Entrepreneurship and Small Business Management (18-19)

Which of the following is a potential risk of implementing enterprise risk management (ERM) software:

Loss of data during the transfer

Channels of distribution benefit consumers by what?

Making a variety of products available to them

Why do lending institutions carefully evaluate how well a business meets certain criteria before making a loan?

To reduce risk

Which of the following is a type of intangible business property that is protected by law:

Trademark

What information does a business always need to have when it conducts a break-even analysis?

Variable costs and fixed costs

Which of the following statements is true about new venture risk-taking:

When an entrepreneur seeks a high profit, the risk is usually higher.

Which of the following are public relations activities:

Writing press releases, distributing company newsletters, and sponsoring events

If employees are fired because their conduct is in serious violation of company policies, they are being terminated for

cause.

Samples, premiums, and advertising specialties are examples of __________ used in sales promotion.

communications channels

An organization should include independent members on its board of directors because they.....

provide an objective perspective

If an entrepreneur obtains a commercial bank loan to finance a new venture, s/he is often required to.....

provide collateral.

Motives, perception, attitude, lifestyle, personality, and abilities are __________ factors influencing consumer behavior.

psychological

Because __________ measures of risk can be too general, it is also useful to perform __________ assessment of risk.

qualitative; quantitative

A manufacturing compny is required by the local government to dispose of it's waste in an enviormentally safe way. This is an exmple of how process design can be affected by _____ factors.

regulatory

One way that managers can promote ethical behavior on the part of everyone in the business is by encouraging employees to

report unethical actions.

The entrepreneurial discovery process that involves finding a way to meet an existing demand by inventing new products from available resources is based on

science.

Ethan is developing common-size financial statements so that he can compare financial performance across several different companies. Ethan is conducting __________ analysis.

vertical analysis

The future that you desire to create is known as a

vision

Which of the following situations describes a business process changing due to technological factors:

A manufacturing company purchases a new software program to run its machines.

Which of the following is an example of an intangible asset:

Accounts receivable

_____ is a strategy for linking performance measures to financial outcomes:

Analyzing click-through rates

Which of the following is a risk a business might face if it obtains a long-term loan from a financial institution and pays off the loan before it is due:

Being charged a penalty

Which of the following is one way that freedom in a private enterprise system is limited by laws:

Certain occupations must be licensed.

After writing your personal vision, what must you do to achieve it?

Commit to your vision through hard work and dedication.

What should a successful brand promise be able to do?

Communicate an appealing benefit

Which of the following is a characteristic of a business-format franchise:

Continuous assistance is provided by the franchisor.

Which of the following activities is an example of preparing before attempting to sell an idea:

Determining the details of your idea

What type of promotional media is a business using when it sends out a postcard telling customers who recently purchased products that the business is adding a new line of products?

Direct mail

Which of the following should a business consider when negotiating a service or maintenance contract on a piece of equipment:

Does the cost of the contract exceed the cost of possible repairs?

Which of the following is most likely to be a dynamic element of a business's external environment:

Increase in competition

Which of the following is an example of a fixed operating expense:

Insurance

When determining financing needs, what factor should businesses consider that will help decide whether they can repay the debt?

Liquidity

For which of the following markets would producers use a short channel of distribution:

Local consumers

One of the goals of change management is

to obtain buy-in from stakeholders.

The ski shop manager set an objective to increase sales by 10% over the previous year even though the forecast was for a mild and rainy winter. The manager's objective was

unrealistic.

Jana noticed a problem while reviewing her company's monthly income statement. She verified that the total revenue was $4,590 and the total expenses were $1,452. However, the income statement showed a net income total of $1,383. Which of the following reflects the correct net income:

$3,138

Which of the following payback periods in a cost/benefit analysis would businesses prefer if all other things were equal:

1 year

Chad is buying a new car. Although the first car is a great deal and a more practical choice, he just loves the look of the second car. As a result, he decides to purchase the second car. His decision is based on which of the following internal factors:

Emotion

_____ is a situation in which a business could use the budget information to make operating changes:

Estimated sales exceed actual sales

Which of the following is the most critical component of a business plan:

Executive summary

Which of the following is an example of a manager developing a policy that impacts customer relations:

Extending business hours on weekends

True or false: In determining the selling price of a good or service, most of the factors to be considered by the seller are internal to the business.

False, most factors affecting price are not controlled by the firm.

Determine if the following statement is true or false: When developing an exit strategy for an entrepreneurial venture, the most important consideration is finding a suitable buyer.

False, there are many factors to consider, such as company valuation and personal goals.

An employee is comparing income statements from the past three years to evaluate changes and trends in the business's revenue. What type of business analysis is the employee conducting?

Financial

What type of software do many businesses require be installed on computer systems as a security feature?

Firewall

Which of the following pairs of businesses are examples of direct competitors:

Hot n" Spicy Wings and Southern Fried Chicken House

Which of the following is an example of a durable good:

House

James needs to hire a bookkeeper for his growing business. To determine the new employee's salary, James obtained pay data from five companies in his industry that are similar in size. The research indicated the following: Company A pays $31,205; Company B pays $29,995; Company C pays $34,800; Company D pays $42,500; and Company E pays $36,500. James decided to set his bookkeeper's salary at $35,000. What measure of central tendency did James use to set his new employee's salary?

Mean

Which management function lays the groundwork for all of the other management functions?

Planning

Which of the following is a true statement regarding the relationship between a business's supply chain management and its performance:

Poor supply chain management can result in customer dissatisfaction.

Ryan keeps a list of his goals to remind himself of what he's working toward. Which tip for smart goal setting is Ryan following?

Putting goals in writing

What do business employees often need to do before they are able to write proposals?

Research the problem

What do many businesses identify and strive to improve in order to attract customers and be competitive?

Service standards

Which of the following is a characteristic of a profit-and-loss statement:

Summarizes expenses and revenue from sales

Who typically reviews and approves the guidelines for running a corporation, which are also known as corporate governance policies?

The board of directors

What is the relationship between shareholders and the board of directors?

The board of directors represents the shareholders.

Which of the following statements is true about business startup requirements:

The financial needs to start a new business depend on the nature of the venture.

Why is it important for entrepreneurs to talk with industry experts when developing new business concepts?

The industry experts typically provide useful information.

Which of the following is a characteristic of the data collection step in marketing research:

The step in which the most mistakes are made

Why do interviewers usually focus on asking questions that are related to a job applicant's performance?

To determine qualifications

Why is it often necessary to provide employees with additional training?

To improve performance

What is often the role of management in the achievement of quality in a business?

To lead the effort

Why do some businesses sponsor local events?

To obtain publicity

what is one way that businesses use marketing information:

To predict change

Businesses often obtain cash to produce and sell goods by borrowing against their

accounts receivable.

Time management helps to reduce stress because it

allows adequate time for personal and professional activities.

The cost of employing product inspectors is a(n)

appraisal cost.

Before assigning a new project to her employees, Joanna establishes the steps that her staff needs to take to complete the project. Joanna is utilizing

business process thinking.

Basic torts relating to businesses often involve disputes concerning

contracts

Limited liability, indefinite length of life, ease of expansion, legal entity, and transfer of ownership are considered advantages of a

corporation

In managerial accounting, the number of hours that a business runs its machinery during the production process is classified as a(n)

cost driver.

A product idea is feasible if it

creates a competitive advantage.

Managers are more likely to be able to persuade employees to follow new procedures if the managers have.........

credibility.

A business manager who wants to increase the number of items the business offers needs to decide whether the new items will be compatible with the business's

current product mix

An advantage to using direct marketing to communicate product information is that the business can

customize the messages.

Continuous assistance is provided by the franchisor.

exchange price.

An important part of a market analysis involves collecting __________ information.

geographic

By joining a community organization, such as the local chamber of commerce, an entrepreneur can network with others to

identify new venture opportunities.

The type of capital resources that a startup business needs to begin operating usually depends on the

industry.

Ali wants to negotiate with her boss to take on more job responsibilities. Before approaching her boss, Ali needs to determine her boss's position and

interests.

To determine their human resource needs, new business owners often find it helpful to.....

list all the tasks involved in operating the business.

If a business considers where the consumers are and who they are before selecting a channel of distribution, the business is considering the __________ factor.

market

Products that appeal to the majority of customers are often sold through __________ marketing efforts.

mass

Terry, a company buyer, has the job of choosing a particular assortment of products that will meet the market's needs and the company's goals. Terry is responsible for the company's product

mix.

To effectively manage a supply chain, companies should...

monitor the performance of all supply chain partners

During the month of July, sales at Handy's Shoe Mart totaled $2,500. The cost of the shoes was $1,025. The owner paid $866 for supplies, insurance, rent, and utilities during the month. The $609 left over represents the owner's

net profit.

To develop repeat business and customer loyalty, a business owner might

offer a new service.

One reason why it is important to accurately forecast sales for a marketing plan is because the forecast is the basis of other

operational activities.

When a supervisor evaluates an employee's performance, the evaluation should be based on the __________ standards.

organization's

Hill Industries uses specific criteria to evaluate vendor performance, including on-time delivery rate, return rate, and number of customer complaints. These metrics are also known as

performance indicators.

Ariel, who designs and sells a line of purses and tote bags, recently sent free totes bag to local female news anchors. Ariel's goal is to have others see the local celebrities carrying the tote bags to generate interest in her product. What form of word-of-mouth marketing is Ariel using?

product seeding

A business converts inputs into outputs through its ______ activities.

production

Non-corporations are taxed as pass-through entities, meaning that

profits and losses are claimed on owners' personal tax returns.

The FPD Company keeps copies of its brochures, catalogs, and flyers on file for future reference. This is an example of a company that is maintaining __________ records.

promotional

An example of an internal change that could affect a business's sales forecast is a change in the

size of the sales force.

Small-business owners develop and use operating procedures so that everyday tasks are performed in a(n)_______way.

standard

Business goals are accomplished by means of marketing

strategies.

Salespersons should have good communication skills, but the sales presentation should not include too many __________ words.

technical

Dan is in the process of determining the types of computer software and telephone service that will best suit his new business and get it up and running. Dan is considering his businesses

technical needs