Entrepreneurship PT
Cookery Manufacturing orders heating elements from the Kenton Company to produce ovens. Recently, customers complained to Cookery that their ovens were not heating properly. Cookery researched the issue, and determined that the customers purchased ovens with defective heating elements. Kenton and Cookery took action by replacing the defective parts for the customers. In this situation, Cookery and Kenton maintained a positive working relationship by A. changing the production process. B. collecting information about a new product. C. working together to resolve a problem. D. developing a standards plan.
C
In order to reach its marketing goal of increasing profits by 10% this year, Wilco General Business has adopted a strategy to reduce costs. Which of the following is a tactic Wilco could use to carry out this strategy: A. Increase the budget for promotion B. Increase selling prices at least 10% C. Take advantage of quantity discounts D. Offer additional incentives to salespersons
C
Jackie is a dentist. Which channel of distribution will Jackie use to provide services to clients? A. Consumer B. Indirect C. Direct D. Industrial
C
Jamal assembled a small group of independent business professionals to guide him through the early stages of his new business venture. What type of external resource is Jamal using to supplement his expertise? A. Work team B. Professional association C. Advisory board D. Trade union
C
Managers are responsible for directing the business's employees in ways that promote goodwill and build positive customer relationships, which often improve A. revenue from investments. B. channel member efficiency. C. customer retention rates. D. resource allocation efforts.
C
One reason that companies perform needs assessments is to determine A. who is the best person to lead the company. B. the company's vision and mission statements. C. if there is a market for a product or service. D. how to best meet the demands of employees.
C
Personnel costs should be addressed in which component of the business plan? A. Company description B. Strategy and implementation C. Management plan D. Appendices
C
The owner of a business is meeting with the company's managers and supervisors to set objectives for the next year. This group is developing the company's A. market share. B. channels of distribution. C. business goals. D. promotional mix.
C
To open a new business, an entrepreneur often needs to purchase inventory and equipment, which are commonly called A. tax incentives. B. irreplaceable goods. C. capital resources. D. unexpected expenses.
C
To prevent business failure, even a very profitable company must A. reinvest all its earnings. B. spend all its earnings. C. manage its cash flow. D. increase its sales.
C
To prevent others from using its brand logo, a business should A. register its domain name. B. apply for a patent. C. obtain trademark protection. D. prepare a licensing charter.
C
To verify information about applicants, employers can A. examine application blanks. B. review résumés. C. check references. D. administer physical examinations.
C
What should a company do to identify specific products that its target market may want in the future? A. Improve quality B. Forecast sales C. Monitor trends D. Review budgets
C
When Deanna, a small-business owner, allocates 6% of her company's profit to product development, she is investing which type of resource: A. Strategic B. Fundamental C. Financial D. Structural
C
When planning a business's product mix, the business must make decisions about components such as the product line, packaging, and A. publicity goals B. tag line. C. brand development. D. credit terms.
C
Which of the following components of a promotional plan addresses exactly how a business will achieve its goals: A. Situation analysis B. Budget C. Strategy D. Evaluation
C
Which of the following is an example of a person financing a new business by selling assets: A. Isabella asks her brother for $5,000. B. Ann offers her home as collateral for a bank loan. C. Jonathan sells his vintage sports car. D. Logan uses his credit card to purchase business supplies.
C
Which of the following is an example of market segmentation by life stage: A. Baptist church members B. College-educated people C. Married adults D. People with a high income
C
Why is it important for hospitality and tourism businesses to be aware of, and react to, trends and changes in the marketplace? A. To hire personnel B. To increase advertising C. To remain competitive D. To identify resources
C
Which of the following is an example of an external financial risk that a company might experience: A. Poor budgeting and planning B. Significant accounting errors C. Change in currency exchange rates D. Poorly produced products
C. Change in currency exchange rates
Which of the following questions does the company description section of a business plan answer: A. What is your business's marketing plan? B. What is the general outlook for your industry? C. Where is the business located? D. What will you charge for your products?
C. Where is the business located?
A business that dismisses employees on the basis of their age or gender is violating __________ laws. A. contingency B. recruitment C. discrimination D. privacy
C. discrimination
Before starting their business ventures, which of the following would entrepreneurs recognize first: A. Regulations B. Associations C. Reductions D. Opportunities
D
Communities of practice benefit businesses by A. increasing employee turnover rates. B. adding value to an individual's professional life. C. reducing the need for knowledge in decision-making. D. decreasing the learning curve for new employees.
D
During economic fluctuations, taxes serve the purpose of __________ the economy. A. destroying B. reducing C. expanding D. stabilizing
D
During the discovery process, an entrepreneur must determine whether the proposed business venture will A. require financial risk. B. generate large profits. C. create loyal customers. D. meet a need or a want.
D
During the employee-selection process, most businesses first require job applicants to A. have a physical examination. B. interview for the job. C. take employment tests. D. fill out an employment application
D
Individuals put limits on their own economic freedom by A. deciding to learn new job skills. B. competing with others. C. complying with the law. D. making personal economic choices.
D
Managers must create explanations of the responsibilities and tasks associated with each work position. These are known as A. recruiting templates. B. organization aids. C. work specifications. D. job descriptions.
D
Maurice, a coffee shop owner, is choosing a new vendor to supply his shop with napkins, cups, and other paper products. He has several vendors to choose from, and he's not sure which to pick. For the best results, Maurice should choose the supplier who A. has the best reputation in the community. B. has the lowest prices. C. has the most advanced technology. D. views relationships as partnerships.
D
Most businesses establish policies against racial or ethnic jokes and inappropriate physical contact on the job to create and maintain a(n) A. affirmative action classification. B. equal-opportunity employment status. C. diversified workforce. D. nonhostile work environment.
D
The general purpose of managerial planning is to A. generate ideas. B. impact society. C. create utility. D. provide direction
D
The name "Coca-Cola" is an example of a A. symbol. B. trade name. C. slogan. D. trademark.
D
To be feasible, your venture must A. be innovative. B. serve the greater public good. C. create a new or improved product. D. fulfill a need for the target market.
D
What do financial institutions often develop to be able to identify and offer the types of services that their customers want and need? A. Marketing process B. Promotional plan C. Traffic pattern D. Accurate profile
D
When a business charges high prices for luxury items, it is using a positioning strategy that emphasizes A. customer value. B. place utility. C. seasonal intensity. D. product quality.
D
When businesses help employees work together and share their knowledge in order to complete a project, they are managing A. performance. B. productivity. C. communication. D. collaboration.
D
Which of the following are creative-thinking techniques that people use to generate product ideas: A. Morphological analysis and observation B. Observation and forced analogies C. Unconscious problem solving and research D. Brainstorming and mind mapping
D
Which of the following expenses should Charlene categorize as a fixed cost: A. Commissions B. Delivery charges C. Cost of goods sold D. Rent
D
Which of the following is a characteristic of a well-conducted feasibility study: A. Subjective B. Abbreviated C. General D. Complete
D
Which of the following is a true statement regarding quality management and the environment: A. Creating quality products is usually harmful to the environment. B. Organizations should regard environmental issues above customer satisfaction. C. Environmental issues have little to no impact on quality management. D. Quality-management plans should create environmentally sustainable processes and products.
D
Which of the following is an example of a demographic trend that has encouraged entrepreneurial discovery: A. Technological advancements B. Interest rate fluctuations C. Industry deregulation D. Increased cultural diversity
D
Which of the following is an example of a variable expense: A. Salaries B. Rent/Mortgage C. Equipment leases D. Packaging/Shipping costs
D
Which of the following venture-harvesting methods usually supports a venture's future growth and facilitates the business owner's exit: A. Developing a licensing plan B. Ceasing business operations C. Setting up a public trust fund D. Initiating a public stock offering
D
Why would the SCW Company conduct a break-even analysis? A. To ensure that the company is complying with regulations B. To compare its business's activities with its competitors' activities C. To evaluate its income in relation to its expenses D. To determine the optimal selling price for a good or service
D
To effectively manage a supply chain, companies should A. monitor the performance of all supply chain partners. B. ignore underperforming suppliers and distributors. C. introduce frequent changes to the production process. D. launch new products through multiple suppliers.
A
What is the percent of markdown if a product has been reduced from a price of $450 to $360? A. 20% B. 15% C. 8% D. 25%
A
What must a manager be willing to give up so that employees have the authority to make decisions that will please customers? A. Control B. Prestige C. Time D. Money
A
What type of SWOT interviews work best? A. One-on-one B. Small group C. Large group D. Telephone
A
What unique benefit does television offer advertisers? A. Shows the product in use B. Has limited time available C. Quick and easy to produce D. Reaches a very select audience
A
When Charlyne buys gasoline for her car, she is surprised that she doesn't have to pay any tax in addition to the price of the gasoline. Why is this? A. Charlyne is paying an excise tax that is already included in the purchase price. B. Charlyne must pay the tax later on her own. C. Charlyne is paying a property tax that is already included in the purchase price. D. The flat tax means that Charlyne doesn't have to pay taxes on gasoline.
A
When should an entrepreneur start plotting her/his exit strategy? A. When writing the business plan B. After leaving the company C. When s/he starts to lose money D. After contacting a potential buyer
A
Which of the following is a major cost that every new startup must plan for: A. Capital expenditures B. Expansion costs C. Continuous improvement costs D. Legal battles
A
Why is it important for businesses to identify potential safety issues in the workplace? A. To protect employees B. To eliminate accidents C. To avoid violence D. To establish security
A
. To protect a business from natural risks, the business should purchase __________ insurance. A. life B. property C. crime D. health
B
A business posting "authorized employees only" signs to keep customers away from certain areas is an example of a A. service policy. B. safety procedure. C. personnel policy. D. health procedure.
B
A frequently prepared and used statistical report that shows earnings, expenses, and profit or loss is the A. balance sheet. B. income statement. C. inventory report. D. six-month plan.
B
Bennett has just finished college and has moved into her own apartment that is located on a bus line. She'll be able to take the bus to her new job that she's scheduled to start in a month. In fact, she'll need to rely on bus transportation until she saves money to buy a car. What insurance coverage should she have? A. Health and life insurance B. Renter's insurance and temporary short-term health insurance C. Renter's insurance and auto insurance D. Auto insurance and temporary short-term health insurance
B
Change management is important because it helps organizations A. make immediate changes to things that employees dislike. B. implement and adjust to new processes and procedures. C. improve their operations and logistics management practices. D. satisfy the wants and needs of their most valuable employees.
B
Changes in accounts receivable are reflected in A. investing. B. cash from operations. C. financing. D. net income.
B
Complying with environmental laws is part of which operations activity? A. Logistics B. Safety and security C. Purchasing D. Inventory control
B
During product development, companies use innovative technology primarily to A. develop an elite image. B. create unique features. C. reduce capital investment. D. prevent competition.
B
One way that an advertising agency can protect the original song it created for a client's television commercial is by obtaining a A. patent. B. copyright. C. trademark. D. license.
B
To better understand external forces that affect her small business, Janell should conduct a(n) __________ analysis. A. break-even B. environmental C. media D. cost-benefit
B
What is the most important factor for a west coast business to consider if it plans to use a supplier who is located in the same country on the east coast? A. Personnel policies B. Delivery timeliness C. Exchange rates D. Return on sales
B
What type of promotion would a business use to inform consumers about the company's commitment to social and environmental issues? A. Product B. Institutional C. Primary D. Secondary
B
When a business evaluates the performance of its marketing plan, it must A. identify its competitors. B. know its marketing objectives. C. develop an operating budget. D. determine market trends.
B
Which of the following attitudes should an entrepreneur have about new technological developments: A. New technologies are overrated and should be avoided. B. The impact of new technologies should always be evaluated. C. New technologies should be applied to all business practices. D. The benefits of new technologies do not outweigh their high cost.
B
Which of the following is a beginning step to take in handling an employee complaint: A. Document the resolution to the complaint B. Identify the problem behind the complaint C. Consider all possible solutions D. Use personal judgment in analyzing the situation
B
Which of the following is a characteristic of a product trade-name franchise: A. It is not open to the public. B. The franchisee can choose the name of the business. C. The franchisee has unlimited liability. D. It is owned by shareholders.
B
Which of the following is a factor that affects the final cost of a product to a business buying goods for resale: A. Markdowns B. Discounts C. Shrinkage D. Commissions
B
Which of the following is a tool that an entrepreneur develops to project sales for a new business venture: A. Marketing objectives B. Sales forecast C. Promotional budget D. Inventory report
B
Which of the following is an advantage of a loan program provided by state or local development corporations: A. The business plan does not need to be complete. B. It may offer small-business loans at lower rates. C. It is designed to serve a certain geographical area. D. A business may have a longer period of time to repay
B
Which of the following is an example of a broad objective that top management might develop for a business: A. Sponsor a charitable event B. Increase profitability C. Replace damaged equipment D. Purchase promotional advertising
B
Which of the following is part of a supervisor's evaluating responsibilities: A. Getting along well with others B. Developing standards for judging work C. Determining who will do the work D. Developing work schedules
B
Which of the following terms best describes the overall procedures that guide a small business's activities by standardizing the way the business functions: A. Credit B. Operating C. Safety D. Hiring
B
Why do businesses usually spend more money on advertising during the maturity stage of the product life cycle? A. Profits are decreasing. B. Competition is intense. C. Sales are rising. D. Distribution is slow.
B
What is the percent of increase in net profit from last year to this year if a business had a net profit of $35,500 on sales of $270,000 last year and a net profit of $50,000 on sales of $330,000 this year? A. 4% B. 2% C. 13% D. 15%
B. 2%
Which of the following represents the best opportunity for innovation: A. A restaurant offers online reservations. B. A town's only car wash is always busy, time-consuming, and expensive. C. An accounting firm just updated its computer software. D. A city wants to institute a bike sharing system, but it is not sure people will use it.
B. A town's only car wash is always busy, time-consuming, and expensive.
A small-business owner would be most likely to apply for an installment loan from a bank in order to A. establish a line of credit. B. purchase goods on consignment. C. purchase equipment for the business. D. pay operating expenses
C
An entrepreneur who wants to make his/her own business decisions versus passing that responsibility on to someone else is least likely to fund his/her new business with A. a bank loan. B. peer-to-peer lending. C. an angel investor. D. a family loan.
C
At Catherine's company, every employee has his/her own permanent record that includes information regarding his/her hiring, evaluations, promotions, reprimands, and terminations. These files are known as __________ records. A. asset B. tax C. personnel D. inventory
C
Before a business takes steps to hire a new employee, it should A. identify the available sources of new employees. B. develop a training plan for the new employee. C. determine that a new employee is actually needed. D. set up a schedule for the new employee.
C
Businesses use budgets to manage their A. discount policies. B. accounting methods. C. income and expenses. D. production functions.
C
The staffing function is different from the organizing function because staffing is A. continuous. B. optional. C. the foundation of organizing. D. more important than organizing.
A
Considering the quality of products being sold by similar businesses in the same community is an important aspect of conducting a A. competitive analysis. B. marketing test. C. geographic review. D. sales evaluation.
A
If you want to analyze your business's income statement, what basic calculation should you use? A. Income minus expenses B. Expenses minus income C. Profit minus income D. Income minus profit
A
One reason it is important for businesses to develop standards to achieve quality is to provide employees with A. guidelines to follow. B. procedures for repairing equipment. C. ways to stay healthy. D. activities for being safe
A
One reason why managers often delegate work to others is to A. be more productive. B. show self-confidence. C. be assertive. D. show self-control.
A
One way for a start-up business owner to determine opportunities to expand the business's product line is by A. talking with customers. B. observing vendors. C. creating a need. D. consistently meeting goals.
A
Should employees be part of management's efforts to create an equitable work environment? A. Yes, employees should be involved. B. No, this is management's responsibility. C. Yes, this is a legal requirement. D. No, including employees will create problems.
A
A business that looks for ways to turn a risk into a strategic advantage would be considered an organization that is A. risk-seeking. B. risk-tolerant. C. risk-accepting. D. risk-averse.
A
A firm wants to evaluate its customers' experiences with the company and its products by asking them to complete a questionnaire. When formatting the questionnaire, the firm should A. include specific questions about operational components. B. write the questions so that most of them are open-ended. C. use a simple sentence structure that asks for general information. D. require contact information such as name and telephone number.
A
The American Red Cross is an example of a(n) __________ corporation. A. hybrid B. nonprofit C. "S" D. "C"
B. Nonprofit
When tracking the performance of a business plan, businesses usually analyze the effectiveness of A. management objectives. B. operating strategies. C. ownership structures. D. staffing requirements.
B. operating strategies.
A business manager who identifies the jobs to be performed and assigns employees to do those jobs is performing which management function? A. Training B. Staffing C. Organizing D. Directing
C
A producer decides to use better materials to make its products. This results in an increase in the price of the products because of the A. company image. B. customers' demands. C. costs of production. D. change in production methods.
C
A person who wants to start a new company and needs financial support should develop a business plan to present to potential A. promoters. B. competitors. C. clients. D. investors.
D
A written or oral expression of employee dissatisfaction is called a(n) A. exit interview. B. open-door policy. C. contract. D. complaint.
D