Small Business Mgmt Final

June has always believed that the resale furniture store doesn't have quality furniture as it has been used by others. This _____ may cause her to avoid the store and shop at a store specializing in new furniture across town. A. attitude B. cognitive dissonance C. motivation D. perceptual categorization

A. attitude

When a product mix has more product lines, it has greater: A. breadth B. consistency C. depth D. lines

A. breadth

A customer's slip and fall injury would be covered by: A. commercial general liability insurance B. surety bonds C. business interruption insurance D. commercial property coverage

A. commercial general liability insurance

Julie's preference for the a certain style of barbeque developed in her state is the result of which sociological influence? A. culture B. opinion leaders C. reference groups D. social class

A. culture

It's been George's "baby" from the beginning and he really doesn't want to be accountable to any outsider for the decisions he makes in his business. In George's case, he should seek initially to secure _____ financing. A. debt B. equity C. internal D. asset

A. debt

Regina is so satisfied with her pharmacist that she refers her friends and colleagues, providing an ____ benefit of maintaining relationships with current customers: A. economic B. marketing C. psychological D. social

A. economic

Although not the primary source of financing for most small business startups, another source of early financing is: A. family members B. commercial banks C. business suppliers D. asset-based lenders

A. family members

The use of written policies, budgets, and job descriptions is most closely associated with which stage of growth? A. formal organization B. intermediate supervision C. One-person operation D. player-coach

A. formal organization

A franchise is able to control costs because: A. franchise networks have greater buying power B. suppliers prefer to sell to franchises C. franchises generally pay only minimum wages D. franchisees are locked into long-term contracts with vendors

A. franchise networks have greater buying power

Personal selling degenerates into order-taking when a salesperson: A. has limited knowledge of the product or service B. is persistent about selling the product or service C. is not friendly and enthusiastic when a customer enters the store D. cannot handle objections

A. has limited knowledge of the product or service

Martina expected to build her direct sales business it the point that she can quit her day job after six months. Five months later she barely has any customers. Martina: A. has overestimated what she can do B. is a domineering manager C. knows her market well D. should take on a partner

A. has overestimated what she can do

Business planning: A. in an ongoing process B. is an exacting science C. equals business success D. will prevent unexpected events

A. in an ongoing process

A hesitancy by an entrepreneur to move through the various organizational stages can: A. limit the rate of business growth B. be interpreted as evidence of creativity C. normally provide a competitive edge to the firm D. provide a spark to the business of the spontaneity it introduces

A. limit the rate of business growth

Chocolate Concoctions, a maker of high end chocolate candies, decided to price its boxes of candies below the long-term market price. The decision was made to increase market share and discourage other firms from entering the chocolate market. Chocolate Concoctions was implementing a A. penetration pricing strategy B. price lining strategy C. skimming price strategy D. variable pricing strategy

A. penetration pricing strategy

A category "C" item in the ABC method of inventory management for a college bookstore would be: A. pens B. magazines C. shirts D. textbooks

A. pens

Individual processes that ultimately give meaning to stimuli that confront consumers are known as: A. perceptions B. motivations C. attitudes D. opinions

A. perceptions

Euginie has written an poem that she plans to print inside of greeting cards she will publish. Her work is automatically protected but Euginie should include on the back of her greeting cards: A. the symbol (C) B. the date the work was published C. the name of the copyright owner's company D. a listing of all other copyrights held by the owner

A. the symbol (C)

Cameron has applied for a loan to expand his young business. When bankers look for evidence of whether he will be able to repay a loan, they usually base their assessment on: A. what Cameron's firm has done in the past B. what Cameron says the firm will do in the future C. the opinion of investment analysts D. the business plan of the enterprise

A. what Cameron's firm has done in the past

By the time Jobs and Wozniak had moved out of the garage and into their first production facility, the business would have been labeled as a(n): A. High-potential venture B. Attractive small firm C. Microbusiness D. Lifestyle business

B. Attractive small firm

Where would you suggest Xavier look for information about possible franchise opportunities? A. Barron's Weekly B. Inc, Entrepreneur, or the Wall Street Journal C. the Small Business Administration D. local newspapers

B. Inc, Entrepreneur, or the Wall Street Journal

A corporate charter should: A. be detailed B. be in accord with state law C. include bylaws D. indicate profit potential

B. be in accord with state law

The basic quality tool that Kaoru Ishikawa recognized that identifies potential causes of a problem while sorting them into categories is the: A. check sheet B. cause-and-effect diagram C. control chart D. parento chart

B. cause-and-effect diagram

As his business grows, George finds he does not have either the time or the skills to manage the human resources function. He has decided to outsource part of personnel management to an organization that handles paperwork and administers benefits for his employees in an arrangement called: A. a joint venture B. co-employment C. employment benefits D. human resourcing

B. co-employment

Type of tax most likely to be a problem for entrepreneurs is: A. federal income tax B. employee payroll taxes C. state withholding tax D. state sales tax

B. employee payroll taxes

The income statement answers which question? A. how much cash did the firm generate? B. how profitable was the business? C. how much money does the company owe? D. how much money did the owners invest?

B. how profitable was the business?

Where should Rhonda put the administrative expenses for her business when she prepares the financial forecasts? A. administrative costs are subtracted from amount of sales B. in the operating expenses section C. administrative costs are included in cost of goods sold D. in the interest expense section

B. in the operating expenses section

Quality Cars, an independent used-car dealership, utilizes long-term consumer credit in its business. Typically, consumers are allowed to place a 15% down payment on a car. Then, over a period of 48 months, the consumer is allowed to make payments on the balance of the account, which includes compound interest of 2% monthly on the unpaid portion. Quality Cars is employing ______ in its business: A. open charge accounts B. installment accounts C. revolving accounts D. selective accounts

B. installment accounts

Nancy just added her eighth employee, a human resource manager who will be responsible for all future hiring, training, retaining, and firing decisions. The company is in a ________ organizational structure. A. delegated B. line-and-staff C. line D. span of control

B. line-and-staff

Telephone calls and mail surveys are examples of: A. impersonal referrals B. marketer-initiated contacts C. personal referrals D. customer-initiated contacts

B. marketer-initiated contacts

Quality Dining, Inc. operates several different restaurant franchises including Burger King, Olive Garden, Dairy Queen, and several others. Quality Dining has its own corporate structure and stockholders. This corporation is an example of: A. master licensing B. multibrand franchising C. piggyback franchising D. co-branding

B. multibrand franchising

Bagels Bagels Bagels, a small breakfast bagel bakery, has expanded into sandwiches for lunch using bagels. They are now employing a _____ product strategy. A. one product/one market B. one product/multiple markets C. modified product/one market D. modified product/multiple markets

B. one product/multiple markets

A policy for small business that do not qualify for a BOP that combines property insurance and commercial general liability insurance is called a A. personal policy B. package policy C. health policy D. business owner's policy

B. package policy

PRO factors include: A. products, resources, and outputs B. products, representatives, and organizations C. people, resources, and outputs D. performance, relationships, and options

B. products, representatives, and organizations

Nardell's franchise contract contains language that prohibits him from operating a similar business under his own brand. Nardell considers this to be: A. due diligence B. restraint of trade C. restrictive practice D. encroachment

B. restraint of trade

According to Michael Porter, a focus strategy can erode when: A. the strategy is protected B. the target segment's differences from other segments narrow C. new firms reconstruct the industry D. demand for the product grows and thus attracts new competitors

B. the target segment's differences from other segments narrow

Walter wanted to be able to make decisions about issues that directly affected his department but in his corporation, the managers made all the decisions. SO Walter left the corp and started his own firm. Walter was looking for: A. Personal fulfillment B. Personal satisfaction C. Independence D. Financial rewards

C. Independence

The state of Maryland has recently imposed a "rain tax" based on the amount of non-water-absorbing surfaces on real estate. Which type of trend does this represent? A. Economic B. Sociocultural C. Political/legal D. Technological

C. Political/legal

When considering the feasibility and affordability of insuring small potential losses, which company program will impact this decision? A. ACV B. FICA C. Self-insurance D. Workers' compensation

C. Self-insurance

Risk is: A. a chance all entrepreneurs take B. a probability that adverse conditions will result C. a possibility of suffering harm or loss D. usually avoidable

C. a possibility of suffering harm or loss

Entrepreneurs determine financial requirements based on _________. A. predictions B. suggestions C. assumptions D. projections

C. assumptions

A firm that provides substantial profits to its owners is called a: A. franchise B. high-potential venture C. attractive small firm D. lifestyle business

C. attractive small firm

Ideas Unlimited is a consulting firm that provided retailers with information about regional sales trends. To estimate demand in the market for its services, the firm's marketing department identifies all buyers in each category of retailers and determines how much business is possible. The market demand estimate is based on the: A. aggregate forecasting B. breakdown forecasting process C. buildup forecasting process D. indirect forecasting process

C. buildup forecasting process

The goal of the managing cash conversion period is to _____ the number of days: A. increase B. maintain C. decrease D. match the industry average for

C. decrease

A small computer retailer makes every effort to satisfy customer needs both before and after the sale. However, this retailer regards social problems as being beyond the scope of his business. This firm's management has recognized: A. some degree of social responsibility in its commitment to customers B. the existence of social responsibilities but having failed to do anything about them C. ethical obligations to customers but not social responsibilities D. social responsibility as the domain of big business

C. ethical obligations to customers but not social responsibilities

Using the criteria in the text to define a small business, Table Occasions will not be considered a small business once the company: A. is financed by three individuals B. has sales greater than 20% of other firms in the industry C. is operating in numerous states D. has 50 employees

C. is operating in numerous states

Preparation of employees for career advancement through education, job experiences, network development, and performance assessment is called A. employee training B. human resources C. management development D. workforce diversity

C. management development

Love Languages is introducing an improved version of its tutoring targeted to students who want more in-depth assistance using a CD format. The company has decided to continue to offer their original tutoring package and aim the new product at the original target market; therefore, they are employing a ______ product strategy. A. multiple products/multiple markets B. multiple products/one market C. modified product/one market D. modified product/multiple markets

C. modified product/one market

A small business customer slips on a wet floor (due to a slow water leak), falls and breaks an arm. Damages that could potentially be awarded to the customer might include: A. economic since the customer has a loss of physical abilities B. noneconomic since the customer has medical bills C. punitive due to the leak D. compensatory to cover the cost of repairing the leak

C. punitive due to the leak

The cost to replace or replicate property at today's prices is described by _______ : A. real property B. personal property C. replacement value of property D. actual cash value

C. replacement value of property

CRM is the business version of: A. the 10 commandments B. the Bill of Rights C. the Golden Rule D. Maslow's hierarchy of needs

C. the Golden Rule

Slow-paying credit accounts: A. almost always help to build goodwill with customers B. are rarely a problem for small businesses C. tie up the seller's working capital D. yield advantages from carry-over effects

C. tie up the seller's working capital

Which of the following is an example of "quality"? A. the taste of a restaurant's food B. turn time at an auto repair shop C. product fail rate for a manufacturer D. All of the above

D. All of the above

Effective time management requires: A. firmly established priorities B. self-discipline C. using a good time management system D. All of the above are required

D. All of the above are required

Collin's Classic for Children with Cancer is a 501(c)3 nonprofit corporation that sells shirts. The organization will be taxed as a ____________________: A. partnership B. C corporation C. S corporation D. It is not taxed

D. It is not taxed

Which statement is an example of a global trend? A. The Fed Reserve announces that it will decrease the interest rate it charges banks B. Congress passes legislation that increases the tax rates on corporations C. A new computer chip is announced that will allow for miniaturization of many electronic devices D. The E.U. declares an increase in tariffs on all agricultural goods

D. The E.U. declares an increase in tariffs on all agricultural goods

If a small fencing company wants to check the length of fence posts to determine if they are acceptable, a(n) ______ should be used. A. poka-yoke B. an attribute inspection C. acceptance sampling D. a variable inspection

D. a variable inspection

When Cameron and Ashley allow a customer to buy on credit, which account increases? A. debt B. inventory C. accounts payable D. accounts receivable

D. accounts receivable

Milton Friedman argues that businesses A. should avoid social responsibility whenever it is possible to do so B. should be required to use their resources to meet their social responsibilities C. can only earn profits if they do so in a socially responsible manner D. are justified in being socially responsible only if doing so increases the firm's value

D. are justified in being socially responsible only if doing so increases the firm's value

Francesca convinced her aunt to invest in her day spa in exchange for a percentage of the profits. Francesca is: A. taking advantage of her aunt B. capitalizing on an opportunity C. conserving her own resources D. bootstrapping

D. bootstrapping

Frequent and flagrant disregard of the chain of command undermines the position of the: A. founder B. operative employee C. staff specialist D. bypassed manager

D. bypassed manager

Having more than one supervisor is a violation of the: A. span of control B. delegating C. controlling D. chain of command

D. chain of command

WalMart grants credit to consumers who purchase for personal or family use. This type of credit is called: A. trade credit B. personal credit C. open credit D. consumer credit

D. consumer credit

Giving the impression a business is something it is not: A. is ingenious and resourceful B. is illegal C. is acceptable so long as no one is hurt by the transactions D. is a way to manipulate customers

D. is a way to manipulate customers

Pepsico produces and distributes products under the brand names Pepsi, Quaker, Frito-Lay, and many others. This collection of product lines within Pepsico's ownership and control is referred to as the: A. product depth B. product accumulation C. product line consistency D. product mix

D. product mix

The total sales revenue of a small business is a direct reflection of: A. sales volume and credit terms B. price and credit terms C. price and expenses D. sales volume and price

D. sales volume and price

Self-insurance requires: A. an analysis for stop loss limits B. implementing risk control methods C. owning stock in an insurance company D. saving money to cover possible future losses

D. saving money to cover possible future losses

When Evelyn hired a new sales manager, she issued a press release emphasizing the new hire's education and industry experience because: A. she wanted to introduce the sales manager to the community B. this was her first new hire and she wanted everyone to know her business was expanding C. she had stolen the sales manager from a competitor and wanted to gloat publicly D. she wanted to bolster the sales manager's credibility

D. she wanted to bolster the sales manager's credibility

Amazon.com is a A. brand B. label C. logo D. trademark

D. trademark

The main advantage of using credit cards for financing is the relatively low interest rate compared to bank loans. True/False?

False

When considering the long term health of a company during the transfer of ownership, tax advantages should be the primary concern. True/False?

False

A new business needs to manage cash flows carefully because if a firm runs out of cash, it is out of business. True/False?

True

In many cases, a franchisor will receive payments in the form of royalties that are based on a percentage of the franchisee's gross income. True/False?

True

One sibling dilemma in a family business has been labeled the predator/parasite conflict: True/False?

True

Spontaneous debt financing results when accounts payable increase in proportion to a firm's profits. True/False?

True

The processing of a loan application can be completed more quickly if the franchising organization is registered with the US Small Business Administration. True/False?

True