Archives: Quiz
978-0133506327 Chapter 23 Part 3
88) Today, the marketplace follows a policy of caveat venditor—”Let the seller beware.” Topic: Breach of Sales Contracts AACSB: Analytic Skills 89) An express warranty can be created by words or by actions. Answer: TRUE Page Ref: 792 Topic: Sales […]
978-0133506327 Chapter 23 Part 2
39) Billy Bob’s swamp racers are the fastest swamp mud racing machines in the country. Unfortunately drivers have to be careful because they are easily tipped over due to their high center of gravity. This is unfortunate because most swamp […]
978-0133506327 Chapter 23 Part 1
Entrepreneurship and Effective Small Business Management, 11e (Scarborough) Chapter 23 The Legal Environment: Business Law and Government Regulation 1) Something of legal value that the parties exchange as part of a bargain. A) Contract B) Legality C) Agreement D) Consideration […]
978-0133506327 Chapter 22 Part 3
79) The preparation of a successor is a two-way process, showing the direction of the business and what led to its success, but also learning and listening. Topic: Management Succession AACSB: Analytic Skills 80) Even though the owner has stepped […]
978-0133506327 Chapter 22 Part 2
38) Life insurance differs from all other types of insurance in that: A) it cannot be purchased by the one who benefits from the loss. B) it does not pertain to avoiding risk. C) it is federally insured. D) it […]
978-0133506327 Chapter 22 Part 1
Entrepreneurship and Effective Small Business Management, 11e (Scarborough) Chapter 22 Management Succession and Risk Management Strategies in the Family Business 1) The essential quality for a family business that shows a recognition that decisions should be left to the person […]
978-0133506327 Chapter 21 Part 3
98) Job sharing is a work arrangement in which employees work at a place other than the traditional office, such as a satellite branch closer to their homes or, in some cases, at home. Topic: Job Design AACSB: Analytic Skills […]
978-0133506327 Chapter 21 Part 2
41) Jackson is comparing this month’s operational costs, productivity, accident rate, etc., to the goals his boss set with him at the beginning of the year. Jackson is at what point in the feedback loop? A) Comparing performance against standards […]
978-0133506327 Chapter 21 Part 1
Entrepreneurship and Effective Small Business Management, 11e (Scarborough) Chapter 21 Staffing and Leading a Growing Company 1) The process of influencing and inspiring others to work to achieve a common goal and then giving them the power and freedom to […]
978-0133506327 Chapter 20 Part 4
127) Although only about 15 percent of shoplifters are professionals, they can severely damage a business. Topic: Types of Shoplifters AACSB: Analytic Skills 27 Copyright © 2015 Pearson Education, Inc. Answer: TRUE Page Ref: 693 128) Inventory management involves seven […]
978-0133506327 Chapter 20 Part 3
89) Total inventory costs are reduced when the small business manager spends her time and effort controlling items that represent the greatest inventory value. Topic: The ABC Method of Inventory Control AACSB: Analytic Skills 90) Choosing the most appropriate system […]
978-0133506327 Chapter 20 Part 2
41) A number of organizational factors encourage employee theft including: A) being permitted to manage their own work and time schedules. B) working with one-of-a-kind items the employee could never afford to buy. C) having too elaborate of financial and […]
978-0133506327 Chapter 20 Part 1
Entrepreneurship and Effective Small Business Management, 11e (Scarborough) Chapter 20 Managing Inventory 1) For most retailers and wholesalers, the investment in ________ is the largest capital outlay next to payroll. A) office equipment, computers, etc. B) vehicles, automobiles and trucks […]
978-0133506327 Chapter 19 Part 4
132) Discuss the purchasing plan, briefly describing each of the five key elements of the plan. Answer: Purchasing involves the acquisition of needed materials, supplies, services, and equipment of the right quality, in the proper quantities, for reasonable prices, at […]
978-0133506327 Chapter 19 Part 3
84) When implementing TQM, managers should remember that change and turmoil are essential elements of the implementation. Topic: Total Quality Management AACSB: Analytic Skills 85) The inventory investment is usually the largest single investment for a small firm. Answer: TRUE […]
978-0133506327 Chapter 19 Part 2
40) The creation of a vender certification program requires: A) a vendor rating scale developed by the company. B) a firm price list from the vendor, good for three years. C) membership in the SBA vendor certification program. D) understanding […]
978-0133506327 Chapter 19 Part 1
Entrepreneurship and Effective Small Business Management, 11e (Scarborough) Chapter 19 Supply Chain Management 1) The primary objective of the purchasing function is to: A) ensure an adequate turnover of merchandise. B) acquire enough stock to ensure uninterrupted sales or production. […]
978-0133506327 Chapter 18 Part 3
83) The purpose for establishing incubators is enhancing economic development while grouping similar types of businesses into a consolidated economy. Topic: Business Incubators AACSB: Analytic Skills 84) Poorly planned layouts undermine employee productivity and create organizational chaos. Answer: TRUE Page […]
978-0133506327 Chapter 18 Part 2
41) Signs are important to the small business owner because they: A) grow in effectiveness the longer they are in place. B) are easy to use and to change. C) provide the maximum space for relatively complex messages. D) are […]
978-0133506327 Chapter 18 Part 1
Entrepreneurship and Effective Small Business Management, 11e (Scarborough) Chapter 18 Location, Layout, and Physical Facilities 1) The secret to selecting the ideal location for a business is: A) the available labor pool for the business. B) knowing the customer and […]
978-0133506327 Chapter 17 Part 4
133) CAPs are designed to encourage lending institutions to make loans to businesses that do not qualify for traditional financing. Topic: State and Local Development Programs AACSB: Analytic Skills 134) Typically, factoring is less expensive than bank and commercial finance […]
978-0133506327 Chapter 17 Part 3
93) Insurance companies specialize in long-term loans. Topic: Insurance Companies AACSB: Analytic Skills 94) Some credit unions are now extending personal loans to members, often without personal collateral, in order to start a business. Answer: TRUE Page Ref: 563 Topic: […]
978-0133506327 Chapter 17 Part 2
41) When a bank makes enough good SBA-guaranteed loans to become a ________ lender, the SBA promises a faster turnaround time for the loan decision—typically 3 to 10 business days. A) preferred B) qualified C) certified D) LDC Topic: Small […]
978-0133506327 Chapter 17 Part 1
Entrepreneurship and Effective Small Business Management, 11e (Scarborough) Chapter 17 Sources of Debt Financing 1) Sometimes small businesses have to use debt financing instead of equity financing. When they do, they discover that: A) banks give them a lower interest […]
978-0133506327 Chapter 16 Part 3
95) A firm commitment underwriting agreement essentially guarantees that the small company making the initial public offering will receive the funds it needs. Topic: Public Stock Sale AACSB: Analytic Skills 96) The reason Joe Falsetti couldn’t get investors interested in […]
978-0133506327 Chapter 16 Part 2
41) One of the reasons for the significant drop in the number of public offerings since 2001 is: A) the dot-com crash of 2000. B) the U.S. economic crisis. C) the global economic meltdown. D) lack of available float. Topic: […]
978-0133506327 Chapter 16 Part 1
Entrepreneurship and Effective Small Business Management, 11e (Scarborough) Chapter 16 Sources of Equity Financing 1) The credit crunch has hit those entrepreneurs seeking between $100,000 and ________. A) $3 million B) $500,000 C) $1 million D) $750,000 Topic: Introduction AACSB: […]
978-0133506327 Chapter 15 Part 3
92) According to the National Association of Credit Management, receivables are only the second most important item on the balance sheet. Topic: Accounts Receivable AACSB: Analytic Skills 93) The first line of defense against bad debt losses is to have […]
978-0133506327 Chapter 15 Part 2
41) The real benefit of barter for the entrepreneur is that: A) it is essentially without cost to the business owner. B) it is considered a depreciable item for tax purposes rather than as income. C) it saves the small […]
978-0133506327 Chapter 15 Part 1
Entrepreneurship and Effective Small Business Management, 11e (Scarborough) Chapter 15 Managing Cash Flow 1) The first step in managing cash more effectively is: A) having an adequate cash reserve for emergency expenditures. B) rapid payment of accounts payable. C) speeding […]
978-0133506327 Chapter 14 Part 3
93) A low inventory turnover ratio demonstrates that the firm’s inventory is liquid and its pricing policies are accurate. Topic: Twelve Key Ratios; Operating Ratio AACSB: Analytic Skills 94) The company’s average collection period ratio indicates the length of time […]
978-0133506327 Chapter 14 Part 2
41) ________ publishes key business ratios for over 800 business categories. A) Robert Morris Associates B) Boston Consulting Group C) Bank of America D) Dun and Bradstreet, Inc. Topic: Interpreting Business Ratios AACSB: Analytic Skills 42) ________ publishes Annual Statement […]
978-0133506327 Chapter 14 Part 1
Entrepreneurship and Effective Small Business Management, 11e (Scarborough) Chapter 14 Creating a Solid Financial Plan 1) A pro forma financial statement means: A) looking at the current financial statement. B) looking at the past financial statement. C) preparing the current […]
978-0133506327 Chapter 13 Part 3
81) The three-digit number above the signature panel on the back of the credit card is referred to as CCV or CCV2. Topic: Ensuring Web Privacy and Security AACSB: Use of IT 82) The average conversion rate is about 10 […]
978-0133506327 Chapter 13 Part 2
41) Which of the following is correct? A) Although fancy graphics, bright colors, playful music, and spinning icons can attract attention, they also can be quite distracting and very slow to download. B) Sites that download slowly may never have […]
978-0133506327 Chapter 13 Part 1
Entrepreneurship and Effective Small Business Management, 11e (Scarborough) Chapter 13 E-Commerce and Entrepreneurship 1) ________ is a trend where people test products in retail stores but buy them online. A) Showboating B) Commoditizing C) Onlining D) Showrooming Topic: Introduction AACSB: […]
978-0133506327 Chapter 12 Part 4
127) A letter of credit reduces the financial risk for the exporter by substituting a bank’s creditworthiness for that of the purchaser. Topic: Exporting AACSB: Analytic Skills 128) A letter of credit is a document the seller draws on the […]
978-0133506327 Chapter 12 Part 3
88) The Commercial Service International Contacts List (CSIC) and the Country Directories of International Contacts (CDIC) provide the same information but organized in different ways. Topic: Resources for Locating a Trade Intermediary AACSB: Analytic Skills 89) One way to avoid […]
978-0133506327 Chapter 12 Part 2
40) John wants to expand into the foreign markets, but he can’t convince his partners. They feel international markets are the domain of large corporations. John is facing which barrier to international trade? A) Financing B) Political C) Cultural D) […]
978-0133506327 Chapter 12 Part 1
Entrepreneurship and Effective Small Business Management, 11e (Scarborough) Chapter 12 Global Marketing Strategies 1) ________ is (are) said to link trading partners, whether they are giant corporations or single individuals with a small business. A) Technology B) Better management C) […]
978-0133506327 Chapter 11 Part 4
126) Before deciding to use credit as a competitive weapon, small business owners must make sure that the firm’s cash position is strong enough to support additional pressure. Topic: The Impact of Credit on Pricing, Trade Credit AACSB: Reflective Thinking […]
978-0133506327 Chapter 11 Part 3
86) A skimming pricing strategy permits a small business owner to correct pricing mistakes more quickly and easily than a penetration pricing strategy. Topic: Pricing Strategies and Tactics, Skimming AACSB: Analytic Skills 87) A penetration pricing strategy allows the business […]
978-0133506327 Chapter 11 Part 2
41) ________ costing includes only those costs that vary directly with the volume of an item produced. A) Absorption B) Break-even C) Indirect D) Direct Topic: Pricing Techniques for Manufacturers AACSB: Analytic Skills 42) ________ tells what portion of the […]
978-0133506327 Chapter 11 Part 1
Entrepreneurship and Effective Small Business Management, 11e (Scarborough) Chapter 11 Pricing and Credit Strategies 1) Tom is working on a pricing strategy for his company’s new product line. In order to determine the price ceiling for these products, Tom needs […]
978-0133506327 Chapter 10 Part 4
128) List and explain the questions a small business owner needs to answer when choosing a media vehicle for the advertising message. Topic: Selecting Advertising Media AACSB: Analytic Skills 27 Copyright © 2015 Pearson Education, Inc. Answer: ∙How large is […]
978-0133506327 Chapter 10 Part 3
92) The key to the success of a direct mailing campaign is the accuracy of the customer list. Topic: Media Options AACSB: Analytic Skills 93) Due to the low cost, most small businesses rely almost solely on outdoor/billboard advertising. Answer: […]
978-0133506327 Chapter 10 Part 2
41) Under the ________ method of establishing an advertising budget, the owner sees advertising as a luxury. A) what-is-affordable B) matching competitors C) percentage of sales D) objective-and-task Topic: How to Prepare an Advertising Budget AACSB: Analytic Skills 42) The […]
978-0133506327 Chapter 10 Part 1
Entrepreneurship and Effective Small Business Management, 11e (Scarborough) Chapter 10 Creative Use of Advertising and Promotion 1) In reality, advertising: A) is a “luxury expense” to be undertaken only when the budget permits. B) requires a large budget to be […]
978-0133506327 Chapter 09 Part 3
87) Since front-line service workers are not able to predict the causes of customer complaints, managers must be the ones to identify potential customer service problems. Topic: Focus on the Customer AACSB: Analytic Skills 88) Perhaps the worst of all […]
978-0133506327 Chapter 09 Part 2
41) Time compression management (TCM) involves: A) speeding new products to market. B) enhancing the quality of existing products. C) decreasing the time it takes a product to move from introduction to the maturity stage of the product life cycle. […]