Which of the following is a form of business termination that uses a legal method for
closing a business and paying off creditors when debts are substantially greater than
assets?
A. Bankruptcy
B. Sell off
C. Walkaway
D. Workout
The assignment of work to others over whom one has power is referred to as:
A. delegation.
B. adverse possession.
C. benchmarking.
D. zoning.
Which of the following is true of personal selling?
A. It involves activities used to establish and promote a favorable opinion by the media.
B. It does not allow you to find out the buyers’ main concerns.
C. It involves entering into a joint venture with a competitor.
D. It allows a business owner to be flexible in his or her presentation.
Contracting with people or companies outside one’s business to get work done for the
business is known as:
A. benchmarking.
B. bootstrapping.
C. outsourcing.
D. licensing.
Which of the following components gives an overview of the business, its business
model, market, expectations, and immediate goals?
A. Vision statement
B. Executive summary
C. Mission statement
D. Elevator pitch
Which of the following statements is true about pure services?
A. They are separable from consumption.
B. They are tangible.
C. They are heterogeneous.
D. They are nonperishable.
Qualification for _____ requires certification as a business owned and operated by a
woman or a minority.
A. set-asides
B. codicils
C. product liability insurance
D. professional liability insurance
Those parts of the external environment that directly and consistently touch on a firm
are called the:
A. task environment.
B. microenvironment.
C. real-time environment.
D. general environment.
Which of the following maintains a record of the inflows and outflows in a cash
account?
A. Overdraft balance
B. Bank available balance
C. Bank ledger balance
D. Company book balance
Which of the following profits are called flexibility for most owners?
A. Slack resources
B. Marginal resources
C. Resource maturity profits
D. Takeoff profits
Payment for injury or damage that occurs during the use of a business’s products is
referred to as _____.
A. product liability
B. professional immunity
C. product immunity
D. personal liability
Which of the following approaches yields better results in an established industry or a
poor one?
A. External focus
B. Effectuation focus
C. Prevention focus
D. Promotion focus
_____ is an aspect of entrepreneurship that refers to doing the most work with the
fewest resources.
A. Innovation
B. Creation
C. Efficiency
D. Customer-focus
An auction in which the low bid gets the business or wins is known as a _____ auction.
A. reserve
B. buyout
C. forward
D. reverse
The risk from customers primarily arises from:
A. injuries suffered while on business property.
B. high prices of the products or services.
C. discontent with the customer service provided by the business.
D. not being provided credit to purchase products.
Which of the following comprises a family business?
A. A firm in which two or more families own a stake in a company but with no
authority for daily management
B. A firm in which no family members are involved in the management of the business
C. A firm in which two or more families are involved in the occasional management of
the business
D. A firm in which one family owns a majority stake
_____ is an electronic equivalent of word-of-mouth advertising.
A. Viral marketing
B. Ambush marketing
C. Sales promotion
D. Trendiness