The current ratio shows how easily a company can pay its current obligations.
Many applicants are eliminated at the preliminary screening stage for reasons such as
inappropriate dress, attitude, education, or experience.
In the context of small businesses, accounts payable result from giving credit to
customers at a low interest rate.
Markup involves adding products that are unrelated to the present product line.
One should buy an existing business even if the financial condition of the firm is poor.
One important purpose of a business plan is to indicate the expected financial results
from operations.
In a limited partnership, the general partners have limited personal liability for the debts
of the business.
One of the causes of discontinuance or failure is that the amount of time and/or physical
effort demanded of the small business manager was not recognized and/or planned for.
Brokers take actual physical possession of goods and then market them to retailers,
other channel members, or industrial users.
Which of the following is a disadvantage of government regulations?
a) They require an excessive amount of paperwork.
b) They mandate that small businesses must report to the U.S. Department of
Commerce.
c) They make it compulsory to hire a lawyer in a small firm.
d) They limit opportunities for other small businesses.
In the context of operating systems for small businesses, what are processes?
a) They involve converting inputs into goods the customers want, using the employees,
machines, materials, and other factors.
b) They are the products produced and the satisfactions to employees and the public.
c) They consist of the goods and services required by the customers.
d) They include all the activities from obtaining raw materials through delivering the
product to the customers.
Which of the following is one of Deming’s 14 points?
a) Adopt the old philosophy.
b) Depend on mass inspection.
c) Award business on the basis of a price tag.
d) Break down barriers between departments.
A unit pricing policy is most likely to be used by a _____.
a) grocery store
b) producer
c) building contractor
d) service firm
A corporation formed by a doctor for the sole purpose of providing his services for
which he is licensed is called a(n) _____.
a) nonprofit corporation
b) S corporation
c) professional service corporation
d) C corporation
In the United States, finance, insurance, and real estate use the _____ form of business
more frequently than do the other industries.
a) partnership
b) proprietorship
c) corporation
d) cooperative
According to the Family Firm Institute of Boston, family-owned businesses have a high
mortality rate primarily because:
a) there is little personal satisfaction.
b) they are too large.
c) family members lose interest.
d) the estate taxes are high.
In the context of small businesses, which of the following is true of debt securities?
a) Commercial banks prefer to make long-term loans.
b) Publicly issued debt is commonly used by small firms.
c) Small companies rely on loans from commercial banks.
d) Insurance companies prefer to make short-term loans.
Which of the following is true of seasonal stores in the United States?
a) They stock high-priced goods that are recognized for the exclusive nature of their
clientele.
b) Christmas stores are the most prevalent among seasonal stores.
c) These stores are allowed to be open only during the ‘season.”
d) They are usually located only in shopping centers.
_____ are small, organized work groups that meet periodically to find ways to improve
standards and output.
a) Quality circles
b) Cross-cultural groups
c) Cross-functional teams
d) Zero-defects teams
Which of the following is the result of the trend in business to become more active
globally?
a) A growing number of large and small U.S. businesses are or are becoming foreign
owned.
b) The American consumer is increasingly noticing the change in managerial styles.
c) The foreign-owned companies tend to have very traditional managerial styles.
d) Small business owners and managers can continue to follow their conventional
management styles.
What are some of the specialized programs run by the Small Business Administration to
help small businesses?
Describe the process of preparing an operating budget.
Differentiate between a general partnership and a limited partnership.
Describe operational planning.
What are the attributes of a creative salesperson?
What is a disclosure statement?
What causes conflicts in a family-owned business?
What are the advantages and disadvantages of organizing a family-owned business into
a corporation?
What is meant by environmental protection and pollution control in the context of small
businesses?
Describe the growth stage during implementation of a market strategy by a small firm.