Right-brain thinking is much like the image of a kaleidoscope.
Pure franchising involves a system of franchising in which a franchisor sells a
franchisee a complete business format and system.
A company’s average collection period ratio tells the average number of days it takes to
collect its accounts receivable.
For many entrepreneurs, quality of life is one of the key determinants of their choice of
locale.
A major advantage of launching a business part-time is the lower risk it offers in case
the business fails.
One of the simplest ways to establish credibility with customers is to use brand names
they know and trust.
A sweep account automatically ‘sweeps” all funds in a company’s checking account
above a predetermined minimum into an interest-bearing account, enabling it to keep
otherwise idle cash invested until it is needed to cover checks.
Companies really are not ethical or unethical; individuals are.
Research shows that not everyone can be creative.
Establishing hyperlinks with different product types will ensure you cover a variety of
different customers and give customers what they want.
The typical Internet user now spends more time on the Internet than watching
television.
Customized or dynamic pricing sets different prices on the same products and services
for different customers using the information that a company collects about its
customers.
Really Simple Syndication (RSS) is an application that allows subscribers to aggregate
content from their favorite Web sites into a single feed.
Which of the following is not a characteristic of the strategic management procedure
for a small company?
A) It should use a relatively short planning horizon (i.e., two years or less, typically).
B) It should begin with an extensive objective-setting session.
C) It should encourage the participation of employees and even outsiders to improve the
reliability and creativity of the resulting plan.
D) It should allow for flexibility and not be overly structured.
Which of the following is not a common reason customers leave Web sites before
checking out?
A) Total shipping charges were too high.
B) The privacy policy was not posted.
C) The shopping cart was too hard to find.
D) The site did not appear trustworthy.
According to a survey by CareerBuilders, almost ________ of candidates either
exaggerated or falsified information about their previous employment on their resumes.
A) one-third
B) three-fourths
C) half
D) two-thirds
A type of business that does well when located near competition is ________.
A) one that has a unique product line – dissimilar to that of its competitors
B) one that carries products for which customers comparison shop
C) one whose location is part of its trademark
D) None of the above
The ________ ratio is a measure of the small company’s ability to pay current debts
from current assets and is the liquidity ratio most commonly used as a measure of
short-term solvency.
A) quick
B) debt-to-net worth
C) current
D) debt-to-assets
Mini-Case 12-3: Rent-A-Nerd Computer Consultants
The owners of Rent-A-Nerd Computer Consultants have prepared the partial cash
budget for the upcoming quarter:
Calculate the final end-of-month balance for months 1-3 and answer the following
question.
How much would Rent-A-Nerd have to borrow if its desired minimum cash balance is
$4,000?
A) $2,224 in Month 3
B) Nothing. Rent-A-Nerd’s end of the month cash balance is below $4,000.
C) $2,598 in Month 3
D) $20,771 in Month 3
Commercial banks provide ________ of loans to small business.
A) very few
B) about 50 percent
C) the greatest number and variety
D) more than 89 percent
TIGER ________.
A) is a software package combining the ability to draw detailed maps with the power to
search through databases
B) breaks down the population, retail sales, etc., by census region
C) contains the names of every street in the country and detailed block statistics for 345
urban areas
D) All of the above
A ________ is an agreement with a bank that allows a small business to borrow up to a
predetermined specified amount during the year without making an application each
time.
A) term loan
B) factor
C) line of credit
D) floor plan
Copyrights protect the creator of original works such as ________.
A) software, choreography, and motion pictures
B) symbols, names, and designs
C) text and verbiage of any kind
D) slogans and designs
A situation that occurs when a company pays for clicks that are generated by someone
with no interest in or intent to purchase its products or services is called ________.
A) paid inclusion
B) unpaid inclusion
C) click fraud
D) an unnatural listing
What are some of the most important questions a feasibility analysis answers and what
model may be of value in this process?
What is a corporation? Explain the advantages and the disadvantages of a corporation.
Create a break-even chart for Harry.
Mini-Case 16-3: The Pride of Vicksburg
Wallace Fry had been a lover of good food from the time he was a child. The only son
of wealthy Southern parents, he spent hours with his mother watching her prepare
meals for the family and friends. By the time Wallace was in high school, he had
already won a number of awards for his original recipes. After leaving Vicksburg,
Mississippi, to attend college in the Midwest, Wallace returned home to what must have
been an unbelievable graduation present. His relatives purchased an old paddlewheel
riverboat and had begun initial preparations to have it moored permanently at the foot
of the Vicksburg landing on the Mississippi River. Wallace was presented with a 50
percent interest in the restaurant named “The Pride of Vicksburg.”
The complete renovations and restoration of the beautiful old riverboat took an
additional four months. Wallace was planning to have his new restaurant open for the
spring tourist season. A number of regional magazines had already run feature stories
on the project. With the opening one month away, Wallace decided it was time to staff
the restaurant.
Has Wallace waited too long to begin searching for employees?
Identify and discuss the international barriers to trade.
Explain the three basic financial reports that a small business uses in building a
financial plan: the balance sheet, the income statement, and the statement of cash flows.
What information is contained in each, and of what value is it to the small business
owner?
Describe the factors that are driving the current entrepreneurial trend in the U.S.
economy.
You have been asked to explain the basic elements of a sound business plan to your
friend, who is considering beginning a new business. What elements should you
recommend he include in his business plan?
Identify and briefly explain five of the design characteristics that contribute to a
successful Web site.
What strategies for trade can businesses use when exporting to countries whose
currencies are not convertible to other currencies? What are the disadvantages?