The standard industrial classification system (SIC) codes have six digits.
Research suggests that firms without a business plan are less likely to close down than
firms with plans.
Community development organizations are private businesses that are authorized to
make SBA insured loans to start-ups and small businesses.
A purchased business or franchise does not require immediate and constant cash flows
to meet ongoing obligations.
During the start-up phase of a small business the emphasis is on conserving what little
cash the new business has.
Market scale refers to the geography of the target market.
Reduced taxes are the most common form of institutional gift financing.
Borrowing money for capital investment enhances the potential for higher rates of
return for the owners.
One of the policies for managing customer credit requires business owners to maintain
constant “aging” of accounts to quickly identify customers who become delinquent.
Search and capture of new ideas that lead to business opportunities is called opportunity
recognition.
A start-up always immediately provides positive cash flows.
The strategy of pricing toward the low end of the competition in order to take market
share from the competition becomes most popular as a product reaches the _____ phase
of the product life cycle.
A. growth
B. maturity
C. decline
D. introduction
According to the IRS, to be an independent contractor the person must:
A. decide how the work must be done in consultation with an employer.
B. have all his expenses paid for by an employer.
C. perform a service that is not central to the operation of the business.
D. not be employed for a distinct term or project.
Which of the following terms refers to the privileges, services, or even tangible items
given to employees as part of the overall compensation and benefits package?
A. Bonuses
B. Long-term incentives
C. Perks
D. Health insurance
The _____ budget shows the number of units that are expected to be acquired during
the budget period.
A. cash receipts
B. labor
C. sales
D. purchases
Which of the following is true of the emergence stage of a business life cycle?
A. Emergence is the stage in which a person thinks about and takes actions toward
closing down a firm.
B. Getting from entrepreneurial thinking to entrepreneurial action is the challenge of the
emergence stage.
C. Having the business in operation, but not yet stable in terms of markets, operations,
or finances is the primary characteristic of the emergence stage.
D. In a business life cycle the emergence stage takes place after the survival stage.
_____ are the smallest full-time business.
A. High-performing small businesses
B. Traditional small businesses
C. High-growth ventures
D. Lifestyle businesses
A reduction in the bank account of a merchant by a credit card company is termed
_____.
A. charge back
B. liquidity
C. overdraft
D. reconciliation
A comprehensive budget is also referred to as the:
A. master budget.
B. sales budget.
C. purchases budget.
D. universal budget.
The Americans with Disabilities Act:
A. requires that employers make reasonable accommodation for limitations of qualified
applicant or employee unless to do so creates undue hardship.
B. prohibits discrimination with respect to any condition of employment based on race,
color, sex, religion, or national origin.
C. prohibits employment discrimination based on national origin or citizenship status.
D. prohibits employers from using polygraph results as basis for employment action.
_____ is the strategy of combining two or more products in one unit and pricing it less
than if the units were sold separately.
A. Skimming
B. Bundling
C. Premium pricing
D. Price signaling
Which of the following is true of a limited liability company (LLC)?
A. It is not always subject to double taxation.
B. It is relatively difficult to set up and tough to maintain once started.
C. It does not have the option of single taxation.
D. It cannot have more than one owner.
The form of entrepreneurship in which a person or group own their own for-profit
business is referred to as:
A. independent entrepreneurship.
B. social entrepreneurship.
C. public entrepreneurship.
D. corporate entrepreneurship.
In which of the following stages is there an explosion of choices in terms of products
and services?
A. Introduction stage
B. Growth stage
C. Maturity stage
D. Decline stage
A just-in-time (JIT) inventory system attempts to reduce inventory levels to the absolute
minimum by:
A. purchasing and accepting inventory before it is sold to a customer.
B. delaying the shipment of the completed product to the customer.
C. keeping safety stock in case the estimate exceeds the demand.
D. assembling the product in the absolute minimum time possible.
In a business, accepting payments by credit card causes significant differences between
the bank and book balances because the credit card service provider:
A. records the gross amount of each credit card sale.
B. deposits the amount of the sale in the business’s account on the date of the sale itself.
C. deposits the sale amount in the business’s account after deducting a service fee.
D. retains the sale amount in the business’s account in the event of customer challenge.
Training and flexible hours are a part of the _____ strategy used to control money that
is expected to leave the firm.
A. noncash incentive
B. trade discount
C. barter system
D. gaming payment
Which of the following statements is true about electronic social networks?
A. They are expensive because of their membership costs.
B. They offer better personal connections than face-to-face networks.
C. They are fast and easy to develop.
D. They offer better local connections than face-to-face networks.
Discuss the different transfer strategies for managing transfers within a family.
Explain the key ideas to be kept in mind before moving from part-time to full-time
entrepreneurship.
What are the different types of institutional gifts? Explain how a business can benefit
from them.
What is creative destruction?
What are the different forms of entrepreneurship?
Define growth trap. Discuss the strategies that small businesses can employ for coping
with cash shortages.
What are the three primary purposes of money and the different forms of money?