for small firms include the notion that:
A.superior customer
service will almost always lead directly to customer satisfaction.
B.customer
satisfaction demands customer loyalty.
C.small firms
possess great potential for providing superior customer service.
D.customer
satisfaction is “the name of the game” for such businesses.
Question 2 of 25 4.0
Points
Groups that an individual allows to influence his or her
behavior are known as:
A.reference groups.
B.referral groups.
C.perceptual groups.
D.associate groups.
Question 3 of 25 4.0
Points
Every new product must be carefully analyzed in terms of
financial considerations in the _____ stage of the product development process.
A.business analysis
B.idea accumulation
C.product testing
D.total product
development
Question 4 of 25 4.0
Points
Costs incurred by a firm in actually producing a product
(e.g., materials, machinery, etc.) are considered to be a part of
A.general overhead
expenses.
B.costs of
manufacturing.
C.cost of goods
sold.
D.manufacturing overhead
expenses.
Question 5 of 25 4.0
Points
Within the framework of a break-even analysis, an
examination of _____ is conducted to determine the quantity at which the
product, with an assumed price, will generate enough revenue to start earning a
profit.
A.costs
B.revenues
C.sales forecasts
D.costs and revenue
Question 6 of 25 4.0
Points
A widely dispersed market favors which of the promotional
methods?
A.Personal selling
B.Sales promotion
C.Personal promotion
D.Advertising
Question 7 of 25 4.0
Points
The two basic types of advertising are _____, which makes
potential customers aware of products and their need for them, and _____, which
conveys an idea about the firm that produces the product.
A.institutional,
product
B.product, institutional
C.product, publicity
D.specialty,
publicity
Question 8 of 25 4.0
Points
A bank loan officer believes that a particular small
business loan applicant is a typical entrepreneur and, therefore, is
A.skilled in general
management.
B.lacking in
managerial expertise.
C.strongly oriented
toward careful planning.
D.focused on
financial management.
Question 9 of 25 4.0
Points
Frequent and flagrant disregard of the chain of command
undermines the position of the
A.founder.
B.operative
employee.
C.staff specialist.
D.bypassed manager.
Question 10 of 25 4.0
Points
A survey of time usage has been recommended to a small
business owner by a management consultant. This will provide the owner with a
basis for improving the business by
A.classifying time
spent according to functional areas of the business.
B.avoiding
procrastination.
C.focusing attention
on the most crucial tasks.
D.minimizing use of
meetings.
Question 11 of 25 4.0
Points
A small business owner wishes to persuade a highly qualified
applicant (a business school graduate) to consider a position with his firm
carefully, even though the applicant has also had offers from large
corporations. The owner should most strongly emphasize the
A.family atmosphere.
B.retirement
program.
C.potential for
greater freedom of personnel to structure their job duties.
D.long history of
the firm.
Question 12 of 25 4.0
Points
When employer-employee relationships in a small firm are
compared with those in a large firm, it is found that
A.the relationships
are less formal in the large firm.
B.the large firm
concentrates more on production and the small firm is more interested in
personnel.
C.the small firm
makes less use of formal personnel policies.
D.personnel policy
changes are implemented more quickly in the large firm than in the small firm.
Question 13 of 25 4.0
Points
After attending a total quality management (TQM) seminar, a
small business owner decides that her firm has a good customer focus and
adequate tools and techniques. To be assured of a really strong quality
program, however, she knows that she must now establish the proper
A.statistical
quality control.
B.benchmarking.
C.marketing
research.
D.organizational
culture.
Question 14 of 25 4.0
Points
The primary purpose of reengineering is to
A.find the proper
time required for each work activity.
B.establish the
standard cost for each work activity.
C.increase the
quality level of products.
D.create substantial
improvements in operations.
Question 15 of 25 4.0
Points
Activities easily outsourced by small businesses include
A.payroll administration.
B.research and
development.
C.quality control.
D.top-level decision
making.
Question 16 of 25 4.0
Points
Small firms are likely to be tempted to act unethically
because
A.founders or owners
of small businesses are usually crooked.
B.breaking the rules
often seems to be the only way to make a profit and survive.
C.small businesses
are exempt from federal regulations.
D.Better Business
Bureaus don’t deal with small businesses.
Question 17 of 25 4.0
Points
In drawing up a code of ethics, a small business owner
should adopt a code
A.provided by the
Ethics Resource Center of Washington, D.C.
B.that outlines
ethical principles and gives examples.
C.that outlines
ethical principles but avoids examples.
D.suggested by the
Better Business Bureau.
Consumerism affects small businesses most directly in the
area of
A.worker’s
compensation.
B.product safety.
C.environmental
pollution.
D.manufacturing
costs.
Question 19 of 25 4.0
Points
Which of the following shows the original cost of each asset
and depreciation taken to date, along with other information such as the
condition of the asset?
A.Accounts payable
records
B.Accounts
receivable records
C.Cash records
D.Fixed asset records
Question 20 of 25 4.0
Points
Which of the following accounting methods/systems recognizes
revenue and expenses only when cash is received or payment is made?
A.Single-entry
system
B.Double-entry
system
C.Accrual method
D.Cash method
Question 21 of 25 4.0
Points
The use of debt can
A.increase a firm’s
return on equity.
B.reduce a firm’s
risk.
C.improve a firm’s
inventory turnover ratio.
D.enhance market
response to a firm’s performance
Question 22 of 25 4.0
Points
Rapid growth that soaks up cash more rapidly than cash is
generated creates
A.a net loss.
B.a reduction in
rate of inventory turnover.
C.a growth trap.
D.bankruptcy.
Question 23 of 25 4.0
Points
The rate of return a firm could earn on another investment
of similar risk is
A.cost of capital.
B.internal rate of
return.
C.opportunity cost.
D.accounting return
on investment.
Question 24 of 25 4.0
Points
Evaluation and review is an important step in the risk
management process because
A.it is difficult to
select an effective method to manage risks.
B.conditions change.
C.it is nearly
impossible to evaluate risk effectively.
D.entrepreneurs find
it challenging to identify the major risks that they face.
Question 25 of 25 4.0
Points
Regarding partners in a small business, statistics reveal
that the risk of disability is __________ the risk of death.
A.greater than
B.less than
C.about the same as
D.correlated with
