Outsourcing refers to the assignment of work to others over whom one has power.
The employee referral method is an example of an overused, high-cost recruitment
method.
Risk from loss of key personnel and former employees setting up competition against
your business can be managed by negotiating employment contracts with those key
employees.
The easiest way to find selling prices for products these days is on the Internet.
Contractual provisions of insurance policies that specify what risks the insurance
company is assuming are called coverages.
The marketing plan is a one-time process that should not be revised once formulated.
Adverse possession occurs when an owner of real property does not enforce property
rights and allows a nonowner to use the property as if it were his or her own.
Electronic social networks have membership costs, but offer the all-important personal
touch as well as those all-important local connections.
A lease is simply a rental agreement that specifies a minimum period of time for which
one must make rental payments.
If a rapid prototyping model can be developed, the molds for manufacturing can be
made inexpensively by most modern manufacturers.
Entrepreneurship levels are very high in efficiency-driven economies.
In the context of a business plan, product quality, its benefits, service quality, and the
competitive advantage are the primary concerns of potential customers.
Giving a third party legal rights to debts owed by the business in order to provide
assurance that borrowed money will be repaid is called _____.
A. operating leases
B. factoring receivables
C. capital leases
D. pledging receivables
Which of the following characterizes a habit-based planner?
A. They take a long-term view, develop long-range plans for all aspects of the business,
are comfortable with planning, and act based on the plans they’ve developed.
B. They plan around the most important aspect of the business first, act on it, and then
consider if additional plans are needed.
C. They are completely passive and generally wait for cues from the environment to
determine what actions to take.
D. They don’t plan, and they don’t tend to react to changes in their environments.
Chain Shop.com runs on a membership business model, in which an existing member
gets a 20 percent rebate if he or she introduces or invites a potential customer to the
site. This rebate gets activated once the new member makes a purchase on the site. This
is an example of _____.
A. reference pricing
B. captive pricing
C. a random discount
D. a referral discount
Which of the following strategies is used by a business to decrease cash outflows?
A. Refusing the trade discounts offered by suppliers
B. Taking on noncore paying projects
C. Trading goods and services using only money
D. Avoiding the wastage of resources
Which of the following is the greatest problem faced by home-based entrepreneurs?
A. Zoning challenges
B. Gaining customers
C. Insurance problems
D. Delivering work
The first step in preparing a master budget is to prepare a _____ budget.
A. production
B. direct materials
C. sales
D. direct labor
Mr. Hill, who runs a key-chain manufacturing unit, buys raw materials from his
supplier during the first week of every month. The supplier’s policy states that all
payments need to be cleared within 50 days of buying the materials. This schedule
ensures that Mr. Hill gets an extended period to make payments thus controlling when
the payment is made. Which of the following strategies is Mr. Hill using to control cash
outflow?
A. Taking a consignment
B. Offering trade discount
C. Gaming the payment process
D. Timing the purchase
Lifestyle firms, traditional small businesses, and high-performing small businesses are
often called _____.
A. main street businesses
B. Wall Street businesses
C. high-growth ventures
D. universal businesses
The primary advantage to a buyout is its:
A. hands-off approach.
B. significantly less cost.
C. simplicity.
D. employee stock option plan.
A situation that occurs when all the major functions of a firm are conducted according
to the standard business practices of its industry is known as _____.
A. expert business professionalization
B. specialized business professionalization
C. minimized business professionalization
D. maximized business professionalization
In evaluating potential employees, a small business owner:
A. should hire a moderately qualified person in case filling the position is an urgent
requirement.
B. should ensure that only a single interviewer meets with a candidate in order to avoid
conflicting evaluations.
C. should design interview questions such that “yes” or “no” answers are not applicable.
D. should accept the candidate’s word that he or she possesses a certain skill or
knowledge base.
Which of the following is true of social entrepreneurship?
A. It usually has a lot of funding.
B. It creates organizations which are usually financially dependent on other firms.
C. It cannot be initiated by a for-profit company.
D. It does not include innovation as a key element.
Which of the following is the first step of a business’s marketing plan?
A. Examining the current situation of the business
B. Discussing the target market of the business
C. Creating a detailed marketing strategy and objectives
D. Addressing the 4 P’s of the business
What are the various approaches that are available for developing product prototypes?
List the key elements of creating a corporate identity?
What are the five ways that people can use to get into small business management?
How can a start-up increase its chance of success?
Identify at least two concerns of the various business plan audiences.