Small Business Mgmt

In deciding whether to make the move from part-time to full time entrepreneurship, the key question is usually government regulations.

False

The absolute lowest price that a buyer would be willing to pay is called the "point of indifference" in the negotiation process.

False

The three principles that are absolutely critical in the process of effectual reasoning are: affordable loss, strategic partnerships, and leveraging contingencies.

False

Patents and trademarks are examples of

intangibles.

Which of the following is a disadvantage of a start-up?

no revolving credit from suppliers or banks

For the successor of a family business, ownership transfer is best accomplished after the death of the founder.

False

For part-time businesses, _______ refers to the documented permission from the government to run a business and may be required for certain professions such as beauticians or home-based day-care providers.

licensing

Delegation is not for everyone and every situation.

True

Founders of small businesses often find it very difficult to give up decision-making authority to family members.

True

Intellectual property refers to original works like inventions, visual and performing art works, books, and computer programs.

True

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

B2B e-commerce is larger than B2C e-commerce.

_________ means taking business away from one's employer.

Cannibalizing

_________ refers to working for 35 or fewer hours a week.

Part-time employment

________ refers to the impression of a long-term continuity a business gives others.

Permanence

All entrepreneurs have at least four sets of resources: access to capital; their own skills and abilities; their own knowledge; and their network of friends and business associates.

True

Which of the following is a way to start business with established customers?

a spin-off

Which of the following is the primary goal for performing due diligence?

finding any inefficiencies, unnoticed opportunities, waste, and mismanagement

Which of the following is one of the ways to get into small business ownership?

franchising

Most entrepreneurs start out working part time on their new business.

True

When considering how to organize the business you are creating, one consideration is permanence, which is related to legitimacy.

True