Which of the following is a critical risk to a business?
A. Direct customer connection
B. Surplus industry experience
C. Overlooked competition
D. Adequate payback
Jake is a small business owner of Macho Doors, a manufacturer and installer of garage
doors. His business has earned the reputation as being reliable, trustworthy, and one that
makes high quality, long-lasting doors. However, with rising gasoline and wood prices,
Jake is finding it hard to maintain the existing quality standards. If he continues with
the existing quality standard, his profit margins will go down and he will not be able to
hike his employees’ salaries; if he inserts panels of lower quality wood the reputation of
his business will be lost. These are typically _____ legitimacy building features.
A. product-based
B. capital-based
C. people-based
D. industry-based
Gerald, a student at a local university, has prepared a questionnaire for his research on
consumer behavior. The questions in his survey allow respondents to answer in either a
“Yes” or a “No.” Which of the following question types is the questionnaire typically
using?
A. Open-ended
B. Categorical
C. Scalar
D. Dichotomous
Which of the following is true of full-time employees?
A. Full-time employees make it imperative for you to spend significant time with the
business without taking any time off.
B. Full-time employees are reluctant to take on high responsibility.
C. Full-time employees take more time to understand the business.
D. Full-time employees provide the ability to dramatically increase a business’s hours
open, material produced, or sales.
Responsibility for the actions of another is referred to as:
A. direct liability.
B. limited liability.
C. exculpatory clause.
D. vicarious liability.
Which of the following is the first step for performing due diligence?
A. Study the financial reports and other records of the business.
B. Conduct extensive interviews with the sellers of the business.
C. Obtain sufficient capital to purchase and operate the business.
D. Make a personal examination of the site (or sites) of the business.
_____ refers to a set of shared beliefs, basic assumptions, or common, accepted ways of
dealing with problems and challenges within a company that demonstrate how things
get done.
A. Organizational portfolio
B. Organizational ergonomic
C. Organizational culture
D. Organizational layout
A(n) _____ marketing strategy assumes that all consumers have virtually identical
needs and can be reached by the same marketing mix.
A. undifferentiated
B. concentrated
C. differentiated
D. customization
Putting together a list of prospective clients is called _____.
A. preparing
B. presenting
C. formulating
D. prospecting
Which of the following is a primary advantage of replacement value?
A. Lower premiums on the policy
B. Higher price of the new asset
C. High accuracy of the value
D. Lower price of the new asset
In the context of the four key components for staving off customer complacency, as
suggested by Zig Ziglar, a message that is remembered and remembered for the right
reasons is said to be:
A. insistent.
B. recent.
C. frequent.
D. potent.
Which of the following steps would help decrease business risks?
A. Making specific plans for and arrangements to deal with foreseeable events
B. Assuming employees will follow basic workplace etiquettes without a written code
of conduct
C. Ensuring employees have easy access to valuable assets
D. Having separate codes of conduct for employees at different tiers of the management
Which of the following policies is a minimum standard for managing customer credit?
A. Providing cash discounts to customers who delay payments
B. Continuing credit sales to customers who become significantly late in paying
C. Authorizing credit sales without any credit check to every individual customer
D. Filing suits and liens against the assets of customers who default on payment
Which of the following statements is true regarding the 5-M model?
A. The five M’s of the model are mantra, mission, measures, marketing, and mechanics.
B. Mission statements are the activities which would make a business successful over a
period of time.
C. Measures are business goals defined in terms of sales, market share, employment,
locations, profits, growth, etc.
D. Mechanics indicate the firm’s major business goals, which can be stated
quantitatively or qualitatively.
A(n) _____ is an amount of loss that is specifically excluded by the insurance contract.
A. insurable value
B. premium
C. deductible
D. coverage
A _____ is an agreement with an insurance or bonding company that will pay a
specified amount in the event that the entity bonded fails to comply with specified
contractual requirements.
A. business interruption insurance
B. credit insurance
C. surety bond
D. fidelity bond