Standard industrial classification system (SIC) codes have _____ digits.
A. four
B. six
C. seven
D. nine
What would happen when a small business that is growing becomes too great to be
handled alone by an individual owner?
A. There are fewer risks for a decline.
B. The business will in most cases be cannibalized.
C. Professional managers are hired to share the management load.
D. The manager of the company will never join a competing business.
The Family and Medical Leave Act requires employers to give employees up to _____
weeks leave, paid or unpaid, without loss of position, seniority, or benefits, for a
qualifying condition or event.
A. 2
B. 6
C. 12
D. 20
Someone who uses intellectual property without the permission of the owner is referred
to as a(n):
A. infringer.
B. arbitrator.
C. defaulter.
D. retainer.
_____ refers to the concept that key employees should be able to see and understand a
firm’s financials, that they should have a part in moving the numbers in the right
direction, and that they should have a direct stake in the strategy and success of the
firm.
A. Open-book policy
B. Autonomy
C. Work facilitation
D. Psychological contract
Entrepreneurs who develop plans focused on the most important aspect of the business
first are known as _____.
A. critical-point planners
B. opportunistic planners
C. comprehensive planners
D. reactive planners
_____ is a strategy whose goal is growth, based on selling in areas or to groups
previously not served by the business.
A. Market penetration
B. Market expansion
C. Product expansion
D. Diversification
_____ is the general name for the line of product or service being sold, or the firms in
that line of business.
A. Industry
B. Market
C. Scope
D. Niche group
Which of the following is most likely to be the key information that joint venture
partners seek in a business plan?
A. Asset or collateral base
B. Cash flow and cash cycle
C. Intellectual property protection
D. Stability of firm
Which of the following reconciles the net increase or decrease with the beginning cash
balance and the ending cash balance?
A. Net effect of foreign exchange rates
B. Noncash investing and financing
C. Net change in cash balance
D. Noncash operating activities
Which of the following statements is true of nondirect distribution?
A. A product’s final price is more than the manufacturing cost if intermediaries are
involved.
B. An agent sells products to consumers or end-users, typically in small quantities.
C. Distributors and wholesalers tend to take on start-up products due to zero setup
charges.
D. A retailer represents a manufacturer’s product to other business-to-business
middleman firms.
A(n) _____ is a data-collection method using a questionnaire-in person, on phone, on
paper, or on the Internet.
A. desk research
B. survey
C. focus group research
D. ethnographic research