Chapter 20

17. Which is the form of business termination that uses a legal method for closing a business and paying off creditors when debts are substantially greater than assets? A. Bankruptcy B. Sell off C. Walkaways D. Workout

A. Bankruptcy

4. Which of the following statements is true regarding success stage of the small firm life cycle? A. Firms develop the information, skills, and the routines to grow the business's profits. B. Profits are always taken in the form of money. C. For most small business owners, this stage lasts for a very brief period. D. Firms face the liabilities of newness in this stage.

A. Firms develop the information, skills, and the routines to grow the business's profits

14. A transfer method describing the first-time public sale of a stock listed on a public stock exchange is called a(n) A. IPO. B. ESOP. C. consolidation. D. termination.

A. IPO

1. For most small businesses, which of these represent the usual sequence of stages in the business life cycle? A. Emergence, existence, survival, success, and resource maturity B. Existence, survival, financing, success, and maturity C. Emergence, success, financing, marketing, and maturity D. Existence, growth, survival, and decline

A. emergence, existence, survival, success, and resource maturity

23. Kevin's goal appears to be one where he is able to A. harvest. B. invest. C. terminate. D. sell off.

A. harvest

3. Which of these techniques can help an individual move from entrepreneurial thought to actions? A. High-growth venture B. BRIE C. Walkaway and workouts D. CSFs

B. BRIE

15. A(n) _____ is a formalized legal method to transfer some or all of the ownership of a business to its employees. A. IPO B. ESOP C. consolidation D. termination

B. ESOP

6. Staying in touch with customers on a regular basis via visits, phone calls, e-mails, newsletters, and so on refers to which of these components from Zig Ziglar? A. Urgency B. Frequency C. Potency D. Recommendations

B. Frequency

13. When one firm absorbs another through purchase, it is called a(n) A. merger. B. acquisition. C. transfer. D. termination.

B. acquisition

16. Tax management A. focuses on generating cash to cover likely estate taxes. B. focuses on minimizing estate tax payments. C. focuses on transferring assets to heirs when the asset costs are low. D. focuses on giving the firm as a gift to someone who will keep the business a going concern.

B. focuses on minimizing estate tax payments

22. From a growth strategy perspective, Quality Air can be described as a A. high-growth venture. B. high-performing small business. C. traditional small business. D. lifestyle firm.

B. high-performing small business

_____ is the popular name for a_____ bankruptcy in which a bankrupt firm's assets are sold by the bankruptcy trustee and the proceeds used to pay the firm's debts. A. Liquidation; Chapter 11 B. Reorganization; Chapter 13 C. Liquidation; Chapter 7 D. Reorganization; Chapter 11

C. Liquidation; Chapter 7

8. The set of risks faced by firms early in their life cycles that come from a lack of knowledge by the owners about the business they are in and by customers about the new business is called the A. slack resource. B. walkaway and workout. C. liability of newness. D. CSF.

C. liability of newness

25. If Kevin decides to terminate his business, a possible methods is a(n) A. sell off. B. pass off. C. workout. D. IPO.

C. workout

21. Identify the small firm life cycle stage that Quality Air Inc. is at. A. Existence B. Emergence C. Survival D. Success

D. Success

24. If Kevin wants to explore transfer, he should consider a A. liquidation. B. sell off. C. walkaway. D. workout.

A. liquidation

19. People who open multiple businesses throughout their career are called A. serial entrepreneurs. B. unsatisfied business owners. C. terminal venturers. D. workout specialists.

A. serial entrepreneurs

9. Most small businesses never go through the _____ stage. A. takeoff B. resource maturity C. emergence D. survival

A. takeoff

10. Of the four generic growth strategies, most small businesses are A. traditional small businesses. B. lifestyle or part-time firms. C. high-performing small businesses. D. high-growth ventures.

B. lifestyle or part-time firms

20. Which of these is NOT a CSF that can help identify those businesses more likely to survive? A. Being incorporated B. Moderate start-up capital C. Protectable intellectual property D. Brand name affiliation

B. moderate start-up capital

5. The main challenge of the resource maturity stage is to avoid A. overspending. B. legal problems. C. cost fluctuations. D. customer complacency.

D. customer complacency

2. Entrepreneurial role is most needed or focused upon during which stage of the small firm life cycle? A. Success B. Resource maturity C. Takeoff D. Emergence

D. emergence

11. The most straightforward way to achieve sales growth A. is to count on established customers to help improve sales through word-of-mouth. B. is to expand into areas where you may have a small customer base. C. is to convert occasional customers into steady customers. D. is by increasing sales to existing steady customers.

D. is by increasing sales to existing stead customers

12. The most straightforward way to achieve sales growth A. is to count on established customers to help improve sales through word-of-mouth. B. is to expand into areas where you may have a small customer base. C. is to convert occasional customers into steady customers. D. is by increasing sales to existing steady customers.

D. is by increasing sales to existing stead customers

7. According to the components from Zig Ziglar, a message that is remembered and remembered for the right reasons is said to be A. relevant. B. recent. C. frequent. D. potent.

D. potent