Torts can arise when a person’s legal rights are violated in ways other than from a
breach of contract.
The Sarbanes-Oxley Act only covers small businesses that are not publicly traded.
Self-employed persons are not referred to as entrepreneurs.
When one is new to business and needs to gain basic experience, it makes better sense
to first undertake a part-time business.
In the context of employee rewards, if entrepreneurs work based on an open-book
policy and the company hits a downturn and promises cannot be met, employees are
more likely to react badly since they have little or no understanding of the firm’s
situation.
Most service providers get business usually through referrals or word-of-mouth.
Businesses starting with no start-up capital and those starting with more than $50,000
are the least likely to survive long term.
All money is considered currency, but all currency is not considered money.
Happy hours in amusement parks, movies, and restaurants are examples of _____.
A. prestige pricing
B. off-peak pricing
C. loyalty programs
D. random discounting
The ability or skill of the entrepreneur at finding expendable components necessary to
the operation of the business such as time, information, location, financing, raw
materials, and expertise is known as_____.
A. basic business competencies
B. resource competencies
C. opportunity competencies
D. determination competencies
A(n) _____ refers to a new firm that opens a Web site immediately, thus being exposed
to customers from around the world.
A. freight forwarder
B. sheltered workshop
C. born international
D. contract manufacturer
Munch More’s potato wafers are available in two different variants-the fried variant and
the baked variant. With the deep-fried wafers the firm aims to target customers for
whom taste matters the most, and with the baked version it caters to the needs of those
customers who are health-conscious. Munch More is typically following a(n) _____
marketing strategy.
A. differentiated
B. concentrated
C. mass
D. analogous
_____ is the most common kind of coverage on key persons of a business.
A. Life insurance
B. Health insurance
C. Dental insurance
D. Credit insurance
The life cycle stage in which a product or service is being invented is known as the
_____.
A. growth stage
B. boom
C. introduction stage
D. shake-out
Identify the layout that is very efficient and organized but lacks some visual impact.
A. Production line layout
B. Process layout
C. Grid layout
D. Free-form layout
Magic number is defined as:
A. the number of employees hired by a start-up in the first year.
B. the post-tax income the entrepreneur personally seeks from the business.
C. the number of loyal customers.
D. the income a start-up is able to generate from quarterly sales.
Critical risks, cash flow projection, balance sheet, and start-up costs are included in the
_____ section of a classic business plan.
A. title page
B. market
C. financials
D. appendixes
The quantity of items sold times the price expected to be paid for each product is the
calculation used for the:
A. overhead budget.
B. sales budget.
C. purchases budget.
D. cost of goods sold budget.
_____ are rules of thumb that are commonly used to estimate firm value in relation to
some easily observable characteristic of the business.
A. Synergies
B. Spin-offs
C. Codicils
D. Heuristics
Which of the following accounting functions aids in calculation of appropriate stocking
and reorder levels?
A. Insurance register
B. Investment records
C. Inventory accounting
D. Payroll records
Identify and briefly describe the five basic accounting concepts.
Elaborate on the general environment of a firm.
Why are part-time businesses important? Explain.
What is a factor-driven economy?
What is harvesting? Give some examples of how a harvest can take place.
Explain the market section of a classic business plan.