For corporations, certification for businesses owned by women or minority is handled
by organizations that are not affiliated with the government or big business.
It is customary for a small business to concentrate its efforts on one target market at the
beginning and consider secondary ones later.
People who buy ownership rights but are not part of the management of the business are
known as outside equity investors.
Hiring marketing research firms is a much more inexpensive option than online surveys
for small businesses.
For services, referral bonuses are an inefficient tool because the recommendation of a
friend or relative is of no importance in purchasing or in trying a new service.
Only one-third of family-owned businesses survive beyond the first generation.
Due diligence is the process of investigating to determine the full and complete
implications of buying a business.
There are two major classification systems that code industries: NAICS and SIC.
“C” in the SCAMPER tool stands for copy.
E-tailers have high overhead and limited shelf space.
Perks is a great way to provide long-term boosts in motivation.
Which of the following statements is true regarding the OSHA Act?
A. It covers employees in mining, transportation, and state and local governments.
B. OSHA offers consultation services to employers for a fee.
C. It requires businesses to report any accidents that result in a fatality or in the
hospitalization of three or more employees within 24 hours.
D. OSHA-defined “low-hazard” industries are exempt from the record keeping
requirements of the regulations.
When an entrepreneur gets funding for his business from an account that his family had
initially set up for his future education or a first home, it is referred to as _____.
A. piggybacking
B. accelerated cash-out
C. free use
D. overpayment
The _____ of an organization will be a part of its task environment.
A. owners
B. board of directors
C. competitors
D. employees
For new entrepreneurs, which of the following would be a good reason to undertake a
part-time business first before a full-time one?
A. To buy an existing business
B. To gain basic experience
C. To open a franchise
D. To increase competition in a specific industry
Which of the following is true of a differentiation strategy?
A. It requires a firm to offer a combination of cost benefits that appeals to the
customers.
B. It is generally pursued by all small businesses.
C. It is aimed at mass markets.
D. It is used by businesses that pursue a very low cost operation.
Orion Inc. was started as a small organization with five employees. After the first year’s
profits were made, the owners decided to invest the profits in expanding the business.
This is an example of financing the business using _____.
A. benchmarking
B. bootstrapping
C. piggybacking
D. outside equity
Which of the following is true of home businesses?
A. It is very difficult to set up.
B. It requires a very high initial capital to start up.
C. It does not allow one to work away from his or her employer.
D. It provides highly variable income.
The market section of a business plan primarily focuses on _____.
A. employees
B. joint venture partners
C. government agencies
D. customers
Following the BRIE model in starting a business, an entrepreneur creates a boundary
within the environment, setting his firm apart from the rest of the environment. In doing
this, the entrepreneur gives the firm an _____.
A. organizational citizenship
B. organizational identity
C. organizational diversity
D. organizational collusion
Cathy has created a website for her shop of homemade chocolates and scented candles.
Apart from traditional retailing, she sends e-mails to the people in her neighborhood.
She also informs customers about various promotional offers through pamphlets. Which
of the following techniques best describes Cathy’s overall marketing method?
A. Embedded marketing
B. Digital marketing
C. Multichannel marketing
D. Word-of-mouth marketing
Which of the following is true with regard to minorities in small businesses?
A. Minority-owned firms have not grown much in recent years and are a slow growing
sector.
B. The establishment of both public and private funding and networking initiatives has
helped to level the business playing field for minority entrepreneurs.
C. There is a phenomenal decline in the number of minority entrepreneurs despite the
growth of racial and ethnic groups within the U.S. population.
D. Minority entrepreneurs do not face the challenge of access anymore.
In many franchises the franchiser oversees (or even manages) the selection of location,
the construction of facilities, the acquisition and installation of necessary equipment,
and the initial inventory with which to open business. Which of the following terms
best represents this type of franchising?
A. Cannibalization
B. Turnkey
C. Liquidation
D. Consignment
An opportunity that makes it possible for a new business to gain a foothold in a market
is referred to as a(n) _____.
A. parallel competition
B. incremental innovation
C. differentiation strategy
D. entry wedge
_____ refers to information provided to the government concerning the existence of,
name of, nature of, and contact information for one’s business.
A. Zoning
B. Franchising
C. Registration
D. Bootstrapping
Letting an employee make an on-the-spot decision for the companies’ best interest
displays the employee’s _____ at the work place.
A. nepotism
B. training
C. empowerment
D. teamwork
Government contracting funds which are earmarked for particular kinds of firms, such
as small businesses, minority-owned firms, women-owned firms, and the like, are
known as _____.
A. collective investment scheme
B. cooperative fund
C. certified items
D. set-asides
Currency is a form of cash represented by:
A. stocks and bonds.
B. bills and coins.
C. commercial paper.
D. demand deposits.