intro to bus 1305 (ch5-8)

A Franchise Disclosure Document (FDD) is

A document that a franchisor must deliver to a potential purchaser or franchisee

The nation of Rhodesia has the lowest entrepreneurship rate globally. A new government, headed by President Harold David Wengerd, aims to make the country's business environment more supportive of burgeoning entrepreneurs. Which of the following measures should be taken to increase the entrepreneurship rate in Rhodesia?

Eliminating complex regulations placed on business

Which of the following statements is true of a business plan?

It is absolutely crucial for obtaining outside funding

Which of the following statements is true of activity-based costing (ABC)?

It is more complex than the direct labor method.

which of the following is a difference between limited liability companies and corporations

LLC are subject to fewer reporting requirements than corporations

Ethan is in the process of launching his new business venture that specializes in electronic waste recycling. During this period, he has been in constant touch with Lois Inc, who has seen success in this niche market. In this scenario, which of the following entrepreneurial development strategies is Ethan utilizing"

Learning from others

In the context of budget preparation, which of the following is an advantage of using bottom-up budgeting.

Middle managers are likely to be highly motivated to achieve budgetary goals

which of the following is a disadvantage of franchising

The franchise agreement usually requires the franchisee to follow the franchisor's procedures to the letter.

Which of the following characteristic of limited liability companies (LLCs)?

They are made to pay an annual franchise tax in many states

Denise, the head of the marketing team of a company, holds a team meeting to thank all employees for their active participation in the corporate social responsibility activities organized by the company While addressing the employees, Denise is careful not to use words such as "young" and "old" Instead, she uses words like "energetic" and "dynamic" to express enthusiasm Which of the following biases is Denise avoiding in the given scenario?

Age bias

a_______is a formal document that describes a business objective, and details strategies and timelines for achieving those objectives

Business plan

John and Lena sign a contract with the owner of Little Fairy, a well-known preschool chain, to start a preschool in their city. They take permission from the owner to use the name and products of Little Fairy. They also furnish their preschool in Little Fairy's trademark style. In this scenario, John and Lena are starting a _____.

Franchise

Congress passed the___________ that banned business relationships that might create conflicts of interest between certified public accounting (CPA) firms and the companies they audit

Sarbanes-Oxley Act of 2002

Harold, a financial accountant in a company, is asked to identify the changes in the company's account values between 2014 and 2016. To get the required information, he uses comparative financial statements, which state the figures for the two years side by side. These comparative financial statements make it easier for Harold to identify the changes that may have taken place during that period. In this scenario, Harold is most likely using _____ to get the required information.

activity-based costing

Logan, an independent auditor, is assigned to perform an audit for a software company. After the audit, he notices some serious lapses and discrepancies in the numbers mentioned in the firm's financial statements. In this scenario, Logan is most likely to offer a(n)__________ opinion in his audit report

adverse

In the context of the US economy, small businesses

are often the first to contract when times are tough.

a manger who does not use words such as "his", young, her etc. in business communication is most likely trying to

avoid bias

As globalization gains speed, intercultural communication will

become increasingly pivotal to long-term business success

Drumming one's fingers on a desk while talking can distract the audience and create a _____ to communication.

body language barrier

As part of its financial budget, Clover & Max, an advertising agency, prepared a document that identified the agency's planned investments in major fixed assets and long-term projects. The given information indicates that the agency prepared the

capital expenditure budget

David, a German, and Rohit, an Indian, are representing their respective countries in a global summit. Unaware of each other's social practices, both David and Rohit are not able to communicate properly with each other. During lunch, Rohit eats bread with his hand, whereas David uses a fork and knife. This further reinforces their negative impression of each other. Which of the following communication barriers are David and Rohit facing in the given scenario?

cultural Barriers

A________is a type of franchising arrangement in which of the franchisor makes a product and licenses the franchise to sell it

distributorship

Paulina, the CEO of a steel company, invites Joseph, the representative of a potential partner firm, to visit her company, She is careful not to stress on Joseph's religious background as a means to start off a conversation Instead, she maintains a strictly professional conversation with Joseph and stays neutral to his religious background Which of the following biases does Paulina avoid in the given scenario?

ethnicity bias

As a listener, you are most likely to interpret the maximum meaning from a speaker's:

facial expression

Based on statistics from the US. Small Business Administration (SBA), small businesses account for 78% of all private sector employees.

false

In the context of franchising which of the following statement is true of a business format franchise.

it is an agreement in which franchisor grants the franchisee the right to both make and sell its good or service

Aegirine Corp. a publicly traded firm based in New Mexico, manufactures iron According to US securities laws, the firm must:

let an independent CPA (Certified Public Accountant) firm perform an annual external audit of its financial statements

In low-income countries, a high percentage of entrepreneurs are considered

necessity entrepreneurs

The management of a sugar manufacturing company sets aside a sum of $50,000 in its budget for the purchase of new machinery that would double the production. In the given scenario, the management is in the process of planning the ________ of the company

operating budget

identify a true statement about nonverbal communication

paying attention to a monotone takes more concentration than most people are willing to muster

During his English class, Ingrid was struggling to focus on the presentation given by his professor as the classroom was freezing cold. Also, the professor's table was creaking. In this scenario, both the cold atmosphere in the classroom and the creaking table are _____ to communication.

physical barriers

A thriving cowboy culture encourages entrepreneurship. The term "cowboy culture" refers to a

standout individuals who break free of old ways attract attention and admiration in many of the countries with high entrepreneurship rates

In the context of the statistics provided by the US. Small Business Administration (SBA).

the opening of new businesses has accounted for over 40% of net new jobs in the US. economy over the past two decades

A book publishing company follows a budgeting approach wherein the senior managers of the company prepare the annual budget with little or no input from the supervisory and middle managers. The company uses this approach as the owners of the company believe that the senior managers are more aware of the long-term strategic needs of the company In this scenario, the book publishing company is using

top-down budgeting

An advantage of franchising is the

training and support provided by the franchise

One of the disadvantage of general partnerships is the lack of continuity

true

Some businessmen, called necessity entrepreneurs, launch their businesses because they believe it is their only economic option.

true

If an auditor doesn't find any problems with the way a firm's financial statements were prepared and presented, the report will offer a(n)___________ opinion

unqualified