Entrepreneurship Semester 2 Study Guide - Multiple Choice

what does debt-to-equity measure?

the relation between the dollars you have borrowed and the dollars you have invested in your business

what type of business insurance covers a company's legal responsibility for the harm it may cause to others as a result of what it and its employees do or fail to do in its business operations?

liability insurance

the person in a business who is responsible for planning, organizing, staffing, implementing, and controlling the operations of a business is the

manager

for this type of business, inventory consists of the parts that will go into producing the business's product as well as its finished goods

manufacturing business

a strategy for expanding the target market of a business is called

market development

which of the following is an example of the Theory X leadership style?

martina carefully watches when her employees report for duty and reprimands then when they are even one minute late.

all of the following are concerns about inventory that managers must address except

reducing inventory turnover

a small business owner should do all of the following when interviewing potential employees except

refuse to allow the job applicant to ask questions - you are the one doing the questioning

a attractive layout is probably most important for a(n)

retail business

an amount paid for a job position stated on an annual basis is called a

salary

which of the following is a characteristic of a product in the maturity stage of its life cycle?

sales peak and profits begin to decline

loans that are backed by collateral are called

secured loans

to meet its environmental responsibilities, a business should not

sell products that damage the enviroment

which of the following is not generally thought of as a part of the organizing function?

strategic planning

which managers work directly with the employees who perform the day-to-day tasks of a business?

supervisors

a tax on imports is called a

tariff

a specific work activity an employee performs is called a

task

a business's credit policies need to specify all of the following except

the age and race of the customers who will be offered credit

which of the following is not a sign indicating that it is time to expand a business?

the business is laying off employees

after a business owner leases or purchases a facility, he or she needs to design the layout, or

floor plan

in this type of lease, the tenant pays rent each month from the space occupied, and the landlord covers all property expenses for that space.

gross lease

the difference between revenue and cost of goods sold is

gross profit

most businesses need all of the following types of supplies and equipment except

heavy machinery

credit card fraud is an example of

human risks

which of the following is the first step in the product development process?

idea development

an income statement can help a business owner do all of the following except

identify his/her equity in the business

which of the following is least likely to be an anchor store at a community shopping center?

large department stores

guidelines for the daily operations of a business are called

policies

human actions have no effect on

uncontrollable risks

most credit cards are considered

unsecured loans

the chain of command shows

who report to whom in the company

the law was passed to promote the employment of people over the age of 40 based on their ability rather than their age

age discrimination in employment act of 1967

you can grow your business by

all of the above (getting more people to buy your products or services, expanding into other geographic ares, & finding new products and services to sell)

an insurance agent

all of the above are true (earns a commission on the amount of coverage he/she sells to customers, may represent many different insurance companies, & may work for a single insurance company)

all of the following are resources an entrepreneur can use for recruiting except

all of the above can be used as recruiting resources. (in-store advertising, classified advertisements, & employment agencies)

what is a line of credit?

an agreement by a bank to lend up to a certain amount of money whenever the borrower needs it

things you own are referred to as your...

assets

all of the following are steps that should be taken in a risk assessment except

assume that risks are not a threat to your business until you are faced with them

a written code of ethics

can help employees make ethical decisions

this type of budget shows the projections of a business's cash flow

cash budget

which of the following financial statements best shows how much money you have available to pay your bills?

cash flow statement

cash sales and payments received from customers on their credit accounts are recorded in the

cash receipts journal

a machine called an electronic credit authorizer

checks to see if a customer's credit card is valid

in this type of job training, employees receive regular feedback and instruction from their manager

coaching

the process of setting standards for the operation of a business and ensuring those standards are met is called

controlling

a management style in which employees are involved in decision making ans the manager provides less direction is called

democratic management

which of the following is not one of the basic strategies for dealing with risk?

deny the risk exists

a business probaly could not buy insurance to cover risks associated with any of the following except

destructive weather

shipping products to buyers or distributors in foreign markets is called

direst exporting

the study of moral choices and values is called

ethics

which of the following is not a strategy a business can use to encourage faster payments?

increase the amount of time your customers have to pay their bills

students who will work for little or no pay in order to gain experience in a particular field are called

interns

which of the following is an example of a current asset?

inventory

which of the following types of shopping centers is the smallest?

neighborhood shopping center

the dollar amount of all sales with any returns subtracted is called

net sales

stand-alone stores...

often depend on drive-by traffic

a list of people who receive salary or wage payments from a business is called a(n)

payroll

this inventory involves taking a physical count of your merchandise at regular intervals, such as weekly or monthly

periodic inventory method

the area from which you expect to attract customers is called...

trade area

a specialized magazine devoted to a particular industry is called a(n)

trade magazine