In establishing a management training program, Mark Russell should be consider all of
the following factors except
a. The need for training.
b. A plan for training.
c. The timetable for training,
d. The design of the training facilities.
In a business plan, the competition would be discussed in the
a. financial plan.
b. general company description.
c. executive summary.
d. marketing plan.
For the small business that wants to go global, one of the activities that is most
fundamental to success abroad is
a. avoiding rigid planning that will commit the firm’s resources to a single plan of
action.
b. being sure to tap government programs that provide an incentive for international
expansion.
c. finding international markets that fit the company’s unique potentials.
d. figuring out which of the firm’s competitors is capable of copying its strategy.
Small firms give employees a share of ownership in the business through
a. group incentive plans.
b. profit plans.
c. employee stock ownership plans.
d. action-sharing plans.
In a line-and-staff organization, which of the following is a line activity?
a. Production
b. Human resources management
c. Accounting
d. Legal work
A budget is an example of a
a. policy.
b. short-range plan.
c. strategic plan.
d. nonrecurring procedure.
An example of a nonfinancial reward that may motivate a salesperson is
a. personal recognition.
b. compensation.
c. a bonus plan.
d. a stock plan.
Being passed over for promotion prompted an employee to quit and start her own
business. This perceived injustice served as
a. a forced-choice event.
b. an open-window event.
c. a free-choice event.
d. a precipitating event.
For manufacturers, which of the following is a top priority in location decisions?
a. Personal preference
b. Environmental conditions
c. Closeness to raw materials
d. Customer accessibility
Koldpak has focused principally on the development of revolutionary new ways of
containerizing fresh produce for grocery stores. The firm’s marketing philosophy is
a. consumer-oriented.
b. market-oriented.
c. production-oriented.
d. sales-oriented.
Which of the following is not defined as personal property?
a. Buildings
b. Furniture
c. Fixtures
d. Vehicles
All of the following are stages in a formal product development process except
a. business analysis.
b. idea accumulation.
c. product testing.
d. product conceptualization.
_______ ratios are concerned with how much financing risk is associated with a firm.
a. current
b. assets to liabilities
c. net cash present
d. debt
The use of written policies, budgets, and job descriptions is most closely associated
with which of the following stages of growth?
a. One-person operation
b. Player-coach
c. Intermediate supervision
d. Formal organization
Cash deposits during a month less checks written during the same period equal
a. net cash flow.
b. net profit.
c. operating profit.
d. net working capital.
Explaining company procedures and company policies should be part of
a. initial or “basic” training.
b. supervisory training.
c. orientation.
d. job instruction training.
Buying an expensive set of underwear is most likely an attempt to satisfy which
category of need?
a. physiological
b. psychological
c. spiritual
d. social
When employer-employee relationships in a small firm are compared with those in a
large firm, it is found that
a. the relationships are less formal in the large firm.
b. the large firm concentrates more on production and the small firm is more interested
in personnel.
c. the small firm makes less use of formal personnel policies.
d. personnel policy changes are implemented more quickly in the large firm than in the
small firm.
When a small firm operates with more than one channel of distribution, it is said to be
using
a. multiple distribution.
b. dual distribution.
c. channel integration.
d. intermediary replication
John Frye, a small business manager, is interested in creating more company goodwill.
Which of the following promotional tools should he use?
a. Publicity program
b. Trade show exhibit
c. Contest
d. Specialties
For small businesses, the Internet tends to blur ____________ boundaries.
a. industry
b. geographic
c. skill-dependent
d. technological
Steve, Harry, and Chris, who own and operate a family auto parts store, are
experiencing tough times during a downturn in the local economy. To help the store
weather these adverse conditions, the brothers agree to each take a 25 percent reduction
in salary for a one-year period. This decision
a. demonstrates a weakness of financial management.
b. illustrates an important advantage of a family business.
c. reveals a lack of customer orientation in a family business.
d. reflects a lessening of entrepreneurial ambition in second-generation businesses.
A salesperson at Carpet Warehouse searches public records of new building permits to
identify potential customers for new carpets. This salesperson is relying on _____ to
identify sales prospects.
a. customer-initiated contacts
b. marketer-initiated contacts
c. impersonal referrals
d. personal referrals
As described in the textbook, a Type A idea involves
a. a technically new process.
b. performing an old function in a new and improved way.
c. using prior work experience as a basis for starting a new business.
d. providing customers with a product or service absent in their market but available
elsewhere.
The term franchising was derived from
a. a Gallic word meaning “to sell or bargain for another.”
b. the archaic Norman form of “franshen” meaning “to trade with strangers.”
c. a French word meaning “freedom” or “exemption from duties.”
d. the Dutch trading term meaning “to drive a fair bargain.”
An example of a Type A startup idea is
a. a new microsponge technology allowing oils to be contained inside billions of
microscopic sponges.
b. a baby stroller that pushes more easily and is more difficult to overturn than previous
designs.
c. opening a new hamburger stand on the corner with no unique product differentiation.
d. using satellite dish technology to form a mobile satellite transmitter and receiver
business.
The main purpose of capital budgeting is to help managers make decisions about
a. long-term investments.
b. short-term investments.
c. discounts to offer to customers.
d. nonfinancial constraints on expansion.
When entrepreneurs “bootstrap” their financing, this means that they are
a. enhancing the “corporate image” of their enterprise by the way they raise capital.
b. depending on their own initiative to come up with the capital necessary to start up
and grow.
c. subordinating future capital formation to short-term financial performance.
d. waiting to establish a reputation in the marketplace before raising the bulk of their
capital.
When an entrepreneur joins an organized trip designed to introduce the company to
interested international customers or potential strategic alliance partners, he/she has
participated in a
a. State Department initiative.
b. trade mission.
c. economic freedom venture.
d. “go global” program.
Clock Tickers, a small retailer of a quality alarm clock, sells its product for $180. If
Clock Tickers adheres to pricing based on a 35% markup of cost, the firm’s product
costs are approximately
a. $63.
b. $98.
c. $133.
d. $155.
In general, products that are consumed in fixed amounts have
a. inelastic demand.
b. constant demand.
c. variable demand.
d. elastic demand.
The UFOC disclosure must include information on
a. litigation and bankruptcy history
b. investment requirements
c. conditions that would affect renewal, termination, or sale of the franchise.
d. all of these.
Prior to the 1990s, startups considered going global
a. only after they had established a solid position in the domestic market.
b. early in the firm life cycle.
c. from the beginning because market growth in the United States had stagnated.
d. when they recognized the wealth of support the government provided to expand
abroad.
A pet-food manufacturer has returned from a seminar on environmentalism and wishes
to act responsibly in this area. Which of the following actions will accomplish this
purpose?
a. Increase the firm’s gross margins
b. Reduce product prices
c. Eliminate undesirable processing odors
d. Increase service to customers
Most businesses with ESOPs are large, and eventually all of them become publicly
traded.
Superior customer service translates directly to customer loyalty.
What are some important social responsibilities of small businesses?
Mitch Frankenberg and Jennifer Fredreck’s Paw House Inn is an example of the
application of a cost-based strategy to solve a specific problem
One of the reasons for going public to raise equity capital is to create a liquid market for
the company’s stock.
Acting in a socially responsible manner can be costly to small businesses because
acting in the public interest always requires spending money, which reduces profits.
Profits reward owners for investing in a company, but they do little to promote future
growth.
In many lines of business, trade credit terms are so firmly set by tradition that a unique
policy is difficult for a small firm to implement.
The concept of balance on the management team means that the entrepreneur should
not be wrapped up too much in one area, such as sales or production, but be well
rounded.
A strategic alliance is an organizational relationship that links two or more independent
business entities in some common endeavor.
The age of a company has little impact on the types of financing available to it.
Juggling the needs of business clients and family members can be so stressful that the
home business must be relocated.
Discuss the use of student consulting teams and SCORE consultants in small firms.
Because of the costs involved, it is typical for a business to formulate only a single sales
forecast.
Under certain conditions, pricing at less than total costs makes sense as a long-term
strategy.
One of the things that many B2C firms offer is an electronic environment where
customers can experience a sense of community.
Applied to a business, risk relates to the possibility of losses associated with the firm’s
reputation.
The franchisor being evaluated should be a primary source of information about a
franchise.
Because they have personal resources at risk, prospective investors tend to look
carefully at the business plans they receive.