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Q:
A combination in which the whole is greater than the sum of its component parts refers to:
A. revolving credit.
B. synergy.
C. microinventory.
D. spin-off.
Q:
Which of the following is accomplished by a small business when it secures outside investment?
A. Business can be started by a sole individual.
B. Founders take part in a mentoring program.
C. It indicates a level of belief in the business and the owner.
D. Business can be started by an individual without prior experience.
Q:
The _____ phase is usually the most difficult time a person will have in business.
A. start-up
B. maturity
C. growth
D. evaluation
Q:
In _____ executive volunteers contribute their time and energy in assisting start-up and struggling small businesses as a public service.
A. mentoring programs
B. consultancies
C. trade associations
D. franchising outlets
Q:
Which of the following ensures that a new business will be critically examined by outsiders who have no vested interest in the owners' idea, product, or service?
A. Securing outside investment
B. Starting with more than one founder
C. Having previous experience of managing small firms
D. Having a detailed start-up budget
Q:
_____ strengthen the local economy by helping create jobs through the establishment of successful small businesses.
A. Joint venture firms
B. Consultancies
C. Business incubators
D. Trade associations
Q:
A _____ is an organization that provides financial, technical, and managerial help to start-up businesses.
A. business incubator
B. trade association
C. venture capital firm
D. consultancy
Q:
Which of the following is most likely to be the best indicator of successful start-ups?
A. Level of experience of the founders
B. Social background of the founders
C. Financial background of the founders
D. Specific educational courses taken by the founder
Q:
The specific concept that leads to a start-up business usually comes from the _____ of the person starting the business.
A. credentials
B. interests
C. education
D. experience
Q:
A(n) _____ credit is a credit agreement that allows the borrower to pay all or part of the balance at any time; as the loan balance is paid off, it becomes available to be borrowed again.
A. revolving
B. installment
C. social
D. primary
Q:
Which of the following terms best represents something a business owns that has economic value or is expected to have economic value in the future?
A. Asset
B. Revolving credit
C. Cash flow
D. Synergy
Q:
A start-up cannot:
A. provide the owner with the opportunity to use the most up-to-date technologies.
B. provide new, unique products or services.
C. begin with a "clean slate."
D. provide positive cash flows immediately.
Q:
Which of the following is a disadvantage of a start-up?
A. It cannot begin with a "clean slate."
B. It cannot easily gain revolving credit.
C. It does not provide the owner with the opportunity to use the most up-to-date technologies.
D. It cannot provide new, unique products or services.
Q:
Which of the following would be a plus point for starting a new business?
A. Initial name recognition
B. Clean slate to begin
C. "Legacy" locations, buildings, and equipment
D. Accessibility to experienced managers and workers
Q:
Which of the following is true for start-ups?
A. It has initial name recognition.
B. A start-up is also known as an earn-out.
C. It involves purchases of existing businesses.
D. It can provide new, unique products or services that are not available.
Q:
Purchases of existing businesses may occur through _____ in which the business is bought over a period of time with money obtained from the business.
A. green field investments
B. blue ocean strategies
C. earn-outs
D. leveraged buyouts
Q:
A new business that has begun from scratch is called a:
A. buyout.
B. franchise.
C. start-up.
D. buy-in.
Q:
A legal agreement that allows a business to be operated using the name and business procedures of another firm is referred to as a:
A. franchise.
B. blue ocean strategy.
C. green field investment.
D. cartel.
Q:
Which of the following is one of the ways to get into small business management?
A. Narrowcasting
B. Franchising
C. Expropriating
D. Onboarding
Q:
For small businesses, professional management is an issue of education, titles, and credentials.
Q:
Founders of small businesses often find it very difficult to give up decision-making authority to family members.
Q:
The UFOC is a standard document franchises use to explain their operations, requirements, and costs to potential franchisees.
Q:
Trade name franchising provides an organization through which interdependent businesses may combine resources.
Q:
Key resource acquisitions, also called bulk asset purchases, are the only way a sole proprietorship may be purchased.
Q:
Buy-ins can be made in any form of business.
Q:
Legal business organizations are artificial entities that exist separately from the owners.
Q:
Buyouts are restricted to businesses that have a formal legal form of organization.
Q:
The absolute lowest price that a buyer would be willing to pay is called the point of indifference' in the negotiation process.
Q:
Properly performing due diligence minimizes the risk of failure and maximizes the probability of success by identifying the strengths and weaknesses of the business.
Q:
Due diligence is the process of investigating to determine the full and complete implications of buying a business.
Q:
Brokers advertise and facilitate the sale of business for a fee, usually a percentage of the ultimate selling price.
Q:
One disadvantage of purchasing an existing business is that it requires more cash outlay than creating a start-up.
Q:
One way to go about obtaining committed customers prior to start-up is to specifically go into competition with one's employer.
Q:
A start-up usually can easily gain revolving credit from suppliers and financial institutions.
Q:
Explain the key ideas to be kept in mind before moving from part-time to full-time entrepreneurship.
Q:
What are the main concerns when individuals moonlight? Explain.
Q:
What is bootstrapping? Explain an idea to make bootstrapping work.
Q:
What is the difference between delegation and outsourcing?
Q:
In what ways do small part-time businesses need to deal with government? Explain.
Q:
Differentiate between stand retail and home retail by explaining the advantages and disadvantages of each.
Q:
Why are websites important even for small businesses?
Q:
Discuss the key considerations for assessing part-time business approaches.
Q:
Explain situations in which it would it be better to first undertake a part-time business.
Q:
Why are part-time businesses important? Explain.
Q:
Which of the following best describes aggrandizing?
A. Ken uses the money he gets from his full-time job as a chef to run his part-time business of graphic designing.
B. Sarah works a full-time day job as a waitress and then runs a part-time baby-sitting service at night.
C. Jenson misses his deadlines at his full-time day job because he works late nights as a part-time music producer.
D. Cathy, who does computer repairs, lies to customers about having an office in a business park when she actually works part-time from her home.
Q:
Which of the following best describes conflict of interest?
A. Sarah works a full-time day job as a waitress and then runs a part-time baby-sitting service at night.
B. Cathy, who does computer repairs, lies to customers about having an office downtown when she actually works part-time from her home.
C. Jenson misses his deadlines at his full-time day job because he works late nights as a part-time music producer.
D. Ken uses the money he gets from his full-time job as a chef to run his part-time business of graphic designing.
Q:
Cannibalizing is one of the major concerns when _____.
A. moonlighting
B. aggrandizing
C. benchmarking
D. bootstrapping
Q:
Which of the following best describes cannibalizing?
A. Ken uses the money he gets from his full-time job as a chef to run his part-time business of graphic designing.
B. Mandy uses her employer's client list from her full-time job as a house painter to get customers for her own part-time house painting business.
C. Cathy, who does computer repairs, lies to customers about having an office downtown when she actually works part-time from her home.
D. Jenson misses his deadlines at his full-time day job because he works late nights as a part-time music producer.
Q:
_____ refers to a situation when what is best for one's part-time business is different from what is best for his or her full-time employer.
A. Cannibalizing
B. Aggrandizing
C. Conflict of interest
D. Poisoning the well
Q:
The most typical form of aggrandizement in part-time businesses is:
A. implying that a firm is a full-time one when it is only part time.
B. creating a positive impression among one's employers' customers.
C. working on own part-time business after regular job.
D. finding a low-cost or no-cost way to do something.
Q:
Attempting to make oneself seem more accomplished than reality is referred to as:
A. aggrandizing.
B. poisoning the well.
C. moonlighting.
D. cannibalizing.
Q:
_____ refers to creating a negative impression among one's employers' customers.
A. Bootstrapping
B. Cannibalizing
C. Aggrandizing
D. Poisoning the well
Q:
_____ means taking business away from one's employer.
A. Bootstrapping
B. Licensing
C. Cannibalizing
D. Aggrandizing
Q:
All of the following are major concerns of moonlighting EXCEPT:
A. conflict of interest.
B. bootstrapping.
C. cannibalizing sales.
D. poisoning the well.
Q:
Working on one's own part-time business after a regular job is referred to as:
A. moonlighting.
B. bootstrapping.
C. outsourcing.
D. licensing.
Q:
All of the following are the key ideas of bootstrapping EXCEPT:
A. cutting your personal and business expenses.
B. seeing if you can get things which you need for free.
C. seeing if you can substitute a lower-cost alternative before you buy.
D. borrowing heavily from banks while keeping your money untouched.
Q:
Equity refers to:
A. the ownership of a business as a whole.
B. the ownership of a portion of a business.
C. finding a low cost or no cost way to do a business.
D. acquiring permission from the government to do a part-time business.
Q:
Which of the following is a good technique to counter undercapitalization in part-time businesses?
A. Aggrandizing
B. Zoning
C. Bootstrapping
D. Offshoring
Q:
Undercapitalization refers to:
A. not having enough money available to the business to cover shortfalls in sales or profits.
B. not having enough money to capitalize on new business ventures.
C. finding a low-cost or no-cost way to do something.
D. not having enough money available to start a part-time business.
Q:
Finding a low-cost or no-cost way of doing business is called _____.
A. moonlighting
B. bootstrapping
C. outsourcing
D. licensing
Q:
Contracting with people or companies outside one's business to get work done for the business is known as:
A. benchmarking.
B. bootstrapping.
C. outsourcing.
D. licensing.
Q:
The assignment of work to others over whom one has power is referred to as:
A. delegation.
B. adverse possession.
C. benchmarking.
D. zoning.
Q:
For part-time businesses, _____ refers to the documented permission from the government to run a business.
A. bootstrapping
B. benchmarking
C. licensing
D. zoning
Q:
_____ refers to information provided to the government concerning the existence of, name of, nature of, and contact information for one's business.
A. Zoning
B. Franchising
C. Registration
D. Bootstrapping
Q:
Which of the following represents a disadvantage of the consignment approach?
A. Availability of different consignment stores and auctions
B. Long amount of time before payouts
C. Full-time sales with only a part-time involvement from the owner
D. High setup costs
Q:
Which of the following is true with regard to the consignment approach of selling?
A. They permit full-time sales only with full-time involvement from a person.
B. They are high-risk level undertakings.
C. They have low profitability because of agent's fees.
D. They have no flexibility despite variety of consignment agents and agencies available.
Q:
Which of the following represents an advantage of the consignment approach?
A. Full-time sales with only a part-time involvement from a person
B. High potential for competing offers
C. Less amount of time before payout
D. Complete lack of inventory
Q:
In stand retail, the key success factor for a stand is:
A. having a location where there is enough foot or vehicle traffic.
B. having a variable income.
C. having nonperishable sale items.
D. sharing with other businesses to minimize the high rent.
Q:
All of the following are success factors to "stand retail" EXCEPT that:
A. it tends to be either semipermanent ones or movable ones.
B. it needs to be built in places where there is less foot or vehicle traffic.
C. it can be quickly established.
D. it does not require a lot of investment in inventory.
Q:
Which of the following is considered an advantage of stand retailing?
A. Variable income
B. Minimum startup investment
C. Steady income
D. Strong customer base
Q:
One of the most ancient forms of small business is:
A. stand retailing.
B. auctioning.
C. mail order.
D. licensing.
Q:
Which of the following activities mimics multilevel marketing?
A. Forward networking
B. Reserved auctioning
C. Counterfeit catalog selling
D. Illegal pyramid schemes
Q:
An approach to selling in which the salesperson recruits customers to become distributors of the product or service to others is known as _____.
A. network marketing
B. auctioning
C. catalog selling
D. online marketing
Q:
In door-to-door selling, _____ refers to getting the customer to agree to buy.
A. opening
B. promoting
C. auctioning
D. closing
Q:
The fundamental success factor in door-to-door selling is:
A. closing the sale.
B. having a location with enough foot traffic.
C. approaching a "high-rent" district.
D. having a perishable product for sale.
Q:
Which of the following is true of home businesses?
A. It is very difficult to set up.
B. It requires a very high initial capital to start up.
C. It does not allow one to work away from his or her employer.
D. It provides highly variable income.
Q:
Which of the following is true with regard to home retail?
A. The disadvantages of home businesses include the slow speed and difficulty of setup.
B. The ability to do the work away from home and employer minimizes potential conflicts.
C. The advantage of home retail is that it provides a high steady income.
D. The high cost of getting started is one of the drawbacks of home retail.
Q:
Which of the following part-time business approaches does the door-to-door model represent?
A. Auctioning
B. Consignment tracking
C. Home retail
D. Mail order
Q:
Which of the following is a free way to get one's name and business known?
A. Through improving the search engine optimization of one's business
B. Tele marketing
C. Distributing business cards, stationery, printed newsletters, and brochures
D. Making informed comments on blogs and discussion forums related to one's business
Q:
_____ price is a minimum acceptable selling price in an auction.
A. Absolute
B. Reserve
C. Forward
D. Small-value