A line of credit means:
A) the company has access to unlimited funds.
B) a line of credit is the same as long-term loan.
C) a line of credit remains active forever.
D) None of the above
A corporation receives its authority to operate from:
A) the federal government.
B) the state.
C) the board of certification.
D) the stockholders.
________ companies are most likely to suffer cash shortages.
A) Slow-growth
B) Service
C) Manufacturing
D) Fast-growth
Flashing from one television channel to another, especially during commercials, is
called:
A) zapping.
B) skipping.
C) cluttering.
D) zipping.
Locating near ________ might be a key factor for success in businesses that sell goods
that customers compare on the basis of price, quality, color, and other factors.
A) customers
B) suppliers
C) competitors
D) employees
________ refers to a key customer benefits or a product or service that sets it apart from
its competition.
A) Unique product selling
B) Unique selling proposition
C) Competitive advantage
D) Differentiation
Which technology encrypts the customer’s dataas the information travels across the
Internet?
A) Firewall
B) Secure Socket Layer
C) Virus protection
D) None of the above
The rule for the balance sheet is:
A) Assets = Liabilities + Owner’s Equity
B) Assets – Liabilities = Owner’s Equity
C) Liabilities = Assets – Owner’s Equity
D) All of the above
Another word for vertical thinking is ________ thinking.
A) lateral
B) linear
C) parallel
D) simultaneous
A(n) ________ assures the buyer of a product that it will be of average quality, not the
best and not the worst.
A) implied warranty
B) warranty of exclusivity
C) express warranty
D) warranty of merchantability
In the feedback loop, the final and most important step is when the manager/small
business owner:
A) compares actual performance against the standards.
B) takes action to improve performance.
C) finds who is responsible for either shortfalls or surpassing of standards.
D) plans for the future.
The angel market is:
A) fragmented.
B) concentrated.
C) formalized.
D) centralized.
The reorder point model requires that the small business owner know:
A) the usage rate, the minimum level of stock, the lead time, and the EOQ.
B) who the supplier is, statistical process controls, and TQM.
C) the demand pattern for the product, reliability and proximity of the supplier, and who
has title.
D) holding costs for the product, the usage rate, and the three “Cs” of the product.
The key to promoting a Web site is networking, building relationships with other
companies, customers, trade associations, ________, and other Web sites your
company’s customers visit.
A) on-line directories
B) E-mail access
C) shopping carts
D) All of the above
The creation of a vender certification program requires:
A) a vendor rating scale developed by the company.
B) a firm price list from the vendor, good for three years.
C) membership in the SBA vendor certification program.
D) understanding the firm’s EOQ.
A company using a risk anticipation strategy would do which of the following?
A) Buy an insurance policy to cover the risk.
B) Cease the process or function that constituted the risk.
C) Educate employees as to the risks and dangers of the problem process.
D) Set resources aside to deal with the problem when it arose.
If a partnership is formed without an agreement, the partnership is automatically subject
to the:
A) Certification of Incorporation laws.
B) Uniform Partnership Act.
C) Limited Liability Company Act.
D) Revised Uniform Limited Partnership Act.
A common “me-too” pricing policy by which the small business owner establishes
his/her prices by monitoring competitor’s prices and then matching them is called:
A) follow-the-leader pricing.
B) below-market pricing.
C) price lining.
D) variable pricing.
Angels fill a significant gap in the ________ capital market.
A) working
B) fixed
C) seed
D) later stage
According to your authors:
A) JIT involves the consolidation of manufacturing processes.
B) almost any change leading to more efficient inventory use can be considered a part
of JIT.
C) only large companies with long manufacturing runs can benefit from the
implementation of JIT.
D) manufacturing runs need to be large to justify set-up costs in a JIT environment.
The ________ cost of an advertising medium compares the actual dollar cost of an ad
with the number of potential customers it reaches.
A) relative
B) continuous
C) absolute
D) comparative
The ________ requires lenders and sellers who extend credit to disclose fully the terms
and conditions of credit arrangements to enable consumers to “shop around.”
A) Fair Credit Reporting Act
B) Truth-In-Lending Act
C) Consumer Product Safety Commission
D) Equal Credit Opportunity Act
When selling a business to insiders, available options are:
A) leveraged buyout.
B) sale for cash plus a note.
C) an employee stock ownership plan.
D) All of the above
One way to reduce employee theft is to:
A) hire private investigators to do background checks on prospective employees.
B) install audio surveillance equipment at key locations in the facility.
C) monitor employees at work and on breaks by having supervisors walk by
periodically.
D) have a strict company policy about theft and to prosecute when someone is caught.
Under the UCC, when the innocent specifies their own damages for a potential breach
of a sales contract and they are reasonable and not punitive, these damages are called:
A) consequential damages.
B) liquidation damages.
C) compensatory damages.
D) specific damages.
A business plan for the small business owner:
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 he/she
wants to accomplish.
D) contains both a marketing plan and a financial plan.
Based on the principle of ________, the idea is to put a franchise’s products or services
directly in the paths of potential customers, wherever that may be.
A) guerilla marketing
B) intercept marketing
C) franchise marketing
D) path marketing
The ABC inventory control system causes managers to:
A) not keep a large safety stock on “A” items because it ties up too much cash.
B) keep a large safety stock on “C” items because they generate the greatest revenue.
C) keep a large safety stock on “A” items.
D) keep small levels of safety stock for “C” items because they are of relatively little
value.
The right price for a product depends on which factors?
A) A small company cost structure
B) The desired image the company wants to create in its customers’ minds
C) An assessment of what the market will bear
D) All of the above
The damages the parties to a contract specify in case of breach are called:
A) liquidated damages.
B) monetary damages.
C) compensatory damages.
D) consequential damages.
________ is the process of creating and delivering desired goods and services to
customers, and involves all of the activities associated with winning and retaining loyal
customers.
A) Marketing
B) Personal selling
C) Promotion
D) Advertising and public relations