Small Bus. MGT - Final

Which of the following is not listed as a challenge for the late career entrepreneur?

Access to financial banking

Diversification is a strategy whose goal is growth, based on:

Adding new products or services to the firms existing collection of offerings

Which of the following is one important advantage of key resource allocation?

As only assets are acquired, a subsequent business, regardless of its legal form, is not responsible for any of the acts or transactions made prior to purchasing the business

The economic sector in the general environment is primarily concerned about the:

Availability of equity, credit, and employment in a country

Which of the following is most likely to be the best indicator of successful start ups?

Level of experience of the founders

Which of the following steps would help decrease business risks?

Making specific plans for and arrangements to deal with foreseeable events

Maintaining an inventory helps a business to have an optimal level of cash flow by:

Reducing the cost of processing orders

___ compile legal information including laws particularly applicable to certain types of businesses in various jurisdictions and proposals for changing the laws that affect your industry.

Trade associations

Which of the following describes angel investors?

They are wealthy individuals who invest in companies in relatively early stages of development

A ____ is a type of intellectual property, not created by the government but is information known to certain people in a company that makes that company more competitive.

Trade secret

At the tip of the high growth ventures are firms called _____, Like Uber and Airbnb with valuations of $1 billion or more.

Unicorns

Which of the following statements concerning choosing an industry is not correct?

Insurance firms and health related firms do well in bad times and good historically.

Which of the following statements is true of exporting?

Insurance is essential for export payments to overcome the risk of default

Which of these is a disadvantage of a corporation?

It incurs relatively high incorporation fees and high taxes

Which of the following is a characteristic feature of a message for a target market?

It must contain elements of a product's value proposition

Which of the following describes the significance of an overall growth strategy?

It represents a driver of the variety of entrepreneurship.

Partnerships through which two or more businesses combine to undertake a specific economy activity are called ___.

Joint ventures

Which of the following is an example of a high customer contact business?

Legal offices

When your product or service already exists but your firm is the first of its kind in your market, it is considered a(n) ____ business.

New entrant

Training and flexible hours are a part of the ____ strategy used to control money that is expected to leave the firm.

Non-cash incentive

A long-term rental in which ownership of the asset never passes to the person paying for the lease is called a(n) ____ lease.

Operating

Following the BRIE model in starting a business, an entrepreneur creates a boundary within the environment, setting his firm apart from the rest of the environment. In doing this, the entrepreneur gives the firm an ____.

Organizational identity

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. This strategy is referred to as:

Outsourcing

A service typically exhibits the characteristic of ___ because if it is not used when offered, it cannot be saved for later use.

Parishability

The amount of time it takes a business to earn back the funds it paid out to obtain a capital asset is referred to as the ____.

Payback period

Which of the following is a drawback to financing with debt?

Payment is expected even if you have no money to make the payment

While developing a new product, in the product development stage, the first versions of products are used in further consumer testing. These first versions of products are called ____.

Prototypes

Greg has a press release for his new product that he wants to broadcast on television. His press release has a good story and visuals. It also includes content that illustrates broad cultural themes. Which of the following is Greg most likely to generate through the press release?

Public interest

Susan, who is a florist, purchased her flowers on credit. Lucy, a customer, takes eight bouquets and promises to pay Susan within two weeks. The amount that Lucy owes Susan is termed ____.

Receivables

When it comes to building an idea prone culture, remember that ____ is the fuel that fans the fires of creativity and helps your business reach potential's that you may never have anticipated.

Recognition

Martin, an employee at a boutique store, is required to handle store displays and also ensure that all the sales records tally at the end of each business day. However, he committed fraud by recording fake sales and then keeping the products to himself. Which of the following managerial concepts would have helped the store avoid this deception?

Separation of duties

Alana, the owner of a small dress making establishment called Mantua Fab, decides to hire assistance for design, sewing, and other tailoring jobs. If Alana post an ad in the newspaper, which of the following is correct?

She will experience a long turnaround time

Private businesses that are authorized to make SBA insured loans to start ups and small businesses are called:

Small business investment companies

A business that is created by separating parts of an operating business into a separate entity is called a:

Spin off

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 the following is true of business locations?

Target market customers are essential factors for selecting business locations

Which of the following is a reason why more new businesses start on a part-time basis?

The cost of entry and exit is low

When writing your elevator pitch, remember that elevator pitches have four success factors. Which of the following is not one of those success factors?

The length

The number one source of financing for small businesses is from ___.

The owners themselves

Small business owners unique selling points (also known as benefits) that customers can expect from your goods or services, including benefits that differentiate your offering from those of the competition is known as:

Value proposition

The RBI screen consists of asking yourself five questions to help you screen entrepreneurial ideas. Which of the following is not one of those five questions?

Who are your competitors?

___ refers to the ability of a business to survive adverse financial events.

Financial strength

Which of the following statements best describes the process of idea screening in a new product development?

It is the process of selecting the most promising ideas to be further evaluated for feasibility.

Which of the following statements is not true of managing and fostering productivity among virtual employees?

Micromanagement is important as they are remote staff

Which of the following refers to a part of a contract in which a person agrees not to open a certain type of business or seek employment during certain things in a particular area for a particular time?

Non-compete clause

____ is the process of dividing the market into smaller portions of people who have certain common characteristics.

Segmentation

____ is best defined as the characteristics of a business, like trust, consistency, and networks that help make business operations smooth and efficient.

Social capital

Which of the following types of business form is the most popular for start ups?

Sole proprietorship

Which of the following is an advantage of picking customer desired benefits that a business owner's competitors do not offer?

They make the firm stand out from the competition

The most common strategy employed by small businesses for handling money shortages is ____.

Using personal money

A 20 year patent covering a process, machine, article of manufacture, composition of matter, or any new or useful improvement of an existing one is known as ____.

Utility patent

Independent contractors who provide specialized business services or support from a distance, through methods of communication are known as:

Virtual employees

Four aspects of part-time entrepreneurship are very different from full-time business. Gaining legitimacy and trust among customers is one. Which of the following is not one of the other three aspects?

Finding the suppliers most suited to your particular needs

A(n) ____ Is a valuable process that can greatly help an employer with the issues of keeping risks acceptable levels. It is strictly a management tool which is not provided to outsiders; they can be structured and conducted in any systematic manner the owner finds acceptable.

Internal audit

Which of the following is true of a traditional small business?

It defines his schedules based on customer needs

Which of the following is true of managerial accounting?

It is forward-looking in nature

Researchers in the field of entrepreneurship and small business believe that ____ behavior is the most basic and important entrepreneurial behavior.

Opportunity recognition

___ is a form of communication that encourages the customers to act immediately, such as coupons, sales, or contests.

Sales promotion

Which federal law describes the steps publicly traded businesses must take to protect and provide their key financial information?

Sarbanes-Oxley act

Laura developed a handy kitchen tool. She replicated the tool several times over, providing gifts of the tool to all her friends. They made great birthday or special occasion gifts. Eventually, Laura started her own successful company producing her kitchen tool idea. This is an example of:

The product development process

Which of the following statements is true of small business hiring of employees?

Those firms that hire employees are an important source of job generation

The "business entity" concept of accounting indicates that:

A business has an existence that is separate from its owner.

Which of the following is a difference between a small business and a high growth venture?

A small business grows when necessary whereas a high growth venture grows when possible

A(n) ____ plan is a document designed to detail the major characteristics of a firm - it's product or service, it's industry, it's market, it's manner of operating and it's financial outcomes with an emphasis on the firms present and future.

Business

Christopher is a hard-working entrepreneur who looked into all the details of his small gaming software business. He focused on all aspects of the business from the initial launch, promotion, and marketing aspects to the final set up. He finds planning convenient and works according to a plan. Christopher is a(n) _______.

Comprehensive planner

In an imitative strategy, an entrepreneur:

Does more or less what others are already doing

The process of investigating a business to determine its value is called:

Due diligence

Eddie, the owner of a fast food joint, Finns that he spends far lesser when he bakes bread in dozens then when he begs two or three loaves at a time. This idea of Eddie's is similar to the concept of:

Economy of scale

Josh an electronics retailer, noticed that the e-commerce business was booming. He started an online shopping website to take advantage of this surge in business. As a result, his business attracted more customers from all across the country. This reflects Josh's:

Entrepreneurial alertness

The Research and development team of Leonids Inc. Has generated five different product ideas. All five ideas are being rated against each other on their characteristics such as product uniqueness, idea profitability, protectable intellectual property, and product team quality. Based on their ranking in this stage, only three ideas will make it to the immediate next step which will be the stage of ____.

Feasibility study

Ron is offered a sales job at an insurance agency. He is informed that it is mandatory for him to be able to drive his own car to meet prospective customers and finalize insurance deals. Such a condition in the job description is referred to as a:

special requirement

Which among the following is a critical point planner?

Amanda does not have a very long-term approach to planning and she plans only for those business aspects that are of paramount importance

Which of the following is true about business-to-business (B2B) transactions?

B2B e-commerce is larger than B2C e-commerce

Financial accounting is primarily intended for:

Bankers, investors, and regulators

In the goal step of the strategic planning process, the key is to:

Bring together the decisions that underlie the business plan

Which of the following is true with regard to pricing of legal services?

Pricing of legal services is based on supply and demand

Crowdfunding refers to:

Funding a business online through gifts made to the business

In a(n) ___, all partners are equally and fully responsible for the business's obligations

General partnership

Segmenting a market ____ involves dividing it into different segments in terms of cities or neighborhoods.

Geographically

One powerful but rarely used source of business ideas are:

Government agencies

This single greatest hurdle to a successful start up is obtaining and maintaining sufficient cash to support both operations and growth. Which of the following is needed by a successful start up to overcome this hurdle?

High margins

Which of the following is not one of the three tests of the approach when crafting a customer focused value proposition?

How does your price compared to competitors prices?

Which of the following is the biggest problem with simulated test markets?

I do not always reflect actual buying behavior

Serial entrepreneurs Steve Blank and Bob Dorf came up with a more inclusive approach than the standard marketing funnel. Which of the following is not one of the major goals of their new approach?

Identify customers

Which of the following statements is not true of choosing a business form?

In a professional corporation, shareholders are responsible for debts of the corporation

Which of the following statements is true of sales forecasting?

In many cases, the best sales forecast you can come up with is an educated guess

An overall strategic approach in which a firm patterns itself on other firms, with the exception of one or two key areas is referred to as ____.

Incremental innovation

____ is the general name for the line of product or service being sold, or the firms in that line of business.

Industry

Which of the following is most likely to be an advantage of a start up?

It begins with a clean slate

When finally setting the actual price of your product or service there are several contextual factors including your company's objectives, your marketing strategy, competition, channels of distribution, and legal and regulatory issues to consider. Which of the following statements is not true when considering these factors?

Pricing off a competitors price is as easy as picking a percent, say 80%, and charging that price for your product or service.

Regulatory focus is a mix of two internal focuses, ____ focus and _____ focus.

Promotion; prevention

Which of the following terms indicates that a product or service is being kept as a trade secret or is protected legally using patents, trademarks, copyright, or service mark?

Proprietary technology