A copyright notice should include
a. the symbol (c).
b. the date the work was published.
c. the name of the copyright owner’s company.
d. a listing of all other copyrights held by the owner.
When is a company a family business?
a. When decisions at work have an impact on ones family
b. When a number of family members are employed by the same company
c. When a parent is in a good position to give career advice to a son or daughter
d. When two or more members of a family are involved in a firm’s ownership and
functioning
A reason that a small firm would not use a discounted cash flow technique in evaluating
capital investments would be that
a. the accounting rate of return is better for a small firm.
b. liquidity is less of an issue for a small company.
c. small firms invest more in short-term assets than do large companies.
d. nonfinancial issues may be more important for a small firm.
The right to buy new shares of stock in proportion to stock already owned is called a
a. stock right.
b. stock option.
c. Section 1244 right.
d. pre-emptive right.
A successor assumes a supervisory position in a family firm in the
a. introductory functional stage.
b. functional stage.
c. advanced functional stage.
d. early succession stage.
As his small business prospers and grows from Stage 1 to Stage 4, Carlos Perez realizes
that he also must grow by increasing his
a. doing skills.
b. advertising skills.
c. managing skills.
d. legal skills.
Gill Balstock started his business after inventing an environmentally-friendly disposal
foam container for dairy products. His son Larry now runs the business while Gill
pursues other projects. Gill is a(n) ___________ and Larry is a(n) ____________.
a. founder, follow-on entrepreneur
b. initiator, instigator
c. founder, franchisee
d. founder, second-stage entrepreneur
Effective evaluation of warranty policies should focus on all of the following except
a. legal implications.
b. service capability.
c. customer perceptions.
d. former practices.
Economic risk refers to the
a. risk that a startup will not generate the performance necessary to stay in business
long term.
b. potential for loss of capital in a business deal.
c. probability that a government will change business conditions and hinder firm
performance.
d. chance that an entrepreneur will not be financially successful.
Which of the following is a key question that an entrepreneur must address in
anticipation of post-harvest life?
a. How can I increase my passion for the harvest process?
b. Will I experience serious regrets over the decision to harvest my investment in the
company?
c. Will I still be respected as a leader in the company?
d. What will my legacy be within the company?
Johnny Berrins is considering an investment in a nationally known franchise. With
which source of information should he be most concerned?
a. The franchisor itself
b. The franchisor’s suppliers
c. Other independent business people he knows
d. “Infomercials” on the subject
Linda Semmes sets high standards and expects excellence from her employees. Her
leadership style is typical of ________ leaders.
a. authoritative
b. coercive
c. pacesetting
d. affiliative
As part of preparing a business plan, Grace Wang wishes to show the cost of fringe
benefits as a percentage of payroll costs. She should use the following percentage:
a. 40 percent.
b. 25 percent.
c. 15 percent.
d. 5 percent.
Under a coinsurance provision requiring the building insured for at least 80 percent of
its value, the recovery on an insured loss of $100,000 on the building with a
replacement value of $500,000 that was insured for only $300,000 would be limited to
_______.
a. $20,000
b. $30,000
c. $50,000
d. $75,000
An entity or individual that grants another party the right to conduct business according
to specified methods and terms is known as a
a. franchisor.
b. franchisee.
c. franchise.
d. licenser.
_____ serves as an inducement to buy a certain product while typically offering value to
recipients.
a. A sales promotion
b. A specialty trade show
c. Advertising
d. Specialty advertising
The process of developing and engaging in mutually beneficial relationships with peers
is
a. networking.
b. politicking.
c. instrumental tying.
d. effective connecting.
A “C” class item in a system that uses the ABC method of inventory management is
a. critical.
b. noncritical.
c. most valuable.
d. least valuable.
All of the following are legitimate sources of new product ideas within the framework
of a formal product development process except
a. business personnel.
b. customer requests or suggestions.
c. government-owned patents.
d. competitor-owned patents.
Small businesses can protect their intangible assets by means of any of the following
except
a. trademarks.
b. patents.
c. copyrights.
d. formal redress.
The type of insurance that provides protection against a type of customer-oriented risk
is
a. general liability insurance.
b. surety bonds.
c. business interruption insurance.
d. commercial property coverage.
An entrepreneur would choose a franchise over an independent startup most likely
because of the
a. decision freedom it provides.
b. guidance it provides for organizational structure.
c. high probability of success.
d. opportunities to meet and share ideas with other executives.
A primary driving force of future asset needs is
a. investments.
b. sales.
c. external equity.
d. internal equity.
____________ encompasses both the physical movement of products and the
establishment of intermediary relationships.
a. Logistics
b. Distribution
c. Physical distribution
d. Marketing management
Billy Newton works part time in his mother’s garden supply wholesaling business.
According to the results of Sue Briley’s survey of the children of owner-managers of
family businesses, how likely is Billy to work somewhere else before entering his
mother’s business?
a. 25 percent
b. 40 percent
c. 55 percent
d. 70 percent
Software packages containing __________ tools are available to assist in supporting
customer contacts.
a. word-processing,
b. spreadsheet
c. database
d. all of these
Outside sources that may assist in formulating and carrying out promotional programs
include
a. marketing coaches.
b. professional associations.
c. the advertising media.
d. trade representatives.
Which of the following is not directly involved in a firm’s management of its working
capital?
a. Inventory
b. Fixed assets
c. Accounts receivable
d. Accounts payable
The answer to the question of whether you need a business plan is
a. “It just depends.”
b. “It’s imperative.”
c. “It’s requisite for success.”
d. “It’s a no-brainer.”
An analysis of which of the following records facilitates maintenance of adequate stock
levels?
a. Accounts payable records
b. Accounts receivable records
c. Cash records
d. Inventory records
Marc Katz is an example of
a. how an employee’s integrity can contribute to a business’s success.
b. how an entrepreneur’s integrity contributes to a business’s success.
c. how a customers’ lack of integrity can affect the operations of a firm.
d. how an entrepreneur’s lack of integrity can cause a business failure.
Which of the following situations might be a precipitating event?
a. Getting laid off by General Motors
b. Making a new firm’s first sale
c. Getting a working-capital loan for $25,000 from a local bank
d. Changing the organizational structure of a small department store
A control chart is used as part of a
a. statistical process control plan.
b. 100 percent inspection plan.
c. traditional inspection plan.
d. reengineering plan.
A code of ethics becomes increasingly appropriate and necessary as a small business
a. expands its credit sales and acquires more customers who buy on credit.
b. begins to market products in other countries.
c. grows larger, with a consequent lessening of the owner’s personal influence.
d. increases borrowing to the extent that one-third of its assets are financed by
borrowing.
How are Better Business Bureaus formed, and how do they contribute to ethical
business behavior?
A “canned” sales talk is successful with most buyers.
To be an online success, a firm must be the first to enter a market through the Internet.
Because insurance companies must collect enough premiums to pay the actual losses of
insured parties, the cost of insurance is inversely proportional to the probability of
occurrence of the insured event.
Persons who leave their homeland and go into business for themselves in a new country
would be described as entrepreneurial refugees.
Approximately one-half of the financing for startups comes from personal savings.
The operations process is concerned with the conversion of inputs into products or
services.
Michael Hammer and James Champy are noted for their advocacy of reengineering.
The build-up leveraged buyout is typically used in industries that are dominated by
large firms.
Exporting involves the purchase of goods in the home country made by manufacturers
in other countries.
With a skimming price strategy, prices for products or services are set lower than
normal, long-range market prices in order to gain more rapid market acceptance or to
increase market share.
What are the tradeoffs between profitability, risk, and control that should be considered
when choosing between debt and equity?
A small company can protect itself against the death of important personnel by carrying
key person insurance.
A Web site is a location on the World Wide Web where users can find information about
a firm and its products.
Effective internal controls help to reveal employee theft, fraud, and bad decisions based
on inaccurate and untimely accounting information.
The maintenance function is intended to correct equipment failures and to prevent
breakdowns from occurring.
Marketing research is defined as the gathering, processing, reporting, and interpreting
of marketing information.
A brand gains market awareness once it becomes part of consumers’ evoked sets.
Aging accounts receivable can indicate troublesome accounts.