ETR401 Chap5

22. Which of the following does NOT hold true of part-time self-employment? A. It is a minor portion of all current entrepreneurship. B. There is tremendous volatility as individuals jump in and out of self-employment quickly and frequently. C. It accounts for around half of small businesses in the United States. D. It is the way most people start in entrepreneurship.

A

25. The frequency of business starts and stops is referred to as A. volatility. B. aggrandizing. C. bootstrapping. D. moonlighting.

A

26. Nowadays, the conventional wisdom is that if you are serious about starting a business, you ought to start a business full time and prepare for it by A. doing a business plan. B. making bylaws. C. doing a strategic plan. D. creating an organizational chart.

A

37. What is the greatest problem that home-based entrepreneurs face? A. Zoning challenges B. Gaining customers C. Insurance problems D. Delivering work

A

42. In _____ sales, one firm sells to another firm. A. business-to-business (B2B). B. business-to-consumer (B2C). C. consumer-to-consumer (C2C). D. business-to-Internet (B2I).

A

45. A Web page in which entries are posted in reverse chronological order is a A. blog. B. tweet. C. search engine. D. push service.

A

28. Under which of the following situations might it make better sense to undertake a part-time business first? A. You are buying an existing business B. You want to gain basic experience C. You are opening a franchise D. There is too much competition

B

32. In organizing your part-time small business start-up, which of the following is NOT a key consideration? A. Cost to start-up B. Competition C. Time to start-up D. Permanence

B

59. _____ are often among the most expensive locations in the mall in terms of rent per square foot. A. Large anchor stores B. Medium-sized boutique stores C. Carts and kiosks D. Food court stores

C

62. Retail stores in which customers can come and buy products placed in the shops by a wide variety of sellers are called A. licensed outlets. B. franchised kiosks. C. consignment shops. D. auctions.

C

65. Which of the following pertains to consignment shops? A. They permit full-time sales with full-time involvement from you B. They are high-risk level undertakings C. They have low profitability because of seller fees D. They have limited flexibility

C

67. Research indicates that most service and retail firms typically start out as a A. losing venture. B. franchise. C. hobby. D. self-employment business.

C

70. _____ refers to information provided to the government concerning the existence of, name of, nature of, and contact information for your business. A. Zoning B. Franchising C. Registration D. Bootstrapping

C

71. _____ is the documented permission from the government to run your business. A. Bootstrapping B. Delegation C. Licensing D. Zoning

C

75. Contracting with people or companies outside your business to do work for your business refers to A. moonlighting. B. bootstrapping. C. outsourcing. D. licensing.

C

82. _____ means taking business away from your employer. A. Bootstrapping B. Licensing C. Cannibalizing D. Aggrandizing

C

88. Elizabeth should know that the challenge or disadvantage of her choice of business is the A. difficulty in setting up. B. cost of setting up. C. variable income. D. seller fees.

C

48. Identify the correct statement about the eBay Web site. A. The eBay method of auctioning means you pay a fee for posting your product and a sales fee based on the final bid price when the item sells. B. Most online transactions use a credit card or an online payment system like PayMate, which is a division of eBay. C. eBay does not allow buyers and sellers anonymity. D. On eBay, you can list a single item for sale only by creating a Web site to support your effort.

A

50. Which of the following is also called multilevel marketing? A. Network marketing B. Auctioning C. Catalog sales D. Online marketing

A

54. All of the following are disadvantages of home retailing EXCEPT A. high cost of getting started. B. always working "on the road." C. lacking a base from which you can organize and work. D. having a highly variable income.

A

55. The fundamental success factor in door-to-door selling is A. closing the sale. B. having a location with enough foot traffic. C. approaching a "high-rent" district. D. having a perishable product for sale.

A

57. One of the most ancient forms of small business is A. stand retailing. B. consignment. C. mail order. D. licensing.

A

61. The key success factor for a stand is A. having a location where there is enough foot or vehicle traffic. B. having a variable income. C. having nonperishable sale items. D. sharing with other businesses to minimize the high rent.

A

64. Which of the following represents an advantage of a consignment approach? A. Full-time sale with only a part-time involvement from you B. High potential for competing offers C. Amount of time before payout D. Sellers' fees

A

68. The key device for managing time for part-time business individuals is A. the to-do list. B. auctioning. C. hiring employees. D. outsourcing.

A

73. The assignment of work to others over whom you have power refers to A. delegation. B. outsourcing. C. licensing. D. zoning.

A

79. Ownership of a portion of a business is called A. equity. B. debt. C. leverage. D. cash flow.

A

80. Working on your own part-time business after your regular job is called A. moonlighting. B. bootstrapping. C. outsourcing. D. licensing.

A

84. Attempting to make yourself seem more accomplished than reality refers to A. aggrandizing. B. poisoning the well. C. moonlighting. D. cannibalizing.

A

85. The most typical form of aggrandizement is A. implying that a firm is a full-time one when it is only part time. B. creating a negative impression among your employers' customers. C. working on your own part-time business after your regular job. D. finding a low-cost or no-cost way to do something.

A

87. "Light a Candle" can be described as A. stand retailing. B. mail ordering. C. home retailing. D. consignment retailing.

A

90. If Elizabeth wants to have a full-time sale with only part-time involvement, she should consider A. consignment stores. B. home retailing. C. bootstrapping. D. stand retailing.

A

23. Full-time approaches include all of the following EXCEPT A. buying or inheriting existing businesses. B. stand retailing. C. franchising. D. opening a new full-time business.

B

33. Which of the following statements about the key considerations for part-time small business start-ups is false? A. You want a low cost of start-up, since you probably will not have a lot of money to invest. B. The more time and energy you spend preparing for a small-scale part-time business, the shorter it takes to make a profit. C. In most cases, the cost to start-up and the time to market are closely related. D. The fundamental idea of permanence is that customers want to know if the firm is likely to be around for awhile, to provide customer service and future sales.

B

38. The limitations imposed on your property by your neighborhood group are known as A. pacts. B. covenants. C. volatilities. D. aggrandizements.

B

41. Products like music and cell phones are examples of the kind of goods we buy as individuals. This type of e-commerce is called A. business-to-business (B2B). B. business-to-consumer (B2C). C. consumer-to-consumer (C2C). D. business-to-Internet (B2I).

B

46. Identify the correct statement about RSS feeds. A. All Web sites push content out to customers by using an RSS feed. B. An RSS feed sends whatever Web material you specify to subscribers to that feed. C. RSS stands for "really simple sequence." D. RSS feeds can be read only with special readers.

B

47. A listed, live connection to a different Web site, which in turn displays a similar link to the first Web site is a(n) A. sponsored link. B. reciprocal link. C. backlink. D. incoming link.

B

56. An approach to selling in which the salesperson recruits customers to become distributors of the products or services to others is called A. consignment shop. B. network marketing. C. auctioning. D. licensing.

B

58. Which of the following represents an advantage of stand retailing? A. Variable income B. Minimum startup investment C. Steady income D. Strong consumer base

B

60. All of the following relate to "stand retail" EXCEPT A. they tend to be either semipermanent ones or movable ones. B. they need to be built in places where there is less traffic. C. they can be quickly established. D. they have a problem of building customer base.

B

66. Which of the following represents a disadvantage of a consignment approach? A. Availability of different consignment stores and auctions B. Long amount of time before payouts C. Full-time sales with only a part-time involvement from you D. High setup costs

B

69. The two key groups outside your business with whom you must deal with as part-time business owners are A. the state and federal governments. B. the government and customers. C. customers and employees. D. employees and investors.

B

74. Delegation does NOT make sense in which of the following situations? A. When you want your business to operate in two places at once. B. When trust is low and employees lack skills. C. When you want your business to operate when you are not present. D. When others can do things better than you.

B

77. Finding a low-cost or no-cost way to do something is called A. moonlighting. B. bootstrapping. C. outsourcing. D. licensing.

B

81. All of the following are major concerns of moonlighting EXCEPT A. conflict of interest. B. bootstrapping. C. cannibalizing sales. D. poisoning the well.

B

89. If Elizabeth starts to take days off from work to staff the kiosk at the flea market, she may be facing A. bootstrapping. B. conflict of interests. C. poisoning the well. D. aggrandizing.

B

24. Part-time businesses are important for which of the following reasons? A. They are important and necessary for our global competitiveness. B. Majority of new inventions have come from part-time self-employed businesses. C. Part-time self-employment is the way most people start in entrepreneurship. D. Part-time businesses provide the cheap labor for large businesses and full-time entrepreneurs.

C

27. Which of the following statements about a business plan is false? A. A business plan enables you to look at every aspect of your business. B. Business plans are important if you intend to ask others for expertise or financial investments. C. Estimates suggest that a business plan may take anywhere from 10 to 20 hours or more if you are new to business. D. If you are new to business and need to gain basic experience, you might want to obtain other types of experience before writing a business plan.

C

35. All of the following are reasons for the large numbers of home-based businesses in the United States EXCEPT A. the idea that a customer knows where the entrepreneur lives can be a point in favor of trusting in the potential permanence of the firm. B. it is inexpensive, since you are already living somewhere. C. they generally give customers the strongest sense of legitimacy. D. you can get your business going where you live in a moment.

C

39. Permission from a government organization to act differently than the laws state is known as A. a covenant. B. volatility. C. variance. D. bootstrapping.

C

49. The party and door-to-door model represents which of the following part-time business approaches? A. Stand retailing B. Consignment C. Home retail D. Mail order

C

52. Identify the statement that does not relate to home retail. A. Low cost of setting up B. Ability to do the work away from your home and employer C. Provides a high steady income D. Minimized potential conflicts

C

86. Elizabeth can be described as a(n) A. full-time self-employed. B. franchisor. C. absentee employee. D. part-time self-employed.

D

21. Working at your business 35 hours a week or less is called A. franchising. B. full-time self-employment. C. aggrandizing. D. part-time self-employment.

D

29. All of the following are situations in which it might make better sense to undertake a part-time business EXCEPT A. when you are new to business and need to gain basic experience. B. when you lack resources to pursue a full-scale business. C. when there is a narrow window of opportunity. D. when there is enough time and resources to get the entire business going.

D

30. _____ is/are probably the ultimate resource, and starting a business can tax it heavily. A. Family B. Friends C. Money D. Time

D

31. In all of the following situations, it might make better sense to undertake a part-time business EXCEPT when A. there is a narrow window of opportunity. B. you lack the resources for a full-scale business. C. you want to gain basic experience. D. you are buying an existing business.

D

34. Which of the following U.S. industries had the most number of establishments in 2007? A. Manufacturing B. Wholesale C. Construction D. Professional services

D

36. Government specifications for acceptable use of land and buildings in particular areas are called A. licensing laws. B. public utility laws. C. environmental laws. D. zoning laws.

D

40. An Internet site designed to introduce and explain a business to others is known as a(n) A. e-commerce Web site. B. portal Web site. C. advocacy Web site. D. informational Web site.

D

43. Identify the correct statement about B2B. A. For most of us, the B2B market is visible. B. An example of a B2B transaction would be an individual buying a cell phone. C. It involves electronically-facilitated transactions between consumers through a third party. D. B2B e-commerce is larger than B2C e-commerce.

D

44. Identify the correct statement about a hosting package. A. It should include at least 1 terabyte of traffic a month. B. It should give you at least five Web pages of space to tell your story. C. It should include at least two e-mail accounts using your domain name. D. It should include an online Web site editor so you can make changes to your site without buying Web-authoring software.

D

51. _____ means getting the customer to agree to buy. A. Opening B. Promoting C. Auctioning D. Closing

D

53. Which of the following is NOT an advantage of home businesses? A. Speed and ease of setting up. B. Low cost of getting started. C. Ability to do the work away from your home and employer. D. Always working "on the road" thereby enhancing productivity.

D

63. Which of the following does NOT hold true of consignment shops? A. It promotes the popular way which is to give your product to someone else to sell. B. They are retail stores in which customers can come and buy products placed in the shops by a wide variety of sellers. C. The shop's owner handles the sale and gets a portion of the money from the sale in return. D. Many consignment shops have a maximum selling price for items.

D

72. All of the following are challenges of being a part-time entrepreneur EXCEPT A. delegation and outsourcing. B. ethical challenges. C. moving from part-time to full-time entrepreneur. D. the ability to make money to sustain the business.

D

76. Which of the following is the most outsourced item by small businesses? A. Payroll B. Financial advice and management C. Advertising and marketing D. Legal issues

D

78. All of the following are the key ideas of bootstrapping EXCEPT A. cutting your personal and business expenses. B. seeing if you can get things which you need for free. C. seeing if you can substitute a lower-cost alternative before you buy. D. borrowing heavily from banks while keeping your money untouched.

D

83. _____ refers to creating a negative impression among your employers' customers. A. Bootstrapping B. Cannibalizing C. Aggrandizing D. Poisoning the well

D