STS Quiz 4
interest
A charge for the use of money, usually figured as a percentage of the principal is called
corporation
A legal "artificial" entity that is formed by filing specific documents with a state government is called a
IPO
A transfer method describing the first-time public sale of a stock listed on a public stock exchange is called a(n)
ESOP
A(n) ____ is a formalized legal method to transfer some or all of the ownership of a business to its employees.
potent
According to the components from Zig Ziglar, a message that is remembered and remembered for the right reasons is said to be
increases the demands on the owner
Adding employees
employee bonuses
All of the following are examples of long term incentives to employees that help retain valuable team members EXCEPT
capital assets
Assets that are expected to provide economic benefits for periods of time greater than one year are called:
limited liability company
Based on what you have learned in this chapter, unless otherwise advised by Mr. Hutchinson, the best choice for Design-an-Ad is
virtual employees
Consider these alternative methods to hire an employee at no cost if your budget does not allow for a paid employee EXCEPT
tax credits
Direct reductions in the amount of taxes that must be paid, dependent upon meeting some legal criteria are called
emergence
Entrepreneurial role is most needed or focused on during which stage of the small firm life cycle?
emergence, existence, survival, success, and resource maturity
For most small businesses, which of these represent the usual sequence of stages in the business life cycle?
high-performing small business
From a growth strategy perspective, Quality Air can be described as a
success
Identify the small firm life cycle stage that Quality Air Inc. is at.
workout
If Kevin decides to terminate his business, a possible methods is a(n)
sell off
If Kevin wants to explore transfer, he should consider a
should design interview questions such that "yes" or "no" answers are not applicable
In evaluating potential employees, a small business owner
property of the business
Inventory can be stolen, spoiled, or become obsolete. Production machinery can break down. Furniture, office equipment, vehicles, and buildings can be damaged or destroyed by vandalism, accidents, fire, flood, or wind. All of these represent risks related to the
harvest
Kevin's goal appears to be one where he is able to
takeoff
Most small businesses never go through the ____ stage.
lifestyle or part-time firms
Of the four generic growth stages,most small businesses are
to determine your organization's salary philosophy
One of the first steps in developing a compensation plan is
the amount that any one customer charges is unlikely to be big enough to threaten the business if it is not paid
Restaurants, clothing retailers, barbers, and beauticians face relatively low risks of loss from nonpayment because
teamwork
Sharing ideas, working towards a common goal, analyzing one another's work, and communicating cross functionally are related to
frequency
Staying in touch with customers on a regular basis via visits, phone calls, e-mails, newsletters, and so on refers to which of these components from Zig Ziglar?
focuses on minimizing estate tax payments
Tax management
customer complacency
The main challenge of the resource maturity stage is to avoid
is by increasing sales to existing steady customers
The most straightforward way to achieve sales growth
3 percent
The rule of thumb is that perks like these should take no more than ___ of the annual personnel budget.
liability of newness
The set of risks faced by firms early in their life cycles that come from a lack of knowledge by the owners about the business they are in and by customers about the new business is called the
payback period and ROI
The two most commonly used financial ratios for comparing investment alternatives are:
the performance review and pay review
The two parts to a formal performance appriasal:
job description
To really understand what he wants the person hired to do, Uncle Bob needs to develop a ___ which defines and discusses all the essential knowledge, skills, and abilities that are needed to fill the position.
civil
Torts are ___ wrongs.
90 days
Uncle Bob can hire an individual with a probationary period. This probationary period typically lasts
will protect it from increased costs in the form of interest
Using outside equity in your business
acquisition
When one firm absorbs another through purchase, it is called a(n)
develop questions for interviewing
When recruiting, once a job description is prepared, the next step is to
equity capital
When you sell part of your business, the money you receive is
litigation
Which among the following dispute resolution methods is generally much faster to complete and the least expensive?
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 business?
bankruptcy
Which is the form of business termination that uses a legal method for closing a business and paying off creditors when debts are substantially greater than assets?
coaching
Which of the following is an on-the-job training method?
reconcile the cash register tape to the cash register contents every day
Which of the following should be undertaken in order to reduce a business's exposure to the risk of violating tax regulations?
firms develop the information, skills, and the routines to grow the business's profits
Which of the following statements is true regarding success stage of the small firm life cycle?
it requires that all information reported by CRAs be accurate
Which of the following statements is true regarding the Fair Credit Reporting Act?
work facilitation
Which of these factors was least important to employees, according to Jill Kickul's research?
moderate start-up capital
Which of these is NOT a CSF that can help identify those businesses more likely to survive?
think of it as an investment
Which of these is a suggested guideline for training?
job title
Which of these is the first step Uncle Bob needs to start with, in crafting a job description?
job title
Which of these is the first step is crafting a job description?
arbitration
Which of these refers to a dispute resolution process held instead of court cases in which both sides present their case to a legal professional?
owners
Which of these represent the number one source for small business financing?
BRIE
Which of these techniques can help an individual move from entrepreneurial thought to actions?
open-book policy
___ refers to the concept that key employees should be able to see and understand a firm's financials, that they should have a part in moving the numbers in the right direction, and that they should have a direct stake in the strategy and success of the firm.
internships
____ are jobs in businesses offered to students, arranged through universities.
employee referral
____ is an underused, low-cost method which reqards your employees for recommending potential candidates that would be a great fit.
character
____ is judged largely by the owner's personal credit rating and by that of the business.
accounts receivable
____ is money that is owed to your business by your customers.
liquidation; chapter 7
____ is the popular name for a ____ bankruptcy in which a bankrupt firm's assets are sold by the bankruptcy trustee and the proceeds used to pay the firm's debts.
capital budgeting
____ refers to the process of deciding among various investment opportunities to create a specific spending plan.
financing for start-up
"Profits are secondary to cash flow" is a financial management need in which phase of business?
patent
A grant by the U.S. government to an inventor for an idea that is new, useful, and non-obvious, giving the inventor the exclusive right to make, use, or sell his or her idea is called
incubators
Accelerators are also called as
the person must be employed for a distinct term
According to the IRS, to be an independent contractor
sole proprietorships
All business forms are types of separate, legal entities EXCEPT
by renting capital equipment you incur ongoing costs if business conditions change
All of the following are the disadvantages to rental EXCEPT:
meet with whomever is going to conduct the internal audit in the presence of other members of the management
All of the following should be undertaken in order to ensure than an internal audit is effective EXCEPT
it increases the cost of selling
All of these are negative effects of extending credit to customers EXCEPT:
equity; financing for start-up
Angel investors provide ___ financing in the ___ phase of business.
cash for marketing
As Joyride Graphics moves into the growth phase, which of these would more likely become its dominant financial management need?
higher; lower
As a general rule, the ___ the deductible, the ___ the policy premium payments will be.
flat fees
Debbie speaks with a lawyer, Mr. Hutchinson, for help with the business form paperwork. Mr. Hutchinson indicated that he will charge a fixed amount for handling the paperwork once Debbie has decided on the form. Mr. Hutchinson' method of billing is called
that it is cost incurred to replace one asset with an identical asset
Depreciation is based on all of the following assumptions EXCEPT
unemployment insurance
Desired coverage beyond mandatory insurance that Kirk may want to consider includes all of these EXCEPT
actively working to create physical hazards in your workplace as a test
Different risks in the business can be managed by doing all of these EXCEPT
trademark
Distinctive words, slogans, or images, that identify a product and its origin is called a
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
contingency fees
Fee paid by a client to an attorney for legal services that is dependent upon the outcome of a case is referred to as
sole proprietorship
For start-ups like Design-an-Ad, the most popular business form is the
sole proprietorships
For start-ups, the most popular business form is the
profits being secondary to cash flow
Given that Joyride Graphics is in start-up phase, which of these would represent its financial management need?
it reduces the cost of selling
Harry needs to know that when it comes to providing credit, this is true.
it increases the cost of selling
Harry should be made aware that all of these are negative effects of extending credit to his 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.
community development organization
Identify the organization authorized by the SBA to make insured loans to small businesses that are expected to increase economic activity with a specific geographic area.
Sarbanes-Oxley Act
Identify this federal law that describes the steps publicly traded businesses must take to protect and provide their key financial information.
an impasse may develop if the partners become incompatible
If Debbie decides to enter into a partnership with her friends, she should know that this is one of its disadvantages
difficulty in obtaining credit
If Debbie decides to go with sole proprietorship, she should know that this is one of its disadvantages
bar coding
If Harry adopts a perpetual inventory system, ___ is one method that can be used to reduce the cost.
JIT
If Harry adopts the practice of purchasing and accepting delivery of inventory only after it has been sold to the final customer, it would be referred to as a(n) ___ inventory system.
ordering cost and carrying cost
If Harry were to use EOQ, it would help him in terms of:
a sole proprietorship
If Johnny wants limited liability with Joyride Graphics, he can consider any of these legal forms EXCEPT
age
In 1964, EEOC established five protective classes. Which of these is NOT one of them?
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)
heuristic
In practice, managers of small businesses tend to use which of these when it comes to inventory?
keeping safety stock in case sales might be greater than forecast
Just-in-Time (JIT) inventory system attempts to reduce inventory levels to absolute minimum by all of the following EXCEPT:
partnership
LLCs have a choice, under federal tax law, of being taxed as either a corporation or as a
book
Laws, regulations, and the requirements of GAAP require that ___ value be used for financial reporting and income tax purposes.
employee theft
Misappropriation of business property by employees of that business refers to
one-half; 75-80
Pledging receivables will get you about ____ of the amount that can be collected, where as, factoring can get you ___ percent of the amount due.
replacement
Potential buyers and investors are most interested in ___ value of your assets.
it usually results in higher sales revenues due to repeat business
Renting capital assets provides all of these advantages EXCEPT:
12
The Family and Medical Leave Act requires employers to give employees up to ___ weeks leave, paid or unpaid, without loss of position, seniority, or benefits, for a qualifying condition or event.
optimum stocking level
The ___ is the amount of inventory that results in the minimum cost, considering the cost of lost sales resulting from running out of stock, the number of units sold per day, and the number of days required to receive inventory.
more; greater; higher
The ___ likely an event is to occur, and the ___ potential amount htat the insurance company must pay, the ____ the price that you must pay for coverage.
immigration reform and control act of 1986
The ___ requires employers to complete I-9 forms for each employee.
capacity
The ____ of the business is the most important single factor for being able to borrow significant amounts of money.
profit
The amount that revenues exceed expenses is known as
piercing the veil
The dissolution of a corporate form, making it back into a sole proprietorship or general partnership, if the court finds that the owner carelessly mixed up personal and business assets or finances is(are) called
to identify risks faced by Klassic Karate
The first task that Kirk needs to complete before a comprehensive insurance program can be developed for Klassic Karate is
two or more employees collude
The greatest threat of loss from employee dishonesty occurs when
product liability
The magnitude of losses resulting from ___ claims has increased greatly in recent years with an increase in class action lawsuits.
growth potential
The primary concern for equity investors is
check the box taxation
This is a choice LLCs can make on their tax returns to be taxed as a corporation or a partnership
trade secret
This is not created by the government but is information known to certain people in the company that makes that company more competitive.
acid test ratios
This ratio is a measure of how much money can be made available very quickly to pay obligations within the fiscal year.
violation of government regulations
When it comes to the other black belts hired by Kirk, which of these represent a business risk that Kirk needs to manage?
90 days
When you hire employees, typically, a probationary period lasts
fair labor standards act
Which among the following federal employment laws requires the payment of same wages to males and females for work requiring equal skill, effort, and responsibility in similar working conditions?
death of any one of the partners terminates the partnership
Which among the following is a disadvantage of partnerships?
inadequate management and employee skills
Which among the following is a disadvantage of sole proprietorships?
help wanted ads
Which among the following is a method that has traditionally been used by businesses to hire employees?
corporation
Which form of business faces double taxation?
tip
Which is the number one method for fraud detection?
articles of organization
Which of the following is a document that sets forth information about a limited company that is filed with the state to establish an LLC?
relatively permanent
Which of the following is an advantage of corporations?
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?
most of these courts are designed so that ordinary citizens can bring their cases in
Which of the following is true regarding a small-claims court?
having a PC set to lock itself up after a few minutes of inactivity
Which of the following practices should be adopted to ensure that a computer is kept secure?
some words or groups of words can be both trademarks and service marks
Which of the following statements is true regarding trademarks?
fidelity bonds
Which of these are also called dishonesty bonds?
OSHA
Which of these government agencies is created to enforce safety in the workplace?
economic development agency
Which of these is a government organization that works to increase economic activity in the form of job opportunities with a specified geographic area?
there is no governmental agency that will assist small business owners in maintaining their legal rights
Which of these represents the problem with legal protection methods for intellectual property?
venture capital
Which of these sources in equity financing is available during all four phases of businesses?
point-of-sale system
___ compromises both hardware and software to integrate inventory management directly into your accounting system.
cost of capital
___ refers to the percentage cost of obtaining future funds.
general liability insurance
____ exist to pay losses that are not covered by other liability insurance.
