Archives: Quiz

Greg has a press release for his new product that he wants to broadcast on television. His press release has a good story and visuals. It also includes content that illustrates broad cultural themes. Which of the following is Greg […]

The _____ is a schedule of the amounts and timings of payments of cash out of a business. A. comprehensive budget B. capital budget C. cash disbursements budget D. cash receipts budget Which of the following forms of direct response […]

Which of the following forms of direct marketing is the most expensive? A. Direct sales B. Telemarketing C. Direct mail D. Guerilla marketing Which of the following terms best represents something a business owns that has economic value or is […]

A legal “artificial” entity that is formed by filing specific documents with a state government is called a _____. A. sole proprietorship B. partnership C. corporation D. general partnership A _____ displays characteristics related to the nature of a product […]

_____ insurance is normally included in insurance on physical assets. A. Theft B. Credit C. Intellectual property D. Safety Which of the following is an element of a firm’s external environment? A. Employees B. Suppliers C. Owners D. Board of […]

Which of the following would have a very short-term approach to planning? A. Individuals who look for opportunities to achieve their goal, even if the opportunity isn’t the one related to their original goal. B. Individuals who develop long-range plans […]

A(n) _____ focus refers to an entrepreneur’s attention on maximizing gains and pursuing opportunities likely to lead to gains. A. comprehension B. promotion C. effectuation D. prevention Entrepreneurs who do not plan and prefer to let all actions be dictated […]

Every month, David, an assistant at a shoe store, steals money from his employer, after it has been received and recorded in the books, by altering the accounting records in the company book. David’s act falls under which of the […]

Which of the following is a disadvantage of leasing? A. It requires a considerably high initial cash outlay than building or buying. B. It is expensive than building or buying a property that are of the same value. C. Lease […]

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 […]

Which of the following will cause the maximum damage to an organization’s legitimacy? A. Promoting knowledge about the organization to customers B. Having people in the organization that customers know and respect C. Partnering with reputed businesses D. Directing customer […]

Martin runs a successful house painting business. He runs his business out of his garage, which he got converted into an office space. Martin, who had previously worked as a house painter in another company had good know-how of how […]

Which of the following is true with regard to women in small businesses? A. Women-owned businesses are the slowest growing sector of all U.S. businesses. B. Women-owned firms accounted for 25 percent of small business revenue nationally. C. Women prefer […]

When a bookstore starts to sell videos, music, and coffee as well, it uses which of the following elements of the SCAMPER tool? A. Rearrange B. Eliminate C. Combine D. Substitute Which of the following best exemplifies personality segmentation? A. […]

Which of the following situations indicates that it makes better sense to first undertake a part-time business? A. Byron has a full-time business plan. B. Jamie wants to start a franchise for an international brand. C. Cathy has funds to […]

In the case of existing customers, _____ gives the information on the date and type of contact, since in many sales situations, it can take repeated contacts before a sale is made. A. channel data B. performance data C. intercommunication […]

Which of the following is a reward universally mentioned by entrepreneurs? A. Peer admiration B. Personal growth C. Political power D. Industry recognition In bonus pack pricing strategy: A. lower prices are charged at certain times to encourage customers to […]

A 20-year patent covering a process, machine, article of manufacture, composition of matter, or any new or useful improvement of an existing one is known as _____. A. plant patent B. utility patent C. design patent D. non-provisional patent Employee […]

Which of the following is a form of business termination that uses a legal method for closing a business and paying off creditors when debts are substantially greater than assets? A. Bankruptcy B. Sell off C. Walkaway D. Workout The […]

According to Shepherd, Shanley, and Porter, which of the following is a small business supra-strategy? A. Altruism B. Single-mindedness C. Scope savings D. Technology Which of the following is a difference between a small business and a high-growth venture? A. […]

_____ refers to the practice of accepting goods for resale, without taking ownership of them and without being responsible to pay prior to their being sold. A. Barter B. Consignment C. Noncash incentive D. Benchmarking Which of the following is […]

The match between the needs, expectations, and culture of the small business with the expectations and the skills of the individual employee is called: A. employee referral. B. employee fit. C. job description. D. job analysis. Which of the following […]

A(n) _____ is part of a contract in which a party intentionally gives up legal rights or claims. A. retainer B. easement C. arraignment D. waiver Which of the following problems is closely related to role conflict? A. Resource shortage […]

Regular and systematic reduction in income that transfers asset value to expense over time is called _____. A. appreciation B. contribution margin C. depreciation D. benchmarking Walter Bradham, the owner of Bradham Corporation muddled his personal finances with his business […]

Which of the following components, as suggested by Zig Ziglar, involves staying in touch with customers on a regular basis via visits, phone calls, e-mails, newsletters, and so on? A. Urgency B. Frequency C. Potency D. Recommendations The fourth step […]

_____ is money from selling part of a business to people who are not and will not be involved in the management of the business. A. Dividend B. Bond C. Equity capital D. Outside equity According to the SCAMPER tool, […]

_____ refers to a preliminary run of a business, sales effort, program, or Web site with the goal of assessing how well the overall approach works and what problems it might have. A. Conversion rate B. Pilot test C. Incubation […]

A(n) _____ is an action-oriented description of a business designed to sell the idea of the business to another. A. vision statement B. executive summary C. mission statement D. elevator pitch After being in business for 24 months, Paul’s auto […]

Many owners of consulting companies took their own skills and launched businesses by selling those skills to other companies or individuals who needed them. This is an example of which of the following sources of business ideas? A. Family and […]

Which of the following is true of the differential revenues and expenses method? A. It is used to increase the magnitude and complexity of the information that must be considered in making an appropriate investment decision. B. It is estimated […]

Which of the following statements is true of business plans? A. Firms without a business plan are less likely to close down than firms with plans. B. External legitimacy for a firm is best established by creating business plans. C. […]

Standard industrial classification system (SIC) codes have _____ digits. A. four B. six C. seven D. nine What would happen when a small business that is growing becomes too great to be handled alone by an individual owner? A. There […]

Which of the following is a key benefit of the entry wedge of customer contracting? A. Scale savings B. Lower costs C. Scope savings D. Technology Which of the following is a type of termination? A. IPO B. Workout C. […]

Which of the following is true regarding the introduction stage of the product life cycle? A. Traditional marketing techniques raise profits at the start more than they do at later stages. B. The risks from competition in the introduction stage […]

Which of the following terms refers to the accounting process that identifies the causes of all differences between book and bank balances? A. Clearing house B. Float C. Charge back D. Reconciling Blue Moss Inc. ensures that its detergent brand […]

A vending machine is a form of direct sales method. Ninety percent of all new businesses fail within two years. Answer: FALSE This is a myth about small-scale businesses. This statement is wrong in two major ways. First, the percentage […]

For small businesses, professional management is an issue of education, titles, and credentials. One disadvantage of purchasing an existing business is that it requires more cash outlay than creating a start-up. Answer: FALSE Purchasing a business often requires less cash […]

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. Answer: TRUE Intention is the desire to start a business and is the […]

It is nearly impossible to design a message that will appeal universally or to find media that will reach all consumers. Traditional small businesses’ schedules are defined by the owners’ needs. Answer: FALSE Traditional small businesses are the smallest full-time […]

Liquidity is a measure of the ability of a business to meet both short-term and long-term obligations. In family-owned businesses, the board of members can only be comprised of family members. Answer: FALSE The key difference between a family council […]

Press relations are a form of communication that encourage the customer to take immediate action. Success profits are intended as a secondary income for the entrepreneur, who has another job which provides his or her main income. Answer: FALSE Supplemental […]

Survival is the second riskiest period after emergence. Franchising a new business is one of the ways to business ownership. Answer: TRUE Franchising a new business is one of the ways to business ownership. The primary reason to acquire and […]

For corporations, certification for businesses owned by women or minority is handled by organizations that are not affiliated with the government or big business. It is customary for a small business to concentrate its efforts on one target market at […]

Buy-ins can be made in any form of business. Price skimming involves setting a price above that of the competition so as to indicate a higher quality or that a product is a status symbol. Answer: TRUE Price skimming involves […]

The first step in budgeting is to make a forecast of your future sales. The advantage of consignment approaches is that they permit full-time sales with only a part-time involvement from the owner. Answer: TRUE The advantage of consignment approaches […]

Gaining legitimacy in small businesses is especially difficult for entrepreneurs seen as “different”-women, minorities, home-based businesses, or businesses started by young people. In crafting a feasibility study, the goal is to assess if the idea can be profitably brought to […]

Covenants are government specifications for acceptable use of land and buildings in particular areas. To prepare a cash flow statement, the cash inflows and outflows are categorized under cash from operations, cash from investing, and cash from financing. Answer: TRUE […]

Participating in trade shows and trade missions increase international contacts. For a small business, the amount and type of inventory held for resale is not important because the supply of inventory and demand of customers can be matched at all […]

Identifying risks is the first task to be completed before a comprehensive insurance program can be developed for a business. Economic order quantity (EOQ) is also called reorder point. Answer: FALSE The optimum stocking level is also called reorder point. […]

Outsourcing refers to the assignment of work to others over whom one has power. The employee referral method is an example of an overused, high-cost recruitment method. Answer: FALSE Employee referral is an underused, low-cost method which rewards your employees […]