_____ refers to the practice of accepting goods for resale, without taking ownership of
them and without being responsible to pay prior to their being sold.
A. Barter
B. Consignment
C. Noncash incentive
D. Benchmarking
Which of the following is an accurate statement in the context of CSFs that help to
identify the businesses that are more likely to survive?
A. Businesses starting with no start-up capital are least likely to survive long term.
B. Bootstrap entrepreneurs, who start with nothing, are most likely to keep overhead
costs high.
C. The strongest benchmark is to have proven the business idea through sales-in a pilot
test, or through contracts, and orders.
D. Pursuing an imitator strategy shows lower learning from the mistakes of pioneers.
Creating a _____ is the first step in putting together a business plan.
A. codicil
B. marketing plan
C. technical plan
D. capital plan
The process of dividing the market into groups that have somewhat homogeneous needs
for a product or service is called _____.
A. product differentiation
B. market degradation
C. market segmentation
D. benchmarking
_____ refers to the filing made with a state(s) in which the business operates disclosing
the trade name or assumed name of the business along with the owners of the business.
A. Fictitious name filing
B. Evidential name filing
C. Incorporation
D. Adverse possession
Which of the following is an element of a firm’s task environment?
A. The economic sector where the firm does business
B. The firm’s employees
C. The sociocultural sector where the firm does business
D. The firm’s corporate partners
Which of the following terms refers to a rule of thumb about how many prospective
customers it takes to find one who will actually make a purchase?
A. Lead qualification
B. Value proposition
C. Marketing funnel
D. Segmentation
A _____ is the process of physically counting business assets on a set schedule.
A. periodic inventory
B. perpetual inventory
C. just-in-time inventory
D. micro inventory
Checking and savings accounts are the most common forms of _____.
A. commercial papers
B. marketable securities
C. demand deposits
D. debt investments
Profits which are not taken in the form of money are known as:
A. liabilities of newness.
B. slack resources.
C. takeoffs.
D. current liabilities.
_____ is an arbitrary, but regular and systematic, method used to take asset value as an
expense for the purpose of calculating net income or loss.
A. Inventory valuation
B. Capital budgeting
C. Benchmarking
D. Depreciation
Which of the following includes a three-step process that has been adopted to help
small businesses make better and more ethical decisions?
A. Green audit
B. LaRue Hosmer’s model
C. The gold standard for crisis leadership
D. The Machiavellian approach
The “going concern” concept states that:
A. a business has an existence that is separate from its owner.
B. accounting information must be useful to the owners and managers of businesses.
C. the premise of revenue and expense are a part of business.
D. a successful business will stay in business.
What is the goal of appendixes?
A. To inform customers and partners about a firm and its products
B. To establish marketing strategies and identify major competitors
C. To provide supporting information that helps detail the key selling points of a plan
D. To explain the growth plan and competitive strategies
Naomi had always been complimented for her excellent cooking skills. Hence, she
decided to commercialize this ability by starting a restaurant. Before starting the
restaurant, she invited a few friends and neighbors over for dinner to taste her dishes
and provide feedback that she could incorporate in her business venture. This is a
typical example of conducting an informal _____.
A. secondary research
B. focus group research
C. ethnographic study
D. branching survey
Innovation-driven economies:
A. are those where entrepreneurship becomes a key way to build the middle class.
B. are nations where industrialization is becoming the major force providing jobs,
revenues, and taxes.
C. are focused on high-value-added manufacturing but are marked by a very large
service sector.
D. are those where entrepreneurship is essential to build personal wealth and break the
cycle of low-wage jobs.
A(n) _____ is a formalized legal method to transfer some or all of the ownership of a
business to its employees.
A. IPO
B. ESOP
C. consolidation
D. termination
Which of the following is the largest current asset that most manufacturing, wholesale,
and retail firms generally have?
A. Copyright
B. Equipment
C. Inventory
D. Patent