Small Business Management Exam 2 - Agheay UCO
________ is often used to support the corporate identity and value propositions that are established through public relations efforts.
Advertising
Which of the following statements concerning business and labor laws is not true?
Executive Order No. 11246 is only applicable if you have 10 or more employees.
All business contracts have to be in writing to be enforceable.
False
All federal, state, county, and city laws apply to your business on the day you open.
False
An established company can come up with sales forecasts by looking at their sales for the past week, month, or quarter - called organic traffic - and project forward.
False
Considering the personal selling formula for generating interest in your product or service, cognitive dissonance occurs during the close of the sale.
False
Copyright involves the expression of ideas as well as the ideas themselves.
False
Guerilla marketing is a form of communication that encourages the customer to act immediately, such as coupons, sales, or contests.
False
It is preferable to hire a moderately qualified person if there is an immediate need for someone.
False
Statement of cash flows is also referred to as the statement of financial position.
False
The accounting equation is simply stated as Assets = Liabilities - Owner's Equity.
False
The employee referral method is an example of an overused, high-cost recruitment method.
False
The more debt that is included in the capital mix, the higher is the weighted average cost.
False
Which of the following statements best describes the process of idea screening in new product development?
Idea screening is the process of selecting the most promising ideas to be further evaluated.
Which of the following statements is not true of the situation after you win a judgment in small-claims court?
If the person will not pay, they can be jailed.
The term for measures or metrics that identify the outcomes that are most important to the success of a business are known as
KPIs.
_________ is the most used item on the income statement.
Operating income
Which of the following is a drawback to financing with debt?
Payment is expected even if you have no money to make the payment.
Which of the following statements is always true of sales promotions?
Sales promotion is one of the major forms for marketing.
________ is setting a price at the highest level the market will bear, usually because there is no competition at the time.
Skimming
A common reason people leave a company is if they feel they are not developing professionally.
True
A marketing plan includes a table of contents, executive summary, and appendixes similar to fully developed business plan.
True
Accounting is important for small businesses because investors will not even consider funding your concept unless you provide specific accounting information in an accepted format.
True
During the start-up phase of a small business the emphasis is on conserving what little cash the new business has
True
If you have started a business, or are doing a business where you do not expect to prepare a full business plan, a stand-alone marketing plan might be useful.
True
If your company holds a patent on a product, you will initially set the price so high that only a few can afford it.
True
In a lawsuit, the plaintiff is the party who filed a lawsuit.
True
Investing in multiple businesses increases the chances of offsetting possible losses incurred from one business.
True
Leasing, rather than building or buying, is an option with a considerably lower initial cash outlay and is often the only feasible choice for new businesses.
True
Liquidity is a measure of the ability of a business to meet both short-term and long-term obligations.
True
Money borrowed for the purpose of investment in a business is called debt capital.
True
Networking is relatively low-cost, although time-intensive, method of recruiting.
True
Sales leads who actually make some sort of effort to learn more about the product, service, or business in anticipation of a possible purchase are known as prospects.
True
The concept of total products includes how customers think about your product.
True
The usefulness of the income statement for managing a small business is related to the amount of detail available in the statement.
True
"Which credit card would you like to use to pay for that?" is an example of
a trial close.
A(n) _________ typically means the core product plus features that tend to differentiate the product from competition.
augmented product
Something of value given or pledged as security for a payment of a loan is called
collateral.
Tammy has just opened a donut shop called The Rabbit Hole. Given that The Rabbit Hole is in its start-up phase, which of these would be Tammy's immediate financial management need?
conserving what little money the business has
To treat family and non-family employees as similarly as possible in a business, it is important to
create career letters for nonfamily members.
The match between the needs, expectations, and culture of the small business with the expectations and the skills of the individual employee is called
employee fit.
Financial statements are defined as
formal summaries of the content of an accounting system's records of transactions.
In a(n) _________ , all partners are equally and fully responsible for the business's obligations.
general partnership
When debt increases as a percentage of total investment, returns on equity
increase at a decreasing rate.
Which of the following is true of off-the-job training?
it can be conducted through role-playing
In the accounting equation, assets equal
liabilities plus owners equity.
Alana, the owner of a small dress-making establishment called Mantua Fab, decides to hire assistance for design, sewing, and other tailoring jobs. After Mantua Fab finishes basic design, Alana send certain items of clothing to be embroidered and hemmed by another company in the same city. The strategy is referred to as
outsourcing.
The difference between assets and liabilities of a business is called its
owner's equity.
Of the following answer options, which is the most available funding source of new businesses?
owners' equity investments
When segmenting your market, ________ segmentation looks at what drives the person, for example hobbies, cultural interests, or health concerns.
psychographic
People who receive a promotional impression and who give some thought to buying the product are considered
sales leads.
Tony is a whiz in the kitchen. Not only does he make great food but he has invented about a dozen time-saving kitchen gadgets along the way. These are all home-made inventions made either by using new materials or by modifying existing gadgets to work in new, better ways. He has made duplicate gadgets for friends and some say they use the gadget every day. Tony quit his construction job to concentrate on his kitchen gadgets—he started his own company, Kitchen Helpers. An approach to researching based on the used of existing information, often from government, commercial or academic databases and research efforts is
secondary research.
Which among the following is an example of a variable cost?
shipping
Which of the following is an example of long-term incentives to employees to help retain valuable team members?
stock options
Which of the following is not one of the four key factors considered when determining an optimum price?
supply chain costs
There are three elements to most aspects of business law-finding the right information, negotiating the specific outcome you want, and
taking care of the paperwork associated with it.
Which of these is an advantage of sole proprietorship?
unique tax advantages
A 20 year old patent covering a process, machine, article of manufacture, composition of matter, or any new or useful improvement of an existing one is known as an
utility patent
Responsibility for the actions of another is referred to as
vicarious liability.
Which of the following describes angel investors?
wealthy individuals who invest in companies in relatively early stages of development