Most home-based businesses are simple cottage industries such as crafts or sewing.
Trademarks are distinctive words, symbols, designs, names, or logos used for company
identification.
Effective leaders know they must punish workers who take risks and fail so that other
workers do not make the same mistakes.
The left brain is guided by linear, vertical thinking.
The television test says you should treat other people the way you would like them to
treat you.
Without the advantage of a unique business image, a small business must match local
competitors’ prices or risk losing sales and customers.
Intrusion detection software scan computer drives for viruses designed to harm
computers and the information they contain.
“Divergent thinking” is the ability to see similarities and connections among various
data and events.
A high current ratio guarantees that the small firm’s assets are being used in the most
profitable manner.
Left-brained individuals realize that there may be more than one right answer.
Entrepreneurs can encourage creative thinking in their employees by setting examples
of creative behavior and rewarding creative behavior when exhibited by their
employees.
The choice of the location for a Tiffany & Company should be determined by the
compatibility with the community it will serve.
When evaluating a business as a potential candidate for purchase, an entrepreneur
should determine the real reason the current owner wants to sell.
Which of the following information is not available from Census data?
A) Education levels
B) Income levels
C) Expenditures on dining out
D) Occupational data
________ consists of the fundamental moral values and behavioral standards that form
the foundation for the people of an organization as they make decisions and interact
with stakeholders.
A) Business ethics
B) Social obligation
C) Mission
D) Vision
Potential investors tend to believe that if an entrepreneur cannot develop a good plan,
the entrepreneur ________.
A) is probably the action-oriented sort of person they need running a business
B) needs to hire a consultant to write the plan for him
C) probably lacks the discipline to run a business
D) is just like the majority of entrepreneurs and will probably do quite well
Ethical behavior is doing what is ________
A) “right”
B) “profitable”
C) “credible”
D) All of the above
Most companies that make Rule 506 offerings raise between ________ and ________
in capital.
A) $200,000; $1 million
B) $100,000; $500,000
C) $100 million; $200 million
D) $1 million; $50 million
The due diligence process of analyzing and evaluating an existing business ________.
A) may be just as time consuming as the development of a comprehensive business
plan for a start-up
B) helps to determine if the company will generate sufficient cash to pay for itself and
leave you with a suitable rate of return on your investment
C) helps to determine what the company’s potential for success is
D) All of the above
The North American Free Trade Agreement (also known as NAFTA) served to
________.
A) bring South America, Mexico, the U.S., and Canada together as one market
B) eliminate all tariffs among member nations, effective immediately, and raise them to
nonmembers
C) mostly benefit the trading relationship between Canada and the United States
D) create a unified market of 465 million people and $18.1 trillion in goods and
services
When looking for an angel, the key is ________.
A) networking
B) waiting until you need the money
C) looking across industries
D) using computer matches
John wants to expand into the foreign markets, but he cannot convince his partners.
They believe that international markets are the domain of large corporations. John is
facing which barrier to international trade?
A) Financing
B) Political
C) Cultural
D) Attitude
________ percent of all U.S. businesses are family-owned and managed.
A) Twenty-five
B) Fifty
C) Seventy
D) Ninety
The profile of an entrepreneur includes ________.
A) a desire for responsibility and moderate risk
B) confidence in the ability to succeed and determination
C) a high level of energy, a desire for immediate feedback and a future orientation
D) All the above
Which of the following is notone of the vital tasks small business leaders must
perform?
A) Hire the right employees to the team and constantly improve their skills.
B) Create a culture for retaining employees.
C) Plan for “passing the torch” to the next generation of leadership.
D) Keep flexible and do not be concerned about preparing for the next generation of
management.
Refer to the following information to answer the question(s) regarding Anita Lupino’s
toy and game shop:
Anita Lupino is planning to open her own toy and game shop. She has conducted a
great deal of research at the local library, contacted the industry trade association, and
has set up a meeting with a consultant at the SBDC next week. Before she goes to the
SBDC, she wants to sketch out an estimated income statement. She reviews the
following data from RMA’s Annual Statement Studies:
If Anita’s net profit target is $32,000, what level of net sales must she achieve?
A) $74,941
B) $97,264
C) $326,531
D) $219,178
Which of the following is/are true regarding cost-plus pricing?
A) It encourages the manufacturer to operate efficiently.
B) It fails to consider competitors’ prices appropriately.
C) It fails to guarantee the manufacturer a desired profit margin.
D) Only A and C.
The ________ ratio is a conservative measure of a firm’s liquidity and shows the extent
to which a firm’s most liquid assets cover its current liabilities.
A) current
B) quick
C) turnover
D) net profit
Job training for workers and reduced tax rates, financial grants and loans, are examples
of what some ________ offer as business ________ to locate in their jurisdictions.
A) states; motivators
B) cities; incentives
C) regions; perks
D) counties; attractions
Strategies for successful e-commerce efforts should include all of the following except
________.
A) focusing on a niche market
B) developing a community of customers
C) attracting visitors by giving away “freebies”
D) adding value to recipients by sending spam e-mail