Graded Homework

• Question 1

2 out of 2 points

Surveys show that owners of small businesses believe that:

• Question 2

2 out of 2 points

Companies started by women differ from companies started by men in that:

• Question 3

2 out of 2 points

Which of the following corporate trends have contributed to the growth of entrepreneurship?

• Question 4

2 out of 2 points

Customer service, convenience, speed and quality are all examples of:

• Question 5

2 out of 2 points

Launching and running a business can be an extremely rewarding experience, but it also can:

• Question 6

2 out of 2 points

One key to success with a business startup is to begin with enough ________:

• Question 7

2 out of 2 points

When running a home-based business:

• Question 8

2 out of 2 points

Kyoto has started an interior decoration business. Everything about the business, from its name to the color schemes used in the corporate letterhead, is an expression of her personality. She sees this business as her greatest personal achievement. Kyoto is experiencing the opportunity ________ of small business ownership.

• Question 9

2 out of 2 points

Which of the following trends is feeding the growth of entrepreneurial activity?

• Question 10

2 out of 2 points

“Copreneurs” are marked by:

• Question 11

2 out of 2 points

Juan is able to work well in a constantly changing atmosphere and has little concern for what tomorrow will bring. Juan demonstrates which of the following characteristics of a typical entrepreneur?

• Question 12

2 out of 2 points

The key ingredient-the crucial element-to avoiding the failure of a new business is:

• Question 13

2 out of 2 points

When building a home-based business, it is important that the entrepreneur:

• Question 14

2 out of 2 points

Primary cause of business failure is:

• Question 15

2 out of 2 points

Researchers who study entrepreneurs have discovered that:

• Question 16

2 out of 2 points

A small company following a ________ strategy seeks to build customer loyalty by positioning its goods and services in a unique fashion.

• Question 17

2 out of 2 points

________ are specific measurable targets to be accomplished in a defined time period.

• Question 18

2 out of 2 points

Which of the following best expresses the relationship of a company vision to its mission?

• Question 19

2 out of 2 points

A small business’s “aggregation of factors that sets it apart from its competitors” is its:

• Question 20

2 out of 2 points

The final step of the strategic planning process is:

• Question 21

2 out of 2 points

Small firms pursuing a cost leadership strategy have an advantage in reaching customers whose primary purchase criterion is:

• Question 22

2 out of 2 points

When the small business owner assesses her company’s strengths and weaknesses, she is dealing with the ________ business environment.

• Question 23

2 out of 2 points

________ focuses everyone’s attention and efforts on the same target market. It is an expression of what the owner believes in.

• Question 24

2 out of 2 points

These are products of the interaction of various forces, trends, and events that are outside the control of the small business.

• Question 25

2 out of 2 points

The strategic planning process for small businesses is:

• Question 26

2 out of 2 points

How is the strategic planning process for small companies different from that for large companies?

• Question 27

2 out of 2 points

________ are negative internal factors that inhibit the accomplishment of a firm’s objectives.

• Question 28

2 out of 2 points

________ are the broad, long-range attributes the small business seeks to accomplish; ________ are the specific, measurable milestones the company wants to achieve.

• Question 29

2 out of 2 points

The small firm’s “master plan” is its:

• Question 30

2 out of 2 points

________ are positive internal factors that contribute towards accomplishing the company’s objectives.

Question 1

2 out of 2 points

Normally, when buying a business, the seller:

Question 2

2 out of 2 points

The biggest source for the best companies to buy is:

Question 3

2 out of 2 points

Before buying an existing business, the buyer should analyze
two external elements of the business:

Question 4

2 out of 2 points

The inventory in an existing business:

Question 5

2 out of 2 points

The capitalized earnings approach determines the value of a
business by capitalizing its expected profits using:

Question 6

2 out of 2 points

When a buyer is reviewing a candidate company’s lease
arrangements, location and appearance, intangible assets, etc., he is answering
what basic acquisition question?

Question 7

2 out of 2 points

Once an entrepreneur has evaluated him/herself, the next step
in the acquisition process would be to:

Question 9

2 out of 2 points

Which of the following is an intangible asset?

Question 10

2 out of 2 points

If the firm owns any trademarks, patents, or copyrights, or
has built up a positive reputation with customers and suppliers, the business
has what is/are called:

Question 11

2 out of 2 points

Which of the following is a way to smooth the transition of
leadership/management from the seller of a business to the buyer?

Question 12

2 out of 2 points

When the buyer is examining the income statements, tax
returns, and balance sheets of the business, he/she is seeking an answer to the
basic question:

Question 13

2 out of 2 points

When buying an existing business, one should remember that:

Question 14

2 out of 2 points

When it comes to buying an existing business, it is not
uncommon to find it:

Question 15

2 out of 2 points

The valuation method that is commonly used, but tends to
oversimplify the valuation process, is called:

Question 16

2 out of 2 points

Your cash budget and an explanation of how much money you
need to make your company and product a long-term success are the subject
matter of the:

Question 17

2 out of 2 points

A well-developed business plan provides the entrepreneur with
a number of benefits, such as:

Question 18

2 out of 2 points

Defining the target market’s potential and describing its
characteristics is part of the:

Question 19

2 out of 2 points

The second essential purpose for creating a business plan is:

Question 20

2 out of 2 points

The primary purpose of building a business plan is to:

Question 21

2 out of 2 points

________ are long-range, broad statements of what the company
plans to accomplish in the distant future, and they guide the overall direction
of the company.

Question 22

2 out of 2 points

The ________ becomes the document that summarizes the
analysis that has been done to justify a new business.

Question 23

2 out of 2 points

Proving that a profitable market exists involves:

Question 24

2 out of 2 points

A business plan:

Question 25

2 out of 2 points

The C of the five Cs that is a synonym for “cash
flow” is:

Question 26

2 out of 2 points

A business plan performs a number of functions including:

Question 27

2 out of 2 points

The ________ is the first part of the business plan. It
summarizes all the relevant points of the deal, but it should be the last part
written.

Question 28

2 out of 2 points

The focus of the competitor analysis section of the business
plan is to:

Question 29

2 out of 2 points

A ________ is what a customer gains from the product or
service feature.

Question 30

2 out of 2 points

The C of the five Cs that relates to the circumstances
relating to the business, such as potential growth in the market, form of
ownership, location, etc., is called:

Question 1

2 out of 2 points

The statement of cash flow:

Question 2

2 out of 2 points

A pro forma financial statement means:

Question 3

2 out of 2 points

________ measure the financing supplied by the company’s
owners against that supplied by its creditors and serve as a gauge of the depth
of a company’s debt.

Question 4

2 out of 2 points

The break-even point occurs where:

.

Question 5

2 out of 2 points

What is the difference between price per unit and variable
cost per unit?

Question 6

2 out of 2 points

________ is/are the value of the owner’s investment in the
business.

Question 7

2 out of 2 points

A technique that allows the small business owner to perform
financial analysis by understanding the relationship between two accounting
elements is called:

Question 8

2 out of 2 points

A ratio greater than ________ days would indicate poor
collection procedures.

Question 9

2 out of 2 points

The profit and loss statement is also referred as the
________.

Question 10

2 out of 2 points

The ________ is built on the basic accounting equation:
Assets = Liabilities + Owner’s Equity.

Question 11

2 out of 2 points

________ tell whether or not the small business will be able
to meet its maturing obligations as they come due.

Question 12

2 out of 2 points

________ ratios tell whether or not the small company will be
able to meet its maturing obligations as they come due.

Question 13

2 out of 2 points

________ ratios measure the financing supplied by business
owners and that supplied by the firm’s creditors.

Question 14

2 out of 2 points

________ ratios help a business owner evaluate the company’s
performance and indicate how effectively the business employs its resources.

Question 15

2 out of 2 points

________ ratios indicate how efficiently the small firm is
being managed.

Question 16

2 out of 2 points

A bank account that technically never has funds in it but is
tied to another master account so that when checks are presented for payment
the master account is debited, permitting the company to use its own money
during the “float” period, is called a(n):

Question 17

2 out of 2 points

Exchanging goods and services for other goods and services,
or ________, is an effective way for a small business to conserve cash.

Question 18

2 out of 2 points

When investing surplus cash, the small business owner’s key
objectives should be:

Question 19

2 out of 2 points

________ is the money that moves through the business in a
continuous cycle.

Question 20

2 out of 2 points

The budgeting strategy that evaluates the necessity of every
item on the budget each year by starting with a zero in each budget category is
called:

Question 21

2 out of 2 points

The most important item on the balance sheet is:

Question 22

2 out of 2 points

Once a small business has established a firm written credit
policy and communicated it, the next step in building an effective credit
policy is to:

.

Question 23

2 out of 2 points

________ companies are most likely to suffer cash shortages.

Question 24

2 out of 2 points

________ is simply a “cash map” which shows the
amount and the timing of cash receipts and cash disbursements over time.

Question 25

2 out of 2 points

The first step to building a workable credit policy is:

Question 26

2 out of 2 points

Once a credit account becomes past due, a small business
owner should:

Question 27

2 out of 2 points

The “big three” of cash management include:

Question 28

2 out of 2 points

An important source of credit information that collects
information on small businesses that other reporting services ignore is:

Question 29

2 out of 2 points

The Fair Debt Collection Practices Act prohibits business
owners from:

Question 30

2 out of 2 points

When it comes to trade credit, the small business owner:

Question 1

2 out of 2 points

When it comes to innovation, the small business and
entrepreneur:

Question 2

2 out of 2 points

Companies connect with their customers ________ by supporting
causes that are important to their customer base, taking exceptional care of
their customers, and making it fun and enjoyable to do business with them.

Question 3

2 out of 2 points

________ is the notion of drawing customers into a store by
creating a kaleidoscope of sights, sounds, smells, and activities, all designed
to entertain–and, of course, sell.

Question 4

2 out of 2 points

The majority of customers who stop patronizing a particular
store do so because:

Question 5

2 out of 2 points

The most common channel of distribution for consumer goods
is:

Question 6

2 out of 2 points

The cost of marketing a product is highest in the:

Question 7

2 out of 2 points

One-to-one marketing is a marketing strategy that:

Question 8

2 out of 2 points

________ is the process of creating and delivering desired
goods and services to customers, and involves all of the activities associated
with winning and retaining loyal customers.

Question 9

2 out of 2 points

The product life cycle concept means that small businesses
must:

Question 10

2 out of 2 points

The focus of the small company’s marketing plan is:

Question 11

2 out of 2 points

One “natural” advantage small businesses have over
large business, which can be a significant competitive advantage, is:

Question 12

2 out of 2 points

Market research:

Question 13

2 out of 2 points

A company’s competitive edge is:

Question 14

2 out of 2 points

The worst marketing catastrophe to befall any business would
be to:

Question 15

2 out of 2 points

Numerous surveys have concluded that the most important
element of service is:

Question 16

2 out of 2 points

________ is the personal contact between salespeople and
potential customers that comes from sales efforts.

Question 17

2 out of 2 points

The choice of advertising medium is primarily determined by:

Question 18

2 out of 2 points

________ forces the salesperson to be open-minded and to
shoot for the top.

Question 19

2 out of 2 points

Effective ads are built on:

Question 20

2 out of 2 points

In reality, advertising:

Question 21

2 out of 2 points

Radio’s power as an advertising medium comes from:

Question 22

2 out of 2 points

A recent study of top salespeople found that they:

Question 23

2 out of 2 points

A successful public relations technique used by local
businesses to sponsor and promote fundraising activities of nonprofit groups is
called:

Question 24

2 out of 2 points

________ is unsolicited commercial e-mail.

Question 25

2 out of 2 points

Newspaper advertising is characterized by:

Question 26

2 out of 2 points

________ is any sales presentation that is nonpersonal in
nature and is paid for by an identified sponsor.

Question 27

2 out of 2 points

The ________ cost of an advertising medium compares the
actual dollar cost of an ad with the number of potential customers it reaches.

Question 28

2 out of 2 points

The best color combination for an outdoor ad is:

Question 29

2 out of 2 points

The key to the success of direct mail advertising is:

Question 30

2 out of 2 points

The ________ becomes the heart of a company’s advertising
message.

Question 1

2 out of 2 points

Absorption costing:

Question 2

2 out of 2 points

In ________ pricing, a type of geographical pricing, a small
firm charges customers located in different territories different prices for
the same products.

Question 3

2 out of 2 points

When a computer manufacturer offers its computer with
software pre-installed, a printer, and Internet service, as all part of one
price, the manufacturer is using a:

Question 4

2 out of 2 points

________ pricing strategy introduces a new product at a low
price to gain quick acceptance and extensive distribution in a mass market.

Question 5

2 out of 2 points

The final price set by the entrepreneur for the products
depends on:

Question 6

2 out of 2 points

When a small business is faced with price competition from a
much larger competitor, it should consider:

Question 7

2 out of 2 points

Price wars usually begin when:

Question 8

2 out of 2 points

When pricing products, it is important to remember that:

Question 9

2 out of 2 points

Probably the most important consideration a manufacturer has
when setting the final price of its new exclusive perfume is:

Question 10

2 out of 2 points

A variation of geographic pricing in which the small company
sells its merchandise to customers on the condition that they pay all the
shipping is called:

Question 11

2 out of 2 points

Which of the following is correct?

Question 12

2 out of 2 points

A common “me-too” pricing policy by which the
small business owner establishes his/her prices by monitoring competitor’s
prices and then matching them is called:

Question 13

2 out of 2 points

Which price strategy is mostly used for moving stale,
outdated, damaged merchandise?

Question 14

2 out of 2 points

________ tells what portion of the total revenues remains
after covering variable costs to contribute toward meeting fixed expenses and
earning a profit.

Question 15

2 out of 2 points

When developing a marketing approach to pricing, business
owners must:

Question 16

2 out of 2 points

________ participating companies get antitrust immunity,
allowing them to cooperate freely.

Question 17

2 out of 2 points

Small businesses go global:

Question 18

2 out of 2 points

Expanding a small business into international markets:

Question 19

2 out of 2 points

The U.S. Commerce Department, the SBA, and the Trade
Administration provide a number of services. TOP–the trade opportunity
program–is one and through it entrepreneurs can:

Question 20

2 out of 2 points

An embargo is:

Question 21

2 out of 2 points

The type of companies that are an important channel of
foreign distribution for small companies just getting started in international
trade or for those lacking the resources to assign their own people to foreign
markets are referred to as:

Question 22

2 out of 2 points

Foreign licensing has its greatest potential in the
licensing of:

Question 23

2 out of 2 points

________ is the primary market for U.S. franchisers.

Question 24

2 out of 2 points

________ involves a transaction in which a company selling
goods in a foreign country agrees to promote investment and trade in that
country.

Question 25

2 out of 2 points

A ________ is a document the seller draws on the buyer,
requiring the buyer to pay the face amount (the purchase price of the goods)
either on sight (a sight draft) or on a specified date (a time draft) once the
goods are shipped.

Question 26

2 out of 2 points

The first step to becoming a truly global company is to:

Question 27

2 out of 2 points

________ is the exchange of goods and services for other
goods and services.

Question 28

2 out of 2 points

A(n) ________ is a business that buys and sells products in
a number of countries, offering a range of services–importing, exporting,
shipping, distributing, and others–to their clients.

Question 29

2 out of 2 points

A type of non-tariff barrier to trade that consists of
selling large quantities of products in foreign countries below cost is
referred to as:

Question 30

2 out of 2 points

Key to successfully establishing an international location
is:

Question 1

2 out of 2 points

The most common source of equity funds used to start a small business is:

Question 2

2 out of 2 points

When structuring a deal with an “angel,” an entrepreneur should remember that:

Question 3

2 out of 2 points

The outstanding publicly held stock is also called:

Question 4

2 out of 2 points

A(n) ________ is a private, for-profit organization that purchases equity positions in young businesses that will potentially produce returns of 300 to 500 percent over five to seven years.

Question 5

2 out of 2 points

Private “angel” investors tend to:

Question 6

2 out of 2 points

The formal underwriting agreement is signed:

Question 7

2 out of 2 points

________ capital is the pool of temporary funds of the business used to support the normal operation of the business on a short-term basis.

Question 8

2 out of 2 points

Working capital can be calculated by:

Question 9

2 out of 2 points

The largest single source of external equity capital for small businesses is:

Question 10

2 out of 2 points

________ governs private placements and is designed to reduce the registration requirements for small companies going public.

Question 11

2 out of 2 points

The “wait to go effective” is the time period when:

Question 12

2 out of 2 points

The largest cost in a public stock offering is:

Question 13

2 out of 2 points

Under a ________ agreement, the underwriter agrees to purchase all of the shares in a company’s public offering and then resells them to investors.

Question 14

2 out of 2 points

When looking for an angel, the key is:

Question 15

2 out of 2 points

A foreign stock market that caters to small companies is:

Question 1

2 out of 2 points

When a small business is refused a loan because it is not profitable and deemed a poor credit risk, the owner can usually turn to ________ as a source of short-term funds.

Question 2

2 out of 2 points

The SBA’s ________ program offers short-term capital to growing companies seeking to finance seasonal buildups in inventory or accounts receivable.

Question 3

2 out of 2 points

The ________ loan is based not on creditworthiness, but on the borrower’s reputation and reliability.

Question 4

2 out of 2 points

SBICs:

Question 5

2 out of 2 points

The most common form of secured credit is:

Question 6

2 out of 2 points

Insurance companies typically make two types of loans:

Question 7

2 out of 2 points

The most common method used by commercial finance companies to provide credit to small businesses is:

Question 8

2 out of 2 points

A ________ is an agreement with a bank that allows a small business to borrow up to a predetermined specified amount during the year without making an application each time.

Question 9

2 out of 2 points

Typically, a minimum loan amount from a Savings & Loan is:

Question 10

2 out of 2 points

The most common method of SBIC financing is the:

Question 11

2 out of 2 points

Savings and loan associations typically specialize in loans for:

Question 12

2 out of 2 points

________ were created by the SBA in 1992 to provide loans under $35,000 that are normally shunned by banks.

Question 13

2 out of 2