MGMT 350 final

There are three general types of events that cause business risk. Which of the following is not one of those three general types of events?

Events related to the competitors of the business.

All money is considered currency, but all currency is not considered money.

False

Contingency fees are a fixed amount paid for a certain task.

False

Everyone responds differently to risk. When it comes to business risk, small business owners are mostly risk seeking rather than risk averse.

False

In the case of mediation, the dispute is put to a neutral third party who has the powers of a judge.

False

Small businesses never experience any cash flow problems.

False

The OSHA is a commission established to enforce the provisions of the Equal Employment Opportunity Act

False

The advantage of legal protection methods for intellectual property is that there are multiple government agencies in each area that will assist a small business owner in maintaining their legal rights

False

The primary advantage of bartering is that it is essentially tax-free as long as no cash is involved.

False

When interviewing a promising prospective employee, it is best to only have one interviewer. This helps you be sure that youunderstand the individual as well as possible.

False

Which of the following is a disadvantage of hiring a full-time employee?

Hiring full-time employees incurs costs of training time, employee tax, and accounting costs

________ refers to a set of rules and procedures that work to limit the opportunity for employee theft or malfeasance.

Internal control

Which of the following is true about trade name?

Most states allow several firms to use the same trade name, as long as the firms are in different lines of business.

________ refers to the trial period in which an employee has temporary status before a formal offer to work full time is presented.

Probationary period

________ refers to amounts that are owed to a business for merchandise that was sold on credit.

Receivables

________ refers to laws and governmental rules that limit the freedom of business owners to manage their businesses as they please.

Regulation of the workplace

Which of the following forms of business requires no government permission to set up?

Sole proprietorship

Which of the following statements concerning small business and law is not true?

State laws applicable to small business are standard in all fifty states.

Brendon wants to sue Fitness Ace, a leading provider of fitness equipments, for negligence. He approaches Arthur Bailey Group, a law firm, which has good experience in handling product liability claims for victims of exercise equipment failure. Which of the following would be true if the attorney charges Brendon in the form of contingency fees?

The attorney would take a percentage of Brendon's recovery as his or her fee.

A job description defines and discusses all the essential knowledge, skills, and abilities that are needed to fill a position.

True

A sole proprietorship is not considered as a separate legal entity from its owner.

True

Adding employees in a firm increases both the amount of work that can be done and the demands on the owner.

True

Adverse possession occurs when an owner of real property does not enforce property rights and allows a non-owner to use the property as if it were his or her own.

True

Cash-to-cash cycle is also referred to as operating cycle.

True

Employees whose experience and skills are critical to the success of a business are called key employees.

True

Financing may be in the form of cash donated to a business in return for ownership

True

If the business is a corporation or an LLC, the owner can only lose what he or she has invested in the business.

True

Networking is a relatively low-cost, although time-intensive, method of recruiting.

True

Which of the following countries is one of the most litigious societies in the world?

United States

Debt investments that mature in less than three months are an example of ________.

cash equivalents

A(n. ________ refers to the sum of cash inflows and cash outflows recorded in a firm's accounting records.

company book balance

Jacob often manipulates charges on his travel expenses to indicate higher amounts when he travels for the company he works for. Trent, the accounts manager, accepts fake bills and assists Jacob in deceiving the company. They split the profits made this way.This is an example of theft by:

employee collusion.

The match between the needs, expectations, and culture of the small business with the expectations and the skills of the individual employee is called:

employee fit.

Alana, the owner of a small dress-making establishment called Mantua Fab, decides to hire assistants for design, sewing, and other tailoring jobs. Alana asks one of her most trusted employees, Sue, to suggest potential candidates who would be a good fit at Mantua Fab.This is an example of:

employee referral.

We use many electronic forms of money: debit cards, online bill payments, electronic bank drafts, and wire transfers. These forms of money make an important point - the essence of money is that it is a form of ________.

information

A(n) ________ defines and discusses all the essential knowledge, skills, and abilities that are needed to fill a position.

job description

The job rotation technique is an example of ________.

on-the-job training

The time required for a business to acquire resources, convert them into a product, sell the product,and receive cash from the sale is referred as the ________ cycle of a business.

operating

Except for ________, business forms are types of separate, legal entities

sole proprietorships

If a risk-averse small business owner can't reduce the level of risk to where they are comfortable, they can either insure against future losses or ________.

spread the risk among other people or businesses