Liquidity is a measure of the ability of a business to meet both short-term and long-term
obligations.
In family-owned businesses, the board of members can only be comprised of family
members.
In the hierarchy of business outcomes, the worst possible outcome is leaving the firm
with no debt.
One of the major challenges identified for family businesses is role conflict.
Second sourcing provides customers with greater certainty of supplies or services.
Small businesses are not eligible to obtain government subsidies.
The most common form of employee theft is the pilfering of items of small value.
The new product development process is likely to be easier for services than for
innovative goods.
Expenses are the value given up to obtain something that the owner wants.
Critical success factors (CSF) are by definition those practices that should be avoided to
succeed in a given industry.
Budgeted income statements are always created on a monthly format.
A marketing plan is not required if a person plans to use his or her own personal savings
and direct marketing.
Emily likes travelling, but every time she checks for tickets and a decent hotel, she gets
overwhelmed with the amount of information she gets. She wants people to have a
hassle-free travel experience. As a result, she starts a small business that filters
information based on people’s requirements and provides them with just the right
amount of information they need about the place they are travelling to, the best
available hotel, and the cheapest air fares. Which of the following is most likely to be
the source of Emily’s business idea?
A. A chance happening
B. A personal interest
C. A similar business
D. An expertise
Dividing the market into different segments by income, age, or religion constitutes
segmenting the market _____.
A. geographically
B. economically
C. demographically
D. culturally
Which of the following types of business form is the most popular for start-ups?
A. Limited partnerships
B. S corporations
C. Professional corporations
D. Sole proprietorship
A(n) _____ is a very simple 5-10 word sentence or tagline that expresses the
fundamental idea or goal of the firm.
A. vision statement
B. executive summary
C. elevator pitch
D. mission statement
If a researcher wants to be able to ask for clarification from participants of a survey,
have participants expand on their answer, or even change the next question based on
their responses, he or she should conduct _____ survey.
A. mail
B. in-person
C. online
D. telephone
Which of the following businesses requires a stake in the company and is good for
brainstorming with other entrepreneurs?
A. Empowerment zone
B. Manufacturing business
C. Remote location service
D. Business incubator
Which of the following is one of the advantages of the return on investment (ROI)
analysis?
A. The profits received are the same as cash.
B. The calculations involved in this method are very difficult.
C. It incorporates the time value of money.
D. It relies on accounting information with which investors are comfortable.
Finding a low-cost or no-cost way of doing business is called _____.
A. moonlighting
B. bootstrapping
C. outsourcing
D. licensing
Which of the following is a feature of the perpetual inventory system?
A. It is the method with the lowest cost for maintaining records.
B. It maintains a constant record of the receipt and sale of inventory.
C. It requires very little time for constant record keeping.
D. It is the process of physically counting inventories on a set schedule.
A transfer method describing the first-time public sale of a stock listed on a public stock
exchange is called a(n):
A. IPO.
B. ESOP.
C. consolidation.
D. termination.
Born and raised in India, Rashmi has always enjoyed Indian cooking. As a matter of
fact, cooking was her passion and she always enjoyed reading, learning, and
experimenting with different ethnic cuisines. Ever since Rashmi’s family moved to the
United States, she was constantly encouraged by her relatives to start a business related
to cooking. Realizing that her American friends may not be able to handle or like Indian
food due its spiciness, Rashmi decided to make changes to the recipes to suit the local
taste. Rashmi is seriously contemplating whether she should start a catering
business-Tastes of India. Which of the following factors has encouraged Rashmi to
consider the catering business idea?
A. A similar business
B. Serendipity
C. Work experience
D. Family and friends
Amounts owed to vendors for merchandise or services purchased on credit are called
_____.
A. receivables
B. deposits
C. charge backs
D. payables
Which of the following is true of a high-growth venture?
A. It considers sales as more important than marketing.
B. Its metastrategy is novelty.
C. It focuses more on efficiency than on effectiveness.
D. It does not allow for easy delegation of work or responsibilities.
According to a majority of entrepreneurs in the Panel Study of Entrepreneurial
Dynamics (PSED), which of the following is the most frequently mentioned source of
business ideas?
A. Discussion with potential investors
B. Education and expertise
C. Family and friends
D. Work experience
Business owners can figure how to better target ads or promotions to particular types of
customers if:
A. they track sales of their competitors.
B. they identify the defects in their products.
C. they use the diversification strategy rather than the product expansion strategy.
D. they link sales and purchase basis to the type of customer.