Export trading companies are government-owned operations established in countries
around the world (including the United States) for the purpose of buying goods there.
The balance sheet provides owners with an estimate of the firm’s worth for a specific
moment in time, while the income statement presents a “moving picture” of its
profitability over a period of time.
If a company wants quick acceptance and extensive distribution when introducing a
new product into a highly competitive market with a large number of similar products, a
market penetration pricing is the best strategy.
Force-field analysis is a useful technique for evaluating the forces that support and
oppose a proposed change.
A survey by PriceWaterhouseCoopers reports that 83 percent of Americans research
products online before buying them.
The best way to survive a price war is to engage in the battle and emphasize the unique
features, benefits, and value your company offers its customers.
In a sole proprietorship, the owner has limited liability.
The primary cause of small business failure is lack of capital.
For small businesses, ________ are the very heart of the financial market, providing the
greatest number and variety of loans to small companies.
A) commercial banks
B) factors
C) commercial finance companies
D) credit unions
To ensure a smooth transition when buying an existing business, a buyer should
________.
A) communicate with employees to reduce their uncertainty and anxiety
B) be honest with existing employees about upcoming changes and plans for the
company’s future
C) consider asking the seller to stay on and serve as a consultant until the transition is
complete
D) All of the above
Michelle Becker’s target income in her business for the upcoming year is $78,500. The
company’s gross profit margin averages 32.6 percent of sales, and its total operating
expenses run 24.7 percent of sales. To achieve her target income, sales of Michelle’s
company should be ________.
A) $148,773
B) $993,671
C) $317,814
D) $1,271,348
Which of the following is not an example of what creates a hostile work environment?
A) Dispensing assignments based on merit.
B) Making sexual comments to other employees.
C) Displaying sexually suggestive pictures or posters.
D) All of the above
The formal underwriting agreement between the company and the underwriter is signed
________.
A) on the last day before the registration statement becomes effective
B) when the statement of registration is filed
C) during the road show
D) at the time of the letter of intent
The ________ environment has an impact on the level of people’s creativity.
A) physical
B) sounds in the
C) external
D) internal
The primary advantage of equity capital is ________.
A) its lower interest rate
B) that it is readily available to a large number of entrepreneurs from a variety of
lenders
C) that it does not have to be repaid like a loan does
D) that it does not appear on a company’s balance sheet
For product-based businesses, ________ often represents their largest capital
investment.
A) account receivables
B) inventory
C) plant and equipment
D) real estate
What is the state’s overall attitude toward your kind of business? Has it passed laws that
impose restrictions on the way a company can operate? Does the state offer small
business support programs of financial assistance to entrepreneurs? These questions
help an entrepreneur to assess the overall ________.
A) population trends
B) proximity to markets
C) labor supply
D) business climate
Which of the following is/are often used by companies exporting to countries that lack
a convertible currency?
A) Countertrading
B) Indirect exporting
C) Bartering
D) A and C only
The central business district (CBD) ________.
A) is the traditional center of town
B) in many cities experienced decay in years past as customers began shopping more
frequently at malls and shopping centers, but are now going through revitalization
programs
C) attracts customers from the entire trading area of the city
D) All of the above