Limited-liability companies are permissible only in a few states in the U.S.
Due to their inexperience, children must be excluded when making important decisions
and setting goals for a family-owned business.
Long-term debt secured by real estate property is a mortgage loan.
Product advertising refers to selling an idea about a company.
Risk avoidance entails the use of various methods aimed at reducing the probability that
a given event will occur.
_____ have a superior claim to the firm’s profits.
a) Common stockholders
b) Insurance companies
c) Commercial banks
d) Preferred stockholders
Which of the following laws prohibits employment decisions based on race, color,
religion, sex, or national origin?
a) Civil Rights Act of 1991
b) Vocational Rehabilitation Act of 1973
c) Title VII of Civil Rights Act of 1964, as amended
d) Executive Order 11246, as amended
A _____ provides for a corporation to repurchase a shareholder’s stock when he/she
leaves the company.
a) living trust
b) buy-sell agreement
c) family limited partnership
d) recovery fund
If a prospective employee is an obvious misfit from outward appearance and conduct,
then he or she will be rejected after the _____.
a) proficiency test
b) diagnostic interview
c) preliminary screening
d) in-depth interview
Which of the following is a primary marketing research technique?
a) Leaflet distribution
b) Telephone surveys
c) Trade association reports
d) Advertising
The oral presentation of the business plan should be:
a) presented by an outside advisor.
b) delivered from the owner’s perspective.
c) detailed in order to motivate employees.
d) validated by the market research findings.
According to Jeffrey Rayport, there are _______ elements needed for a good web page.
a) five
b) seven
c) four
d) nine
Smaller firms tend to:
a) stifle innovation and flexibility.
b) not provide a comprehensive learning experience to their employees.
c) keep larger firms competitive.
d) provide reduced employee job satisfaction.
Which of the following best describes one of the contributions of small businesses?
a) They are sources of new ideas or services that larger businesses may be unable to
provide.
b) They provide large capital gains to the owners.
c) Their products and services are sold at prices that are lower than large businesses’
prices.
d) They provide economies of scale that large businesses cannot match.
Which of the following defines speculative risk?
a) It is the uncertainty that some unpredictable event will result in a loss.
b) It is the uncertainty that a voluntarily undertaken risk will result in a loss.
c) It is the refusal to undertake an activity when a chance taken seems too costly.
d) It is the possibility of a loss when the possible extent of the loss is unknown.
Through equity financing, a company can be partly owned by the:
a) investors.
b) commercial banks.
c) microloan companies.
d) lenders.
The _____ retirement plan permits workers to place a certain amount of their wages in a
tax-deferred retirement savings plan.
a) flexcomp
b) defined-contribution
c) defined-benefit
d) 401(k)
_____ provide(s) protection against the failure of a contractor to fulfill contractual
obligations.
a) Fidelity bonds
b) Key person insurance
c) Surety bonds
d) Business insurance
Discuss the different ways in which estate taxes can be minimized.
What is the difference between a convenience goods store and a shopping goods store?
Mention some of the reasons for the increased interest in small business.
Discuss the role of the Occupational Safety and Health Act to ensure safe and healthful
working conditions for workers?
List some red flags to look for when choosing an insurer.
How can family business owners prepare their children to manage the business?
Explain why only one person should be assigned the responsibility of purchasing.
Why do small firms use debt financing despite the risks involved?
List some of the characteristics of a well-managed small business.