Small Business Management

which of the following things should be included in the business description section

An introduction to the owner and a discussion of their reasons for wanting to start the business

The prospective business owner might use a consumer surveys in one of the following stages of the market analysis. Which stage is it?

Analyzing the facts

Insurance companies can provide financing to small businesses in which of the following ways:

Both a and c

Which of the following statements is not true about the formation of a valid contract?

Capacity refers to knowledge of the subject of the contract

Which of the following benefits can be attained by creating and running a small business?

Challenge

Which of the following is not a common cause of small business failure

Communications breakdown

Which of the following is not an advantage of owning a small business?

Competition

which of the following is not a type of loan made by banks to small businesses?

Consignment

Which of the following is an example of a pressure that may arise in a family-owned business that is both within the family and within the business:

Continuity of family investment and involvement

which of the following is not one of the Five C's of Credit used by banks when deciding to make a loan?

Corporation

A family business should always pursue an early entry strategy to bring children into the enterprise as soon as possible. True or False?

False

A warranty must be written to be valid. True or False?

False

Contracts must always be in writing to be enforceable. True or False?

False

Which of the following is considered an intangible asset?

Goodwill

which of the following is not a question that a typical financing source would ask a business owner?

How long before your business starts turning a profit?

which of the following is not an important strategy in preparing an executive summary?

Include tables summarizing key financial information

which of the following is not key document that should be included in the financial forecasting section:

Income Tax Return

Which of the following is not an advantage of owning a small business?

It appeals to people who prefer minimal flexibility in their schedules

Under the Federal bankruptcy laws, what type of bankruptcy is a Chapter 7 bankruptcy?

Liquidation

which of the following is not an advantage of a corporation?

More favorable tax rates

Many family-owned businesses do not have succession plans. Which is not a reason for this situation:

Owners do not want to spend the time to obtain the necessary governmental approvals

Which of the following is not a reason why many family businesses may not have succession plans?

Owners do not want to spend the time to obtain the necessary governmental approvals

The Magnuson-Moss Warranty Act

Provides that all warranties must meet certain requirements

Under the federal bankruptcy laws, what type of bankruptcy is a Chapter 11 bankruptcy?

Reorganization

What is "learning to be alone but not lonely" an example of?

Self-Management issue

which of the following is not a requirement for receiving a small business administration loan:

Show the ability to operate a business successfully

Which of the following is not an indicator of job satisfaction levels?

Teamwork

which of the following is not a risk that might be discussed in a typical critical risks section:

The owner grows tired of the new venture and wants to leave

Who votes the board of directors into office?

The stockholders

which of the following persons votes the board of directors into office?

The stockholders

which of the following are advantages of warehouse-receipt loans:

They allow a business to operate with a relatively small investment in working captial

Which of the following is not an essential contribution that small business make to the U.S. economy?

They allow their owners an abundance of leisure time

which of the following are typical characteristics of angel investors:

They are often experienced entrepreneurs

which of the following are typical for short-term loans:

They are paid back in one year or less

Which of the following is not a characteristic of a small business, as defined by the Small Business Act of 1953:

They are sources of experimentation and innovation

Which of the following is not true about code of conducts?

They describe only practices mandated by laws and regulations

which of the following is an advantage of partnerships?

They enjoy increased access to credit and capital

Which of the following is not a way that small businesses play an important role in the U.S. economy?

They prevent the mobility of capital resources

Bankruptcy should be a last resort when negotiating with creditors. True or False?

True

Before making a final decision about going into business, potential owners should ask themselves a number of personal questions to assess whether their personality and temperament are compatible to owning and running a small business. True or False?

True

ESOPs may be a viable way to pass control of a family enterprise if the owner has no immediate successor in mind. True or False?

True

Flexibility is a special trait that allows family firms to react and respond to various challenges and opportunities in an unrestricted manner. True or False?

True

If you don't have mutual respect, you can't create and maintain a business together. True or False?

True

Mortgage contract- gives the lender an interest in the real estate financed. True or False?

True

Small towns are often a good location for small retail businesses. True or False?

True

The major benefit of leasing is that the initial outlay of cash is much less than if buying outright. True or False?

True

Two ways to negotiate with creditors are extension agreements and composition agreements. True or False?

True

When starting a business, the quality of competition must be considered. True or False?

True

You should seek legal and financial counsel for estate tax questions. True or False?

True

Which of the following is not a misconception in our society regarding business ethics?

Unethical behavior in business does not take place

The two fees paid by the franchise to the franchisor are:

Upfront and royalty based on gross revenues

A business plan should describe which of the following about an enterprise

all of the above

According to the Council for Economic development, which of the following characterizes a typical small business:

all of the above

Information about which of the following should be included in the location section:

all of the above

Setting realistic goals are an important part of every business plan. These goals should have which of the following features to be effective

all of the above

Under federal bankruptcy laws, Which of the following is considered protected assets, also referred to as exempt assets?

all of the above

What are some reasons that a company might want to regularly review and update its business plan:

all of the above

When considering a home-based business, which of the following steps should be considered to help assure maximizing the use of time?

all of the above

Which of the following areas should be covered in the action plan?

all of the above

Which of the following covers what small businesses do to complement large businesses?

all of the above

Which of the following is a common management trap that can lead to business failure?

all of the above

Which of the following is a duty of a principal?

all of the above

Which of the following is a duty of an agent?

all of the above

Which of the following is a misconception in our society regarding business and ethics:

all of the above

Which of the following is a step in management by objective?

all of the above

Which of the following is a training method?

all of the above

Which of the following is a type of governmental regulation?

all of the above

Which of the following is an advantage of a family-owned business?

all of the above

Which of the following is an advice regarding strategies and strategic plans as solutions to the succession issue?

all of the above

Which of the following is an example of a diverse pressure that may arise in a family-owned business?

all of the above

Which of the following is an important issue that must be considered when developing a succession strategy?

all of the above

Which of the following is essential of a contract?

all of the above

Which of the following is one of the contextual aspects that contribute to an effective succession plan?

all of the above

Which of the following is one of the three important steps in implementing a succession plan?

all of the above

Which of the following is what many home-based business operators used as an approach to select their business?

all of the above

which of the following are characteristics of straight commerical loans?

all of the above

which of the following are important characteristics of venture capital?

all of the above

which of the following features are effective in setting realistic goals as an important part of every business plan?

all of the above

which of the following information should be included in the location section?

all of the above

which of the following is a category that debt financing is divided into?

all of the above

which of the following is a disadvantage of the corporate legal structure?

all of the above

which of the following is an advantage of a limited liability company?

all of the above

which of the following is an attribute of a typical joint venture?

all of the above

which of the following is an important characteristic of venture capital?

all of the above

which of the following is an important consideration when assembling a business plan:

all of the above

which of the following is an important element of the marketing plan?

all of the above

which of the following is likely to be included in a typical partnership agreement:

all of the above

which of the following is one of the four types of services commonly offered by state or local development companies?

all of the above

which of the following is typically seen in a partnership agreement?

all of the above

which of the following loans are made by banks to small businesses?

all of the above

which of the following should be included in the business description section of business plan?

all of the above

which of the following should be included in the management section?

all of the above

which of the following things should be included in the management section

all of the above

In which stage of a market analysis might the prospective business owner use a consumer surveys:

analysis of the facts

which of the following is an advantage of an LLC?

both of the above

Which of the following is not a major disadvantage of going into business?

challenge

Most assets decrease in value if replacement value is use. True or false?

false

In estimating the money needed to start a business, which of the following should not be included in the calculation?

first-year profits

which of the following issues is generally not affected by a business legal form?

insurance

which of the following is a disadvantage of proprietorships

the owner is exposed to unlimited liability