MGT 302 - Final

In the Friend's Home Health case study, the buyout offer was:

$400,000

Which of the following statements regarding the Occupational Safety and Health Administration are correct? check all that apply

- fines are lower for businesses that have fewer than 25 employees - it has tried to be more lenient toward small businesses. -small firms with less than 10 employees do not have the record-keeping regulations that larger firms have

Which of the following questions are examples of questions that employers may not ask? check all that apply

- gender - age - religion

Which of the following statements regarding the Affordable Care Act are correct?

- the federal and state governments have established exchanges that group individuals and small firms together to lower the cost of health care - one of the biggest beneficiaries of the Act are entrepreneurs who are the only employee - there are tax incentives for small businesses

How many distinct actions must be taken in order to start a business

10

A systematic review of employees will include:

All of these - how they perform relative to their objectives - plans for future emplouee growth - reset goals for the next year

Human resource management includes _____________ the employees

All of these - managing - hiring - inspiring

Which of the following is a method to maximize the selling price?

All of these - market estimation valuation - discounted future net cash flow - asset-based valuation

Which of the following aspects needs to be considered while developing a marketing plan?

All of these - specifying the ideal and general target customer - identifying your market - determining sales management procedures

Which of the following information should be obtained in the application/interview process?

All of these - work history - Social Security number - education and traning

Chapter 11 bankruptcy provides a fast-track option. Which of the following statements is NOT correct about this fast-track option?

The fast-track plan must show that unsecured creditors will be paid first before other creditors.

___________ are events established around a particular theme where businesses are allowed to set up booths in order to promote their goods or services.

Trade shows

True or false: One important consideration related to all aspects of a business is the owner's investment in quality.

True

A document called the _____________ has been the accepted format for satisfying franchise requirements.

Uniform Franchise Offering Circular

The franchisor and franchisee relationship is governed by the:

United Franchise Offering Circular

_____________ promotions are also referred to as bootstrap marketing, because they require little capital.

Virtually free

Once a small business owner defines the geographic area, the next step is to define the____________ segment of the market that the business is seeking to serve.

particular

Entrepreneurs should remember to __________________ when writing an advertisement for a new hire.

be concise and oriented toward the basic information needed

Entrepreneurs should

be generous when estimating the time a task will take, because critical steps often take more time than originally planned.

A ___________ rewards employees based on their performance

bonus

Web pages can be used as a:

both of these -means of promotion -distribution channel

Which legal form of business best protects an owner's personal assets when he or she must declare business bankruptcy?

corporation and limited liability corporation

Which pricing method requires the firm to determine its costs and then add some level of profit?

cost-plus

A small business determines the cost of providing a product or service, and then adds some level of profit determine to be appropriate. This is called:

cost-plus pricing method

A major difficulty of operating a mail order catalogue is the handling of:

credit cards

Why is it a risky choice to buy an existing business that has filed for bankruptcy?

it takes special knowledge and skills to conduct an effective turnaround

When a small business owner is advertising a job, the company needs to attract the/a ________________ pool of applicants to choose from.

largest

Leasing equipment can be ________ expensive over the long-term.

more

It is relatively common for new equipment to depreciate in the first year after purchase. What is the typical rate of depreciation of new equipment in the first year?

more than 50 percent

One of the _____________ important steps in starting a business is identifying and either purchases or leasing a business location.

most

In an interview, an interviewer can ask questions about:

prior convictions

A company's compensation system is

of the highest importance for employees.

In a family business, business decisions:

often affect both the business and the family

In a successful Chapter 11 bankruptcy, a business owner may be able to do all of the following EXCEPT:

sell the assets and keep the money for personal expenses may do all of these - terminate union agreements -terminate leases and other contracts - force creditors to accept an equitable plan for reorganization

According to Deming, if business owners allow quality goals to drive every action, the firm might make

short-term decisions that are detrimental to the business' overall direction.

One purpose of a critical path chart is to

show which activities can occur concurrently and which must already be in place before the next activity can occur.

Unemployment compensation is financial assistance for some period for people

who lose their job through no fault of their own

Why might an entrepreneur consider exiting or harvesting a business? check all that apply

- if a successful business is successful but no longer interesting or enjoyable - if the entrepreneur doesn't have the time to run an existing business and pursue a new opportunity - if the business takes too much time and personal commitment

Which of the following are typical initial payments or fees that a new business may pay before starting operations? check all that apply

- initial advertising expenses - License and inspection fees - security deposits

Which valuation method is technically the value of the business as it exists at the present time?

market capitalization

Maintaining an estimate of value of a business as it grows and develops is the responsibility of the:

owners

Business owners who offer profit sharing

pay employees a small salary, but offer a percentage of the profits that company earns

Which category of promotions encompasses the majority of promotional efforts targeted by the firm?

pure promotions

Once the candidate pool has been create, the business owners should

reduce the number of candidates to be interviewed

Business owners should

write an job ad that sells the job and business honestly.

Which of the following represents the impact of a poor employee on the functioning of a smal business?

All of these - the problems may bleed over to other employees. - the owner's time is lost -the organization does not fully benefit from the employee.

Which of the following questions should you try to answer after the target population has been identified?

All of these -Do these numbers of people who might actually be your customers match with your cash flow projections? - How many individuals from the target population actually exist within the business's market area? - What percentage of these individuals is reasonable for you to attract as customers?

Which of the following is an example of the initial payments that a new small business has to make?

All of these -security deposits -initial advertising expenses -bank set-up fees

In the Flow Right Brewery & Bar case study, Chris was offered a buyout from:

his former boss

During the period when the previous owner of an existing business is transitioning ownership to the new owner, a number of tasks should be completed. Which of the following statements is correct about these tasks?

if there are too many employees, enact a layoff plan immediately

In establishing pricing, there are several caveats that a small business person should consider. Which of the following represents such caveats?

All of these - Do you want to offer a quantity discount? - How to offer an even greater value for the money charged in order to build a customer base? - What is the actual price charged for a product or service?

The _____________________ is charged with protecting the health of workers

Occupational Safety and Health Administration

Anti-discrimination laws

do not require business owners to hire any one particular person.

Hiring a family member ____________ discrimination issues for larger family businesses.

does not eliminate

Which of the following theories states that we all judge how we are treated relative to how we see others being treated?

equity theory

Performance review includes all of the following EXCEPT:

future pay raises it includes: - review of an employee's goals - achievements for a given period - outcomes over a given period

Some major cities pay what has been called a __________ wage that is indexed to what someone who works 40 hours per week needs to stay above the poverty line.

living

A(n) ______________ promotion cost something but also have an element of community support.

mixed-model

The Civil Rights Act applies to all firms having how many employees?

more than 25 employees

Google, Yahoo!, Bing, and Firefox are examples of ____________.

search engines

Which type of pure promotions are established around a particular theme where individuals are allowed to set up booths to promote their goods or services?

trade shows

Which type of promotions available to a new business have a very limited financial cost but have a time-commitment requirement from someone in the business?

virtually free promotions

Which of the following application and interview questions is legal to ask?

what previous experience do you have?

Which of the following are classic items that make new businesses look legitimate? check all that apply

- a high quality internet site -a business checking account with check numbers higher than 101 - professional letterhead, business cards, and invoices

It is common for a piece of new equipment to depreciate _______% or more during its first year.

50

_____________ theory argues that people judge how they are treated relative to how we see others being treated.

Equity

__________________ has (have) been trouble to the mail order business; owners need to include the cost of this in the pricing of their products.

Fraud

_____________ is the quantity and quality of human effort directed toward producing goods and servieces.

Human resource management

______________ laws are designed to provide employees who are disabled or injured while on the job with some type of compensation.

Worker's compensation

Businesses with specialized equipment needs should

accurately evaluate its equipment needs and understand that there is a wide choice in the type, age and acquisition methods.

What is the first step in developing a Web page?

acquire a domain name

The difference between someone with an idea and an entrepreneur is

action

An employee who earns a salary is paid

a set amount of money that is paid without regard to how many hours worked in a given time period.

When inputs are not of high quality

the output has no chance to be high quality

According to the book, what is the most important thing that a business owner needs to define after the geographic are has been determined?

the particular segment of the market that the business is seeking to serve

According to Deming, when it comes to creating quality goods and services, businesses should be guided by

the scientific method

Which of the following statements about critical path analysis is correct?

the tasks will be different for different types of businesses

Franchisors make decisions based on what is best for:

the total business

Which one of the following is NOT a legitimate reason to not pursue a business idea?

there is too much research that needs to be done Legitimate reasons: - there business will not be as lucrative an originally thought - there is a fatal flaw in the business idea - the business idea is too risky

Which valuation method accounts for all the hard assets and then adds an acquisition or goodwill value?

Asset-based valuation

______________ stores are major retail stores, such as a department store.

Anchor

The Americans with Disabilities Act regulates firms with how many employees?

15 or more employees

The government closely regulates children who work under the age of ___________.

16

Which of the following statements is correct about the level of risk involved in purchasing an existing business?

buying an existing businessi less risky than buying a franchise

Entrepreneurs should ask applicants to submit their _____________ and list of references by the deadline.

resume

A job offer is finalized by

candidate signing the offer

Which of the following statements about record keeping are correct? check all that apply

- the company should keep track of all advertisements that have been run whether a physical publication or on the internet - the company should maintain a record of who responded and the job's criteria - the company should keep track of records in case someone alleges that the company discriminates in its hiring practices

How can a strip shopping center's location affect its vacancy rate? check all that apply

- it's location is often a driver to year round sales - a poor location can make it difficult for tenants to stay open - a good location can bring additional customers to the center's stores

Which of the following are steps that will help a business owner manage their time during the start-up process? check all that apply

- keep a notebook or electronic diary to track what must be accomplished that day - prioritize tasks by level of importance - segment tasks between short and long term

Business owners want to retain valuable employees, because check all that apply

- new employees take time to become productive. - the hiring process consumes a great deal valuable time. - the hiring process is expensive.

Which of the following are methods of valuation that may be used for valuing a business? check all that apply

- price/earnings valuation - asset-based valuation - capitalization of earnings valuation - discounted future net cash flow - market estimation valuation

Which of the following are safe guards that business owners can put in place to protect the business' bank accounts

- require both a primary signatory and a confirmation signatory as an audit safety condition - limit the amount an individual can write a check without a countersignature

What does a cash flow discount rate represent? check all that apply

- riskiness of the venture - return expected by an investor

Which of the following statements regarding production management systems are correct?

- some production management systems are codified, while other are not - all businesses have production management systems

Which of the following statements regarding production charts are correct? check all that apply

- they are similar to critical path charts -processes tend to be sequential and can be complex for early-stage and new businesses - they detail the steps necessary to provide the customer with a finished product

Which of the following statements regarding critical path charts are correct? check all that apply

- they are useful for keeping track of deadlines - they can help entrepreneurs avoid costly scheduling mistakes - they are imperative for organizing the start-up process

Which of the following statements regarding​ business incubators are correct?

- they help tenants gain legitimacy - they offer tenants basic services such as fax, copy, telephones, and internet - they provide office space at below market rates

Which the following would be considered pure promotions? check all that apply

-trade shows - radio - signs - web pages

The Fair Labor Standards Act

established a minimum wage for workers.

Which method of valuation is performed by taking the net profit of the organization; subtracting or adding any unusual items; and dividing that figure by a capitalization rate

capitalization of earnings valuation

The most widely accepted method of valuation involves some form of discounting the estimated future net _________ ____________ of the business.

cash flow

In the Friend's Home Health case study, the founders were:

caught off guard when a hospital offered to buy them out

Which of the valuation methods is by far the simplest of the techniques mentioned in the text?

market estimation valuation

Promotion of a product or service is considered as:

marketing

Items covered in the Uniform Franchise Offering Circular include all of the following EXCEPT:

marketing goals include all of these -investment requirements -litigation -bankruptcy

When a company starts to decline, the first step is to ___________.

retrench

Universal Studios, who made the Indiana Jones movies, forms a relationship with Burger King to put advertisements for the movie on drink cups. This is a form of ________________.

strategic alliance

Creating a critical path chart can help with which of the following new business start-up problems?

taking up to 2 or 3 times longer for the business to generate revenues

Which type of business has a production process?

technology

In the case study James Monsees and Adam Bowen: Ploom, one of the marketing problems the founders have is:

the ability to make claims about the health benefits

Marketing efforts need to be clearly identified and defined based on:

the business's mission

Which of the following is NOT a part of the definition of franchising?

two parties brought together by a facilitator part of the definition: - two-party legal agreement - one-party obtaining the rights to sell a specific product or service - one party allowing another to do business as it specifies to gain certain benefits

The _________________ states that businesses with more than 50 employees must offer employees insurance.

Affordable Care Act

What does a new business owner need to keep in mind while making a decision about what equipment to buy?

All of these - How quickly the company may require larger/more equipment? - What is the cost of the equipment? - What equipment is needed?

Chapter 14 Franchising and Purchasing an Existing Business A franchisor makes money by:

All of these - collecting a percentage of sales - selling the franchise - providing specific training

Which of the following factors should a new business owner consider when deciding the best time to start a new business?

All of these - competitors' moves - the general environment - lifestyle issues

Developing an accurate valuation helps:

All of these - convince outside equity investors of the potential long-term returns associated with the harvesting of the business - benchmark the growth of the firm by establishing a true starting point - provide insight for the founders as to the amount of capital and labor that should be invested in the effort

Which of the following is typical when purchasing new equipment instead of used equipment?

All of these - delivered directly to the new business - guarantees that the new equipment is the most current available - usually the most expensive option

When entering a new industry through the purchase of a franchise, a small business owner should:

All of these - examine potential customers - examine the industry - examine position relative to other new franchises

An individual looking to buy a franchise should identify a franchisor that is the best potential match in:

All of these - expansion plans - support - history

All of these are reasons why small business owners do not write job descriptions EXCEPT:

wait till the employee gets hired these are reasons: -unclear picture of the new position -lack of time -remain flexible for the right individual

According to the book, which of the following terms is used to discuss the acceptance by key stakeholders that your business is more than just a "start-up" and will be successful?

legitimacy

The term __________________ describes a business that has been accepted by key stakeholders that believe that the firm is genuine.

legitimacy

Critical path analysis is a __________________ document that should be modified during the process of actually accomplishing tasks.

living

According to the book, which of the following firms needs to pay special attention to OSHA guidelines?

manufacturing firms

Which of the following is not a production process for a retail store?

manufacturing goods for sale in the store production process: - customer credit card transactions - counting, tagging ,and stocking merchandise - moving older inventory to discount area

John needs to know who his customers are and how to attract them. He needs a(n):

marketing plan

A small business founder needs to plan for the type of sale that will______________ their returns.

maximize

Commission compensation system can be abused and

may be a source of frustration by both employees and the employer.

Business owners should put monitoring and ________________ systems in place in order to deliver quality products or services.

measuring

Marketing efforts need to be based on the:

mission statement

What type of promotions allow entrepreneurs to promote their business and help out the community in a way that targets your customer base?

mixed promotions

The owners in the Friend's Home Health case study realized their plans for the operation were:

not leading to a break-even point

The Equal Pay Act requires employers

not to discriminate in pay to men and women who do the same job.

In a family business, the interests of the family and the interests of the business are best described as:

overlapping

Pricing something that ends in 99 cents makes a big difference in the buying of a product.. This is because of a consumer's:

perception

The authors of our book advise the owners of a declining business to:

pick the one key reason the business is declining and focus on fixing it

A ______________ chart provides a detailed understanding of firm's production process.

production

Chapter 11 Marketing The higher the __________ appears to be, the faster the competitors will challenge the business.

profit

What is the means by which businesses make their product or service known to potential customers?

promotion

Pure promotions

promotions that are strictly financial arrangements in which you pay for some outputs, such as radio advertisements.

Mixed-model promotions

promotions that cost something but also have an element of community support.

Virtually free promotions

promotions that have very limited financial cost but have time-commitment requirements from individuals in the firm.

______________ promotions are strictly financial arrangements in which a business pays for some output?

pure

If a new business is to compete against McDonald's, it will have to have similar ____________ and ____________ of offerings.

quality; quantity

A ______________ is an oft-overlooked means of advertising that is sometimes found on the building, on the street, and on the letterhead of the business.

sign

Why is it so difficult to turn around a small business whose performance is declining?

small businesses have limited slack resources.

Chapter 12 and Chapter 13 bankruptcies are used by what kinds of businesses that cannot be turned around?

sole proprietors and family-owned businesses

The critical chart process for an Internet-based business is ___________ for a manufacturing business.

somewhat simpler than

It is rarely an effective strategy to

start business operations as soon as possible

A ____________________ is when two or more firms join together to form a long-term, mutually beneficial relationship.

strategic alliance

A _________________ is a small retail center typically located along a mojor road.

strip shopping center

In the "Study Cafe" example, the critical chart process helped the students realize:

they need to open their doors for business in August

In the case study Friend's Home Health, the founders had issues with identifying potential customers because:

they were targeting elderly persons likely to be hospitalized

A business is an investment of both ___________ and ___________.

time; money

An owner who does not set _____________ and ____________ risks the possibility of losing funds and valuable resources.

timetables; respnosibilities

In an industry such as toy manufacturing, there is an annual ____________ in which all toy manufactures display their products to sell to retailers.

trade show

Many new business owners____________ the time it takes to begin operations and their business is harmed.

underestimate

Which of the following is not considered a benefit, but is mandated by law?

unemployment insurance

Establishing the ________________ of the firm is the starting point for any exit or harvest plan.

valuation

The cash flow method of ____________ requires that the net cash flow of the business be projected for some period of time into the future.

valuation

A potential franchisee has to be ______________ before the owner will be sent a complete Uniform Franchise Offering Circular.

vetted

An employee cannot sue a small business owner for injury, if the individual accepts _________________.

workers' compensation

which of the following is the first step in the hiring process?

writing a job description

Under which of the following conditions are examples of when a business owner should conduct a more comprehensive reference check? check all that apply

- when the employee will be driving a company or personal car for business reasons - when the position requires the employee to visit customers' homes - when the employee might be in a position to put the business or its customers at risk

Title VII of the Civil Rights Act applies to firms with more than ________ employees.

25

A program that allows employees to contribute to their retirement on a tax-free basis is _____________.

401(k)

____________ businesses have a production process.

all

When you buy a franchise, you are buying:

all of these - the opportunity to operate under that name for a period of time - an established name - a single store or the right to have multiple units

Which of the following rights is NOT a benefit of purchasing a franchise?

all of these are benefits of purchasing a franchise - right to operate a business within the guidelines of the agreement - right to open a branch of the business in a given area - right to use the franchisor's name

Employers who fire employees without a legitimate, well documented reason

are opening themselves up for a lawsuit.

Employees who earn an hourly wage

are paid only for those hours they perform work.

A entrepreneurial firm's benefits package has __________ as the compensation it offers to a job candidate.

as much of an impact

All business owner should

develop a plan to establish and continually enhance their business' legitimacy

A strategic alliance can help a firm

develop more consistent, high-quality products

Keeping detailed records can help the company defend against a ____________________ charge.

discrimination

True or false: A business owner would be wise to select a bank that has the closest branch to the firm so that bank deposits are relatively convenient.

false

True or false: Issues surrounding succession are never a problem in family run business.

false

Which of the following is the basic contract generated by a franchisor for all franchises?

franchise agreement

In franchising, an entity or individual granted the right to conduct business according to specified methods and terms of another party is known as a:

franchisee

When a franchisee delivers inconsistent quality, it hurts the company and the _____________________

franchisees

Which of the following have well-established methods of operation?

franchises

The success of franchising is dependent on the hard work of the franchisee and the value of the______________.

franchisor

A production management system defines the steps that are involved in moving

from the product or service offering to the point where the business receives payment.

In the Tealuxe case study, the founder:

had no interest in actively managing the operational side of the business.

Chapter 13 Exit/ Harvest/ Turnaround In the Friend's Home Health case study, the founders:

had to figure out how much their company was worth

The main purpose of a critical path chart is to

help entrepreneur visualize the business' startup activities

The __________ process ends when the candidate returns a signed original offer letter.

hiring

One of the most important differences between a typical entrepreneurial start-up and a family business are issues related to

human resources due to sme of the employees being family members.

A _____________ is where a sales commission is paid in addition to a basic salary.

hybrid compensation system

When discounting the cash flow, the discount rate remains the same, while the factor____________ as you move farther away from today.

increases

which one of the following methods does NOT require an extensive understanding of geographic location?

independent sales force these require: - virtually free promotion - mixed promotion - pure promotion

Which of the following is the initial listing of a firm of a firm as a public entity on the public equities market?

initial public offering (IPO)

When a business has gained legitimacy in the eyes of its stakeholders it

is considered to a genuine business that will still be in operation next year.

A decision not to start a business ______________ legitimate and ________________ made during the initial investigation.

is; is best

Your ability to obtain critical supplies may dictate your _____________ time and _______________ time.

lead; opening

A systematic employee review includes which of the following steps? check all that apply

- defined objectives for the next year - plans for future employee growth through experience and training - how employees perform related to their objectives

Which of the following statements regarding drug testing employees are correct? check all that apply

- Employees privacy rights can come into conflict with a drug-free workplace policy -Business owners have a right to insist on drug testing - some states offer discounts on workers' compensation insurance for businesses that have a drug-free workplace program

Which of the following are examples of an anchor store? check all that apply

- National home improvement chain - Regional department retailer

Which of the following are characteristics that a business owner should look for in selecting a bank? check all that apply

- a bank that understands the issues that the business faces - a bank that has experience in the business' industry

Ways that entrepreneurs can ensure that they avoid discrimination or the appearance of discrimination is to do which of the following? check all that apply

- advertise jobs widely to include many potential groups - give everyone an equal opportunity to be considered - write job descriptions so they do not include terms such as salesman, handyman, young or counter girl

Which of the following statements regarding assigning responsibilities and estimated times for a critical path chart are correct? check all that apply

- assigning responsibilities and estimated times for tasks is more than an intellectual activity - specifying task responsibilities is setting a control mechanism - business owners can use the process to determine their priorities

Which of the following statements regarding the decision on whether to purchase new or used equipment are correct? check all that apply

- business owners should calculate the immediate cost and impact on cash flow and the impact on quality and long-term growth - business owners should consider how long before a particular piece of equipment will need to be replaced. - business owners should compare the positives and negatives of each

Which of the following statements regarding firing an employee are correct? check all that apply

- business owners should develop a paper trail on poorly performing employees - business owners can get advice from an attorney - employee reviews are a time to discuss performance

Which of the following is a low or no cost means of advertising a job opening? check all that apply

- college placement office - word of mouth - trade association

The key issues relative to employee retention include which of the following? check all that apply

- compensation - reviewing performance - benefits

Which of the following are factors that may affect the timing for starting a business? check all that apply

- competitor moves - purchasing /supply patterns - general environment

Which of the following are two potential traps that one can make in selecting a new business' location?

- deciding based on a factor that has little to do with the business' strategy - deciding based on the capital available

What are some reasons for developing an exit or harvest strategy at the beginning of the business startup? check all that apply

- developing it early before personality clashes arise. - developing it early provides peace of mind to the family and investors. - everyone will know what to expect if things do not go as planned

The business owner should do which of the following to determine which candidates to interview? check all that apply

- directly compare the applications with the job description - focus, first on those candidate who most closely match the job description - immediately reject those candidate who do not have the minimum position requirements

Which of the following statement regarding performance reviews are correct? check all that apply

- employees should be given praise as well as details of areas of improvement - they review an employee's performance against a set of goals - they are for a specific time frame, often one year

Which of the following statements are true regarding newspapers as a form of pure promotion? check all that apply

- it is a standard method o promotion. - it involves paying for views by individuals who will never be customers. - it is a broad-based "shortgun"type of advertising.

Which of the following statements are true of the Americans with Disabilities Act? check all that apply

- it requires special accommodations to be made for employees who need physical adaptation to work at a business - the Act requires Braille signs to be provided in a business. - it requires businesses to provide unfettered access to both employees and customers, who are disabled.

Which of the following should an advertisement ask an applicant to submit? check all that apply

- list of references - resume

Which of the following statements regarding a company's compensation system are correct? check all that apply

- salary and benefits play an important role in maintaining employee morale - employees often compare their salary with others at their company - it needs to be fair and equitable for all employees

Which of the following statements regarding the Fair Labor Standard Act's (FLAS) minimum wage requirements are correct?

- states may set a minimum wage higher than set by the FLSA - the Act covers virtually all workers - the Act does not cover workers on small farms

Which of the following statements are true regarding the cost-plus pricing method? check all that apply

- the method can be difficult to implement effectively. - requires the firm to determine the cost and add a level of profit. - requires the business to determine the total cost of a particular product.

Which of the follow statements regarding negotiating the deal with a job candidate are correct. check all that apply

- the offer should require a fairly prompt response from the candidate - the business owners should finalize the agreed offer in writing - the business owner should decide the points for which he or she is willing to negotiate

Which of the following statements regarding a bonus system are correct? check all that apply

- they are based on the employee's performance - they are similar to profit sharing - they are not as well defined as profit sharing.

Which of the following statements are true regarding flyers? check all that apply

- they can be delivered with low-cost labor. -they can be changed frequently. - they can be printed cheaply

Which of the following statements regarding commission compensation systems are correct. check all that apply

- they sometimes cause employees to focus on commission instead of the overall good for the firm. - sometimes employees figure out how to abuse the system - employees may make sales to customers who are financially weak and do not pay their bill

Which of the following elements are true regarding virtually free promotions? check all that apply

- time-commitment requirement - limited financial cost

Which of the following statements are true regarding radio and television advertisements? check all that apply

- typically there are a number of radio and television stations reaching your target group. - an ad agency is recommended whose loyalty is to the entrepreneur and will place the ads regardless of the desires of the station. - radio and television advertisements can be designed and aired by the station.

Business owners can provide the candidate with a realistic preview of the job and company by avoiding which of the following?

- underselling the job expectations - over promising what the job will be - being dishonest about the job security

According to the book, which of the following is a good characteristic of an advertisement used to recruit job applicants?

All of these - expression of excitement about the business - information about the culture of the firm - expression of desire to have the right person to hoin the organization

In the Flow Right Brewery & Bar case study, Jack Chen wanted to leave his job and start his own business because:

All of these - he was concerned with the strategic direction that the firm was pursuing - he believed the advice of longtime employees was being routinely ignored - his prospects for rising any further in the organization were limited

Promotion is the means by which businesses make their product or service known to potential customers. Which of the following is the most commonly used form of promotion?

All of these - heard on a radio station - viewed on the Internet - seen in television

_________________ is the acceptance by key stakeholders that you are a genuine business that will still be in operation next year.

Legitimacy

_____________ is one of the most expensive costs for any business and most desired benefits for employees.

Medical Care

Chapter 10 Human Resource Management A more expensive means of advertising a job opening would be which of the following?

Newspaper help wanted

_______________ is the first step in the entrepreneurial development process.

Planning

Which method of valuation requires the founder to find the P/E ratio of a similar company and then multiply the P/E ratio to the net cash flow for year 5 and discount back as a sales price in year 6?

Price/Earnings valuation

A small business owner providing a service should recognize that pricing is a valuable tool to ___________ customer flow.

balance

Chapter 12 Establishing Operations Which of the following correctly depicts the typical cycle of the economy?

boom, slowdown, recession, growth , and boom

A business that is declining due to operations problems struggles with:

both of these - not selling enough products or services - not being efficient in producing the product

Which of the following statements about the risk involved in buying a franchise is correct?

buying a franchise can dramatically decrease the risk of failure

Business owners would be wise to

change one thing at a time

A ___________ is payment based on a percentage of sales.

commission

How do commercial real estate agents earn their commission?

commissions are paid by business owners that is based on a percentage of the first year's lease

When a task assignment and completion date is specified, an entrepreneur must set a _____________ to ensure that the business will be ready to open when intended.

control mechanism

A __________________ chart shows how the activities necessary to start a business fit together and build on each other.

critical path

A production chart is similar to a

critical path chart

A(n) _______________ demonstrates how a set of activities are dependent on each other and which activities take the longest time.

critical path chart

According to the book, if a business owner's efforts to turn around the business fail, what is the best option?

declare bankruptcy of the business