BA3305: Ch 5

Delegation is not for everyone and every situation. True or False

True

When running a part-time business, there are two key groups outside your business with whom you must deal - customers and _________. A. suppliers B. investors C. financial institutions D. government

government

An Internet site designed to introduce and explain a business to others is known as a(n): A. e-commerce website. B. portal website. C. advocacy website. D. informational website.

informational website

For part-time businesses, _____ refers to the documented permission from the government to run a business. A. covenants B. aggrandizing C. licensing D. zoning

licensing

Which of the following is true of home businesses? A. It is very difficult to set up. B. It requires a very high initial capital to start up. C. It does not allow one to work away from his or her employer. D. It provides highly variable income.

It provides highly variable income.

For new entrepreneurs, which of the following would be a good reason to undertake a parttime business first before a full-time one? A. To buy an existing business B. To gain basic experience C. To open a franchise D. To increase competition in a specific industry

To gain basic experience; One situation in which it might make better sense to undertake a part-time business first is when someone is new to business and needs to gain basic experience.

One of the ways to determine the financial situation of a business is by crafting a business plan.

True

The advantage of consignment approaches is that they permit full-time sales with only a parttime involvement from the owner. True or False

True

_____ is a general approach to website design intended to result in the site being displayed toward the beginning of a search engine's listing for that term. A. Sponsored link B. Embedded placement C. Trackback submitter D. Search engine optimization

Search engine optimization; Search engine optimization is a general approach to website design intended to result in the site being displayed toward the beginning of a search engine's (e.g., Google, Yahoo!, etc.) listing for that term.

The majority of part-time businesses are based in the home. True or False

True

The more time and energy one spends preparing for a small-scale part-time business, the longer it takes to make a profit. True or False

True

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

True; Intellectual property (often abbreviated IP) refers to original works like inventions, visual and performing art works, books, and computer programs.

Smith & Roden Enterprises (SRE), a law firm, paid a leading search engine to put their company's website at the top of the search engine's search list. This form of advertising used by SRE for promotion of their firm is known as _____. A. sponsored link B. embedded placement C. trackback submitter D. RSS feed

sponsored link

There are many options if you do not want to start your business inside your home. Which of the following in not one of those options? A. A separate room with a door. B. An executive office. C. A virtual office. D. An incubator.

A separate room with a door.

Which of the following is true about business-to-business (B2B) transactions? A. For most people, the B2B market is visible and overexposed. B. An example of a B2B transaction would be an individual buying a cell phone. C. B2B involves electronically-facilitated transactions between consumers through a third party. D. B2B e-commerce is larger than B2C e-commerce.

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

Part-time entrepreneurs should separate and balance business and home. This separation and balance is pertinent to which aspect of the BRIE model? A. Exchange B. Intention C. Boundary D. Resources

Boundary

Which of the following best describes aggrandizing? A. Ken uses the money he gets from his full-time job as a chef to run his part-time business of graphic designing. B. Sarah works a full-time day job as a waitress and then runs a part-time baby-sitting service at night. C. Jenson misses his deadlines at his full-time day job because he works late nights as a parttime music producer. D. Cathy, who does computer repairs, lies to customers about having an office in a business park when she actually works part-time from her home.

Cathy, who does computer repairs, lies to customers about having an office in a business park when she actually works part-time from her home.

Which of the following situations indicates that it makes better sense to first undertake a parttime business? A. Byron has a full-time business plan. B. Jamie wants to start a franchise for an international brand. C. Cathy has funds to start her own music school. D. Damon wants to gain experience in the advertising industry.

Damon wants to gain experience in the advertising industry.

Aggrandizing refers to taking business away from your employer. True or False

False; Aggrandizing is attempting to make one's business or self seem more accomplished or grander than reality.

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

False; In deciding whether to make the move from part-time to full time entrepreneurship, the key question is usually financial.

Primary disadvantages of stand retailing are that it requires a significant amount of capital and time investment. True or False

False; The advantage of stand businesses is that one can start with little investment. Stands can be a box or ground cloth. They also do not require a lot of investment in inventory. There are a variety of locations where a stand can be set up, such as flea markets

Part-time employment refers to working for 50 or fewer hours a week. True or False

False; 35 Hours of Fewer

There are two key groups outside one's business with which one must deal—customers and investors. True or False

False; Two key groups are government and customers (registration/licensing/taxes/zoning)

Outsourcing refers to the assignment of work to others over whom one has power True or False

False; this is the definition of delegation, not outsourcing

_____ refers to information provided to the government concerning the existence of, name of, nature of, and contact information for one's business. A. Zoning B. Franchising C. Registration D. Permanence

Registration

Which of the following is a reason why more new businesses start on a part-time basis? A. The cost of entry and exit is low. B. There is lack of volatility. C. There is a broad window of opportunity. D. The part-time workforce is very small.

The cost of entry and exit is low.

Moonlighting refers to working on one's own part-time job after one's regular job. True or False

True

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

True

Most small businesses—even part-time ones—need to have a website regardless of whether or not they use it for actual sales. True or False

True

A(n) _____ is a permission from a government organization to act differently than what the laws state. A. covenant B. easement C. variance D. business pass

variance

All of the following are major concerns of moonlighting except: A. conflict of interest. B. volatility. C. cannibalizing sales. D. poisoning the well.

volatility.; the major concerns of moonlighting include conflict of interest, cannibalizing sales, and poisoning the well.

The frequency of business starts and stops is referred to as: A. volatility. B. aggrandizing. C. part-time business. D. adaptability.

volatility; The frequency of business starts and stops is referred to as volatility. Many people jump into and out of self-employment (a change called volatility by economists) for a few weeks at a time, perhaps because they do project-based work like taking on a single consulting project in their spare time, or doing someone's taxes, or selling an item or two on eBay or at a garage sale

All of the following are situations in which it might make better sense to undertake a part-time business except: A. when someone is new to business and needs to gain basic experience. B. when someone lacks resources to pursue a full-scale business. C. when there is a narrow window of opportunity. D. when there is too much competition.

when there is too much competition.

_____ means taking business away from one's employer. A. Covenant B. Licensing C. Cannibalizing D. Aggrandizing

Cannibalizing

Which of the following is an example of e-commerce? A. Julia bought handicraft from a local market. B. Tabatha bought a cell phone in an exchange offer at an exhibition. C. Arthur bought a pair of jeans from the store next to his house. D. Christopher got shoes delivered at his home after he ordered for it online.

Christopher got shoes delivered at his home after he ordered for it online.

Covenants are government specifications for acceptable use of land and buildings in particular areas. True or False

False; The limitations imposed on one's property by his or her neighborhood group are known as covenants

Which of the following part-time business approaches does the door-to-door model represent? A. Auctioning B. Consignment tracking C. Home retail D. Mail order

Home retail

Which of the following is true about a hosting package? A. It should include at least 1 terabyte of traffic a month for an informational site. B. It should give at least five web pages of space to tell a story. C. It should include at least two e-mail accounts using ones domain name. D. It should include an online website editor so one can make changes to his or her site without buying web-authoring software.

It should include an online website editor so one can make changes to his or her site without buying web-authoring software; A hosting package for an informational site should include at least 1 gigabyte of traffic a month. It should give you at least 10 web pages of space to tell your story. The hosting package should also include at least five e-mail accounts using your domain name.

Which of the following is considered an advantage of stand retailing? A. Variable income B. Minimum startup investment C. Steady income D. Strong customer base

Minimum startup investment

When deciding how to organize your part-time business, which of the following is not one of the three key considerations? A. The permanence of the business you are creating. B. The customers you want to target with your new product or service. C. The cost to start-up your new part-time business. D. The time to start-up your business.

The customers you want to target with your new product or service. When considering how to organize your new part-time business, there are usually three key considerations: The cost to start-up your new part-time business. The time to start-up your business. The permanence of the business you are creating.

_____ refers to a situation when what is best for one's part-time business is different from what is best for his or her full-time employer. A. Cannibalizing B. Aggrandizing C. Conflict of interest D. Poisoning the well

Conflict of interest

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? A. Determining what you are able to delegate. B. Finding the suppliers most suited to your particular needs. C. The challenge you face when moving from part-time to full-time entrepreneurship. D. The special ethical challenge that comes from juggling part-time entrepreneurship and other work.

Finding the suppliers most suited to your particular needs.

Which of the following represents an advantage of the consignment approach? A. Full-time sales with only a part-time involvement from a person B. High potential for competing offers C. Less amount of time before payout D. Complete lack of inventory

Full-time sales with only a part-time involvement from a person

Which of the following represents a disadvantage of the consignment approach? A. Availability of different consignment stores and auctions B. Long amount of time before payouts C. Full-time sales with only a part-time involvement from the owner D. High setup costs

Long amount of time before payouts

When comparing the size of U.S. industries by major sector, which industry had the greatest number of establishments and size? A. Professional and business services B. Construction C. Retail trade D. Education and health care

Professional and business services

Which of the following is true about RSS feeds? A. RSS feeds are used by all websites on the Internet to push content out to customers. B. RSS feeds sends whatever web material is specified to subscribers to that feed. C. RSS stands for "really simple sequence." D. RSS feeds can be read in many browsers but not with special readers.

RSS feeds sends whatever web material is specified to subscribers to that feed.

Which of the following is true with regard to the consignment approach of selling? A. They permit full-time sales only with full-time involvement from a person. B. They are high-risk level undertakings. C. They have low profitability because of agent's fees. D. They have no flexibility despite variety of consignment agents and agencies available.

They have low profitability because of agent's fees.

When pursuing a part-time entrepreneurship, there are usually two major questions: What kind of product or service do you want to offer and how do you want to organize your part-time business. True or False

True

When deciding whether to take a business from part-time to full-time, the key question is usually ___________. A. financial B. time management C. based on customer approval D. family approval

financial

In stand retail, the key success factor for a stand is: A. having a location where there is enough foot or vehicle traffic. B. having a variable income. C. having nonperishable sale items. D. sharing with other businesses to minimize the high rent.

having a location where there is enough foot or vehicle traffic.

The most typical form of aggrandizement in part-time businesses is: A. implying that a firm is a full-time one when it is only part time. B. creating a positive impression among one's employers' customers. C. working on own part-time business after regular job. D. finding a low-cost or no-cost way to do something.

implying that a firm is a full-time one when it is only part time.

One of the most ancient forms of small business is: A. stand retailing. B. auctioning. C. mail order. D. licensing.

stand retailing. Stand retailing—the roadside, flea market, farmers' market, or craft fair business—is one of the most ancient forms of small business. It is mentioned in the Bible, and marketplaces full of stands have been found in virtually all archaeological digs.

All of the following are reasons for the large numbers of home-based businesses in the United States except that: A. the idea that a customer knows where the entrepreneur lives can be a point in favor of trusting in the potential permanence of the firm. B. it is inexpensive, since the owner's residence is his or her office. C. they generally give customers the strongest sense of legitimacy. D. one can get their business going where he or she lives.

they generally give customers the strongest sense of legitimacy.

Government specifications for acceptable use of land and buildings in particular areas are called: A. licensing laws. B. public utility laws. C. property laws. D. zoning laws.

zoning laws

_____ refers to creating a negative impression among one's employers' customers. A. Permanence B. Cannibalizing C. Aggrandizing D. Poisoning the well

Poisoning the well

An auction in which the low bid gets the business or wins is known as a _____ auction. A. reserve B. buyout C. forward D. reverse

reverse

Pricing is not seen as a challenge by part-time businesses. True or False

False; This is seen as a challenge

__________ is the crucial skill needed for juggling your part-time business and the rest of your life. A. Volatility B. Permanence C. Time management D. Variance

Time management

To a part-time entrepreneur pricing is very important. Which of the following statements about pricing and costing is not true? A. People working part time can be prone to underestimate their costs. B. Central to figuring the real cost of your product is keeping good records. C. Pricing is often seen as a challenge by part-time businesses. D. A good way to get a realistic idea of pricing your product is to price competitors' products.

Central to figuring the real cost of your product is keeping good records.

Cannibalizing occurs when people do work for their part-time business while they are at their full-time job, blurring the boundary between them. True or False

False; This is the definition for a conflict of interest

Which of the following is true with regard to home retail? A. The disadvantages of home businesses include the slow speed and difficulty of setup. B. The ability to do the work away from home and employer minimizes potential conflicts. C. The advantage of home retail is that it provides a high steady income. D. The high cost of getting started is one of the drawbacks of home retail.

The ability to do the work away from home and employer minimizes potential conflicts.

Which of the following best describes conflict of interest? A. Sarah works a full-time day job as a waitress and then runs a part-time baby-sitting service at night. B. Cathy, who does computer repairs, lies to customers about having an office downtown when she actually works part-time from her home. C. Jenson misses his deadlines at his full-time day job because he works late nights as a parttime music producer. D. Ken uses the money he gets from his full-time job as a chef to run his part-time business of graphic designing.

Jenson misses his deadlines at his full-time day job because he works late nights as a parttime music producer.

_____ refers to working for 35 or fewer hours a week. A. Franchising B. Full-time employment C. Aggrandizing D. Part-time employment

Part Time Employment

The e-commerce industry grew at a steady rate for several years but has now stopped growing and has leveled off. True or False

False

_____ refers to a fee the service levels on a person or a firm for any variety of problems related to the sale. A. Payback B. Overhead cost C. Chargeback D. Optional cost

Chargeback; Chargeback is a fee the service levels on a person or firm for any variety of problems related to the sale, for example, a lost, stolen, or fraudulent card was used, the customer reports nothing was received, the product was not the one promised, or there were problems with the product. While chargebacks in stores is around 0.1 percent of sales, online chargeback rates can be as much as five times higher.

Which of the following activities mimics multilevel marketing? A. Forward networking B. Reserved auctioning C. Counterfeit catalog selling D. Illegal pyramid schemes

Illegal pyramid schemes

_____ refers to the impression of a long-term continuity a business gives others. A. Intermittence B. Variance C. Passé D. Permanence

Permanence; Permanence is the impression of a long-term continuity a business gives others. It is a key consideration for part-time small business start-ups. Permanence is related to the concept of legitimacy.

Which of the following is true of the eBay website? A. The eBay method of auctioning means one pays a fee for posting his or her product and a sales fee based on the final bid price when the item sells. B. Most online transactions use a credit card or an online payment system like PayMate, which originated as a division of eBay. C. eBay does not allow buyers and sellers any anonymity. D. On eBay, one can list a single item for sale only by creating a website to support his or her effort.

The eBay method of auctioning means one pays a fee for posting his or her product and a sales fee based on the final bid price when the item sells.

_____ price is a minimum acceptable selling price in an auction. A. Absolute B. Reserve C. Forward D. Small-value

reverse

Which of the following is an example of part-time business? A. Tabatha, who works from home for a fashion website for a minimum of 40 hours a week B. Raul, who works as an intern in a law firm for more than 35 hours a week C. Dorothy, who works in her small bakery for less than 30 hours a week. D. Joshua, who teaches piano to children for 40 hours a week

Dorothy, Who works in her small bakery for less than 30 hours a week.

Which of the following is true with regard to home-based businesses in the United States? A. Home-based businesses are specific only to making furniture, toys, clothing, or food. B. Home-based businesses give U.S. customers the strongest sense of legitimacy. C. Home-based businesses in the United States represent only 5 percent of all firms. D. Home-based businesses are inexpensive and quick to start

Home-based businesses are inexpensive and quick to start

Which of the following statement is not true about considering how to organize your new part-time business? A. You want a low cost of start-up. B. The more time and energy you spend preparing for a part-time business, the longer it takes to make a profit. C. In most cases, the cost to start-up and the time to market are not closely related. D. For a part-time firm, it may be hard to have a lot of the indicators of legitimacy, or permanence.

In most cases, the cost to start-up and the time to market are not closely related.

Which of the following is a free way to get one's name and business known? A. Through improving the search engine optimization of one's business B. Tele marketing C. Distributing business cards, stationery, printed newsletters, and brochures D. Making informed comments on blogs and discussion forums related to one's business

Making informed comments on blogs and discussion forums related to one's business

Which of the following best describes cannibalizing? A. Ken uses the money he gets from his full-time job as a chef to run his part-time business of graphic designing. B. Mandy uses her employer's client list from her full-time job as a house painter to get customers for her own part-time house painting business. C. Cathy, who does computer repairs, lies to customers about having an office downtown when she actually works part-time from her home. D. Jenson misses his deadlines at his full-time day job because he works late nights as a parttime music producer.

Mandy uses her employer's client list from her full-time job as a house painter to get customers for her own part-time house painting business.

Cathy has created a website for her shop of homemade chocolates and scented candles. Apart from traditional retailing, she sends e-mails to the people in her neighborhood. She also informs customers about various promotional offers through pamphlets. Which of the following techniques best describes Cathy's overall marketing method? A. Embedded marketing B. Digital marketing C. Multichannel marketing D. Word-of-mouth marketing

Multichannel marketing

Andrew initially worked with a travel website for few months and then became self-employed by starting a martial arts school, where he taught karate to teenagers. After an year, he closed the school and joined an advertising firm. After two years, he quit the advertising firm and became self-employed as a freelance music composer. Which of the following terms indicates the changes in Andrew's employment structure? A. Volatility B. Adverse possession C. Pop-up business D. Easement

Volatility; The frequency of business starts and stops is referred to as volatility. Many people jump into and out of self-employment (a change called volatility by economists) for a few weeks at a time, perhaps because they do project-based work like taking on a single consulting project in their spare time, or doing someone's taxes, or selling an item or two on eBay or at a garage sale.

Delegation makes sense in two situations. The first is when others can do things better than you. Which of the following is the second situation in which delegation makes sense? A. When the task is complex and time consuming. B. When there is not enough time to discuss the work, only the outcomes. C. When there is only one location in which work is performed. D. When you want your business to operate when you are not present.

When you want your business to operate when you are not present.

Attempting to make oneself seem more accomplished than reality is referred to as: A. aggrandizing. B. poisoning the well. C. moonlighting. D. cannibalizing.

aggrandizing; Attempting to make one's business or self seem more accomplished or grander than reality is known as aggrandizing. This misleading impression, called aggrandizing, can spell the death of a firm if discovered at an inconvenient time.

A web page in which entries are posted in reverse chronological order is a known as a: A. blog. B. variance. C. search engine. D. push service.

blog

In _____ sales, one firm sells to another firm. A. business-to-business (B2B) B. business-to-consumer (B2C) C. consumer-to-consumer (C2C) D. business-to-Internet (B2I)

business-to-business (B2B)

When an individual buys products like shoes, music, or cell phones online, it is referred to as _____ type of e-commerce. A. business-to-business (B2B) B. business-to-consumer (B2C) C. consumer-to-consumer (C2C) D. business-to-Internet (B2I)

business-to-consumer (B2C)

In door-to-door selling, _____ refers to getting the customer to agree to buy. A. opening B. promoting C. auctioning D. closing

closing

The fundamental success factor in door-to-door selling is: A. closing the sale. B. having a location with enough foot traffic. C. approaching a "high-rent" district. D. having a perishable product for sale.

closing the sale.

A(n) _____ refers to a private individual or household that is the end-user of a product or service. A. producer B. intermediary C. consumer D. beneficiary

consumer

The limitations imposed on a business's property by neighborhood groups are referred to as: A. easements. B. covenants. C. volatilities. D. aggrandizements.

covenants

The assignment of work to others over whom one has power is referred to as: A. delegation. B. adverse possession. C. aggrandizing. D. zoning.

delegation.

All of the following are success factors to "stand retail" except that: A. it tends to be either semi-permanent ones or movable ones. B. it needs to be built in places where there is less foot or vehicle traffic. C. it can be quickly established. D. it does not require a lot of investment in inventory.

it needs to be built in places where there is less foot or vehicle traffic

Working on one's own part-time business after a regular job is referred to as: A. moonlighting. B. pop-up business. C. outsourcing. D. licensing.

moonlighting.

Cannibalizing is one of the major concerns when _____. A. moonlighting B. aggrandizing C. outsourcing D. multichannel marketing

moonlighting; Working on one's own part time after his or her regular job is called moonlighting, and it poses particular risks. The major concerns are conflict of interest, cannibalizing sales, and poisoning the well.

An approach to selling in which the salesperson recruits customers to become distributors of the product or service to others is known as _____. A. network marketing B. auctioning C. catalog selling D. online marketing

network marketing

Contracting with people or companies outside one's business to get work done for the business is known as: A. aggrandizing. B. hybrid entrepreneurship. C. outsourcing. D. licensing

outsourcing.

A listed, live connection to a different website, which in turn displays a similar link to the first website is called a(n): A. sponsored link. B. reciprocal link. C. back link. D. incoming link.

reciprocal link; Reciprocal link is a listed, live connection to a different website, which in turn displays a similar link to the first website.