Gaining legitimacy in small businesses is especially difficult for entrepreneurs seen as
“different”-women, minorities, home-based businesses, or businesses started by young
people.
In crafting a feasibility study, the goal is to assess if the idea can be profitably brought
to market.
Advertising is often used to support the corporate identity and value propositions that
are established through public relations efforts.
Legal business organizations are artificial entities that exist separately from the owners.
Ethnographic research primarily consists of asking potential customers to fill out
questionnaires.
All business contracts have to be in writing to be enforceable.
After determining whether one is hiring someone for an hourly or salaried position, one
of the first steps in developing a compensation plan is to determine the organization’s
salary philosophy.
The cost of ordering inventory is far greater than the cost of owning and holding
inventory.
Business interruption insurance provides funds to pay the ordinary operating expenses
of your business if it is forced to close temporarily because of an insured event.
Small businesses typically use the strategy of innovativeness rather than imitativeness.
The primary areas for conflict resolution in exporting include nonpayment and contract
default issues.
Face-to-face meetings with the client are infrequent if the services are provided at the
client’s location.
A person or business entity that possesses a security is called a bearer.
Asking questions that are designed so a “yes” or “no” answer is applicable, can help the
interviewer observe how the candidate analyzes situations and how rationally or
logically the situation is presented.
By limiting the information about financial concerns, the complexity of managerial
accounting has been increased.
What would James choose if he based his decision on the return on investment (ROI)?
A. He would choose HY-200 because it has a higher ROI of 0.48.
B. He would choose CZ84 because it has a higher ROI of 0.58.
C. He would choose HY-200 because it has a higher ROI of 0.58.
D. He would choose CZ84 because it has a higher ROI of 0.48.
Which of the following is the idea trigger for the ‘substitute” cue of the SCAMPER
tool?
A. The opportunities that come as a result of replacing something that already exists
B. The separate products, services, or whole businesses that can be put together to
create another distinct business
C. The products or services that can be imitated from other industries or fields
D. The factor that can be used to make a product different from that of competitors’
products
Which of the following statements about handling an early termination is true?
A. The bailout clause doesn’t not help in handling easy terminations if sales do not meet
an agreed-to level.
B. It is good to set up a long-term lease initially.
C. A “cap” or limit on how long to continue paying rent aids in easy lease termination.
D. If business falters, there is no obligation to continue paying monthly rent.
Cash that can be obtained by selling the products and services of a business and
collecting cash from customers is called:
A. cash flow from subsidy.
B. cash from financing.
C. cash flow from operations.
D. cash flow from investing.
The _____ methods define utility as being the net cash inflows that the asset will
produce.
A. residual income valuation
B. discounted cash flow valuation
C. inventory valuation
D. pre-money valuation
Which of the following is a characteristic of the growth stage of the product life cycle?
A. During this stage, acceptance of imitative products increases rapidly while it drops
for innovative products.
B. Prices of products in this stage tend to rise as production becomes more efficient.
C. Prices of products in this stage tend to drop as competition decreases.
D. Sales and profits during this stage grow at higher rates than at any other part of the
product life cycle.
_____ involves introducing a product to potential customers and taking orders for later
delivery.
A. Preselling
B. Test marketing
C. Research and Development
D. Parallel marketing
Which of the following is true of follow-up?
A. It increases cognitive dissonance in customers.
B. It is typically done only once after a sale.
C. Electronic approaches to follow-up dramatically lower the cost of marketing efforts.
D. It refers to business owners doing what they said they would do.
A nation where industrialization is the major force providing jobs, revenues and taxes,
and where minimizing costs while maximizing productivity is a major goal is a(n):
A. factor-driven economy.
B. efficiency-driven economy.
C. innovation-driven economy.
D. effectiveness-driven economy.
_____ is a reward universally mentioned by entrepreneurs.
A. Industry recognition
B. Peer admiration
C. Political power
D. Work flexibility
Which of the following is a statistical technique that determines the size of inventory
that a business must hold to minimize total inventory cost?
A. Benchmarking
B. Factoring
C. Pull-push strategy
D. Economic order quantity