businesses and may present significant
opportunities
C) highly limited for entrepreneurs
D) risky and do not merit serious consideration by the entrepreneur
A method of raising capital that taps the power of social networking and allows
entrepreneurs to post their elevator pitches and proposed investment terms on
specialized Web sites and raise money from ordinary people who invest as little as $100
is called ________.
A) crowd funding
B) angel financing
C) venture capital
D) bootstrapping
A strategic plan serves as a blueprint to help a company to ________.
A) match their company’s strengths and weaknesses to the environment’s opportunities
and threats
B) accomplish its mission, goals, and objectives
C) identify a company’s competitive advantage and set it apart from its competition
with a unique position in the market
D) All of the above