A cooperative is a business owned by two or more persons who have unlimited liability
for its debt and obligations.
When success leads a family-owned business into the second generation, younger
relatives begin to lose interest in job titles.
The cooperative form of business is usually associated with farm products.
Usually, income derived from a joint venture is taxed as if the organization were a
partnership.
Proficiency tests are used to assess if a candidate is able to meet minimum standards of
mental alertness.
Small businesses find it difficult to plan for human resource needs, since many are
facing absolute labor shortages because of the declining workforce.
Health insurance is less frequently used in small firms.
In practice, the premiums of mutual companies and reciprocals are substantially lower
than those of profit-making companies.
Which of the following situations should copreneurs avoid?
a) Agreeing to disagree on several business issues
b) Ignoring business conflicts in an attempt to save the relationship
c) Setting aside time for the family and sticking to it
d) Defining each person’s role and accentuating each other’s talents
The real owners of a firm are the _____.
a) common stockholders
b) preferred stockholders
c) commercial banks
d) insurance companies
Financial planning involves:
a) estimating income and expenses.
b) choosing a product to sell.
c) selecting the type of business to enter.
d) deciding the market niche for the business.
_____ is current assets, less current liabilities, that a firm uses to produce goods and
services and to finance the extension of credit to customers.
a) Debt capital
b) Equity
c) Fixed asset
d) Working capital
Questionnaires used for primary research should:
a) address at least two issues at a time.
b) use technical jargon.
c) be sequenced randomly.
d) be left to experts.
_____ is defined as trying to prevent the contamination or destruction of the natural
environment.
a) Conservation
b) Consumerism
c) Polarization
d) Pollution control
Which of the following is an example of a tax or fee paid to operate a business?
a) An excise tax
b) An incorporation tax
c) A use tax
d) A corporate franchise tax
The function of the Small Business Administration is to:
a) protect consumers from undesirable effects of poorly designed and poorly produced
products of small businesses.
b) enforce pollution control standards for small businesses.
c) provide loans to small businesses.
d) provide demographic information to small businesses.
A disadvantage of organizing a family business into a corporation and hiring
professional managers is the:
a) concentration of power in small cliques.
b) unfair treatment of employees.
c) loss of family time for other purposes.
d) increasing friction between family members.
The most popular method of setting an advertising budget that depends on the
manager’s experience is the _____ method.
a) units of sales
b) percentage of sales or profits
c) objective
d) executive decision
How can an effective purchasing system be set?
Emm
What are the advantages and disadvantages of a corporation?
What are the three types of planning that can improve a small business owner’s chances
for success?
Describe e-commerce.
Why is planning so important to small business?
What are the steps involved in the control process?
Define advertising. What are the two types of advertising?