Small Business Pre-Test

The ____ is a message to customers that explains how the business adds value to their lives. a. goals b. vision statement c. mission statement d. target market

Mission statement

Which type of economy can be found in countries with little manufacturing and large rural populations? a. Mixed b. Market c. Command d. Traditional

Traditional

Businesses that can buy and sell with few restrictions can be found in which of the following economies? a. Mixed b. Command c. Traditional d. Market

Market

US census data are an example of which of the following? a. Primary data b. Third-hand data c. Excess data d. Secondary data

Secondary data

Which of the following is not an ethical issue entrepreneurs face? a. Plagiarism b. Conflict of interest c. Signing contracts d. Insider trading

Signing contracts

Values are what a person believes in and are part of ____ segmentation. a. demographic b. psychographic c. geographic d. behavioral

Psychographic

Which of the following is not an end result of market research? a. Raise start-up capital b. Learn about competition c. Identify growth opportunities d. Define primary customers

Raise start-up capital

Which of the following is part of the entrepreneurial discovery process? a. Finding partners b. Recognizing a need or want not being met c. Raising start-up capital d. Discovering different businesses

Recognizing a need or want not being met

Which of the following are provided to consumers by the BBB? a. Licensing b. Reliability reports c. Tax guidelines d. Currency converters

Reliability reports

Which of the following is done by the franchisor when processing a franchise application? a. Find a location b. Request a down payment c. Run a background check d. Run a credit check

Run a credit check

Which of the following is not a common type of manufacturing layout? a. Product-based b. Process-based c. Project-based d. Safety-based

Safety-based

The number of people in a group from which data are collected is referred to as a ____. a. population b. sample size c. secondary data d. market segment

Sample size

Which of the following government agencies should you consult before importing products from other countries? a. Federal Trade Commission b. US Bureau of International Labor Affairs c. US Bureau of Industry and Security d. Occupational Safety and Health Administration

US Bureau of International Labor Affairs

NAFTA removed trade barriers between which of the following countries? a. US, Canada, and Mexico b. US, Europe, and China c. US, Mexico, and China d. US, Canada, and China

US, Canada, and Mexico

Which of the following best describes qualitative data? a. What people think about a topic b. Reports available by companies who conduct research c. Number of people from which data are collected d. Facts and figures from which conclusions can be drawn

What people think about a topic

Which of the following types of skills are not foundation skills necessary for success in any career? a. Business skills b. Technology skills c. Athletic skills d. Thinking skills

Athletic skills

Which of the following variables is not used in behavioral segmentation? a. Attitudes b. Usage rate c. Brand loyalty d. Benefits sought

Attitudes

Which of the following does not have to be considered when creating a retail floor plan? a. Aisle width b. Traffic flow c. Customer size d. Space

Customer size

Which of the following is a direct result of tariffs on imported goods? a. Decreased amount of imported products b. Increased amount of imported products c. Higher prices on those products d. Lowered prices on those products

Higher prices on those products

Which of the following is not a benefit of having a small business in the local economy? a. Keeping production and manufacturing in the US b. Creating local jobs c. Saving transportation costs d. Increasing waste

Increasing waste

A group of businesses that provide a particular product or service is referred to as a(n) ____. a. industry b. monopoly c. corporation d. partnership

Industry

Which of the following is not an activity involved starting a new business? a. Developing a marketing plan b. Managing finances c. Planning retirement d. Deciding what type of business to open

Planning retirement

Which of the following is not one of the five personality traits for entrepreneurs? a. Planning b. Problem solving c. Passion d. Positive

Positive

____ layout places the equipment and workers that are grouped by division of labor to maximize efficiency. a. Process-based b. Project-based c. Product-based d. Safety-based

Process-based

Which of the following is not a disadvantage of owning a franchise? a. Franchisor's rules and regulations b. High start-up costs c. Profits d. Royalty payments

Profits

Employees and machines must move to the product to assemble it at its location in a ____ manufacturing layout. a. safety-based b. product-based c. project-based d. process-based

Project-based

Which of the following floor plans is most commonly found in supermarkets? a. Angular b. Straight c. Loop d. Diagonal

Straight

Which of the following describes a market segment? a. A group of products designed to meet a specific need b. A smaller group of people or businesses with common needs c. The entire large market of potential customers d. A specific group of customers at which a company aims its products

A smaller group of people or businesses with common needs

Which of the following statements describes a general partnership? a. All partners have unlimited liability. b. It is a legal entity that can buy property. c. It has one managing partner and one limited partner. d. It is set up to accomplish a specific mission.

All partners have unlimited liability.

Grocery stores are an example of which type of physical structure? a. Home-based b. Brick-and-mortar c. Hybrid d. E-business

Brick-and-mortar

Which of the following is the most expensive option for obtaining a space for a business? a. Build b. Refinance c. Lease d. Buy

Build

Which of the following organizations monitors adherence to labor laws in companies that conduct business globally? a. Bureau of International Labor Affairs b. World Trade Organization c. Small Business Administration d. Better Business Bureau

Bureau of International Labor Affairs

Rules related to professional standards of conduct and integrity in all areas of business are ____. a. business ethics b. morals c. values d. integrity

Business ethics

Who sets a company's corporate culture? a. Customers b. Business owners c. Stakeholders d. Investors

Business owners

Math skills are among the ____ skills an entrepreneur needs. a. planning skills b. interpersonal skills c. business skills d. problem solving skills

Business skills

Which of the following is not a characteristic of a target market? a. Businesses willing to lower costs b. Enough potential customers to make a profit c. Customers share similar needs d. People willing to buy the product

Businesses willing to lower costs

Which of the following is not a natural resource? a. Oil b. Water c. Wood d. Cement

Cement

A ____ is a legal document describing the purpose, place of business, and other details of the corporation. a. contract b. home state corporation c. license d. charter

Charter

Which of the following is based on the company's code of ethics? a. Code of conduct b. Employee handbook c. Code of values d. Operations manual

Code of conduct

Social or moral principles or values that guide an organization are provided in a company's ____. a. operations manual b. code of ethics. c. value table d. employee handbook

Code of ethics

Which type of economy is characterized by total government regulation and industries that are publically owned? a. Command b. Mixed c. Market d. Traditional

Command

Which of the following actions can help prevent a new business from failing? a. Overestimating the probable profits b. Forecasting the need for less start-up cash c. Ignoring SBA regulations d. Conducting a feasibility analysis

Conducting a feasibility analysis

An employee is receiving a percentage of sales from the manufacturer of a product carried in your store. This is an example of ____. a. conflict of interest b. proprietary information c. insider trading d. privacy issue

Conflict of interest

Records and procedures that a corporation is required by law to complete are referred to as a. charters. b. corporate formalities. c. DBA licenses. d. contracts.

Corporate formalities

Which of the following is a benefit of a business being socially responsible? a. Lowers expenses b. Impresses investors c. Creates customer loyalty d. Increases value

Creates customer loyalty

Which of the following is not an advantage of the straight floor plan? a. Low cost b. Easy to monitor c. Creative d. Easy to clean

Creative

A sole proprietor may be required to file for which of the following? a. Contract b. Article of incorporation c. Partnership agreement d. DBA license

DBA license

When creating a career plan, the first step in the decision-making process is to ____. a. make a decision b. define the challenge c. analyze the situation d. gather the facts

Define the challenge

Identifying your competition is part of which step of the research process? a. Define the problem b. Collecting data c. Draw conclusions d. Hypothesis

Define the problem

Using US census data can help businesses learn which of the following about their target markets? a. Values b. Needs c. Demographics d. Wants

Demographics

Which of the market segmentation variables divides the market by customers' personal characteristics? a. Psychographic b. Geographic c. Behavioral d. Demographic

Demographics

Baskin-Robbins® and Carvel® ice cream shops are examples of which type of competition? a. Advantageous competition b. Market competition c. Indirect competition d. Direct competition

Direct competition

Assigning workers to specialized tasks for increased efficiency is known as a. production needs. b. product-based. c. production workflow. d. division of labor.

Division of labor

Which of the following is not a disadvantage of a partnership? a. Partners' personalities b. Unlimited liability c. Double taxation d. Financing issues

Double taxation

When a company hires and buys locally, it is addressing which of the following social responsibility categories? a. Philanthropic b. Legal c. Economic d. Environmental

Economic

Natural, human, and capital resources are all ____. a. traded resources b. scarce resources c. unlimited resources d. economic resources

Economic resources

Which of the following is not an advantage of buying a franchise? a. Employees in place b. Financial advice provided c. Training provided d. Established company

Employees in place

Cutting corners or projecting higher-than-realistic sales figures are examples of ____. a. ethical issues b. social issues c. privacy issues d. environmental issues

Ethical issues

Which section of a business plan should be written last, even though it is at the beginning of a business plan? a. Executive summary b. Business description c. Financial plans d. Market evaluation

Executive summary

Companies that assist US businesses with finding global buyers are known as ____. a. shipping industries b. domestic businesses c. export management companies d. foreign embassies

Export management companies

All businesses are monitored by the a. International Franchise Association. b. Small Business Administration. c. Federal Trade Commission. d. local chamber of commerce.

Federal Trade Commission

Which of the following is not a disadvantage of working with a family business? a. Conflicting interests b. Family member responsibilities c. Flexibility d. Family member disagreements

Flexibility

A drawing of how an overall space will be divided is a a. selling space. b. layout. c. floor plan. d. trade area.

Floor plan

Which of the following does not need to be considered when opening a business in an area? a. State and local incentives b. Floor plan c. Zoning laws d. Supply chain

Floor plan

For which of the following problems is brainstorming not a useful tool? a. Identifying issues and opportunities b. Identifying potential solutions to a problem c. Identifying target markets d. Generating new ideas

Identifying target markets

Which of the following is not a method to generate business ideas? a. Capitalize on your hobbies b. Ignore problems and obstacles c. Look at old things in new ways d. Brainstorm ideas

Ignore problems and obstacles

Which of the following is not a challenge of doing business globally? a. Cultural differences b. Logistics c. Communication d. Increased opportunities

Increased opportunities

Businesses, people, and activities involved in turning raw material into products and delivering them to end users make up a(n) ____. a. industry b. economy c. supply chain d. import company

Supply chain

One common example of a trade barrier is a(n) ____. a. embargo b. port c. tariff d. fee

Tariff

Which of the following is a benefit of owning an exporting business? a. Tax incentives b. Minimal regulations c. Immediate results d. Small start-up costs

Tax incentives

A tariff is a ____. a. tax on imported goods b. value placed on goods c. boycott on imported goods d. regulation on exported goods

Tax on imported goods

Social media knowledge, software skills, and systems skills are examples of which of the following skill sets? a. Business skills b. Thinking skills c. Technology skills d. Basic skills

Technology skills

Which of the following statements is not true regarding enterprise zone areas? a. They stimulate disadvantaged rural economies. b. Businesses receive favorable tax credits. c. They grow the population. d. Businesses receive financing.

They grow the population.

All of the following are disadvantages of a corporation except a. loss of credibility. b. corporate formalities. c. double taxation. d. high cost of entry.

loss of credibility

A group discussion where individuals generate as many ideas as possible is ____. a. brainstorming b. chatting c. analyzing d. conferencing

Brainstorming

A customer who insists on buying only Apple® computers is an example of which of the following? a. Brand loyalty b. Attitude c. Usage rate d. Buying status

Brand loyalty

Which type of floor plan encourages wandering, adds visual appeal, and encourages impulse buying? a. Straight plan b. Free-flow plan c. Angular plan d. Diagonal plan

Free-flow plan

Dividing a market based on where customers live is an example of which of the following variables for market segmentation? a. Behavioral b. Geographic c. Psychographic d. Demographic

Geographic

The Small Business Administration (SBA) is a(n) ____ resource to help small businesses succeed. a. exclusive b. private c. government d. expensive

Government

Which of the following statements about a corporation is true? a. It is the easiest form of business to set up. b. The stockholders are personally liable for its debts. c. It must have a unique name that does not infringe on any copyrights. d. It must incorporate in a state where it is physically located.

It must have a unique name that does not infringe on any copyrights.

Which of the following best describes a public corporation? a. Stock is held by privately by one person. b. It sells stock on stock exchanges. c. It is not required to release sales information. d. It does not share financial information publicly.

It sells stock on stock exchanges.

Two companies in two different countries working together for a specific business purpose is an example of a(n) ____. a. supply chain b. network c. export company d. joint venture

Joint venture

Which type of layout allows customers who do not want to shop the entire store to cut through the departments? a. Angular b. Diagonal c. Loop d. Straight

Loop

Some downloaded files and software contain harmful viruses or ____. a. freeware b. software c. malware d. shareware

Malware

Which of the following is described in the operations section of a business plan? a. Competition b. Business location c. Trade area analysis d. Management team

Management team

The target market, industry conditions, and competition are included in which section of a business plan? a. Financial plans b. Market evaluation c. Operations d. Business description

Market evaluation

Which of the following is not a strategy for entering the global market? a. Marketing b. Joint venture c. Exporting d. Licensing

Marketing

Most developed countries have a ____ economy. a. market b. command c. traditional d. mixed

Mixed

Which of the following is not included in the definition of a small business? a. Organized for profit b. National or international business c. Not dominant in its field d. Independently owned and operated

National or international business

What type of competition is based on the features or benefits of a product or service? a. Advantage competition b. Price competition c. Nonprice competition d. Value competition

Nonprice competition

Which of the following is not a step in the decision-making process? a. Define the challenge b. Implement your decision c. Generate ideas d. Observe others

Observe others

Shared risks, easy setup, and joint strengths are advantages of a(n) a. limited liability partnership. b. corporation. c. partnership. d. S corporation.

Partnership.

Using another person's words without giving credit to the person who wrote them is an example of ____. a. kickback b. insider trading c. plagiarism d. conflict of interest

Plagiarism

Sending unsolicited email to people in bulk is known as ____. a. spam b. advertising c. junk mail d. investments

Spam

Which of the following is not typically provided by a franchisor? a. Brand recognition b. Training c. Products or services d. Start-up capital

Start-up capital

Newly created businesses are often called ____. a. growth sectors b. career clusters c. start-up companies d. booming businesses

Start-up companies

Which of the following is not an example of an entrepreneur being environmentally conscious? a. Recycling paper b. Turning off lights c. Throwing away printer cartridges d. Using energy-efficient light bulbs

Throwing away printer cartridges

Which of the following economies is found primarily in countries with mostly rural populations? a. Command economy b. Market economy c. Mixed economy d. Traditional economy

Traditional economy

The Better Business Bureau assists the consumer in all the following ways except ____. a. distributing products to consumers b. assisting in filing complaints c. helping consumers to make informed decisions d. providing reliability reports

distributing products to consumers

Any business process conducted using computers or on the Internet is called a. e-business. b. e-commerce. c. e-mail. d. e-port.

e-business