Participating in trade shows and trade missions increase international contacts.
For a small business, the amount and type of inventory held for resale is not important
because the supply of inventory and demand of customers can be matched at all times.
Supplemental profits are intended to equal and replace the salary or wages the
entrepreneur could draw working for someone else.
A common reason people leave a company is if they feel they are not developing
professionally.
There are two key groups outside one’s business with which one must deal-customers
and investors.
Access for employees and reasonable cost are critical for businesses with low customer
contact.
When a business enters a phase of rapid growth, one of the challenges it faces is that
very few sources of money are available to support its growth.
Research suggests that the first good idea entrepreneurs come up with is always the
best.
Joint ventures are partnerships through which two or more businesses combine to
undertake a specific economic activity.
If a business is able to create a prestige image in its customer’s mind, it can charge
much higher prices than the going rate.
In employee leasing, the leased employees actually work for the hiring company rather
than the leasing company.
Succession challenges rarely affect family businesses.
Risk is the probability that future economic state of the business will be better than
expected.
One of the ways to practice the business of innovation is to invite someone who was
never included before in a meeting for solving a problem.
Which of the following statements about family businesses succession is true?
A. Turning over management authority is not easy for most founders.
B. Fewer than 10 percent of family-owned businesses are successfully transferred to a
second generation.
C. It is easy for the heir of the founder to assume authority.
D. Fewer than 5 percent family-owned businesses succeed long enough to be inherited
by the third.
Which of the following is a type of termination that is employed when the entrepreneur
feels that the business was less than successful, usually because of the result of poor use
of the firm’s assets combined with an unsatisfying business experience?
A. Bankruptcy
B. Walkaway
C. Sell off
D. Workout
Which of the following is a way to collect secondary data?
A. Researching on the Internet
B. Conducting a survey with the help of questionnaires
C. Observing the target consumers
D. Interviewing a focus group
Which of the following is true of partnerships?
A. It does not get terminated upon the death of one or more partners.
B. It does not allow one partner to obtain bonding protection against the acts of the
other partner(s).
C. It cannot obtain financial resources from more than one person.
D. It does not incur unlimited liability on its partners for the firm’s debt.
_____ comprises of working for self for more than 35 hours a week.
A. Franchising
B. Full-time self-employment
C. Aggrandizing
D. Part-time self-employment
The _____ layout has aisles running from the front of the store to the back like the
typical grocery, discount, or convenience store.
A. grid
B. free-form
C. process
D. production line
In personal selling, _____ means finding out about the clients before approaching them.
A. evaluation
B. closing
C. prospecting
D. preparation
_____ refers to the percentage expense of obtaining future funds.
A. Risk
B. Cost of capital
C. Rate on investment
D. Return on investment
The industry and market component of the feasibility study typically includes which of
the following components?
A. Sales revenue forecast
B. The competition
C. Writing a business plan
D. Writing a mission statement
Which of the following is true in the context of entrepreneurial success?
A. CSFs undermine the importance of a business possessing a major brand name.
B. The more an entrepreneur knows, the lower the chances for his or her firm to
succeed.
C. Social or networking skills cannot be useful in starting and running a business.
D. Critical success factors are by definition best practices for a given industry.
_____ is a strategic action.
A. Increasing marketing efforts
B. Using new distribution channels
C. Acquiring a competitor
D. Increasing prices
A business that is created by separating parts of an operating business into a separate
entity is called a:
A. synergy.
B. franchise.
C. spin-off.
D. turnkey project.
_____ ratios measure management effectiveness in creating wealth from sales and from
invested funds.
A. Liquidity
B. Activity
C. Leverage
D. Profitability
_____ is a type of life cycle stage following a boom in which there is a rapid decrease
in the number of firms in an industry.
A. Shake-out
B. Growth stage
C. Maturity stage
D. Retrenchment
Which of the following psychological contract items would fall under an employee’s
work facilitation factor?
A. Job security
B. Enough resources to do the job
C. Vacation benefits
D. Increasing responsibilities
_____ provides an organization through which independent businesses may combine
resources.
A. Product distribution franchising
B. Trade name franchising
C. Conversion franchising
D. Business format franchising
Any valuable asset that is donated to a business without any obligation to repay or to
give any ownership interest is called a(n) _____.
A. debt
B. equity capital
C. gift
D. investment
_____ are programs designed to report on a user’s keystrokes or data, or give remote
control of a PC to others.
A. Hubs
B. Firewalls
C. Viruses
D. Spyware