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Only large firms can export successfully.
An extended-coverage endorsement multiplies the liability of small businesses.
Defective code and partial testing often results in bugs.
The traditional form of the corporation is called a C corporation.
Due diligence is the concept that two or more people, working together in a coordinated
way, can accomplish more than the sum of their independent efforts.
A disadvantage of shopping centers is the presence of anchor stores.
In a corporation, the shareholders elect a board of directors to oversee major decisions.
The goal of teamwork is to improve performance by involving employees in meeting
customers' needs.
Strategies are general statements that serve as short-term guides to managerial decision
making.
The high turnover rate of top-notch nonfamily managers and employees may be due to
incompetent family members.
Most small firms have minimized the use of preemployment tests because of the legal
hassles.
In the context of small businesses, franchises tend to fail because of unsuccessful
marketing.
The main disadvantage of a corporation is double taxation.
The claims of common and preferred stockholders on the assets of a firm take
preference over those of the creditors in the event of default on a contractual obligation.
______ includes all the activities from obtaining raw materials through providing the
good or service to the buyer.
a) Marketing
b) Resourcing inputs
c) Processing
d) Production
_____ is the ability of one person to influence others to attain objectives.
a) Leadership
b) Organizing
c) Staffing
d) Planning
In the context of small businesses, _____ is a series of prescribed steps to be taken to
ensure that a profit will be made.
a) budgeting
b) profit planning
c) forecasting
d) profit monitoring
_____ set the requirements needed to follow the strategies and accomplish the
objectives.
a) Methods
b) Policies
c) Procedures
d) Budgets
Small business owners prefer a proprietorship over other forms of business because it:
a) provides access to unlimited capital.
b) ensures that the business has an unlimited life.
c) provides relative freedom of action and control.
d) makes it easy for the owner to obtain credit.
The external environment of a SWOT analysis consists of:
a) strengths and weaknesses.
b) threats and weaknesses.
c) opportunities and threats.
d) opportunities and strengths.
_____ set predetermined times to ship given quantities of needed products at a given
price.
a) Purchase orders
b) Standing orders
c) Economic order quantities
d) Scheduled inventories
Retailers sometimes refer to losses from both theft by outsiders and theft by employees
as _____.
a) fidelity
b) restitution
c) kleptomania
d) shrinkage
Which of the following is a characteristic of a financial audit?
a) It is conducted by an outside certified public accountant.
b) It is usually performed every month.
c) It is done for evaluating the effectiveness of controls.
d) It is used to study the basic operations of a company.
Which of the following is a characteristic of active RFID tags?
a) They do not involve any security risk.
b) They have a short range of readability.
c) They require a battery to transmit data.
d) They are cheaper to produce.
_____ is a statement of the mental, physical, and other qualifications required of a
person to do the job.
a) Job forecast
b) Job plot
c) Job method
d) Job specification
A(n) _____ is a formal list of all the property of a business, or the property so listed.
a) purchase order
b) inventory
c) stockout
d) standing order
Outline the process of training and developing employees.
What is a SWOT analysis and how is it used?
Explain the concept of motivation.
Describe the four different intermediaries.
What are business incubators? How do they help young firms succeed?
What is the procedure to be followed by a small business owner to get a guaranteed
SBA loan?
Explain the budgetary control process. How are audits used to control the budget of a
company? What are the benefits of auditing?
What is the need for small firms to have a wide product mix?
