Question 1 The industry that employs the greatest number of people in small business is which of the following?
Construction
Manufacturing
Retail businesses
Services
Question 2 The impact downsizing has on small business is which of the following?
No labor force to work in small businesses
Opportunity to perform the work large businesses no longer perform
An availability of workers with no skills
Lack of financial backing for small businesses
Question 3 Which of the following are the inherent factors that work in favor of small businesses?
Ability to remain flexible and innovative
Management expertise
Emphasis on variety
Emphasis on quantity
Question 4 Which of the following is the key element needed to bring the entrepreneurial idea to reality during the implementation stage?
Capital or money
Commitment
Management expertise
A college education
Question 5 Which of the following is the most common form of business ownership?
Sole proprietorships
Partnerships
Corporations
Joint ventures
Question 6 Which one below is not part of the elements of a marketing plan?
Marketing objective
Marketing directive
Product
Target market
Question 7 Location analysis involves several factors such as _____.
price of land
proximinty to customers
quality and quantity of workforce
All of the above
Question 8 A sales forecast based on estimation of daily sales that are then projected for weeks, months, and years with seasonal adjustments is using what approach?
Build-up
Guesstimate
Break-down
Pro forma
Question 9 Product refers to which of the following?
Tangible goods only
Tangible services only
Tangible goods, intangible services, or a combination of both
Intangible services only
Question 10 A small business owner should begin the site selection process by asking which of the following questions?
What region would be best?
What state within the region would be best?
What city within that region would be best?
What specific site within that city will work for the business?
Question 11 A type of retail layout with a prominent aisle running through the store that quickly leads customers to their desired departments is known as what?
Free-flow layout
Grid layout
Loop layout
Process layout
Question 12 Small business owners can compete with large chains like Walmart and Kmart by focusing on _____.
lower prices
better products
flexibility
better employees
Question 13 To accomplish the goals of maximizing short- or long-run profits and to quickly recover development costs, which of the following is an appropriate strategy?
Penetration pricing
Price skimming
Psychological pricing
Price lining
Question 14 The greatest benefit to the franchisee is which of the following?
Product readiness
Marketing expertise
Professional guidance
Efficiency
Question 15 The financial document that is used by start-up businesses to show where capital comes from and for what it will be used is called _____.
a cash-flow statement
a projected earnings statement
the sources and uses of funds
an income statement
Question 16 A document that tests the feasibility of a business idea, describes ways to raise capital, and serves as a road map for future operations is called what?
Code of ethics
Mission statement
Business plan
Strategic plan
Question 17 The capitalization rate when figuring goodwill should be a figure assigned to show what?
Risk and expected growth rate of future earnings
Risk and profit minus taxes
Expected growth rate and profit
Expected growth rate and the value of tangible assets
Question 18 In the chapter opener, what was the limitation that kept Philip Rosedale from creating Second Life when he first had the idea for it?
He didn't have enough money.
He didn't know how to promote it.
Computers were not powerful enough at the time.
Some technical gadget like a flux capacitor needed to be invented first.
Question 19 Most Inc. 500 companies receive more than half of their revenue from _____.
their local areas
their regional areas
outside their home regions and internationally
within 100 miles of their businesses
Question 20 The stages that products in the marketplace go through are known as what?
The product life cycle
The product growth stages
The product timeline
The product opportunity stages
Question 21 Organizing involves all but which of the following?
Assembling financial resources
Assembling human resources
Assembling materials
Assembling invoices
Question 22 Dan Pink states that motivation comes from _____.
cash rewards, bonuses, and incentives
good management
hard work and effort
None of the above
Question 23 Which percentage of major U.S. employers offer some form of child care assistance?
40%
55%
68%
80%
Question 24 What a business does to add value to inputs when converting them to outputs is known as which of the following?
Inputs
Transformation processes
Outputs
Feedback
Question 25 Scheduling is necessary to maximize levels of _____.
efficiency and customer service
customer service and expense
sales and expense
efficiency and effectiveness
Question 26 In double-entry accounting systems, debits must always equal what?
Assets
Liabilities
Credits
Owner's equity
Question 27 Assets that will be converted into cash within 1 year are called _____.
short-term assets
long-term assets
capital assets
financial assets
Question 28 Which one of these are legal responsibilities of a small business owner today?
Consumer protection
Competition protection
Environmental protection
All of the above
Question 29 Economist Milton Friedman emphasized the fact that business had "one and only one social responsibility," that being _____.
economic responsibility
legal responsibility
ethical responsibility
philanthropic responsibility
Question 30 A long-term planning tool used for viewing a business and the environments in which it operates in the broadest terms is _____.
strategic planning
intermediate planning
short-term planning
strategic alternatives
Essay questions:
Question 1 Compare and contrast the two main causes of small business failure. Discuss how these small business failures can be avoided.
Question 2 Analyze three areas that should be researched when deciding whether or not to purchase an existing business. Using examples, evaluate these three areas and their importance.
Question 3 Compare and contrast patents, copyrights, and trademarks. Evaluate how these provisions can improve the financial position of a small business.
Question 4 Compare and contrast analytic manufacturing systems and synthetic manufacturing systems, giving an example of each.
Question 5 Analyze the relationships among social responsibility, ethics, and strategic planning.