Up-front cash payment by a consumer, prior to shipment of a product, is a payment risk
to a company.
Among surveys, in-person survey tends to be the least expensive method, with
telephone coming in second, and mail the most expensive.
A job description defines and discusses all the essential knowledge, skills, and abilities
that are needed to fill a position.
A screening plan provides information on the company, product/service, market, and
critical risks to prospective business.
The periodic inventory method is the most expensive method of maintaining records.
Short-term debts are not transferable to other investors.
Investing in multiple businesses increases the chances of offsetting possible losses
incurred from one business.
Small businesses are often the first to try something innovative.
Properly performing due diligence minimizes the risk of failure and maximizes the
probability of success by identifying the strengths and weaknesses of the business.
Thomas has started a new business venture for which he has been using highly
economical resources, such as the market research data available in public libraries,
low-interest funds borrowed from national banks, and equipments hired on lease. This
technique used by Thomas to overcome resource constraints in his start-up firm is best
known as _____.
A. caveat emptor
B. moonlighting
C. bootstrapping
D. collective bargaining
By efficiently managing external relations, small businesses typically aim at creating
_____.
A. economies of scale
B. social capital
C. opportunity costs
D. skills inventory
The level of probability that the future economic state of the business will be worse
than expected is referred to as _____.
A. business risk
B. economic certainty
C. business continuity
D. business amortization
Jake is a small business owner of Macho Doors, a manufacturer and installer of garage
doors. His business has earned the reputation as a reliable, trustworthy business 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. The situation that Jakes faces is typically described as a(n)
_____.
A. mutuality
B. ethical dilemma
C. caveat emptor
D. cognitive dissonance
_____ refers to a type of formal gift where someone buys something on behalf of the
entrepreneur’s business and lets the entrepreneur benefit from it.
A. Overpayment
B. Accelerated cash-out
C. Picking up the tab
D. Piggybacking
Flying Ross Inc., a maker of world-renowned wristwatches, makes watches for three
different customer segments. Timepieces under the Gold series are priced extremely
high to cater to the high-end market, watches under the Pioneer series cater to the
mid-end market, and those under the Marvella series are priced low in order to capture
the low-end market. This strategy of setting three price points is typically referred to as
_____.
A. partitioned pricing
B. captive pricing
C. price gouging
D. price lining
Which of the following is a generic strategy that targets a portion of the market, called a
segment or niche?
A. Focus strategy
B. Differentiation strategy
C. Cost strategy
D. Value strategy
Which of the following is a disadvantage of buying a franchise?
A. It is more expensive than starting a new business.
B. You give up control of marketing and operations.
C. You compete with the franchise company itself.
D. You receive no training and management support.
Using methods to appear to be paying bills on time, when in fact the cash outflow is
being delayed or avoided is called _____.
A. charge back
B. growth trap
C. gaming the payment process
D. timing the purchase
When a marketer mentions the key points about his or her product or service in as few
and as memorable words as possible, the resulting message is known as the _____
message.
A. succinct
B. core
C. primary
D. elementary
What is credit insurance?
Describe partitioned pricing, captive pricing, and price lining.
Differentiate between strategic actions and tactical actions.
In what ways do small part-time businesses need to deal with government? Explain.
What are the different steps in customer relationship management (CRM)?
What are the advantages of franchising?
What does the total product mean? How does this approach help a small business
owner?
– What are the approaches available for businesses to conduct primary research?
Discuss the key considerations for assessing part-time business approaches.
What are the general types of events that cause business risk?