Question 1.1. (TCO 1) Approximately what percentage of businesses have a payroll with fewer
than 500 people?
(Points : 5)
10%
25%
75%
99% Question 2.2. (TCO 1) You have a small business that offers printing services. One of the services
you offer is a high-speed color copier. You are currently the only printing service in a tristate area
that offers such a service. You currently have which of the following?
(Points : 5)
Creative destruction
A competitive advantage
A qualitative advantage
A capital advantage Question 3.3. (TCO 1) Your employees are your most valued assets due to their _____.
(Points : 5)
skills, knowledge, and information
earnings
knowledge of finance and accounting
college degrees and high IQs Question 4.4. (TCO 1) In the growth stage of the startup process model, what is the primary goal
of the small business?
(Points : 5)
Regulations
Employees
Vendors
Reaching critical mass (survival) Question 5.5. (TCO 1) Which of the following is the most common form of business ownership?
(Points : 5)
Sole proprietorships
Partnerships
Corporations
Joint ventures Question 6.6. (TCO 4) Which one below is not part of the elements of a marketing plan? (Points :
5)
Marketing objective
Marketing directive
Product
Target market Question 7.7. (TCO 4) Location analysis involves several factors such as _____. (Points : 5)
price of land
proximinty to customers
quality and quantity of workforce
All of the above Question 8.8. (TCO 4) 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?
(Points : 5)
Build-up
Guesstimate
Break-down
Pro forma Question 9.9. (TCO 4) Managing inventory can be compared to which of the following?
(Points : 5)
A balancing act
Preparing for a test
Driving a bus
Lion taming Question 10.10. (TCO 4) A small business owner should begin the site selection process by asking which of the following questions?
(Points : 5)
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 11.11. (TCO 4) 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?
(Points : 5)
Free-flow layout
Grid layout
Loop layout
Process layout Question 12.12. (TCO 4) Consumers typically do not want the cheapest product available; they
want the _____. (Points : 5)
best product for the highest price
most reasonable product at the highest price
most reasonable product at the lowest price
best product for the most reasonable price Question 13.13. (TCO 4) 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? (Points : 5)
Penetration pricing
Price skimming
Psychological pricing
Price lining Question 14.14. (TCO 2) Royalty fees are calculated as a percentage of what?
(Points : 5)
Gross sales
Gross profit
Net profit
Pretax revenue Question 15.15. (TCO 2) 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 _____.
(Points : 5)
a cash-flow statement
a projected earnings statement
the sources and uses of funds
an income statement Question 16.16. (TCO 2) Which of the following is not included in the marketing plan section of
the business plan? (Points : 5)
How sales forecasts will be reached
Marketing objectives
Identification of potential markets
Cash flow statements Question 17.17. (TCO 3) The capitalization rate when figuring goodwill should be a figure
assigned to show what?
(Points : 5)
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 18.18. (TCO 3) In the chapter opener, what was the limitation that kept Philip Rosedale
from creating Second Life when he first had the idea for it?
(Points : 5)
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 19.19. (TCO 3) Most fast-growth companies are started by _____. (Points : 5)
sole proprietorships
partnerships
corporations
home-based businesses Question 20.20. (TCO 3) A company that strives to offer good products at the lowest price
possible is operating with which competitive advantage?
(Points : 5)
Operational excellence
Product leadership
Customer intimacy
Best service method Question 21.21. (TCO 5) Which one of these is not a tool that is used during the selection
process? (Points : 5)
Applications
Resumes
Drug testing
None of the above Question 22.22. (TCO 5) Job analysis will _____. (Points : 5)
identify the tasks needed to implement your business plan identify the human capital needed to implement your business plan
identify the skills needed to implement your business plan
None of the above Question 23.23. (TCO 5) The job description should include all but which of the following
sections?
(Points : 5)
Job summary section
Job identification section
A company task list section
A section detailing essential duties to be performed by the jobholder Question 24.24. (TCO 6) A production process that operates for long periods of time without
interruption is known as what?
(Points : 5)
Analytic system
Synthetic system
Continuous process
Intermittent process Question 25.25. (TCO 6) Information that shows the steps required to produce a product is called
which of the following?
(Points : 5)
Routing Sequencing
Dispatching
Controlling Question 26.26. (TCO 7) The system within a business for converting raw data from source
documents (like invoices, sales receipts, bills, and checks) into information that will help a
manager make business decisions is known as what? (Points : 5)
Computer system
Accounting system
Record system
Data system Question 27.27. (TCO 7) Assets that will be converted into cash within 1 year are called _____.
(Points : 5)
short-term assets
long-term assets
capital assets
financial assets Question 28.28. (TCO 8) Which of these responsibilities is NOT one of the four social
responsibilities that a small business owner must manage in today’s business? (Points : 5)
Ethical
Economical
Sensible Philanthropic Question 29.29. (TCO 9) The obligation of business to maximize the positive impact it has on
society while minimizing the negative impact is called what?
(Points : 5)
Moral obligation
Business responsibility
Business ethics
Social responsibility Question 30.30. (TCO 9) The foundation on which all other goals and strategies are based is a
_____.
(Points : 5)
mission statement
statement of intentions
code of ethics
list of company goals 1. (TCO 1) Compare and contrast a sole proprietorship, a partnership, and a corporation. Provide
examples of where you would use each structure. (Points : 14)
Spellchecker Question 2. 2. (TCO 3) 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. (Points : 14)
Spellchecker Question 3. 3. (TCO 4) Compare and contrast the three basic types of locations for businesses.
Using examples, evaluate when a particular type would be preferential. (Points : 14)
Spellchecker Question 4. 4. (TCO 6) Compare and contrast analytic manufacturing systems and synthetic
manufacturing systems, giving an example of each. (Points : 14)
Spellchecker Question 5. 5. (TCO 9) Analyze the relationships among social responsibility, ethics, and strategic
planning. (Points : 14)
Spellchecker
