Archives: Quiz

In the activist approach to going green, an organization looks for ways to its sources of supply. Consensus refers to whether an individual displays different behaviors in different situations. Answer: FALSE A labor union is an organization that represents workers […]

Demographic characteristics such as differences in age, gender, race, etc. reflect surface-level diversity among employees. Evidence supports that job enrichment is by far the best method to motivate employees. Answer: FALSE The least-preferred coworker questionnaire measures whether a leader is […]

Trust is the belief in the integrity, character, and ability of a leader. Employee empowerment is crucial in organizations with team structures because no line of managerial authority flows from top to bottom in such organizations. Answer: TRUE In the […]

A disadvantage of coercion is that it may be illegal and may undermine the change agent’s credibility. One negative aspect about group norms is that being part of a group can increase an individual’s antisocial actions. Answer: TRUE Long-term plans […]

The principle of job enlargement is to make a job more varied and to allow employees to perform a more complete unit of work by broadening its scope. The strongest of the five forces in most industries is the rivalry […]

Although franchising is a popular way to do business in the United States, it is not a popular strategy in international markets. The executive summary of a business plan should highlight significant financial and operational events. Answer: FALSE A service […]

One study conducted by the Global Entrepreneurship Monitor (GEM) reports that nearly one in eight people in the United States is working to start a business. Companies lose billions of dollars each year due to employee theft. Answer: TRUE Most […]

The most important ingredient that venture capitalists look for in judging the potential success of a small business is a competent management team. “Big box retailers” present an opportunity for many small business owners. Answer: FALSE Only about half of […]

One element of the location decision common to all businesses is the need to locate where customers want to do business. The ideal strategic planning process for a small company should start with setting objectives. Answer: FALSE Small companies that […]

The reality test that a business plan must pass to attract financing from lenders and investors involves proving that a market for the company’s product or service actually does exist, and that the company actually can build it for the […]

Generally, an industry is more attractive when the items suppliers provide the industry account for a relatively high portion of the cost of the industry’s finished product. A patent gives the inventor the exclusive right to make, use, or sell […]

The Lifestyle Market Analyst matches population demographics with age. The increasing diversity of our population is creating a marketing “threat” to small businesses because they cannot profitably serve small niches. Answer: FALSE Market research is a valuable tool for defining […]

Hiring a diverse workforce makes it more difficult to achieve creativity in the workplace. The sole proprietorship is the form of ownership with the least ability to accumulate capital. Answer: TRUE An option for acquiring equity capital is for the […]

In 2020, members of three different generations will be working side by side in the United States. Zoning is a system that divides a city or country into small cells or districts to control the use of land, buildings, and […]

When the SBA makes a loan guarantee, banks are willing to consider riskier deals that they normally would refuse. Workers believe the actions of those in charge more than their words. Answer: TRUE On the income statement, the cost of […]

The Equal Employment Opportunity Commission (EEOC) supplies employers with a list of questions it considers illegal in interviews. Practices that are illegal in one country may be perfectly acceptable, even expected, in another. Answer: TRUE Today’s workforce responds best to […]

While most people see what they have always seen, creative entrepreneurs are able to see beyond preconceptions. In a cash budget, credit sales to customers are recorded at the time the sale is made. Answer: FALSE Flextime is a work […]

Large companies have a natural advantage over small firms when it comes to preparing a strategic plan. Effective leaders make sure that workers have both the tangible and the intangible resources they need to do their jobs well. Answer: TRUE […]

The franchisee turnover rate is the rate at which franchisees leave a franchise system. An entrepreneur may find that the business plan indicates that the business concept is not viable. This is another potential benefit of writing a business plan; […]

Interviewers should avoid asking job candidates questions based on hypothetical on-the-job scenarios and how the candidate would handle them because the Equal Employment Opportunity Commission considers such questions to be illegal. The objectives of cash management are to adequately meet […]

Most small businesses begin their global ventures by establishing international locations. Effective leaders know that what they do is more important than what they say because they set the example for their employees. Answer: TRUE One of the disadvantages of […]

Minority-owned businesses have come a long way in the past decade, and their success rate is climbing. By signing the franchise contract, a franchisee typically surrenders some freedom and autonomy in operating her/his business. Answer: TRUE About 20 percent of […]

Women now own 30.4 percent of all privately-held businesses in the United States. Potential lenders and investors believe that an entrepreneur who lacks the discipline to develop a good business plan likely lacks the discipline to run a business. Answer: […]

One reason joint ventures fail is because entrepreneurs did not select a partner who shares their company’s values and standards of conduct. An important factor of e-commerce is speed. Answer: TRUE About 51 percent of new businesses fail within five […]

After a company’s strengths and weaknesses are assessed, the strategic planning process should identify opportunities and threats facing the company and should isolate the key factors for success in business. Only about one-third of the world’s purchasing power lies outside […]

Having access to capital is called entrepreneurial readiness. American business people can be on their best American behavior and go overseas and offend the locals. This is, in part, due to the fact that business customs that are acceptable, or […]

Research has isolated a set of characteristics that can predict who will succeed as an entrepreneur. A small business owner can collect a great deal of information about competitors through a number of low-cost competitive intelligence methods. Answer: TRUE One […]

Employees are at the heart of increases in productivity. Successful entrepreneurs come up with ideas and then find ways to make them work to solve a problem or fill a need. Answer: TRUE Generally, an industry is more attractive when […]

Secondary research includes customer surveys. One of the rights given to consumers by the Consumer Bill of Rights is the right to safety. Answer: TRUE The mission statement addresses the first question of any business venture: “What business am I […]

Small business owners should not press customers for payment of their past due accounts for fear of losing them as customers altogether. Alarmingly, 66 percent of all drug abusers and 77 percent of alcohol abusers are employed. Answer: TRUE Leadership […]

Specialized knowledge is an example of a barrier to entry. To be effective, the small business owner should limit strategic analysis to only the two or three most significant opportunities facing the firm. Answer: TRUE To project cash receipts, an […]

There is no connection between social responsibility and profitability. When trying to prevent employee theft, business owners should create a “police state” environment and trust no one. Answer: FALSE With an existing business, the new owner can depend on employees […]

A public stock sale is an effective method of raising large amounts of capital, but it can be an expensive and time-consuming process filled with regulatory nightmares. Ethical behavior is doing what is “right.” Answer: TRUE Publicly-held companies must file […]

A security agreement is a contract in which a business selling an asset on credit gets a security interest in that asset, protecting its legal rights in case the buyer fails to pay. When investing surplus cash, the small business […]

“Gazelles” are those businesses that grow at 20 percent or more per year for four years and gross at least $100,000 in annual sales. Viewing play as frivolous is a mental block that stifles creativity. Answer: TRUE One effective technique […]

Trust is the foundation on which the long-term customer relationships that are so crucial to the Web success are built. Most entrepreneurs have invested the time to develop a sound business plan. Answer: FALSE Most franchisors provide extensive financial help […]

Actions that are legal, however, may not be ethical. Creditors often look for a times-interest-earned ratio of at least 4:1 to 6:1 before pronouncing a company a good credit risk. Answer: TRUE The Web is one of the most efficient […]

The Dictionary of Occupational Titles, a listing of more than 20,000 job titles and descriptions, is a useful tool for getting a small business owner started when writing job descriptions. The “right” price depends on one factor – the value […]

Float is the net number of days of cash flowing into or out of a company. The business plan helps an entrepreneur assess ideas in a relatively short period of time. Answer: FALSE The rapidly accelerating rate of change has […]

E-commerce is replacing traditional retailing. The most important factor when evaluating the labor supply in an area is its prevailing wage rate. Answer: FALSE Market penetration pricing is a short-term pricing strategy that achieves high profits quickly. Answer: FALSE A […]

The Business Model Canvas is a dynamic framework to guide entrepreneurs through the process of developing, testing, and refining their business models. Job enlargement is based on the premise that the best way to design a job is to break […]

The manufacturer’s suggested price takes into account the small firm’s cost structure and its competitive situation. The faster a small company grows, the greater its appetite for cash. Answer: TRUE Employees tend to rise or fall to the level of […]

Because small business owners often rely on informal procedures for managing cash, they are most likely to become victims of embezzlement and fraud by their employees. Comparing a company’s current income statement to those of prior accounting periods rarely reveals […]

It may appear in the incubation stage of the creative process that the entrepreneur is loafing, as he is taking time to reflect on the information collected. The most common reason online customers abandon their shopping carts is that the […]

Although creativity sometimes involves generating something from nothing, it more likely results in elaborating on the present, putting old things together in new ways, or taking something away to create something simpler or better. The value test that a business […]

The real benefit to a business owner engaging in barter is the ability to “pay” for goods and services at her wholesale cost and to get credit for the retail price. The majority of first-generation family businesses do not survive […]

An assembly line is based on the principle of job simplification. For some businesses, e-mail takes a very low priority. Answer: TRUE An effective tool used to help assess ideas is the idea sketch pad. Answer: TRUE Time out of […]

Most home-based businesses are simple cottage industries such as crafts or sewing. Trademarks are distinctive words, symbols, designs, names, or logos used for company identification. Answer: TRUE Effective leaders know they must punish workers who take risks and fail so […]

Companies quickly learn that setting up a Web site is only the first investment required. The site leads to an ongoing investment of resources – time, money, energy and talent. The sole proprietorship is the best form of ownership for […]

The executive summary serves as the thesis statement for the entire business plan. Captive-product pricing is a technique that involves selling a product for a low price and charging a higher price for the accessories that accompany it. Answer: FALSE […]