An assembly line is based on the principle of job simplification.
For some businesses, e-mail takes a very low priority.
An effective tool used to help assess ideas is the idea sketch pad.
Time out of cash is one of the four major elements included in a financial feasibility
analysis.
Successful “copreneurs” create a division of labor based on expertise.
The majority of new business owners devote more than 40 hours per week to their
companies.
Which of the following is true regarding hiring mistakes?
A) Hiring mistakes are expensive.
B) Companies’ informal processes may lead to unpredictable outcomes.
C) Small businesses are most likely to make hiring mistakes because they lack the
human resources experts and the disciplined hiring procedures large companies have.
D) All of the above
Bootstrap marketing is a marketing approach that takes an unconventional, low-cost
and creative approach to marketing that can give ________ a competitive edge over
________ competitors.
A) small companies; larger
B) larger companies; smaller
C) small companies; entrepreneurial
D) entrepreneurs; small
Refer to the following information to answer the question(s) regarding Anita Lupino’s
toy and game shop:
Anita Lupino is planning to open her own toy and game shop. She has conducted a
great deal of research at the local library, contacted the industry trade association, and
has set up a meeting with a consultant at the SBDC next week. Before she goes to the
SBDC, she wants to sketch out an estimated income statement. She reviews the
following data from RMA’s Annual Statement Studies:
If Anita’s research suggests that she can expect net sales of $475,000, what net profit
could she expect?
A) $202,825
B) $46,550
C) $69,350
D) $156,275
Which key success factor does the entrepreneur who built this table believe is most
important?
A) Quality
B) Service and on-time delivery
C) Convenience
D) Location
A franchise trend in which owners of independent businesses become franchisees to
gain the advantage of name recognition is called ________.
A) area development
B) master franchise
C) conversion franchising
D) cobranding
Arturo, a sales representative for a small manufacturer, works out of an office in his
home, using his laptop computer, a fax machine, and a beeper to communicate with the
home office, which is located in a city 58 miles away. Arturo actually goes to the main
office, on average, once every 10 to 14 days. His company is using which work
arrangement?
A) Job sharing
B) Flextime
C) Flexplace
D) Job enrichment
At which stage of the creative process does a spontaneous breakthrough occur, allowing
all of the previous stages to come together to produce the “Eureka factor” or the “light
bulb goes on”?
A) Implementation
B) Preparation
C) Illumination
D) Verification
Carlos founded the “Taco Factory” 20 years ago as a family-oriented restaurant. Over
the years as they grew the business, he incorporated and sold stock to outside investors.
Recently the stockholders voted to seek liquor licenses and to sell beer and hard liquor
in the restaurants. Carlos opposed this, citing the history of the restaurant’s “family”
environment, but was voted down. Carlos has experienced which drawback of the
corporate form of ownership?
A) The inability to accumulate capital.
B) The potential for diminished managerial incentives.
C) Legal requirements and red tape.
D) The potential loss of control.
________ is the process of finding creative ways to exploit opportunities to launch and
grow businesses with limited resources.
A) Prototyping
B) Bootstrapping
C) Undercapitalizing
D) Leveraging
A limited liability company is most like a(n) ________.
A) general partnership
B) master partnership
C) sole proprietorship
D) S corporation
Experts estimate that ________ percent of industrial and wholesale sales are on credit,
while ________ percent of retail sales are on credit.
A) 20; 40
B) 40; 20
C) 60; 30
D) 90; 40
Entrepreneurs can stimulate their own creativity and encourage it among workers by
________.
A) expecting and tolerating failure
B) avoiding problems
C) limiting rewards
D) not taking chances
Customers will typically welcome well-constructed permission e-mail that directs them
to company sites for information or special deals, unlike unsolicited and universally
despised e-mail known as ________.
A) spam
B) electronic flyers
C) voice mail
D) clipboards
A(n) ________ group involves enlisting a small number of potential customers to get
feedback on specific issues about the company’s product or service.
A) Delphi
B) focus
C) industry
D) trade
A glass manufacturer that requires an extremely pure, very fine sand in its production
process would be most concerned about the ________.
A) business climate
B) proximity to raw materials
C) demographic profile of the local market
D) local wage rates
Which of the following statements is not true regarding the liquidation of an S
corporation?
A) The owners pay all taxes, debts, and creditors.
B) The owners obtain the written approval of shareholders to dissolve the company.
C) The owners file a statement of intent to dissolve with the secretary of state’s office in
each state where they conduct business.
D) The owners distribute all assets of the corporation to the shareholders.