ETR401 - 100 QN

A

QN=27 Assets that may be quickly converted to cash is called: a. cash equivalent. b. inventory. c. receivables d. payables

A

QN=48 Doubt that occurs after a purchase has been made is called a. cognitive dissonance. b. customer vector. c. segmentation d. trendiness

D

QN=8 Why are small businesses considered the economic core of society? a. They are high growth and high innovation firms. b. They are made up of franchises and multisite firms, who are generally not very innovative, but are designed for high levels of growth. c. They have lots of innovative ideas but lack the funds to bring them to market. d. They are the most numerous and most widely available type of firms.

D

QN=9 Process of personal selling includes all of the following EXCEPT a. presenting. b. closing c. prospecting and evaluating. d. deciding.

A

QN=1 A(n) _____ is the business term for the population of customers for your products or services. a. market b. industry c. strategy d. SIC

D

QN=1 Which of the following is NOT a form of direct mail? a. Catalogs b. E-mails c. Faxes d. Vending machines

B

QN=10 The first step of the small business strategy planning process a. involves performing a SWOT. b. involves reviewing and confirming the prestrategy decisions that define your firm and your goal for it. c. is where you consider your customers and the benefits you want to offer them. d. is to study the dynamics and trends of your industry.

B

QN=10 Which of the following is NOT a path to full-time business ownership? a. Franchising b. Stand retailing c. Starting a new business d. Buying an existing business

D

QN=11 Identify the characteristic of a small business. a. When the firm is in trouble, it focuses on selling more products/services b. Approach to human resources is to professionalize c. Focus is on effectiveness d. Metastrategy is imitation

B

QN=11 The business planning presentation types include all of the following EXCEPT a. mission b. annual objectives. c. elevator pitch d. executive summaries.

D

QN=12 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. Family and friends b. Education and expertise c. Serendipity d. Personal interest

B

QN=12 Which of the following are owners with an exit plan? a. Growth entrepreneurs b. Harvest entrepreneurs c. Occasional entrepreneurs d. Habitual entrepreneurs

D

QN=13 Green retailing is a. is at the core of exchange in the BRIE model. b. another term for sustainable entrepreneurship taken from the belief that green is the color of a healthy environment. c. minimizing waste and environmental degradation. d. selling products that have a better environmental footprint.

D

QN=13 Noel is a management student who needs to conduct primary data for his project on "Retail Marketing." He goes to a local department store and observes customers. He makes a note of the different products the customers choose, and the time they spend in making decisions in choosing different products. Which of the following best explains this type of a. Focus group b. Survey c. Secondary d. Ethnographic

C

QN=14 A business that is created by separating parts of an operating business into a separate entity is called a a. synergy b. franchise c. spin-off. d. turnkey.

D

QN=14 Telemarketing can either be _____ or _____. a. in person; on the phone b. by fax; e-mail c. door-to-door; direct response advertising d. inbound; outbound

A

QN=15 Money held in checking and savings accounts are called: a. demand deposits. b. marketable securities. c. commercial papers. d. receivables.

D

QN=15 Name the strategy whose goal is growth, based on selling in areas or to groups previously not served by the business. a. Market penetration b. Product expansion c. Diversification d. Market expansion

A

QN=16 Identify the strategy where the idea is to slow down when children are young and push for growth when the children are older. a. Spiral b. Harvest c. Growth d. Habitual

C

QN=16 _____ refers to certification for having met a standard of quality that is consistently evaluated around the world. a. ANSI b. Six Sigma c. ISO d. TQM

C

QN=17 Which of the following statements about an elevator pitch is true? a. It is shorter than a vision statement or tagline. b. It consistently leads to specific businesses. c. The idea of the pitch is that you are alone with a prospective customer for the length of an elevator ride. d. The pitch ends with where the business is headed.

C

QN=17 _____ is usually the first technique an entrepreneur uses to get customers. a. Internet b. Guerilla marketing c. Word-of-mouth d. Telemarketing

B

QN=18 A(n) ______ is something you owe someone else. a. asset b. liability c. owners' equity d. cash flow

C

QN=18 _____ means letting employees make on-the-spot decisions for the companies' best interest. It requires giving employees permission to act, the knowledge to act, and the skill to act. a. Recognition b. Training c. Empowerment d. Teamwork

A

QN=19 Accepting payments by credit card causes significant differences between the bank and book balances due to all of the following reasons EXCEPT: a. the service provider records the gross amount of each credit card sale. b. the service provider takes up to three working days to actually make the deposit to your account. c. the credit card service provider deposits to your account the sale amount less the credit card service fee. d. credit card clearing services also will reduce the amount deposited in the event of fraud.

C

QN=19 The key for managing the demanding life of the entrepreneur is to a. list all your responsibilities as soon as you get them. b. prioritize your tasks based on their importance to your business and their due date. c. get advice from people in your line of business about the basic activities of the small business. d. perform all the business functions including sales, operations, accounting, finance, and human resources yourself.

A

QN=2 A(n) _____ should be filled out and returned to you before the scheduled performance review so that you can learn the employees' goals, interests, and self-evaluation when you are crafting your comments. a. appraisal form b. application form c. enrollment form d. online form

C

QN=2 _____ is the process of dividing the market into smaller portions of people who have certain common characteristics. a. Value proposition b. Market penetration c. Segmentation d. CRM

C

QN=20 Electronic social networks a. often have membership costs. b. offer the all-important personal touch. c. are usually fast and easy to develop. d. offer the all-important local connections.

B

QN=20 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. committed capital. b. informal capital. c. mezzanine capital. d. formal social capital.

C

QN=21 Data gathered by simple observation seeing what customers do rather than asking them refers to a. focus group. b. survey methodology. c. ethnographic research. d. secondary research.

D

QN=21 Only _____ of family-owned businesses survive beyond the first generation. a. three-quarters b. one-half c. one-fourth d. one-third

C

QN=22 Many owners of consulting companies took their own skills and launched businesses by selling those skills to other companies who needed them. This is an example of which of the following factors leading to business ideas? a. Family and friends b. Serendipity c. Education and expertise d. Personal interest

A

QN=22 _____ entrepreneurs are owners for a lifetime, sometimes in one business, and sometimes across several firms. a. Habitual b. Harvest c. Growth d. Spiral

C

QN=23 The price at which goods and services are bought and sold between willing sellers and buyers in an arm's-length transaction is called: a. book value. b. disposal value. c. fair market value. d. replacement value.

B

QN=23 Which of the following is NOT a success factor of an effective elevator pitch? a. Hook b. Time c. What d. Delivery

A

QN=24 This type of value benefit involved can come from the products or services that you offer, or from your own firm's reputation. a. Brand b. Style c. Personalization d. Place

A

QN=24 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. word-of-mouth b. full-scale advertising c. personal selling d. point-of-sale

C

QN=25 In evaluating potential employees, a small business owner a. should hire a moderately qualified person in case filling the position is an urgent requirement. b. should ensure that only a single interviewer meets with a candidate in order to avoid conflicting evaluations. c. should design interview questions such that "yes" or "no" answers are not applicable. d. should accept the candidate's word that he or she possesses a certain skill or knowledge base.

C

QN=25 Which of the following is the final stage of the new product development process? a. Idea screening b. Feasibility study c. Commercialization d. Product development

C

QN=26 In the first paragraph of the cover letter, you a. explain your company in detail. b. describe the current situation of your company. c. introduce yourself. d. thank the reader for their consideration.

C

QN=26 Which of these is NOT a strategy employed by small businesses for handling money shortages? a. Selling receivables b. Adjusting scheduled payments c. Filing for bankruptcy d. Selling investments

B

QN=27 Which of the following provide potential customers an education in your product or service, including stories of customers' whose problems were solved, an FAQ list, as well as a page on your products or services, and a page on you and your firm? a. Promotional novelties b. Sales packets c. Business cards d. Brochures

B

QN=28 Following certain "best practices" are typical of these types of businesses. a. Specialized businesses b. Expert businesses c. Minimalized businesses d. Factor businesses

B

QN=28 Which of these refers to the accounting process that identifies the causes of all differences between book and bank balances? a. Overdrafting b. Reconciling c. Charge back d. Liquidity

D

QN=29 A marketing plan examines all of these areas EXCEPT a. target market. b. current situation. c. marketing strategy and objectives. d. employee issues involving product creation.

C

QN=29 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. periodic c. JIT d. perpetual

A

QN=3 Looking at the concept of "Book-of-the-Week" from Borders, if Olive Garden starts a "Pasta-of-the-Week", it would be an example of which element of SCAMPER? a. Adapt b. Magnify c. We have received d. Please be advised that

C

QN=3 Which of the following is an organization-based legitimacy indicator? a. Testimonials b. Intellectual property c. Legal form d. Attire

D

QN=30 Which of the following statements about signs is false? a. They are a form of advertising b. They need to be large enough to be read by passing traffic c. They should reflect your firm d. Homemade signs indicate high quality and professionalism

C

QN=30 _____ occurs when a person's values are in conflict, making it unclear whether a particular decision is the right thing to do. a. Modeling b. Social networking c. Ethical dilemma d. Mutuality

C

QN=31 All of the following are reasons for the large numbers of home-based businesses in the United States EXCEPT 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 you are already living somewhere. c. they generally give customers the strongest sense of legitimacy. d. you can get your business going where you live in a moment.

D

QN=31 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. Glamorous sector d. Economic core sector

D

QN=32 For family business, the most effective approach for avoiding role conflict is a. time management. b. to avoid schedule overload. c. to try and make decisions based on family necessities. d. to keep family issues out of the business.

D

QN=32 Which form of direct response advertising allows for very specific targeting and offers an appropriate place for direct response advertising for business-to-business selling? a. Television b. Radio c. Newspaper d. Magazines

B

QN=33 Which of the following is a product-based legitimacy indicator? a. Organization size b. Testimonials c. Business network membership d. Internet identity

D

QN=33 Which of the following statements about value benefits is false? a. They display characteristics related to the nature of the product or service itself. b. Things like quality, fashion, and reputation are elements that give a product value in the eyes of the customer. c. They are important because they are almost always what lead to higher prices and higher profits. d. They refer to the ways by which a firm can keep costs low for the customer.

A

QN=34 There are two broad types of training a. on-the-job and off-the-job methods. b. free and paid methods. c. online and offline methods. d. in-house and outsourced methods.

C

QN=34 Which of the following is an example of an inelastic product? a. Luxury goods b. Hamburgers c. Gasoline d. Coffee

B

QN=35 Which of the following is at the core of exchange in the BRIE model? a. The boundary b. The environment c. Identity d. Resources

B

QN=35 _____ refers to the trial period in which an employee has temporary status before a formal offer to work full time is presented. a. Test period b. Probationary period c. Employee referral period d. Psychological contract period

D

QN=36 A facility which offers subsidized space and business advice to companies in their earliest stages of operation is called a(n) a. small business administration center. b. franchise. c. small business development center. d. incubator.

A

QN=36 For small businesses, the key budget is the _____ budget. a. cash b. retained earnings c. sales d. marketing

A

QN=37 What best describes the problem that arises when people have multiple responsibilities and each makes different demands on them? a. Role conflict b. Succession c. Leadership d. Role ambiguity

C

QN=37 When a bookstore starts to sell videos, music, and coffee as well, they are using which element of SCAMPER? a. Rearrange b. Eliminate c. Combine d. Substitute

B

QN=38 These questions provide data that are more difficult to tabulate and the answers can be difficult to compare. a. Categorical questions b. Open-ended questions. c. Scalar questions d. Dichotomous questions

B

QN=38 Which of these is a statement of what a business owns, what it owes to others, and how much value the owners have invested in it? a. Income statement b. Balance sheet c. Cash flow statement d. Statement of retained earnings

A

QN=39 Which of the following is NOT a business plan concern of family and friend investors? a. Competitive advantage b. Amounts and schedules for returns c. Funds use d. Stability of firm

D

QN=39 You can go about obtaining committed customers prior to start-up via all of the following ways EXCEPT a. starting a spin-off from your employer's business. b. competing with your employer. c. subcontracting services to your employer. d. getting your employer's business into an incubator.

D

QN=4 Which of these is a suggested guideline for training? a. It should be provided only at the initial stage of employment. b. Employees should practice what they have learned on their own time. c. Have employees sign long-term contracts so they do not leave after receiving training. d. Think of it as an investment.

C

QN=4 Working for a very large organization in the tractor manufacturing industry, John always heard complaints from customers about the parts and service aspect of the business. Taking an early retirement, John started his small business to address the customer complaints he had been hearing. Which of the following best describes the factor that led John to this business idea? a. A similar business b. Chance c. Work experience d. Family and friends

A

QN=40 The ability of business owners to structure life in the way that suits their needs best refers to a. flexibility rewards. b. family rewards. c. growth rewards. d. wealth rewards.

C

QN=40 The proof of a CRM effort is seen in all of the following EXCEPT a. higher levels of customer loyalty in existing customers. b. higher levels of purchasing from your existing customers. c. low levels of customer loyalty in new customers. d. more tracked prospects making initial purchases from you.

C

QN=41 Formal summaries of the content of an accounting system's records of transactions are called a. operating activities. b. investing activities. c. financial statements. d. variance analyses.

B

QN=41 Selling brand name merchandise or services is a people-based legitimate indicator of a. attire. b. product/service name recognition. c. business network membership. d. organizational size.

A

QN=42 A _____ is a narrowly defined segment of the population that is likely to share interests or concerns. a. niche market b. mass market c. degree of similarity d. parallel competition

A

QN=42 All of the following observations hold true of mission statements EXCEPT a. they are an action-oriented description of your business. b. they rarely discuss profits, but often mention the entry wedge that follows from the firm's strategy. c. they might include the major competitive advantages of the firm, and its position in the industry. d. they are best when they are simple, short, and direct.

D

QN=43 A _____ is a legal agreement granting you rights to use a particular piece of intellectual property. a. caveat emptor b. franchise c. set-aside d. license

D

QN=43 The length of an executive summary should be a. 20-50 words. b. 60-100 words. c. 5-10 words. d. 250-500 words.

A

QN=44 The Americans with Disabilities Act a. requires that make employers make reasonable accommodation for limitations of qualified applicant or employee unless to do so creates undue hardship. b. prohibits discrimination with respect to any condition of employment based on race, color, sex, religion, or national origin. c. prohibits employment discrimination based on national origin or citizenship status. d. prohibits employers from using polygraph results as basis for employment action.

B

QN=44 Which of the following represents an advantage of stand retailing? a. Variable income b. Minimum startup investment c. Steady income d. Strong consumer base

C

QN=45 The use of several different channels to reach your customers, for example, a Web site, direct mail, and traditional retailing is called a. guerilla marketing. b. Internet marketing. c. multichannel marketing. d. direct sales.

C

QN=45 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

QN=46 According to the BRIE model, in order to start a business, you need all of these elements to come together EXCEPT a. boundary. b. resources. c. intention. d. experience.

A

QN=46 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. General Equilibrium Economics. c. Creative destruction. d. PICS Model of Entrepreneurship.

C

QN=47 For many entrepreneurs, their hometown is their first choice for the location of their business because of all of the following EXCEPT a. convenience and a familiar setting. b. elimination of a lot of possible family issues. c. local government offering subsidized locations to local businesses. d. their knowledge about the market or potential customers.

B

QN=47 To develop a(n) _____, one should try to think of three to five key words that would describe their business to anyone. a. advertisement b. succinct message c. public relations piece d. press kit

A

QN=48 All of the following are characteristics of a family-owned business EXCEPT a. they are the only group that faces the challenge of access. b. they are a major source of funds and personnel for new small businesses. c. they are a self-perpetuating source for future small businesses. d. a strong family bond can become a strong business culture.

A

QN=49 A legal agreement that allows a business to be operated using the name and business procedures of another firm is referred to as a a. franchise b. license. c. turnkey. d. consignment.

B

QN=49 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. JIT b. EOQ c. Reorder point d. Microinventory

C

QN=5 Identify the statement that does not relate to home retail. a. Low cost of setting up b. Ability to do the work away from your home and employer c. Provides a high steady income d. Minimized potential conflicts

C

QN=5 Which of these refers to the concept that a business is expected to continue in existence for the foreseeable future? a. Business entity b. Costs and expenses c. Going concern d. Buy and sell

A

QN=50 The key benefit of an imitation strategy comes from the a. customers. b. employees c. competition d. government agencies.

D

QN=50 Which of the following 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

A

QN=6 Which of the following is a primary goal of due diligence? a. Finding any wrongdoing b. Paying the top dollar for the business c. Fulfilling all requirements for state regulations d. Establishing yourself as a competitive threat

D

QN=6 _____ are the cash flows that have been reduced in value because they are to be received in the future. a. Book value cash flows. b. Replacement value cash flows c. Free cash flows d. Discounted cash flows

A

QN=7 Cash can come from all of these sources for a small business EXCEPT: a. cash flow from subsidy. b. cash flow from operations. c. cash flow from investing. d. cash from financing.

C

QN=7 _____ refers to the size of the market whereas _____ refers to its geographic range. a. Scope; scale b. Mass; niche c. Scale; scope d. Niche; mass

A

QN=8 _____ is the process of making the new product available to consumers. a. Commercialization b. Test marketing c. Breakeven d. Pricing psychology

B

QN=9 A(n) _____ is a document issued by a bank that guarantees a buyer's payment for a specified period of time upon compliance with specified terms. a. documentary draft b. letter of credit c. import document d. freight document