Typically, a probationary period for employees lasts for two years.
One of the key elements of the BRIE model is a person’s intentions to start a business.
In entrepreneurship, every good idea is a viable business opportunity.
The process of dividing the market into groups that have heterogeneous needs for a
product or service is referred to as market segmentation.
Successions and business sales generally occur only among the largest small businesses.
An arm’s length transaction is a business deal where the parties have a prior relation or
affiliation, but where the business is conducted as if they were unrelated.
There are two parts to a formal performance appraisal:
A. the self-appraisal and the review by the supervisor.
B. the internal review and the external review.
C. the review of past accomplishments and the setting of future objectives.
D. the performance review and the pay review.
Most small businesses are more _____ than _____.
A. cost-directed; profit-directed
B. imitative; innovative
C. profit-directed; cost-directed
D. innovative; imitative
Which of the following is true about part-time self-employment?
A. It is only a minor portion of all current entrepreneurship in the United States.
B. There is no volatility in part-time self-employment.
C. It accounts for only 10 percent of small businesses in the United States.
D. Most entrepreneurs start out working part time on their new business.
A(n) _____ is the amount of inventory that results in the minimum cost, considering the
cost of lost sales resulting from running out of stock, the number of units sold per day,
and the number of days required to receive inventory.
A. optimum stocking level
B. periodic inventory
C. economic order quantity
D. micro inventory
Which of the following statements is true about the general environment?
A. This part of the external environment is smaller than the task environment.
B. The task and internal environments of a firm are independent of its general
environment.
C. It excludes the broad trends of the environment affecting law, government, and
politics.
D. It always needs to be considered in terms of its social supports and institutional
supports.
Which of the following is best thought of as a type of learned optimism in successful
entrepreneurs?
A. Apathy
B. Professionalization
C. Perseverance
D. Cognition
Turquoise Innovations Inc. has introduced a unique software that has no competition in
the market. The company has incurred huge research and development costs in order to
commercialize this software. Several business firms have been waiting for the release of
this product as it saves their cost of outsourcing finance functions. Hence, the best
pricing strategy this product will be _____.
A. penetration pricing
B. going rate pricing
C. limit pricing
D. price skimming
Which of these is an advantage of sole proprietorship?
A. Unique tax advantages
B. Longer life because the business and owner are legally the same
C. Owner’s liability for the firm’s debt limited to his or her investment in it
D. Ease of raising large amounts of capital
Brendon wants to sue Fitness Ace, a leading provider of fitness equipments, for
negligence. He approaches Arthur Bailey Group, a law firm, which has good experience
in handling product liability claims for victims of exercise equipment failure. Which of
the following would be true if the attorney charges Brendon using a retainer?
A. The attorney would charge Brendon on an hourly basis.
B. The attorney would charge separately for consultation and paperwork.
C. The attorney would take a percentage of Brendon’s recovery as his or her fee.
D. The attorney would take monthly fee and additional fees if circumstances change.
Which of the following is commonly used to estimate the value of a business?
A. Synergy
B. Comparable sales of other firms
C. Spin-offs
D. Industry heuristics
The measure of how many visitors to a Web site actually make a purchase is known as:
A. illumination rate.
B. frame rate.
C. conversion rate.
D. pilot test.
Anna helps brides-to-be choose wedding gowns that best suit their requirements and
budget, and also helps them with where they can find the right dress. She has made her
home her virtual office; she does not require external financing. Anna is using _____ to
run her small business.
A. crowdfunding
B. franchising
C. bootstrapping
D. crowdsourcing
In lifestyle firms:
A. success is defined by sales of between $100,000 and $1,000,000.
B. schedules are defined by customer needs.
C. the income generated usually provides a living for the owner and family.
D. growth tends to quickly level off.