In the context of franchising, a disclosure statement provides demographic information.
Small business owners receive income from profits in the form of an increase in their
share of the business through an increase in retained earnings.
The growth rate of the general workforce is always greater than the growth rate of
self-employment.
In the context of franchising, the success of fast food restaurants is related to the
increasing number of women working outside the home.
Watching people is a useful marketing research technique.
What is the function of self-managing work teams?
a) They meet for an hour or two a week to discuss ways to improve quality, efficiency,
and the work environment.
b) They take over some managerial duties and produce an entire product.
c) They are formed to monitor, standardize, and improve work processes that cut across
different parts of the organization.
d) They are formed to develop products under the guidance of the owners of the
business.
Which of the following sources of information can help small business entrepreneurs
better understand an area’s needs?
a) The Office of International Trade
b) Chambers of commerce
c) The Directory of Trade Associations in the U.S.
d) The Small Business Administration
_____ allows retailers to demand payment of shoplifters or their parents for the items
taken.
a) Social justice
b) Civil restitution
c) Redistributive taxation
d) Organizational justice
_______ refer(s) to the financial obligations of a business created by borrowing.
a) Net worth
b) Cash flow
c) Equities
d) Liabilities
Which of the following are set by strategic planning?
a) Methods and procedures
b) Policies
c) Missions
d) Budgets
Small business investment companies are:
a) a group of wealthy local businesspeople and other investors who may be external
sources of equity funding.
b) the dominant suppliers of external financing to small firms.
c) firms that make investments based on projected future income and generally require
a substantial return as either equity or profit.
d) private firms licensed and regulated by the SBA to make “venture” investments in
small firms.
_____ includes marketing activities (other than advertising and personal selling), such
as the use of trading stamps and samples, that stimulate consumer purchasing and
dealer effectiveness.
a) Sales force promotion
b) Publicity
c) Consumer promotion
d) Merchandising
_____ is the process of setting standards, measuring performance against standards, and
taking corrective action to see that planned performance is achieved.
a) Planning
b) Organizing
c) Staffing
d) Controlling
Validity is making sure that:
a) the results of the selection test are kept confidential.
b) the section test used is one which is widely used in the industry.
c) the selection test is administered by a trained professional.
d) the selection test given actually relates or corresponds to job performance.
Job scheduling is most likely to be done:
a) before the first transaction.
b) when the weekly sales are summarized.
c) when the daily sales are summarized.
d) when the yearly sales are summarized.
_____ are sales lost because an item is not available in store when customers want it.
a) Stockouts
b) Economic order quantities
c) Inventory losses
d) Standing orders
In a _____ organization, the owner has a direct line of command over all employees.
a) line
b) limited liability
c) line-and-staff
d) cross-functional
Which of the following sources of information about computer hardware, software, and
training have systems already designed to handle specific problems and useful data, but
may include a membership cost or a licensing fee?
a) Industry associations
b) Government publications
c) Computer stores
d) Computer consultants
_____ give a shorter-term direction to the business and serve as benchmarks for
measuring performance.
a) Budgets
b) Objectives
c) Strategies
d) Missions
Which of the following is true of profit planning?
a) Profit planning completely eliminates the risk of failure of businesses.
b) Typically, determining the volume of sales revenue is not required for profit
planning.
c) Profit planning must precede other planning activities.
d) The profit goal need not be a specific target value.
A business’s _____ defines the present business scope and broadly describes an
organization’s present capabilities, focus, and activities.
a) budget
b) policy
c) operational plan
d) mission statement
What is the role of information in small business? How can a business take advantage
of technology for gathering data for its operations?
Differentiate between revenue and expenses.
How can a small business change its planned sales income to improve profits?
What are the reasons for starting a new business and for not starting a new business?
Describe credit cards and insurance companies as sources of debt financing for small
businesses.
Write a short note on the Internet.
What is communication and what is its importance?
Discuss the financial methods used by small businesses to motivate employees.
What are the four major areas of concern that small firms have with government
regulations?