A legal obligation to pay money in the future is called equity capital.
A buyout refers to starting a business from scratch.
A trade secret is not created by the government.
Services have separability of production and consumption.
The cost of goods sold budget shows the predicted cost of product actually sold during
the accounting period.
In the SCAMPER tool, “S” stands for:
A. strategize.
B. substitute.
C. submit.
D. solicit.
The manufacturing costs incurred by Fred’s Prints, a firm selling custom-designed
T-shirts, are $10 per T-shirt, and the selling and distribution costs incurred are 6$ per
T-shirt. To this total cost of $16, Fred adds a profit of $4 on each T-shirt and sells the
T-shirt at $20. The markup here would be _____.
A. $20
B. $4
C. $16
D. $10
_____ refers to the trial period in which an employee has temporary status before a
formal offer to work full time is presented.
A. Test period
B. Probationary period
C. Employee referral period
D. Psychological contract period
Which of the following is an advantage of using open-ended questions?
A. They make it easy for researchers to compare respondent groups.
B. Relative to close-ended questions, it takes lesser time to ask and evaluate them.
C. They help find new niches and perfect a product before it is introduced.
D. They are the most convenient method when the sample size is large.
Which of the following is true for start-ups?
A. It has initial name recognition.
B. A start-up is also known as an earn-out.
C. It involves purchases of existing businesses.
D. It can provide new, unique products or services that are not available.
Which of the following dispute resolution methods is the least expensive and much
faster to complete?
A. Litigation
B. Arbitration
C. Mediation
D. Piercing the veil
Which of the following is usually the first technique an entrepreneur uses to get
customers?
A. Franchising
B. Guerilla marketing
C. Telemarketing
D. Word-of-mouth
_____ is a measure of how much money can be made available to pay obligations
within the fiscal year.
A. Current ratio
B. Return on investment
C. Return on equity
D. Profitability ratio
The first task to be completed before a comprehensive insurance program for a business
can be developed is:
A. to develop a financial plan.
B. to assess internal strengths.
C. to identify risks.
D. to provide a business succession plan.
_____ refers to a fee the service levels on a person or a firm for any variety of problems
related to the sale.
A. Payback
B. Overhead cost
C. Chargeback
D. Optional cost
A crisis in which there is a shortage of cash for expanding a business after an
exponential increase in sales is termed _____.
A. nonsufficient funds
B. reconciling
C. charge back
D. growth trap
Ted’s business, situated near the Missouri River, was partially destroyed when the river
overflowed after a deluge. Which of the following measures would’ve helped Ted
minimize the effect of the flood from interrupting the operations of his business?
A. Creating provisions for subcontracting work
B. Developing an informal code of ethics for all employees to follow
C. Ensuring that all employees have easy access to all assets
D. Securing valuable assets from low-level employees
_____ are contractual provisions of insurance policies that specify what risks the
insurance company is assuming.
A. Internal controls
B. Coverages
C. Separation of duties
D. Premiums
Which of the following is true of corporate entrepreneurship?
A. It involves the creation of self-sustaining charitable and civic organizations.
B. It involves revitalizing government agencies.
C. It is a form of entrepreneurship in which people own their own for-profit business.
D. It involves bringing new products or services to a market.
Which of the following is a feature of Internet recruiting in small businesses?
A. It is extremely underused.
B. It slows down the process of hiring.
C. It is vastly high in accuracy of job-search process.
D. It has a long turnaround time.
Diversification is a strategy whose goal is growth, based on:
A. selling more of the firm’s product or service to the existing customer base.
B. selling in areas or to groups previously not served by the business.
C. selling existing customers a product or service they have never bought before.
D. adding new products or services to the firm’s existing collection of offerings.
Define business risk. List the most commonly identified sources of business risk.
Describe the advantages and disadvantages of a sole proprietorship.
Explain in detail the steps that a small business owner should follow when faced with a
crisis.
What are the different small business supra-strategies?
Describe the discounted cash flow methodology for determining the value of a business.