STS Quiz 4

interest

A charge for the use of money, usually figured as a percentage of the principal is called

IPO

A transfer method describing the first-time public sale of a stock listed on a public stock exchange is called a(n)

ESOP

A(n) ____ is a formalized legal method to transfer some or all of the ownership of a business to its employees.

potent

According to the components from Zig Ziglar, a message that is remembered and remembered for the right reasons is said to be

sole proprietorships

All business forms are types of separate, legal entities EXCEPT

employee bonuses

All of the following are examples of long term incentives to employees that help retain valuable team members EXCEPT

limited liability company

Based on what you have learned in this chapter, unless otherwise advised by Mr. Hutchinson, the best choice for Design-an-Ad is

virtual employees

Consider these alternative methods to hire an employee at no cost if your budget does not allow for a paid employee EXCEPT

emergence

Entrepreneurial role is most needed or focused on during which stage of the small firm life cycle?

emergence, existence, survival, success, and resource maturity

For most small businesses, which of these represent the usual sequence of stages in the business life cycle?

sole proprietorship

For start-ups like Design-an-Ad, the most popular business form is the

high-performing small business

From a growth strategy perspective, Quality Air can be described as a

success

Identify the small firm life cycle stage that Quality Air Inc. is at.

workout

If Kevin decides to terminate his business, a possible methods is a(n)

sell off

If Kevin wants to explore transfer, he should consider a

should design interview questions such that "yes" or "no" answers are not applicable

In evaluating potential employees, a small business owner

harvest

Kevin's goal appears to be one where he is able to

partnership

LLCs have a choice, under federal tax law, of being taxed as either a corporation or as a

takeoff

Most small businesses never go through the ____ stage.

lifestyle or part-time firms

Of the four generic growth stages,most small businesses are

to determine your organization's salary philosophy

One of the first steps in developing a compensation plan is

the amount that any one customer charges is unlikely to be big enough to threaten the business if it is not paid

Restaurants, clothing retailers, barbers, and beauticians face relatively low risks of loss from nonpayment because

teamwork

Sharing ideas, working towards a common goal, analyzing one another's work, and communicating cross functionally are related to

frequency

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?

focuses on minimizing estate tax payments

Tax management

customer complacency

The main challenge of the resource maturity stage is to avoid

is by increasing sales to existing steady customers

The most straightforward way to achieve sales growth

3 percent

The rule of thumb is that perks like these should take no more than ___ of the annual personnel budget.

liability of newness

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

payback period and ROI

The two most commonly used financial ratios for comparing investment alternatives are:

the performance review and pay review

The two parts to a formal performance appriasal:

check the box taxation

This is a choice LLCs can make on their tax returns to be taxed as a corporation or a partnership

job description

To really understand what he wants the person hired to do, Uncle Bob needs to develop a ___ which defines and discusses all the essential knowledge, skills, and abilities that are needed to fill the position.

civil

Torts are ___ wrongs.

90 days

Uncle Bob can hire an individual with a probationary period. This probationary period typically lasts

will protect it from increased costs in the form of interest

Using outside equity in your business

violation of government regulations

When it comes to the other black belts hired by Kirk, which of these represent a business risk that Kirk needs to manage?

acquisition

When one firm absorbs another through purchase, it is called a(n)

develop questions for interviewing

When recruiting, once a job description is prepared, the next step is to

90 days

When you hire employees, typically, a probationary period lasts

mediation

Which among the following dispute resolution methods is generally much faster to complete and the least expensive?

in the small business, virtual employees are not hired as full-time employees

Which among the following statements is true regarding virtual employees in small business?

bankruptcy

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?

coaching

Which of the following is an on-the-job training method?

firms develop the information, skills, and the routines to grow the business's profits

Which of the following statements is true regarding success stage of the small firm life cycle?

it requires that all information reported by CRAs be accurate

Which of the following statements is true regarding the Fair Credit Reporting Act?

some words or groups of words can be both trademarks and service marks

Which of the following statements is true regarding trademarks?

work facilitation

Which of these factors was least important to employees, according to Jill Kickul's research?

OSHA

Which of these government agencies is created to enforce safety in the workplace?

moderate start-up capital

Which of these is NOT a CSF that can help identify those businesses more likely to survive?

think of it as an investment

Which of these is a suggested guideline for training?

job title

Which of these is the first step Uncle Bob needs to start with, in crafting a job description?

job title

Which of these is the first step is crafting a job description?

arbitration

Which of these refers to a dispute resolution process held instead of court cases in which both sides present their case to a legal professional?

owners

Which of these represent the number one source for small business financing?

there is no governmental agency that will assist small business owners in maintaining their legal rights

Which of these represents the problem with legal protection methods for intellectual property?

BRIE

Which of these techniques can help an individual move from entrepreneurial thought to actions?

open-book policy

___ refers to the concept that key employees should be able to see and understand a firm's financials, that they should have a part in moving the numbers in the right direction, and that they should have a direct stake in the strategy and success of the firm.

internships

____ are jobs in businesses offered to students, arranged through universities.

employee referral

____ is an underused, low-cost method which reqards your employees for recommending potential candidates that would be a great fit.

accounts receivable

____ is money that is owed to your business by your customers.

liquidation; chapter 7

____ 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.

capital budgeting

____ refers to the process of deciding among various investment opportunities to create a specific spending plan.

financing for start-up

"Profits are secondary to cash flow" is a financial management need in which phase of business?

patent

A grant by the U.S. government to an inventor for an idea that is new, useful, and non-obvious, giving the inventor the exclusive right to make, use, or sell his or her idea is called

corporation

A legal "artificial" entity that is formed by filing specific documents with a state government is called a

incubators

Accelerators are also called as

the person must be employed for a distinct term

According to the IRS, to be an independent contractor

increases the demands on the owner

Adding employees

by renting capital equipment you incur ongoing costs if business conditions change

All of the following are the disadvantages to rental EXCEPT:

meet with whomever is going to conduct the internal audit in the presence of other members of the management

All of the following should be undertaken in order to ensure than an internal audit is effective EXCEPT

it increases the cost of selling

All of these are negative effects of extending credit to customers EXCEPT:

equity; financing for start-up

Angel investors provide ___ financing in the ___ phase of business.

cash for marketing

As Joyride Graphics moves into the growth phase, which of these would more likely become its dominant financial management need?

higher; lower

As a general rule, the ___ the deductible, the ___ the policy premium payments will be.

capital assets

Assets that are expected to provide economic benefits for periods of time greater than one year are called:

flat fees

Debbie speaks with a lawyer, Mr. Hutchinson, for help with the business form paperwork. Mr. Hutchinson indicated that he will charge a fixed amount for handling the paperwork once Debbie has decided on the form. Mr. Hutchinson' method of billing is called

that it is cost incurred to replace one asset with an identical asset

Depreciation is based on all of the following assumptions EXCEPT

unemployment insurance

Desired coverage beyond mandatory insurance that Kirk may want to consider includes all of these EXCEPT

actively working to create physical hazards in your workplace as a test

Different risks in the business can be managed by doing all of these EXCEPT

tax credits

Direct reductions in the amount of taxes that must be paid, dependent upon meeting some legal criteria are called

trademark

Distinctive words, slogans, or images, that identify a product and its origin is called a

foundations

During the start-up phase of a small business the "3-F" investors" are all of these EXCEPT

offer punishments for providing inadequate termination notice

Employee contracts should include all of the following provisions EXCEPT

contingency fees

Fee paid by a client to an attorney for legal services that is dependent upon the outcome of a case is referred to as

sole proprietorships

For start-ups, the most popular business form is the

profits being secondary to cash flow

Given that Joyride Graphics is in start-up phase, which of these would represent its financial management need?

it reduces the cost of selling

Harry needs to know that when it comes to providing credit, this is true.

it increases the cost of selling

Harry should be made aware that all of these are negative effects of extending credit to his customers EXCEPT:

business interruption insurance

Identify the insurance that provides funds to pay the ordinary operating expenses of your business should it be forced to close temporarily because of an insured event.

community development organization

Identify the organization authorized by the SBA to make insured loans to small businesses that are expected to increase economic activity with a specific geographic area.

Sarbanes-Oxley Act

Identify this federal law that describes the steps publicly traded businesses must take to protect and provide their key financial information.

an impasse may develop if the partners become incompatible

If Debbie decides to enter into a partnership with her friends, she should know that this is one of its disadvantages

difficulty in obtaining credit

If Debbie decides to go with sole proprietorship, she should know that this is one of its disadvantages

bar coding

If Harry adopts a perpetual inventory system, ___ is one method that can be used to reduce the cost.

JIT

If Harry adopts the practice of purchasing and accepting delivery of inventory only after it has been sold to the final customer, it would be referred to as a(n) ___ inventory system.

ordering cost and carrying cost

If Harry were to use EOQ, it would help him in terms of:

a sole proprietorship

If Johnny wants limited liability with Joyride Graphics, he can consider any of these legal forms EXCEPT

age

In 1964, EEOC established five protective classes. Which of these is NOT one of them?

how the business is taxed

In general, all the forms of business organizations can be categorized along two dimensions: (1) how much responsibility owners have for the organization's liabilities, and (2)

heuristic

In practice, managers of small businesses tend to use which of these when it comes to inventory?

property of the business

Inventory can be stolen, spoiled, or become obsolete. Production machinery can break down. Furniture, office equipment, vehicles, and buildings can be damaged or destroyed by vandalism, accidents, fire, flood, or wind. All of these represent risks related to the

keeping safety stock in case sales might be greater than forecast

Just-in-Time (JIT) inventory system attempts to reduce inventory levels to absolute minimum by all of the following EXCEPT:

book

Laws, regulations, and the requirements of GAAP require that ___ value be used for financial reporting and income tax purposes.

employee theft

Misappropriation of business property by employees of that business refers to

one-half; 75-80

Pledging receivables will get you about ____ of the amount that can be collected, where as, factoring can get you ___ percent of the amount due.

replacement

Potential buyers and investors are most interested in ___ value of your assets.

it usually results in higher sales revenues due to repeat business

Renting capital assets provides all of these advantages EXCEPT:

12

The Family and Medical Leave Act requires employers to give employees up to ___ weeks leave, paid or unpaid, without loss of position, seniority, or benefits, for a qualifying condition or event.

optimum stocking level

The ___ is the amount of inventory that results in the minimum cost, considering the cost of lost sales resulting from running out of stock, the number of units sold per day, and the number of days required to receive inventory.

more; greater; higher

The ___ likely an event is to occur, and the ___ potential amount htat the insurance company must pay, the ____ the price that you must pay for coverage.

immigration reform and control act of 1986

The ___ requires employers to complete I-9 forms for each employee.

capacity

The ____ of the business is the most important single factor for being able to borrow significant amounts of money.

profit

The amount that revenues exceed expenses is known as

piercing the veil

The dissolution of a corporate form, making it back into a sole proprietorship or general partnership, if the court finds that the owner carelessly mixed up personal and business assets or finances is(are) called

to identify risks faced by Klassic Karate

The first task that Kirk needs to complete before a comprehensive insurance program can be developed for Klassic Karate is

two or more employees collude

The greatest threat of loss from employee dishonesty occurs when

product liability

The magnitude of losses resulting from ___ claims has increased greatly in recent years with an increase in class action lawsuits.

growth potential

The primary concern for equity investors is

trade secret

This is not created by the government but is information known to certain people in the company that makes that company more competitive.

acid test ratios

This ratio is a measure of how much money can be made available very quickly to pay obligations within the fiscal year.

equity capital

When you sell part of your business, the money you receive is

fair labor standards act

Which among the following federal employment laws requires the payment of same wages to males and females for work requiring equal skill, effort, and responsibility in similar working conditions?

death of any one of the partners terminates the partnership

Which among the following is a disadvantage of partnerships?

inadequate management and employee skills

Which among the following is a disadvantage of sole proprietorships?

help wanted ads

Which among the following is a method that has traditionally been used by businesses to hire employees?

corporation

Which form of business faces double taxation?

tip

Which is the number one method for fraud detection?

articles of organization

Which of the following is a document that sets forth information about a limited company that is filed with the state to establish an LLC?

relatively permanent

Which of the following is an advantage of corporations?

errors and omissions insurance

Which of the following is an example of a special type of liability insurance that covers losses from harm caused during the performance of your profession?

leased assets have less number of restrictions on how they may be used, maintained, and disposed of

Which of the following is not a benefit of leasing?

most of these courts are designed so that ordinary citizens can bring their cases in

Which of the following is true regarding a small-claims court?

having a PC set to lock itself up after a few minutes of inactivity

Which of the following practices should be adopted to ensure that a computer is kept secure?

reconcile the cash register tape to the cash register contents every day

Which of the following should be undertaken in order to reduce a business's exposure to the risk of violating tax regulations?

fidelity bonds

Which of these are also called dishonesty bonds?

economic development agency

Which of these is a government organization that works to increase economic activity in the form of job opportunities with a specified geographic area?

venture capital

Which of these sources in equity financing is available during all four phases of businesses?

point-of-sale system

___ compromises both hardware and software to integrate inventory management directly into your accounting system.

cost of capital

___ refers to the percentage cost of obtaining future funds.

general liability insurance

____ exist to pay losses that are not covered by other liability insurance.

character

____ is judged largely by the owner's personal credit rating and by that of the business.