A(n) _____ is an action-oriented description of a business designed to sell the idea of
the business to another.
A. vision statement
B. executive summary
C. mission statement
D. elevator pitch
After being in business for 24 months, Paul’s auto spare parts company Chromson Inc.
grows to a relatively stable size. Which of the following would be Paul’s primary
financial management need at this stage?
A. Building owner’s wealth
B. Clearing all debts
C. Implementing bootstrapping techniques
D. Establishing internal control over assets
The amount for which an asset would sell, less the costs of selling the asset is called:
A. book value.
B. replacement value.
C. net realizable value.
D. earnings multiple.
In a(n) _____ marketing strategy, a marketer selects two or more distinct groups of
consumers and designs specific marketing mixes to meet their needs.
A. mass
B. concentrated
C. differentiated
D. undifferentiated
Which of the following is more indicative of a business’s financial strength?
A. Short-term investments
B. Prepaid expenses
C. Accounts payable
D. Inventories
_____ is a dispute resolution method in which the decision is nonbinding on the parties
involved.
A. Arbitration
B. Litigation
C. Adverse possession
D. Mediation
_____ uses creative and relatively inexpensive ways such as door-knob hangers,
T-shirts, balloons, flyers under windshield wipers to reach customers.
A. Direct mail
B. Guerilla marketing
C. Telemarketing
D. Direct sales
Which of the following types of value benefits is most likely to be offered by a product
if it helps the community, a group, the environment, or the world?
A. Scope savings
B. Personalization
C. Altruism
D. Scale savings
_____ means “let the buyer beware,” and is a philosophy sometimes used by businesses
to put the burden for consumer protection onto a customer.
A. Caveat emptor
B. Habeas corpus
C. Laissez faire
D. Persona grata
Which of the following can be exercised only when presented with specified shipping
records?
A. A documentary draft
B. A letter of credit
C. A mail order
D. A codicil
Which of the following is a disadvantage of hiring a full-time employee?
A. Hiring full-time employees incurs costs of training time, employee tax, and
accounting costs.
B. Hiring full-time employees makes it imperative for the employer to spend significant
time with the business without taking any time off.
C. Full-time employees take more time to understand the business.
D. Full-time employees are reluctant to take on high responsibility and have lower
productivity.
A business run by the individual who owns it is referred to as a(n) _____.
A. franchise
B. owner-managed firm
C. professionally-owned business
D. novelty firm
_____ is a category of marketing research that is best defined as the new information
collected to solve a problem at hand or answer current questions.
A. Primary research
B. Secondary research
C. Data binding
D. Data testing
The way that newly created goods, services, or firms hurt existing goods, services, or
firms is referred to as:
A. benchmarking.
B. creative destruction.
C. service distortion.
D. crowdsourcing.
In a _____ layout, material flows in on one side of the operation and continues to the
other end of the operation.
A. free-form
B. process
C. grid
D. production line
Which of the following is true regarding the stages in a business life cycle for most
small businesses?
A. The stage of success is followed by survival.
B. Survival is the last stage of the cycle.
C. Existence is the first stage of cycle.
D. Resource maturity follows success stage.
Which of the following factors refers to providing meaningful work for employees,
which gives them the feeling or belief that the day’s work had a valuable impact to the
company and that they made a difference?
A. Empowerment
B. Training
C. Contribution
D. Teamwork