STS 2500 Final Exam
financing for start-up
"Profits are secondary to cash flow" is a financial management need in which phase of business?
periodic discounting
A back-to-school sale is an example of
habitual
Bart appears to express an interest in which of the following careers?
is the point at which total costs equal gross revenue
Breakeven point
how the business is taxed
In general, all the forms of business organizations can be categorized along two dimensions: (1) how much responsibility owners have for the organization's liabilities, and (2)
is by increasing sales to existing steady customers
The most straightforward way to achieve sales growth
products, people, and organization
The three general forms of legitimacy that you can develop are based on
some words or groups of words can be both trademarks and service marks
Which of the following statements is true regarding trademarks?
undifferentiated
Which of the following strategy is ideal while selling bottled water on a beach, on a hot summer day?
cash flow and cash cycle
Which of the following would represent Mr. Johnson's interest in Connie's business plan?
work facilitation
Which of these factors was least important to employees, according to Jill Kickul's research?
balance sheet
Which of these is a statement of what a business owns, what it owes to others, and how much value the owners have invested in it?
market
A(n) _____ is the business term for the population of customers for your products or services.
sole proprietorships
All business forms are types of separate, legal entities EXCEPT
high cost of getting started
All of the following are disadvantages of home retailing EXCEPT
conversion rate
The measure of the number of visitors to your Web site who have actually made a purchase from you is known as:
legitimacy and social networking
The two ways to build social capital are through:
it is a sub-discipline of direct marketing
Which of the following statements about buzz marketing is false?
Certification is for every women- or minority owned small business.
Which of the following statements about certification for women- and minority-owned small businesses is false?
owners
Which of these represent the number one source for small business financing?
the service provider records the gross amount of each credit card sale
Accepting payments by credit card causes significant differences between the bank and book balances due to all of the following reasons EXCEPT:
the person must be employed for a distinct term
According to the IRS, to be an independent contractor
desegregate crisis management with the everyday management of the firm
According to the gold standard for crisis leadership, all of the following are steps to follow in a crisis EXCEPT:
work experience
According to the nationwide Panel Study of Entrepreneurial Dynamics (PSED), which of the following factors was the most frequently mentioned source that led to their business idea?
how many others are already working with you?
All of the following are key things an influential person looks for in your business plan presentation EXCEPT
bootstrapping
All of the following are major concerns of moonlighting EXCEPT
getting the "bandits on the train"
All of the following are major pitfalls that business owners can become victims of when trying to become more innovative EXCEPT:
by renting capital equipment you incur ongoing costs if business conditions change
All of the following are the disadvantages to rental EXCEPT:
it is not associated with the concept of "goodwill."
All of the following are true of social capital EXCEPT:
it increases the cost of selling
All of these are negative effects of extending credit to customers EXCEPT:
business interruption insurance
Identify the insurance that provides funds to pay the ordinary operating expenses of your business should it be forced to close temporarily because of an insured event.
amounts and schedules for returns
If Connie gets her family and friends involved as investors, which of the following would be their concern or interest?
direct response advertising
If Jessica places an advertisement in "Chronicle of Higher Education," a leading publication for University professors about her product with her e-mail and contact information, it can be described as
90 days
When you hire employees, typically, a probationary period lasts
Small Business Development Center
Where can Jamie go to get some help with his business idea?
shipping
Which among the following is a variable cost?
in the small business, virtual employees are not hired as full-time employees
Which among the following statements is true regarding virtual employees in small businesses?
corporation
Which form of business faces double taxation?
tip
Which is the number one method for fraud detection?
harvest entrepreneurs
Which of the following are owners with an exit plan?
same as your product name or your name
Which of the following is NOT the best option when naming your company?
testimonials
Which of the following is a product-based legitimacy indicator?
differential advantage
Which of the following is also known as competitive advantage?
Purchasing a business often requires less cash outlay than for creating a start-up
Which of the following is an advantage of buying an existing business?
errors and omissions insurance
Which of the following is an example of a special type of liability insurance that covers losses from harm caused during the performance of your profession?
leased assets have less number of restrictions on how they may be used, maintained, and disposed of
Which of the following is not a benefit of leasing?
gross profit
Which of the following refers to funds left over after deducting the cost of goods sold?
opportunity competencies
Which of the following relates to the skills necessary to identify and exploit elements of the business environment that can lead to profitable and sustainable business?
adapting
Which popular innovation strategy can be just as effective and much more likely in the real world, than business opportunities that result from radical innovations?
income statement
Which statement lists revenues and expenses, and shows the amount of profit a business makes for a specified period of time?
open-ended
___ questions can help you find new niches and perfect your product or service before you introduce it.
accounts receivable
____ is money that is owed to your business by your customers.
executive summary
A one- to two-page overview of the business, its business model, market, expectations, and immediate goals represents a(n)
being willing to reciprocate if asked
According to the text, what is the most important part of social networking that would make a difference in how you would conduct business every day?
the regulatory limitations
Connie needs to know that all of the following are key components of a business plan she should include EXCEPT
10
Connie shops are established businesses and so Connie's business plans could/should be _____ pages of text.
foundations
During the start-up phase of a small business the "3-F investors" are all of these EXCEPT
offer punishments for providing inadequate termination notice
Employee contracts should include all of the following provisions EXCEPT
primary
Ethan is a marketing research executive for Coca Cola. Recent sales figures suggest that the sales for Coke have fallen drastically in Cincinnati, Iowa. The regional manager wants Ethan to conduct a market research in Cincinnati. Which of the following research should Ethan use?
should design interview questions such that "yes" or "no" answers are not applicable
Evaluating potential employees, a small business owner
mission statement analysis
Financial statements, in performing due diligence, should include all of the following EXCEPT a(n)
as a measure of how much debt a business can support
Lenders use operating income specifically
creative destruction
Mandarin is a restaurant which has opened recently. People from all over town flock to Mandarin to find out how good it is. This gives a big boost to the restaurants initial business. But it causes the other restaurants in the area to lose business temporarily. The way in which Mandarin hurts existing restaurants is an example of
total population of people or firms to whom you plan to sell
The market refers to the
growth
Once Tammy has introduced her toys in the market, during which stage of the product life cycle would the acceptance of her products increase and sales and profits grow faster than at any other time?
knowing what your sales will be
One of the most important pieces of the marketing plan that determines your profitability and ultimately whether you will stay in business or not is
start at the end and work your way up by asking each link from whom they buy
One suggestion for finding out which distribution channel is correct for your product is to
need to know how to seek and obtain external financing
People starting high growth ventures
replacement
Potential buyers and investors are most interested in _____ value of your assets.
earn-outs
Purchases of existing businesses may occur through _____ in which the business is bought over a period of time with money earned from the business.
cash-to-cash cycle
Tammy needs to know that the time that is required for her to acquire resources, convert them into craft products, sell the products, and receive cash from the sale is called:
being inactive
The BRIE model can help an individual deal with one of the biggest hurdles in starting a business, which is
company book balance
The _____ is the name given to the sum of cash inflows and cash outflows recorded in the firm's accounting records.
resource competencies
The ability or skill of the entrepreneur at finding expendable components necessary to the operation of the business such as time, information, location, financing, raw materials, and expertise is called:
payables
The amount owed to vendors from whom Tammy purchased the craft merchandise on credit is called:
guerrilla marketing
The use of creative and relatively inexpensive ways to reach your customers with techniques such as door-knob hangers and flyers under windshield wipers is called
opportunity identification process
This model has the entrepreneur assess whether the situation faced is one that is the same as it has been traditionally or if it is changing.
if you link sales and purchase basis to the type of customer
You might figure how to better target ads or promotions to particular types of customers
industry analysis
A research process that provides the entrepreneur with key information about the industry, such as its current situation and trends is called
should not be an objective for a small business
Increasing market share
substitute
"S" in the creativity tool SCAMPER stands for:
higher; lower
As a general rule, the _____ the deductible, the _____ the policy premium payments will be.
great wealth
Being an idea person, Bart would not be driven by:
cost potential
For high customer contact businesses, which of the following is NOT a critical site selection consideration?
Where are my customers? Where should I be?
For small business location issues, there are two basic "where" questions to be considered
expertise
For those businesses that do get started, the amount of _____ is what distinguishes the more successful from the less successful firms.
open-ended
Fred decides to conduct a survey to collect data, compare groups, and statistically analyze data, which of these questions should he avoid?
informal capital
Funding invested for a share of a firm or given as loans or credit from family, friends, and other businesses used to help start or grow a firm is known as:
profits being secondary to cash flow
Given that the Joyride Graphics is in a start-up phase, which of these would represent its financial management need?
business stationary
Harry just received in mail several boxes of _____ which puts his name and message in front of potential clients, existing clients, suppliers, and others.
B2B e-commerce is larger than B2C e-commerce
Identify the correct statement about B2B.
conflict of interests
If Elizabeth starts to take days off from work to staff the kiosk at the flea market, she may be facing
cash receipts budget
The basis to being able to control a business's money is to understand and be able to predict the patterns of cash flows. This is possible by preparing a:
the competition
The industry and market component of the feasibility study should include which of the following components?
the to-do list
The key device for managing time for part-time business individuals is
customer complacency
The main challenge of the resource maturity stage is to avoid
incremental innovation
Using the degree of similarity, Amy's concept of laundromat with a workout space can be described as
to provide supporting information that helps detail the key selling points of your plan
What is the goal of appendixes?
the business is critically examined by outsiders
When a small business start-up secures outside investment, one thing it accomplishes is that
Introduction, growth, maturity, decline, and death
Which of the following represent the five stages of industry life cycle?
It is a method where it is easy to discern feedback.
Which of the following statements about advertising is false?