ENT - 201: Final Exam (Chapters 7 & 9-13)

asset-based lending

A bank provides John money for the necessary commercial oven for his business. In the banking world this is called _________.

true (A copyright is assumed to apply to anything that is your own original work.)

A copyright assumes the creative materials developed by a business are your own original work.

profit sharing

A firm sets up a low level of salary but offers to share a percentage of its profits at the end of the year. What is this called?

all of the above

A marketing plan should include: A. identifying your market B. pricing policy C. developing promotions

false ( patent covers a specific innovation.)

A patent covers the claim of intellectual property that covers a specific industry.

critical path chart

A production chart is similar to a __________.

cost-plus pricing method

A small business determines the cost of providing a product or service, and then adds some level of profit determined to be appropriate. This is called:

contract sales force

A(n) _________ is when a company hires independent salespeople with a variety of experiences and contacts on a contract basis.

the quality of inputs

According to W. Edwards Deming, rather than focusing on obtaining the lowest prices for supplies, firms should focus on:

manufacturing firms

According to the book, which of the following firms needs to pay special attention to OSHA guidelines?

preparing pay slips of personnel

All of the following are functions of human resource managers EXCEPT:

ADA

Americans with disabilities act - specifies protections in business for those with disabilities

Uniform Partnership Act

If a partnership agreement is not developed or signed, the partnership will be ruled by the:

Employer Identification Number (EIN)

If a small business has employees, the business must have a(n) _________.

often affect both the business and the family

In a family business, business decisions:

100

In a limited liability corporation, a firm can have more than _________ investors.

they need to open their doors for business in August

In the "Study Café" example, the critical chart process helped the students realize:

higher

In the Friend's Home Health case study, during the initial start-up period, expenses were _________ than expected.

relatively cheap

In the Friend's Home Health case study, the founders sought out a _________ location.

United States Patent and Trademark Office

In the United States, where must a patent application be filed?

marketing plan

John needs to know who his customers are and how to attract them. He needs a(n):

future pay raises

Performance review includes all of the following EXCEPT:

perception

Pricing something that ends in 99 cents makes a big difference in the buying of a product. This is because of a consumer's:

true (Pure promotion is strictly a financial arrangement in which a company pays for an output like radio advertisements.)

Pure promotion is strictly a financial arrangement in which a company pays for an output like radio advertisements.

false (Many regulations enacted by the federal government do not apply to businesses with fewer than 50 employees.)

Small businesses deal with more regulations than large businesses.

immediate cash

The advantage of factoring for a small business is:

16

The government regulates the employment of children under the age of _________.

copyright, trademark, and patent (all of the above)

The legal means to protect intellectual property is _________.

false (The use of a mission statement ensures that a firm is focused and will not seek to be all things to all people.)

The use of a mission statement ensures that a firm is focused and will seek to be all things to all people.

high-growth new ventures

Venture capitalists are seeking a(n) _________.

true (Virtually free promotions are also known as bootstrap marketing. )

Virtually free promotions are also known as bootstrap marketing.

Occupational Safety and Health Administration

What does OSHA stand for?

All of the above

What does a new business owner need to keep in mind while making a decision about what equipment to buy? A. How quickly the company may require larger/more equipment? B. What equipment is needed? C. What is the cost of the equipment?

responsibility of the owners

When forming a sole proprietorship or a partnership, the business debts are:

prioritize

When using a time management system, a new owner must _________ his or her tasks.

profit and loss statement? (in accounting its "revenue recognition principle" and "expense recognition principle")

Which of the following accounting systems recognizes expenses as they are paid and recognizes revenue as it is as generated?

franchises

Which of the following have well-established methods of operation?

suppliers will provide credit on both physical assets and the actual supplies provided

Which of the following is the best definition of supplier credit?

Civil Rights Act

Which of the following laws prohibits discrimination in hiring, dismissal, or promotion on the basis of race, color, gender, religious beliefs, or national origins?

d. (All of these)

Which of the following represents the impact of a poor employee on the functioning of a small business? a. The problems may bleed over to other employees. b. The organization does not fully benefit from the employee. c. The owner's time is lost. d. all of these

legitimacy

Which of the following terms is used by key stakeholders for acceptance of a company as a reputable ongoing business?

salary

Which of the following terms means a set amount of compensation for a given time period?

lead; opening

Your ability to obtain critical supplies may dictate your _________ time and _________ time

business angles

_________ are high-net-worth individuals who invest in business not as a business, but individually.

grants

_________ are special funds, neither equity nor debt, that do not require repayment and are designed to aid businesses in specific areas.

equity investment

_________ funds are received by a business in exchange for a percentage ownership of the company.

banks

_________ have been a major source of funds for established firms, but are quite restrictive in their lending to start-up firms because the risk is perceived to be high.

Bonding

_________ is a type of insurance in which a business is covered if the workers cause any damage in the performance of the work.

virtually free

_________ promotions have very limited financial costs, but have time commitment requirements from individuals in the firm.

Sales management

_________ refers to the individuals who build and maintain relationships with customers

production chart

a chart provides a detailed understanding of a firm's production process

hybrid compensation system

a compensation system where there is a salary along with commission

draw

a distribution of funds from the business; it is usually in the form of a cash dispersion in advance of salary, bonus, expected year-end distribution, and the like

profit and loss statement

a financial statement that summarizes the revenues, costs, and expenses incurred during a specific period of time

asset lease

a form of lease tied to a particular asset used by a business to conserve cash and maintain the latest versions of whatever equipment is available

venture capital fund

a fund that is organized to make significant equity investments in high-growth new ventures

debt

a generic term to describe any type of non-equity funding tide to the business

board of advisors

a group formed at the discretion of the founders (regardless of the legal form chosen) and composed of individuals outside the business who advise the founders

LLC

a limited liability corporation

LLP

a limited liability partnership

asset-based lending

a loan provided for the purchase of a necessary asset for the business

loss leader

a product or service that is sold at a non operating loss (i.e., the price only accounts for the actual cost of the product) to simply get customers in the store

salary

a set amount of compensation for a given time period

strip shopping center

a small retail center located typically along a major road; the center has only small businesses and the center itself occupies only a small strip of land along the major street

partnership

a type of business formed between individuals directly; it includes both general and limited varieties

factoring

accounts receivable that are sold at a discount to another company to receive immediate cash

contract

an agreement between two parties to perform certain activities for some consideration

profit sharing

an example of a hybrid compensation system; the firm may set some relatively low level of salary but offer to share percentage of the profits at the end of the year or some other period of time with the employees

subchapter c corporation

an organizational form that treats the firm as a unique entity responsible for its own taxes; there are no limitations to shareholder participation and the "owners" are protected beyond their equity investment

subchapter s corporation

an organizational form that treats the firm as an entity separate form the individuals; this allows the owners to treat the income as they would if the firm were a sole proprietorship or a partnership; it has limitations in the number and type of shareholders

supplier credit

another form of non-equity funding that is available; suppliers often will provide credit on both physical assets (refrigerators, molding equipment, etc.) and the actual supplies provided

human resources

as defined in economics, the quantity and quality of human effort directed toward producing goods and services

perquisites

benefits paid for by the company; examples include vacations, vehicles, loans, gifts, financial contributors to retirement plans, and so on

credit card

card entitling one to revolving credit that is not tied to any particular asset, does not have a set repayment schedule, typically has a set upper limit, and is usually tied to a much higher interest rate than that of a bank loan

critical path chart

chart that demonstrates how the activities necessary to start the firm fit together and build on one another; this chart allows you to understand which activities can occur concurrently and which must already be in place before the next activity can occur

patent

claim of intellectual property that covers a specific innovation

trademark

claim of intellectual property that is associated with a specific business; this may be the name of the firm, a symbol representing the firm, or the names of its products

loan

contractual agreement whereby the firm receives some amount of money that must be repaid over a specified period of time at a specified interest rate

job description

document that describes the job that is to be filled

unemployment compensation

financial assistance for some period of time to those people who lose their job through no fault of their own; provided in every state by law

crowdfunding

funds received by a business by soliciting a large number of very small investors usually via the internet

equity investment

funds received by a business in exchange for a percentage ownership of the business

business angles

high-net-worth individuals who invest in businesses not as a business, but as an individual

general partner

in an LLP, the individual considered the manager of the firm, who, as such, has unlimited liability for any debts or judgments against the firm

discrimination

in the workplace, hiring, dismissal, level of pay, or promotions based on race, color, gender, religious beliefs, or national origin of the employee; such actions are prohibited by federal and state laws

contract sales force

independent salespeople with a wide variety of experiences and contacts, provided by a company on a contract basis

workers' compensation

laws designed so that employees who are disabled or injured while on the job are provided with some type of compensation

anchor stores

major retail stores, such as department stores in a mall; they serve as the anchor for the retail establishment

bootstrap marketing

marketing efforts that require little capital

commission

payment by the entrepreneur of some percentage of sales, typically associated with the compensation of sales representatives

cost-plus pricing

pricing in which the entrepreneur initially determines her cost structure and then determines what profit margin is desired and adds that to the cost

pure promotions

promotions that are strictly financial arrangements in which you pay for some outputs, such as radio advertisements

mixed-model promotions

promotions that cost something but also have an element of community support

virtually free promotions

promotions that have very limited financial cost but have time-commitment requirements from individuals in the firm

independent representatives

representatives for a variety of products for a number of companies in a given domain who try to sell those products

performance review

review by the entrepreneurial business owner of the employees' goals and outcomes on those goals over some given period

bonus

similar to profit sharing, a reward offered to the employees based on their performance; typically, bonus systems are not as well defined as profit sharing; instead, the level of reward is left up to the discretion of the entrepreneur

grants

special funds that do not require repayment and are designed to aid businesses in specific areas

legitimacy

the acceptance by key stakeholders such as customers and suppliers that you are a genuine business that will still be in operation next year

fair labor standards act

the act that established a minimum wage for workers

hourly wage

the amount paid per hour for work performed

pricing floor

the break even point, or the lowest amount that can be charged for a product or service while still making a minimal profit

shrinkage

the difference between what is sold and what was brought into the business

strategic alliances

the joining together of firms to form long-term, mutually beneficial relationships

copyright

the legal means to protect intellectual property; it grants ownership on creative materials generated, such as books, magazines, advertising copy, music, artwork, or virtually any other creative product, whether published or unpublished

promotion

the means by which a business advances its product or service

sales management

the method employed to, and the individuals who build and maintain relationships with customers

OSHA

the occupational safety and health administration, which is charged with protecting the health of workers

marketing plan

the plan developed by the entrepreneurial business to specify who the customers are and how they will be attracted to the company

sole proprietorship

the simplest form of business organization, characterized by the fact that the person who owns the business and the business itself are treated as the same entity

equity theory

the theory that we all judge how we are treated relative to how we see others being treated