The Dictionary of Occupational Titles, a listing of more than 20,000 job titles and
descriptions, is a useful tool for getting a small business owner started when writing job
descriptions.
The “right” price depends on one factor – the value that it provides for customers.
Ethical behavior starts with society.
A small company’s ideal minimum cash balance is one month’s sales.
A sweep account is a checking account that automatically ‘sweeps” all funds in a
company’s checking account above a predetermined minimum into an interest-bearing
account.
Branding is communicating a company’s unique selling proposition to its target
customers in a consistent and integrated manner.
Depreciation and debt expenses are often left off the cash budget but need to be
included to accurately forecast cash requirements for running the business.
Because they are centrally located, central business district locations offer business
owners the ability to attract customers from the entire trading area of the city.
A community shopping center contains from three to twelve stores and serves a
population that lives within a 10-minute drive.
A bootstrap marketing plan should identify a small company’s target customers and
describe how the business will attract and keep them.
Small entrepreneurial companies are at a definite disadvantage compared to larger ones
when it comes to conducting market research since it is so expensive.
Collecting foreign accounts is usually less complex than collecting domestic ones.
The key to success in international markets is choosing the correct target market and
designing a strategy to reach it.
A Web site or an application that combines content from multiple sources is a
________.
A) mashup
B) Really Simple Syndication (RSS)
C) wiki
D) widget
The pages on which visitors land after they click on a sponsored link in a search engine,
e-mail ad, or online ad are referred to as ________ page(s).
A) landing
B) the home
C) the transition
D) the search
One of the best sources for prospects for new positions may come from ________.
A) colleges and universities
B) the Internet
C) current employees
D) employment advertisements
Research shows that the top-performing ________ percent of small companies create
67 percent of the net new jobs in the economy.
A) 90
B) 80
C) 5
D) 10
For the most meaningful interpretation, the small business owner should compare
her/his firm’s average collection period to ________.
A) other businesses in the same geographic area
B) a direct competitor
C) the universal standard of 25 days
D) the average for the industry and the firm’s credit terms
________ pricing strategies work best in markets where no “elite” segments exist or in
highly competitive markets where similar products are trying to gain a foothold.
A) Skimming
B) Sliding-down-the-demand-curve
C) Odd
D) Penetration
The reality test that a business plan must pass to attract financing from lenders and
investors involves proving ________.
A) that the company can gain a competitive advantage over its key competitors
B) that the business venture will provide lenders and investors a high probability of
repayment or an attractive rate of return
C) that a market for the company’s product or service actually does exist and that the
company can actually build it for the cost estimates included in the plan
D) that the industry in which the business will compete is growing faster than the
overall economy and has room for more competitors
A ________ is an exclusive right that protects the creators of original works such as
literary, dramatic, musical, and artistic works.
A) trademark
B) patent
C) copyright
D) service mark
Which of the following is an advantage of locating in a central business district?
A) Low rent
B) Easy and abundant parking
C) The ability to attract customers from the entire trading area
D) Moderate to low levels of competition
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. What is Pandecker’s break-even selling price?
A) $14.38
B) $35.17
C) $11.26
D) $3.12
Jane is arguing with Joan about how much cash their small retail outlet needs as they
prepare their cash budget. Jane feels that with the Christmas season coming, their
busiest time, they need more cash available while Joan feels they do not because their
sales volume will be up significantly. Jane and Joan are discussing which step of the
cash budgeting process?
A) Determining an adequate minimum cash balance
B) Forecasting sales
C) Forecasting cash receipts
D) Forecasting cash disbursements
The unique selling proposition (USP) focuses on ________.
A) a feature that is unlike others found in competing products that answers the question:
What is different?
B) a unique customer benefit that answers the question: What’s it in for me?
C) a premier priced product that answers the question: What product offers the highest
quality?
D) emulating the most successful products in the industry
Companies with strong reputations for quality follow certain guidelines, such as
________.
A) establishing long-term relationships with suppliers
B) fostering individual effort and pride of workmanship
C) securing employees’ commitment to the quality philosophy; it is not important to
secure top management’s full support, as the employees are the ones who work more
closely with the products and the customers
D) All of the above
What factors can drastically affect a company’s cash flow?
A) Increased competition
B) Economic swings
C) Normal seasonal variations
D) All of the above
In the United States alone, companies import more than ________ worth of goods and
services annually.
A) $3.2 million
B) $1.2 trillion
C) $2.7 trillion
D) $2.3 trillion
The most frequently encountered impediment to international trade for small and
medium-sized service firms is ________.
A) foreign sales are not sufficiently profitable
B) transportation and shipping costs
C) language and cultural barriers
D) foreign regulations