A(n) _____ focus refers to an entrepreneur’s attention on maximizing gains and
pursuing opportunities likely to lead to gains.
A. comprehension
B. promotion
C. effectuation
D. prevention
Entrepreneurs who do not plan and prefer to let all actions be dictated by their routines
are known as _____.
A. habit-based planners
B. critical-point planners
C. reactive planners
D. comprehensive planners
_____ ratios measure the business’s ability to pay debts and expenses that are due in the
current accounting period.
A. Liquidity
B. Profitability
C. Activity
D. Leverage
Which of the following statements is true of the company section of a business plan?
A. The overall description of the business financials forms the core part of this section.
B. The product/service subsection mentions any protection through a proprietary
technology.
C. The company background subsection includes information about the pilot sales
efforts and the floor plans.
D. The tagline and elevator pitch of the business form the subsections of company
description.
_____ refers to property coming from some sort of original thought such as trademarks,
patents, and copyrights.
A. Trade property
B. Real property
C. Intellectual property
D. Tangible property
Christopher is a hard-working entrepreneur who looked into all the details of his small
gaming software business. He focused on all aspects of the business from the initial
launch, promotion, and marketing aspects to the final set up. He finds planning
convenient and works according to a plan. Christopher is a(n) _____.
A. opportunistic planner
B. habit-driven planner
C. reactive planner
D. comprehensive planner
Which of the following statements is true of joint ventures?
A. It requires both partners involved to allocate revenues and expenses equally between
them.
B. It is not considered a separate entity from any of the partners that own it.
C. It does not require its partners to lose more than what each partner has invested in it.
D. It is never taxed as a partnership.
Larry owns a successful business called Super Car-Hire. He plans to sell it to Bob. Bob
assumes that he can keep up the high revenues if he can plan and execute the mission of
the business well. Which of the following basic accounting concepts is reflected in
Bob’s assumption?
A. The business entity idea
B. The going concern expectation
C. The accounting equation
D. The revenue and expense premise
The organizing process to help make the most efficient use of the day is known as
_____.
A. promotion focus
B. competence
C. certification
D. time management
Which ethical model typically advocates seeking the greatest good for the greatest
number of people?
A. Utilitarianism
B. Caveat emptor
C. The Golden Rule
D. Machiavellianism
_____ is the most used item on the income statement.
A. Net income
B. Cost of sale
C. Revenue
D. Operating income
Which of the following concepts assume that information flows from the income
statement through the statement of retained earnings, the statement of owners’ equity to
the balance sheet?
A. Articulate concept
B. Going concern concept
C. Opportunity cost concept
D. Leveraging concept
Since the caf© is Connie’s first business venture, which of the following risks is most
likely to cause Mr. Johnson to evaluate her business plan negatively?
A. Uncertain sales
B. Experience deficit
C. Overlooked competition
D. Inadequate payback
A(n) _____ refers to a contract among LLC members outlining how the LLC will
conduct itself.
A. operating agreement
B. mission statement
C. charter
D. articles of incorporation
Which among the following federal employment laws requires employers to give 60
days advance warning prior to a plant shutdown or layoff of 50 or more employees?
A. Executive Order No. 11246
B. Title VII of the Civil Rights Act of 1964
C. Worker Adjustment and Retraining Notification Act
D. Immigration Reform and Control Act of 1986
The process of investigating a business to determine its value is called:
A. synergy.
B. spin-off.
C. heuristics.
D. due diligence.
Entrepreneurs can use the AIDA formula to write press releases well. In this AIDA
formula, “D” stands for _____.
A. desire
B. dominance
C. development
D. distance
_____ is a relatively low-cost, although time-intensive, method of recruiting in which
people connect with colleagues, business professionals, friends, vendors they have
strong relationships with, alumni, and advisory board members.
A. Internet recruiting
B. Employee referral
C. Networking
D. Outsourcing
Regulatory focus is a mix of _____ focus and _____ focus.
A. effectuation; comprehension
B. comprehension; prevention
C. effectuation; promotion
D. promotion; prevention