ETR3

C

A _____ is a legal agreement granting you rights to use a particular piece of intellectual property. A franchise B set-aside C license D caveat emptor

C

A _____ is a narrowly defined segment of the population that is likely to share interests or concerns. A degree of similarity B parallel competition C niche market D mass market

C

A facility which offers subsidized space and business advice to companies in their earliest stages of operation is called a(n) A franchise. B small business administration center. C incubator. D small business development center.

A

A(n) _____ is the business term for the population of customers for your products or services. A market B industry C SIC D strategy

D

A(n) ______ is something you owe someone else. A asset B owners' equity C cash flow D liability

C

All of the following are characteristics of a family-owned business EXCEPT A a strong family bond can become a strong business culture. B they are a self-perpetuating source for future small businesses. C they are the only group that faces the challenge of access. D they are a major source of funds and personnel for new small businesses.

B

Assets that may be quickly converted to cash is called: A payables B cash equivalent. C receivables D inventory.

D

Following certain "best practices" are typical of these types of businesses. A Minimalized businesses B Factor businesses C Specialized businesses D Expert businesses

C

For family business, the most effective approach for avoiding role conflict is A to try and make decisions based on family necessities. B to avoid schedule overload. C to keep family issues out of the business. D time management.

C

Formal summaries of the content of an accounting system's records of transactions are called A variance analyses. B investing activities. C financial statements. D operating activities.

A

Funding invested for a share of a firm or given as loans or credit from family, friends, and other businesses used to help start or grow a firm is known as A informal capital. B formal social capital. C committed capital. D mezzanine capital.

A

Green retailing is A selling products that have a better environmental footprint. B is at the core of exchange in the BRIE model. C minimizing waste and environmental degradation. D another term for sustainable entrepreneurship taken from the belief that green is the color of a healthy environment.

C

Identify the most numerous and widely available type of firm, ranging from low to moderate levels of innovation and growth. A Resource constrained sector B Ambitious firm sector C Economic core sector D Glamorous sector

C

Identify the strategy where the idea is to slow down when children are young and push for growth when the children are older. A Habitual B Growth C Spiral D Harvest

C

Money held in checking and savings accounts are called: A commercial papers. B marketable securities. C demand deposits. D receivables.

D

Only _____ of family-owned businesses survive beyond the first generation. A one-fourth B one-half C three-quarters D one-third

B

Process of personal selling includes all of the following EXCEPT A presenting. B deciding. C prospecting and evaluating. D closing

A

Rating firms high or low on innovativeness and potential for growth helps identify the different types of businesses in what is called A Dynamic Capitalism Typology. B Creative destruction. C PICS Model of Entrepreneurship. D General Equilibrium Economics.

D

Telemarketing can either be _____ or _____. A in person; on the phone B door-to-door; direct response advertising C by fax; e-mail D inbound; outbound

B

The Americans with Disabilities Act A prohibits discrimination with respect to any condition of employment based on race, color, sex, religion, or national origin. B requires that make employers make reasonable accommodation for limitations of qualified applicant or employee unless to do so creates undue hardship. C prohibits employers from using polygraph results as basis for employment action. D prohibits employment discrimination based on national origin or citizenship status.

A

The ability of business owners to structure life in the way that suits their needs best refers to A flexibility rewards. B growth rewards. C wealth rewards. D family rewards.

B

The business planning presentation types include all of the following EXCEPT A elevator pitch B annual objectives. C executive summaries. D mission

C

The key for managing the demanding life of the entrepreneur is to A prioritize your tasks based on their importance to your business and their due date. B perform all the business functions including sales, operations, accounting, finance, and human resources yourself. C get advice from people in your line of business about the basic activities of the small business. D list all your responsibilities as soon as you get them.

C

The practice of purchasing and accepting delivery of inventory only after it has been sold to the final customer is called a(n) _____ inventory system. A EOQ B perpetual C JIT D periodic

C

These questions provide data that are more difficult to tabulate and the answers can be difficult to compare. A Dichotomous questions B Categorical questions C Open-ended questions. D Scalar questions

B

To develop a(n) _____, one should try to think of three to five key words that would describe their business to anyone. A press kit B succinct message C public relations piece D advertisement

B

What best describes the problem that arises when people have multiple responsibilities and each makes different demands on them? A Role ambiguity B Role conflict C Succession D Leadership

B

When it comes to promoting a small business that is just starting out, spreading the news by _____ is the fastest way to build a client base. A personal selling B word-of-mouth C full-scale advertising D point-of-sale

C

When people find a way to turn their hobbies into successful businesses, which of the following factors is considered as leading them to their business idea? A Education and expertise B Serendipity C Personal interest D Family and friends

A

Which of the following is NOT a path to full-time business ownership? A Stand retailing B Buying an existing business C Franchising D Starting a new business

A

Which of the following is NOT a success factor of an effective elevator pitch? A Time B Hook C What D Delivery

B

Which of the following is a product-based legitimacy indicator? A Business network membership B Testimonials C Organization size D Internet identity

A

Which of the following is a statistical technique that determines the quantity of inventory that a business must hold to minimize total inventory cost? A EOQ B Microinventory C Reorder point D JIT

B

Which of the following is an example of an inelastic product? A Luxury goods B Gasoline C Hamburgers D Coffee

C

Which of the following is an organization-based legitimacy indicator? A Testimonials B Intellectual property C Legal form D Attire

D

Which of the following is the final stage of the new product development process? A Idea screening B Product development C Feasibility study D Commercialization

D

Which of these is NOT a business plan concern of bankers? A. Cash flow and cash cycle B. Asset/collateral base C. Long-term prospects D. Monitoring compliance

C

Which of these is NOT a strategy employed by small businesses for handling money shortages? A Selling investments B Adjusting scheduled payments C Filing for bankruptcy D Selling receivables

C

Which of these is a suggested guideline for training? A It should be provided only at the initial stage of employment. B Have employees sign long-term contracts so they do not leave after receiving training. C Think of it as an investment. D Employees should practice what they have learned on their own time.

A

Which of these refers to the concept that a business is expected to continue in existence for the foreseeable future? A Going concern B Buy and sell C Business entity D Costs and expenses

A

Why are small businesses considered the economic core of society? A They are the most numerous and most widely available type of firms. B They are high growth and high innovation firms. C They have lots of innovative ideas but lack the funds to bring them to market. D They are made up of franchises and multisite firms, who are generally not very innovative, but are designed for high levels of growth.

B

You can go about obtaining committed customers prior to start-up via all of the following ways EXCEPT A subcontracting services to your employer. B getting your employer's business into an incubator. C starting a spin-off from your employer's business. D competing with your employer.

C

You might see a business in an area that intrigues you because you learn that there is a growing market for this business and you think of a way to expand on the opportunity. Which of the following factors is considered the business idea behind this? A Serendipity B Personal interest C A similar business D Work experience

D

_____ are the cash flows that have been reduced in value because they are to be received in the future. A Free cash flows B Book value cash flows. C Replacement value cash flows D Discounted cash flows

B

_____ entrepreneurs are owners for a lifetime, sometimes in one business, and sometimes across several firms. A Spiral B Habitual C Growth D Harvest

D

_____ is the process of dividing the market into smaller portions of people who have certain common characteristics. A Market penetration B CRM C Value proposition D Segmentation

D

_____ is usually the first technique an entrepreneur uses to get customers. A Guerilla marketing B Internet C Telemarketing D Word-of-mouth

B

_____ occurs when a person's values are in conflict, making it unclear whether a particular decision is the right thing to do. A Mutuality B Ethical dilemma C Social networking D Modeling

B

_____ refers to the size of the market whereas _____ refers to its geographic range. A Mass; niche B Scale; scope C Niche; mass D Scope; scale

D

_____ refers to the trial period in which an employee has temporary status before a formal offer to work full time is presented. A Psychological contract period B Test period C Employee referral period D Probationary period