Q1. This financing program spans 11 government agencies and is designed to encourage small companies to expand their research and development efforts in science and engineering and to develop new commercial products and services from those efforts.
a. Small Business Innovation Research Program
b. Small Business Technology Transfer Program
c. Certified Development Company Program
d. Urban Development Action Grant Program
Q2. A(n) __________ is a combination of hardware and software operating between the Internet and a company?s computer network that allows employees to have access to the Internet but keeps unauthorized users from entering the company?s network and the programs and the data it contains.
a. virus detection program
b. firewall
c. intrusion detection program
d. hacker block
Q3. __________ is a work arrangement in which employees who spend most of their time away from the office use the same office space at different times, which can greatly reduce the need for permanent offices that would sit idle much of the time.
a. Telecommuting
b. Hoteling
c. Job sharing
d. Flexplace
Q4. A business owner seeking money to purchase a building and the equipment needed to launch a welding shop would need which kind of capital?
a. Fixed
b. working
c. growth
d. disposable
Q5. A company must file a __________ describing both the company and the stock offering with the Securities and Exchange Commission (SEC) before making an initial public offering.
a. lockup agreement
b. letter of intent
c. statement of corporate standing
d. registration statement
Q6. Which of the following is an effort by the Small Business Administration (SBA) to speed up processing times and streamline the process for its loan applications?
a. Preferred Lender Program
b. Low Doc Loan Program
c. SBAExpress Program
d. All of the above
Q7. The most important ingredient in the recipe for a successful joint venture is:
a. negotiating an iron-clad contract that binds both parties.
b. choosing the right partner.
c. seeing the joint venture for what it really is: a chance for both parties to make large profits by joining forces.
d. to build a monopoly in the target country.
Q8. The best websites use a variety of fancy typefaces and varying font sizes.
a. true
b. false
Q9. A movie theater with 8 screens recently opened in Knoxville, Tennessee. A short time later, two restaurants, a coffee shop, and a frozen yogurt store opened within walking distance of the theater. These businesses are using the location principle of:
a. retail consolidation
b. retail complexity
c. retail compatibility
d. retail consortium
Q10. Domain names can be registered with the U.S. Patent and Trademark Office.
a. true
b. false
Q11. The first place entrepreneurs in search of startup funds should look is:
a. their own pockets.
b. relatives and friends.
c. venture capitalist firms.
d. angels.
Q12. A __________ is an exemption from the Security and Exchange Commission's full-blown registration process that is designed to make it easier and less expensive for small companies to make initial public offerings. The ceiling on this type of issue is $1 million, and the price of the shares must be at least $5.
a. Regulation S-B
b. Regulation A
c. Small Company Offering Registration (SCOR)
d. Direct Public Offering
Q13. Which of the following statements concerning the interview process is false?
a. To avoid the threat of lawsuits, business owners should ask only questions calling for "yes/no" answers.
b. Creating hypothetical situations candidates would be likely to encounter on the job and asking how they would handle them gives insight into their work habits and attitudes.
c. Develop a series of core questions and ask them of every candidate.
d. Business owners should ask candidates about a recent success and a recent failure and then look for those who describe them both with equal enthusiasm.
Q14. When searching for a location, a company that develops computer software for the entertainment industry would be interested in studying which of the following factors about the labor supply in a particular area?
a. the number of workers available
b. the level of education, training, and experience of the workforce
c. the prevailing wage rate in the area
d. All of the above
Q15. The most popular loan program sponsored by the Small Business Administration (SBA) is:
a. Low Doc Program
b. Export Working Capital Program
c. 7(a) Loan Guaranty Program
d. All of the above
Q16. Online newsletters should be kept to about:
a. 600 words
b. 2000 words
c. 6 pages
d. 20 pages
Q17. To finance her inventory of cars, auto dealer Sarah Ann Lopez would most likely rely on which type of loan?
a. commercial bank loan
b. line of credit
c. floor plan
d. installment loan
Q18. A(n) __________ is a tax or a duty that a government imposes on goods and services shipped into that country.
a. tariff
b. quota
c. embargo
d. lateral agreement
Q19. The primary foreign market for U.S. franchisers is:
a. Canada.
b. Japan
c. Australia
d. England
Q20. Empowerment works best when a manager:
a. trusts workers to do their jobs well.
b. trains workers continuously to upgrade their skills.
c. listens when workers have ideas, solutions, or suggestions.
d. All of the above.
Q21. Which of the following statements concerning financing a small business is true?
a. Choosing the right sources of capital for a business can be just as important as choosing the right form of ownership or the right location because of the long-term impact it has on a company.
b. When it comes to attracting capital for launching or expanding a business, creativity counts; entrepreneurs must use as much ingenuity in financing their businesses as they do in generating their product or service ideas.
c. Before accepting startup money, entrepreneurs must take into account the "chemistry" between themselves, their companies, and their funding sources, making sure that the match is a good one.
d. All of the above.
Q22. A foreign sales company is a shell company created in an approved U.S. territory or a foreign country that allows a business to reduce its U.S. income tax liability by _____ on earnings from foreign trade.
a. 5% to 15%
b. 15% to 30%
c. 30% to 50%
d. More than 30%
Q23. Which of the following statements about an initial public offering (IPO) is true?
a. Although an IPO can generate large amounts of capital for a company, it can be an expensive, time-consuming process filled with lots of regulatory "red tape."
b. An IPO is an excellent source of funds for an entrepreneur searching for the capital needed to launch a new business.
c. For the typical small business, the cost of making an initial public offering is just 2 percent of the capital raised.
d. All of the above
Q24. The ideal domain name for a company's Web site should be:
a. short.
b. indicative of the company's business or business name.
c. easy to spell.
d. all of the above.
Q25. Small businesses on the Web are better able to compete if they focus on a niche market.
a. true
b. false
Q26. Which area of a retail store would be least valuable?
a. the main floor in a multistory building
b. the intersection of two primary aisles
c. the right rear corner of a store
d. the right front corner of a store
Q27. When evaluating a potential business investment, venture capital companies look for:
a. a competent management team.
b. a company with a competitive edge in the marketplace.
c. a growth industry.
d. All of the above
Q28. "Cool" companies:
a. demonstrate a respect for work and life balance.
b. value diversity in the work force.
c. create and support a learning environment among employees.
d. All of the above.
Q29. Small companies can attract and retain high-quality workers by:
a. looking inside the company first with a promotion-from-within policy.
b. making their employment advertisements stand out.
c. forging relationships with schools, colleges, and other sources of workers.
d. all of the above.
Q30. When a speaker sends conflicting verbal and nonverbal messages, listeners are most likely to believe
a. the verbal message
b. the nonverbal message
c. neither one
d. none of the above.
Q31. Studies show that __________ percent of first-generation family businesses fail to survive into the second generation, and of those that do survive, __________ make it to the third generation.
a. 20; 81
b. 40; 75
c. 70; 12
d. 90; 24
Q32. Which of the following questions is illegal in an interview?
a. Do you drink alcohol?
b. Why should we hire you?
c. Have you ever been arrested?
d. Is there any limit to your ability to work overtime or to travel?
Q33. Which of the following countries represents the top market for U.S. small business exporters?
a. Japan
b. Mexico
c. Canada
d. Germany
Q34. __________ capital represents a company's temporary funds and the need for it is created by the uneven flow of cash into and out of the business due to normal seasonal fluctuations.
a. Fixed
b. Working
c. Growth
d. Disposable
Q35. __________ are domestic wholesalers who do business in foreign markets, buying goods from many domestic manufacturers (often competitors) and then marketing them in foreign countries.
a. Export trading companies (ETCs)
b. Export management companies (EMCs)
c. Export merchants
d. Resident buying offices
Q36. Retail customers on the Web demand:
a. good product selection at competitive prices
b. well-designed product presentations
c. easy ordering with fast and reliable shipping and handling
d. All of the above.
Q37. For which of the following businesses would clustering be an effective location strategy?
a. a car dealership
b. a flower shop
c. a sporting goods store
d. a dry cleaner
Q38. __________ items are best suited for selling on the World Wide Web.
a. high-volume
b. low-margin
c. commodity
d. all of the above.
Q39. Which of the following statements about shopping malls is true?
a. The average length of shoppers' mall visits has climbed steadily over the past decade.
b. To keep shoppers coming back, malls are adding a mix of entertainment attractions and a fresh mix of specialty shops to their retail mix.
c. Nearly half of the malls in the United States are less than five years old.
d. All of the above.
Q40. Research by BizRate.com found that __________ percent of Web shoppers who fill their online shopping carts become frustrated and leave the site before checking out.
a. 15
b. 25
c. 55
d. 75
Q41. Experts draw an analogy between today's successful small business leader and:
a. the conductor of a symphony orchestra.
b. the leader of a jazz band.
c. a member of a rock and roll band.
d. a chamber music concert group.
Q42. Which of the following statements concerning global trade is true?
a. Today, the global marketplace is as much the territory of small, upstart companies as it is that of giant multinational corporations.
b. Ninety-six percent of the world's population and 67 percent of the world's purchasing power lie outside the borders of the United States.
c. Small companies that export grow more rapidly than those that operate domestically only.
d. All of the above.
Q43. Which of the following statements concerning asset-based loans is false?
a. The most common types of asset-based loans are discounting accounts receivable and inventory financing.
b. Because of its efficiency and low cost, asset-based loans are an ideal source of long-term financing.
c. A small company that qualifies for a $1 million line of credit would be able to borrow as much as $3 million using asset-based loans.
d. All of the above
Q44. Web-based businesses invest ____ percent of revenue in marketing, compared to _____ percent for off-line businesses.
a. 65, 4
b. 55, 8
c. 45, 16
d. 35, 32
Q45. Which of the following statements concerning e-commerce is true?
a. Once an entrepreneur launches a Web site, customers typically flock to it even without advertising and promoting the site.
b. More than 90 percent of all commercial Web sites are profitable.
c. Web retailers invest more of their revenues in marketing and advertising than traditional, "off-line" retailers do.
d. Because of the security precautions modern technology provides, customer privacy is not an important issue on the Web.
Q46. Companies that make the best candidates for direct public offerings (DPOs):
a. have the ability to meet the same requirements as companies making stock offerings using more traditional methods.
b. have high name recognition and a loyal customer base.
c. usually are simple, one-product companies.
d. All of the above.
Q47. A __________ layout arranges displays in a rectangular fashion so that aisles are parallel; it is a formal layout that controls the traffic flow through the store and is often used in supermarkets and drugstores.
a. Grid
b. free-form
c. boutique
d. spiral
Q48. __________ are privately-owned financial institutions that are licensed and regulated by the Small Business Administration; they use a combination of private and federally-guaranteed debt to provide long-term capital to small businesses.
a. SBICs
b. SBDCs
c. LDCs
d. UDAGs
Q49. Created in 1947, this became the first global tariff agreement, and, today, it includes 124 countries that account for nearly 90 percent of world trade.
a. NAFTA
b. WTO
c. GATT
d. NATO
Q50. Genuine leaders:
a. are self-appointed.
b. know that their success is determined by their employees' success.
c. treat their employees severely to earn their respect.
d. know that what they say to employees is more important than what they actually do.