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