This term denotes the awareness of a company’s management of the social,
environmental, political, human, and financial consequences that its actions produce.
A) Company policies and procedures
B) The corporate culture
C) Social responsibility
D) Business ethics
Transit advertising has several disadvantages, such as:
A) legal restrictions.
B) high cost.
C) low frequency and short exposure.
D) the inability to target specific audiences.
TQM:
A) instills the philosophy of 100% inspection of all products.
B) provides a “finish line” for the race for quality.
C) avoids placing blame and focuses on fixing mistakes.
D) makes middle managers responsible for product quality.
________ is a key criteria that most venture capitalists look for.
A) Intangible factor
B) High working capital
C) Fair ROI
D) None of the above
The small business owner can successfully manage diversity in his/her business by:
A) avoiding invalid assumptions.
B) placing managers of the same gender or ethnic origin over workers.
C) treating all employees the same regardless of their cultural background.
D) setting quotas or goals for how many individuals from different groups should work
in the company.
What are the exit strategies available to entrepreneurs when it is time to step down?
A) Close the business
B) File for Chapter 7
C) Sell to outsiders
D) Force a family member to take over
A ________ outlines the details of the deal in an IPO.
A) roadshow
B) lock-up agreement
C) letter of intent
D) registration statement
The 80/20 rule suggests that business owners:
A) try to exercise control 80% of the time over 20% of their inventory.
B) identify those inventory items that represent the greatest value to the business and
focus inventory control efforts on them.
C) focus on the 80% of their inventory that only produces 20% of their results in order
to improve performance.
D) try to earn 20% more out of the 80% of their inventory that isn’t producing.
Leonard Stern, the chairman of Hartz Mountain, was concerned and outraged at the
condition of New York City’s homeless living in shelters and welfare hotels, and was
determined to help them. Hartz Mountain backed loans for construction of clean, safe
housing complexes, and helped create social programs to help homeless families. These
efforts by Hartz Mountain are an example of a company’s social responsibility to:
A) consumers.
B) investors.
C) employees.
D) the community.
Grants to small businesses, made to strengthen the local economy in cities and towns
that are considered economically distressed, are made by:
A) the Department of Housing and Urban Development.
B) a local development company.
C) the Farmers Home Administration.
D) the Economic Development Administration.
Which of the following is NOT a step in the creative process?
A) Transliteration
B) Preparation
C) Investigation
D) Illumination
Today a small growing company can improve their working relationships with both
suppliers and customers through the application of ________.
A) electronic data processing (EDP)
B) cloud-based systems
C) electronic fund processing (EFP)
D) customer relationship management (CRM)
To give employees a sense of how the quality of their job fits into the big picture, many
TQM companies engage in:
A) paying more to their employees.
B) hiring more qualified employees with advanced degrees.
C) offering cross-training.
D) All of the above
The inventory in an existing business:
A) is always current and salable.
B) usually appreciate over time, making the business a bargain.
C) needs to be checked for age and salability.
D) is usually stated honestly and does not need independent auditing.
Franchise advertising programs:
A) are organized by the franchiser but controlled locally by the franchisee.
B) are an expense borne by the franchiser.
C) require franchisees to spend a minimum amount on local advertising.
D) allow voluntary participation.
When it comes to buying an existing business, it is not uncommon to find it:
A) overpriced.
B) difficult to finance.
C) with accounts receivable worth more than face value.
D) bargain priced.
The implementation of teams fails sometimes because:
A) too many high performers are placed on one team and they compete with each other.
B) the implementation of team-based pay inhibits individual achievement and the whole
team suffers.
C) the team leader and team members do not receive adequate training.
D) of all of these things.
Radio’s power as an advertising medium comes from:
A) the high production qualities available to the advertiser.
B) the long life of its ads.
C) its nearly universal presence in society.
D) the powerful graphic abilities of the medium.
A variation of geographic pricing in which the small company sells its merchandise to
customers on the condition that they pay all the shipping is called:
A) uniform delivered pricing.
B) F.O.B. factory.
C) zone pricing.
D) discounts.
Which of the following cost typically is included in obtaining materials and inventory?
A) Receiving and inspecting
B) Handling
C) PO processing
D) All of the above
There are specific requirements for insurability which include:
A) the value of the actual loss must be possible to determine.
B) the risk cannot be selected.
C) the risk must be within a single geographical area.
D) there must a pool of insurers who will accept the risk.
One of the fastest growing forms of insurance that protects companies against claims
due to suits on grounds of the Americans with Disabilities Act and the Medical Leave
Act, etc., is:
A) worker’s compensation.
B) professional liability insurance.
C) surety insurance.
D) employment practices liability insurance.
The best color combination for an outdoor ad is:
A) blue on green.
B) red on black.
C) yellow on orange.
D) black on white.
The loan proposal portion of the business plan should include:
A) three sets of forecasts: optimistic, realistic, and pessimistic.
B) a realistic timetable for repayment or for investors to exit.
C) pro forma for two to three years.
D) a listing of anyone who owns more than 20% of the business.
________ is simply the money owed the firm by customers because they’ve purchased
goods or services on credit.
A) Accounts receivable
B) Accounts payable
C) Barter
D) Cash management
The ________ method of valuation assumes that a dollar earned in the future will be
worth less than that same dollar today.
A) market approach
B) discounted future earnings approach
C) asset approach
D) None of the above
Businesses faced with rapidly rising raw materials costs should consider the following
strategies:
A) Communicate with customers and focus on improving efficiency everywhere in the
company.
B) Emphasize the value your company provides to customers.
C) Anticipate rising materials costs and try to lock in prices early.
D) All of the above
Tien is looking for capital to purchase new buildings and equipment for her small
manufacturing company. Tien is looking for ________ capital.
A) working
B) fixed
C) growth
D) asset-based
One of the objectives that a bootstrap marketing plan should accomplish is:
A) it should pinpoint the target market.
B) it should determine customer needs, wants and characteristics.
C) it should identify company vendor potential.
D) Both A and B
Complementary skills refers to:
A) the sole proprietorship skills.
B) partner’s skills that complement one another.
C) complementary skills offered by the employees.
D) None of the above
The majority of customers who stop patronizing a particular store do so because:
A) its prices are too high.
B) its quality is too low.
C) an indifferent employee treated them poorly.
D) it failed to advertise enough.
The starting point for designing a layout is:
A) creating a detailed layout design showing the space relationships.
B) discovering the single best flow for the manufacturing process.
C) arranging the equipment and materials stocking areas in the proper sequence.
D) determining how and in what sequence product parts or service tasks flow together.