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Some financial analysts recommend that new owners estimate cash disbursements as
best they can and then add another 25 to 50 percent of the total.
A strong leader does not share aspects of his or her company's financial health, its
future plans, or her vision for it with employees.
Small businesses with high leverage ratios are more vulnerable to economic downturns,
but they have greater potential for large profits.
Trade intermediaries are domestic agencies that serve as distributors in foreign
countries for domestic companies of all sizes.
Most states do not require a Certificate of Incorporation or a charter to be filed for a
new corporation.
To avoid major pricing mistakes, business owners should 'shop" their competitors and
assess their prices, especially on identical products.
Although earning a profit may be a company's first responsibility, it is not its only
responsibility.
Reilly's Law of Retail Gravity uses the analogy of gravity to estimate the attractiveness
of a particular business to potential customers.
The ________ ratio measures the owner's rate of return on the investment in the
business.
A) net profit to equity
B) net profit on sales
C) quick profit
D) net sales to working capital
The average age of the first-time entrepreneurs in the United States is nearly ________.
A) 44
B) 25
C) 19
D) 31
________ are domestic wholesalers who do business in foreign markets, buying goods
from domestic companies and selling them in foreign markets, often handling
competing lines.
A) Resident buying offices
B) Export trading companies
C) Foreign distributors
D) Export merchants
Time compression management (TCM) involves ________.
A) speeding new products to market
B) reducing the administrative time required to fill an order
C) shortening customer response time in manufacturing and delivery
D) All of the above
Exchanging goods and services for other goods and services, or ________, is an
effective way for a small business to conserve cash.
A) leasing
B) bartering
C) arbitrating
D) credit sales
The final price a business owner sets within the acceptable price range depends on
________.
A) the cost of the product or service
B) the desired "image" he wants to create in the customer's mind
C) the maximum price customers are willing to pay
D) All of the above
A study by the International Franchises Association reports that minorities own more
than ________ percent of all franchises and women own ________ percent of
franchises.
A) 2; 8
B) 9; 20
C) 12; 25
D) 20; 20.5
The premise behind ________ is that transforming an idea into an actual model will
lead to improvements in its design.
A) rapid prototyping
B) mind-mapping
C) brainstorming
D) inventions
Which stage of the creative process includes on-the-job training?
A) Implementation
B) Preparation
C) Illumination
D) Verification
________ are positive internal factors that contribute toward accomplishing the
company's mission, goals, and objectives, while ________ are negative internal factors
that inhibit the accomplishment of a firm's mission, goals, and objectives.
A) Strengths; weaknesses
B) Weaknesses; strengths
C) Opportunities; threats
D) Threats; opportunities
The various groups and individuals who affect and are affected by a business are called
________.
A) stockholders
B) stakeholders
C) owners
D) managers
Which of the following was not identified as one of the bootstrap marketing principles
in your text?
A) Strive to be like everyone else so that your company "fits in."
B) Create an identity for your business.
C) Connect with customers on an emotional level.
D) Do not just sell-entertain.
Research shows that repeat customers spend ________ percent more than new
customers.
A) 5
B) 52
C) 67
D) 97
Many nations have lowered tariffs they impose on products and services brought into
their border and rely on other ________.
A) nontariff structure as protectionist trade barriers
B) taxes
C) duty fees
D) dumping
When the cost of transporting finished goods to market is high relative to their value,
the key location criterion is ________.
A) low rental or lease rates
B) proximity to raw materials
C) proximity to markets
D) zoning regulations
Becoming a global entrepreneur requires ________.
A) constant innovation
B) maintaining a high level of quality and constantly improving it
C) being sensitive to foreign customers' unique requirements and adopting a more
respectful attitude toward foreign habits and customs
D) All of the above
