The existence stage is defined by:
A. a period of exceptional growth.
B. a stable level of sales, profits, and guarantee of sales.
C. thoughts about starting a business.
D. a lack of stability in terms of markets, operations, or finances.
Which of the following is the primary goal for performing due diligence?
A. Finding any inefficiencies, unnoticed opportunities, waste, and mismanagement
B. Conducting extensive interviews with the sellers of the business
C. Identifying the potential competitors of the company
D. Studying the competitive strategies of the company
_____ are used to pay losses that are not covered by other liability insurance.
A. Unemployment insurance
B. Worker’s compensation insurance
C. General liability insurance
D. Product liability insurance
Which of the following is a characteristic of a traditional small business?
A. It is often a one-site business.
B. It follows a continuous growth curve.
C. It defines its schedules based on the owner’s needs.
D. It generally has sales between $100,000 and $1,000,000 depending on the industry.
A disadvantage of open-ended questions when compared to close-ended questions is
that they:
A. limit the information one can get.
B. can be answered only in very limited ways.
C. are more difficult to interpret when the sample size is large.
D. are not useful for gathering preliminary information.
Reactive planners:
A. do not react to cues from the environment.
B. take a long-term view and develop long-range plans for all aspects of the business.
C. focus on short-term plans.
D. have fixed goals dictating their efforts.
Which of the following is the best strategy for Silken Glow to follow to retain market
share for the long term?
A. Show how well the shaver co-exists with other products the customer owns.
B. Allow sales and profits to drop temporarily.
C. Have new ideas in the pipeline now and get them ready for commercialization.
D. Produce more shavers as the demand from new users is expected to rise.
The rule of thumb is that perks should take no more than _____ of the annual personnel
budget.
A. 3 percent
B. 15 percent
C. 50 percent
D. 75 percent
The process of transforming materials, labor, and energy into goods or services is
termed as _____.
A. feedback
B. outflow
C. benchmarking
D. operations
Which of the following federal employment laws prohibits discrimination with respect
to any condition of employment based on race, color, sex, religion, or national origin,
except where religion, sex, or national origin is a bona fide occupational qualification
which is reasonably necessary to the conduct of a particular business?
A. Fair Labor Standards Act
B. Title VII of the Civil Rights Act of 1964
C. Worker Adjustment and Retraining Notification Act
D. Executive Order No. 11246
Which of the following is a component of the AIDA formula that aims to hook people
to the press release?
A. Action
B. Desire
C. Interest
D. Attitude
Which of the following represents the problem with legal protection methods for
intellectual property?
A. There is no governmental agency that will assist small business owners in
maintaining their legal rights.
B. The cost of legal protection for intellectual property is so high that it is practically
useless for a small business owner.
C. Legal protection methods for intellectual property are primarily “reserved” for large
businesses.
D. Legal protection methods can only be offered for tangible property and not
intellectual property.
E. Holding legal rights to intellectual property provides the owner solely with grounds
to pursue lawsuits against infringement.
_____ is best defined as the characteristics of a business, like trust, consistency, and
networks that help make business operations smooth and efficient.
A. Social capital
B. Golden handshake
C. Intangible liability
D. Caveat emptor
Which of the following is an advantage of providing credit to customers?
A. It reduces the need to borrow money.
B. It speeds up the receipt of cash.
C. It reduces the cost of selling.
D. It ensures all customers make on-time payments.
Which of the following is true of the entry wedge of second sourcing?
A. It occurs when business firms leave a market.
B. It occurs because many big businesses have policies that provide for set-asides for
purchases from small businesses.
C. It offers the advantage of being globally based.
D. It provides a competitive pressure to ensure that suppliers keep providing the best
service and prices.