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If a company turns its inventory over too slowly, it is most likely to be keeping obsolete
or deteriorating goods.
Objectives are the goals that give shorter-term direction to the business and serve
as benchmarks for measuring performance.
Consumerism involves performing product tests.
An ineffective medium of advertising for small businesses is by word-of-mouth.
A problem for franchisees is the high price of supplies that must be bought from the
franchiser.
Poor performance in a team can be effectively checked by increasing the number of
employees.
Which of the following is true about small company offering registration(SCOR)?
a) It is a form of debt security with a standard denomination.
b) It is a contract that permits use of someone else's property.
c) It is the sale of common stock to the public through a regulated board.
d) It is not permitted in most states.
Which of the following steps should a family-owned business take to compensate
family members?
a) Every relative who wishes to work for the business should be hired.
b) Family members should be financially rewarded on the basis of their position in the
family.
c) A managerial title should be offered to motivate a productive family member.
d) Relatives should be offered positions according to their status in the family.
The Uniform Partnership Act (UPA) governs the operations of partnerships in the
absence of other expressed agreements.
Which organization provides counseling, training, and technical assistance in small
business management, and is partially funded by the SBA?
a) Small Business Correction Center
b) Small Business Facilitation Center
c) Small Business Development Center
d) Small Business Training center
Which form of business combines the advantages of a corporation with the benefits of a
partnership?
a) Nonprofit corporation
b) Proprietorship
c) Limited-liability company
d) Professional service corporation
In the context of small businesses, which of the following is true of preferred stock?
a) It usually conveys no voting rights to its holder.
b) Preferred stock dividends must be paid after common stock dividends.
c) It represents the owners' interest.
d) It usually consists of many identical shares.
_____ refer(s) to current assets resulting from selling a product on credit.
a) Accounts receivable
b) Accounts payable
c) Liabilities
d) Owners' equity
_____ is the percentage of net profit the owners' equity earns before taxes.
a) Return on net assets
b) Surplus value
c) Return on equity
d) Profit margin
Which of the following defines upgrading?
a) Retraining workers so they can do increasingly complex work
b) Moving an employee from one job to another, without necessarily changing title or
pay
c) Moving a person to a higher position, usually with increased responsibilities and pay
d) Rehiring former employees
Which of the following is an example of software?
a) A keyboard
b) An operating system
c) A central processing unit
d) A motherboard
How do quality circles motivate employees?
a) By providing financial incentives
b) By getting workers to do their work "right the first time," thus generating pride in
workmanship
c) By getting employees involved and taking advantage of their creativity
d) By telling employees what to do and when to do it
______ refers to the owners' net worth in the business after liabilities are subtracted
from assets.
a) Breakeven expense
b) Profit
c) Owners' equity
d) Revenue
Which of the following is true about the growth stage of the product life cycle?
a) Prices are usually high, sales are low, and development, promotion, and distribution
costs are high
b) Marketing strategy typically encourages strong brand loyalty
c) Promotion costs climb and competitors cut prices to attract business
d) Management considers pruning items from the product line to eliminate unprofitable
ones
_____ is defined as a percentage share of an expensive asset and is most often used for
aircraft, sports cars, and real property.
a) Fractional ownership
b) Limited liability partnership
c) Joint venture
d) Limited partnership
Which of the following is true about RFID?
a) It is derived from a language called symbologies.
b) It is a method of specific identification transponders.
c) The only disadvantage of RFID is that it cannot be read from a distance.
d) It is used for checking the quality of a company's inventory.
Which of the following is a characteristic of passive RFID tags?
a) They do not involve any security risk.
b) They have a long range of readability.
c) They are expensive to produce.
d) They do not require a battery to transmit data.
In which of the following areas is computer technology less useful?
a) Repetitive tasks
b) High-volume tasks
c) Quantitative tasks
d) Unstructured tasks
The Uniform Commercial Code is a set of uniform model statutes to:
a) govern business and commercial transactions in all states.
b) address a wrongful injury.
c) negotiate new business contracts.
d) reorganize a bankrupt business.
_____ refers to shifting a risk to someone outside the company.
a) Risk avoidance
b) Risk prevention
c) Risk transfer
d) Risk assumption
