Press relations are a form of communication that encourage the customer to take
immediate action.
Success profits are intended as a secondary income for the entrepreneur, who has
another job which provides his or her main income.
The method of advertising is least likely to be used by businesses to convey their
message to potential customers.
In a negotiation between two parties, the BATNA’s of both parties makes more sense
than finding a solution together.
The billboard principle is an ethical model that asks whether someone would be
comfortable having his or her decision and name advertised on a billboard for the
public to see.
With the many sales and service businesses built using the Internet, a low-cost, low-risk
approach for testing feasibility exists using the concept of a pilot test.
The disadvantage of the BRIE model is that it does not mention the management of
resources.
Doing business in a different location other than the hometown is comparatively less
expensive.
Most entrepreneurs start out working part time on their new business.
Terminations are more likely for young firms that are four years old or less.
A business plan presentation remains the same for different audiences.
In person survey has the lowest return rate and does not allow for much flexibility when
compared to mail or telephone surveys.
Overlooked competition is not a critical risk in a business plan.
Executive summaries are written in a formal style, suitable for investors, bankers, and
lawyers to read.
A(n) _____ refers to a set of goods or services that consists of only one or a few items.
A. in-process inventory
B. macro inventory
C. just-in-time inventory
D. micro inventory
Which of the following is true of the eBay website?
A. The eBay method of auctioning means one pays a fee for posting his or her product
and a sales fee based on the final bid price when the item sells.
B. Most online transactions use a credit card or an online payment system like
PayMate, which is a division of eBay.
C. eBay does not allow buyers and sellers any anonymity.
D. On eBay, one can list a single item for sale only by creating a website to support his
or her effort.
_____ is a measure of how quickly a company can raise money through internal sources
by converting assets to cash.
A. Absorbability
B. Equitability
C. Nominal value
D. Liquidity
The ratio of the value of a firm to its annual earnings is called:
A. unappropriated profit.
B. accumulated earning.
C. retained earning.
D. the earnings multiple.
A(n) _____ is a one-page document on letterhead that introduces the business plan and
owner to the recipient and indicates why the recipient is being asked to read the plan.
A. executive summary
B. cover letter
C. appendix
D. title page
Which of the following is true of new employees in terms of communication?
A. Fostering a sense of teamwork creates envy among employees and discontent among
the other members.
B. Sharing the vision and the mission of the business puts pressure on new employees.
C. Scheduling brief one-on-one meetings helps communicate the goal of an employee’s
position and expectation of performance.
D. Giving feedback on a consistent basis regarding performance undermines new
employees’ confidence.
_____ refers to a method of selling in which catalogs, brochures, letters, videos, and
other pieces of marketing materials are shipped straight to customers from which they
can mail, call, or e-mail an order.
A. Guerilla marketing
B. Direct sales
C. Contract manufacturing
D. Direct mail
_____ refers to a situation when what is best for one’s part-time business is different
from what is best for his or her full-time employer.
A. Cannibalizing
B. Aggrandizing
C. Conflict of interest
D. Poisoning the well
The name under which a business is operated is known as its _____.
A. trademark
B. inclusive name
C. trade name
D. copyright
If business owners track sales by purchase basis:
A. they can minimize the cognitive dissonance experienced by their customers.
B. they can predict the performance of their competitors.
C. they can easily decide which marketing efforts to continue.
D. they can find the defects in their products.
Imitation plus one degree of similarity results in:
A. patterning a business on existing firms.
B. creating previously unseen products or services.
C. creating products or services that have no competitors.
D. characterizing a business based on the returns it offers.
Most small businesses never go through the _____ stage.
A. takeoff
B. resource maturity
C. emergence
D. survival
Which of the following organizations tracks experts in family business?
A. Association for Family Business Foundations
B. Association for Small Business Entrepreneurs
C. Family Business Management Institute
D. Family Firm Institute
Which of the following layouts is most appropriate for low-volume, flexible
manufacturing?
A. Process layout
B. Production line layout
C. Free-form layout
D. Grid layout
When recruiting, once a job description is prepared, the next step is to:
A. develop questions for interviewing.
B. create a job analysis.
C. prepare a training module for employees.
D. create a Website.
Having well-known or well-regarded owners, employees, supporters, or spokespeople
primarily increases a firm’s _____ legitimacy.
A. cost-based
B. organization-based
C. people-based
D. competition-based