Q&A Hero

Q: Most employees in America receive fourteen days of leave after working for a company for one year.

Q: An entrepreneurial venture that manufactures low-cost generic pills would be likely to be ________. A) very organic in structure B) very innovative C) fairly mechanistic in structure D) very informal in structure

Q: Supplemental pay benefits provide employees with time-off-with-pay for jury duty, vacations, funerals, and military responsibilities.

Q: Legally required benefits, such as unemployment insurance, are more costly to employers than health insurance.

Q: In general, an entrepreneurial venture that sees ________ as its competitive advantage would tend to be ________ in structure. A) efficiency; organic B) efficiency; informal C) innovation; mechanistic D) innovation; informal

Q: In general, an entrepreneurial venture that sees ________ as its competitive advantage would tend to be ________ in structure. A) efficiency; organic B) efficiency; mechanistic C) innovation; mechanistic D) innovation; formal

Q: Employee benefits account for about one-third of wages and salaries.

Q: Health care costs have dropped significantly in recent years due to government intervention and the increased use of HMOs.

Q: Many small entrepreneurial firms don't have a deliberately planned organizational structure because ________. A) they are inefficient B) small firms never need structure C) the IRS prevents them from having a structure D) one person does "everything"

Q: Which of the following is NOT a way to organize an entrepreneurial venture? A) partnership B) corporation C) cooperative association D) sole proprietorship

Q: Benefits are an important aspect of employee compensation, and they involve the direct financial payments employees receive for remaining with an employer.

Q: Orion is a business software firm based in Atlanta that employs over 400 people. Orion has traditionally provided legislatively required benefits for its employees including Social Security, workers' compensation, and unemployment insurance. In addition, Orion offers employees health and dental insurance. Orion employees work Monday through Friday on a 9 to 5 schedule. Orion's top executives are considering the idea of adding a flexible benefits plan and implementing a flexible work schedule. All of the following questions are relevant to Orion's decision to offer flextime and job sharing options to its employees EXCEPT which one? A) What do surveys indicate regarding overall job satisfaction among Orion employees? B) How would the productivity level of Orion's employees most likely change? C) How many Orion employees currently care for their aging parents? D) What is the average rate of employee absenteeism at Orion?

Q: Entrepreneurs should take great care when choosing a form of legal ownership because once one form is chosen, it is ________ to change it to another form. A) impossible B) very difficult C) easy D) rather embarrassing

Q: Orion is a business software firm based in Atlanta that employs over 400 people. Orion has traditionally provided legislatively required benefits for its employees including Social Security, workers' compensation, and unemployment insurance. In addition, Orion offers employees health and dental insurance. Orion employees work Monday through Friday on a 9 to 5 schedule. Orion's top executives are considering the idea of adding a flexible benefits plan and implementing a flexible work schedule. Which of the following, if true, best supports Orion's decision to offer flextime to its employees? A) Orion's single-parent employees are frequently late when arriving to work. B) Orion allows some of its employees to telecommute at least one day each week. C) Many Orion employees must conduct business while traveling to different locations. D) Orion employs a large number of part-time employees, most of whom are near retirement age.

Q: The form of legal ownership that an entrepreneur chooses for a venture primarily affects these concerns. A) profit and productivity B) taxes and liability C) liability and planning D) taxes and revenue

Q: Orion is a business software firm based in Atlanta that employs over 400 people. Orion has traditionally provided legislatively required benefits for its employees including Social Security, workers' compensation, and unemployment insurance. In addition, Orion offers employees health and dental insurance. Orion employees work Monday through Friday on a 9 to 5 schedule. Orion's top executives are considering the idea of adding a flexible benefits plan and implementing a flexible work schedule. All of the following questions are relevant to Orion's decision to add a cafeteria plan EXCEPT which one? A) What benefits are available to employees at Orion's main competitors? B) What costs would Orion incur for switching to a cafeteria benefits plan? C) How would a cafeteria plan alter Orion employees' Social Security benefits? D) What effect would a cafeteria plan have on the coverage that Orion employees receive?

Q: This section of a full business plan would include an assessment of the industry of the venture and how it fits into the overall economic climate. A) analysis of context B) description of the business C) financial data and projections D) analysis of opportunity

Q: Curt works at a computer firm that is experiencing financial difficulties. In an attempt to save money and prevent layoffs, the firm is enforcing a temporary reduction in work hours for Curt's division. Curt now works 35 hours a week instead of 40. Which of the following most likely describes this situation? A) flextime B) job sharing C) work sharing D) compressed workweek

Q: This section of a full business plan would include a description of the demographics of the target market for the organization. A) description of the business B) financial data and projections C) executive summary D) analysis of opportunity

Q: Identification of the organization's key personnel would be included in this section of a full business plan. A) analysis of the context B) analysis of opportunity C) description of the business D) executive summary

Q: Anne and Martha are both accountant supervisors at a large marketing firm. Anne works from 7:00 a.m. until 12:00 p.m. each day. Martha takes over the same position at 12:00 p.m. and works until 5:00 p.m. each day. Which of the following most likely describes this type of work arrangement? A) flextime B) job sharing C) work sharing D) compressed workweek

Q: This section of a full business plan would include possible income statements for the next three years. A) financial data and projections B) executive summary C) analysis of opportunity D) description of the business

Q: Which of the following occupations is commonly subjected to compressed workweeks? A) engineer B) attorney C) teacher D) pilot

Q: A brief mission statement of an entrepreneurial venture would be included in this section of a full business plan. A) analysis of opportunity B) description of the business C) executive summary D) analysis of the context

Q: Which of the following is an example of a compressed workweek? A) Maxwell works from 7 am to 3 pm Monday-Friday. B) Shannon works from 7 am to 5 pm Monday-Thursday. C) Tom works from 11 am to 7 pm five days per week. D) Bob works from 12 pm to 6 pm Monday-Sunday.

Q: Stephanie has opted to work from 7 am to 3 pm so that she can be home when her son finishes school in the afternoons. Her company must offer ________ for Stephanie to have this option. A) shift work B) flextime C) telecommuting D) compressed workweeks

Q: This is the most complete and comprehensive type of business plan. A) executive summary B) full business plan C) summary business plan D) synopsis-type plan

Q: Which of the following best explains why many businesses use employee leasing firms? A) Firms save money by hiring part-time or temporary workers. B) Investment opportunities are more plentiful and reliable. C) Small companies are able to get better insurance rates. D) Franchise owners can offer more flexible schedules.

Q: This type of business plan is a step down from the most complete type of business plan. A) summary business plan B) full business plan C) executive summary D) synopsis-type plan

Q: Orion is a business software firm based in Atlanta that employs over 400 people. Orion has traditionally provided legislatively required benefits for its employees including Social Security, workers' compensation, and unemployment insurance. In addition, Orion offers employees health and dental insurance. Orion employees work Monday through Friday on a 9 to 5 schedule. Orion's top executives are considering the idea of adding a flexible benefits plan and implementing a flexible work schedule. Which of the following, if true, undermines the argument that Orion should offer its employees a cafeteria plan? A) A survey of Orion employees indicates that the majority of employees are very satisfied with the firm's current benefit offerings. B) Orion experiences very few workers' compensation claims each year as compared to similarly sized businesses in the Atlanta area. C) Orion employee surveys indicate that most employees are interested in either 401(k) plans or Roth IRAs as methods of saving for retirement. D) Orion uses an employee leasing firm to handle recruiting, hiring, and benefits administration.

Q: This type of business plan is a step up from the simplest type of business plan. A) summary business plan B) executive summary C) synopsis-type plan D) full business plan

Q: Orion is a business software firm based in Atlanta that employs over 400 people. Orion has traditionally provided legislatively required benefits for its employees including Social Security, workers' compensation, and unemployment insurance. In addition, Orion offers employees health and dental insurance. Orion employees work Monday through Friday on a 9 to 5 schedule. Orion's top executives are considering the idea of adding a flexible benefits plan and implementing a flexible work schedule. Which of the following, if true, best supports the argument that Orion should offer its employees a cafeteria benefits plan? A) Orion lacks the resources to join a low-cost health insurance plan, so the firm belongs to a pool with other businesses. B) Some Orion employees have indicated that they would like vision insurance, while others have no interest in dental insurance. C) Orion offers its employees a PPO health insurance plan, but employees have expressed interest in an HMO plan. D) Orion outsources its employee benefits program, so employees go through the plan's administrator when filing claims.

Q: This is the simplest and briefest type of business plan. A) synopsis-type plan B) full business plan C) summary business plan D) executive summary

Q: Which term refers to individualized plans allowed by employers to accommodate employee preferences for benefits? A) variable pay plan B) cafeteria benefits plan C) matching plan D) executive perquisite plan

Q: Once an entrepreneurial venture is actually up and running, the entrepreneur switches to a ________ role. A) managerial B) ceremonial figurehead C) background D) subordinating

Q: Which of the following benefits is NOT classified as a type of family-friendly benefit? A) sick leave B) subsidized child care C) on-site fitness facilities D) flexible work schedules

Q: During the launching of a venture, which of the following is accomplished? A) creating a top management team B) establishing a mission C) setting goals and strategy D) patenting the product or service

Q: ________ seek to enable employees to balance their job and family responsibilities. A) Sick leave B) Pension plans C) Work-life benefits D) Benefit management systems

Q: After the startup has been planned and organized, the next step is ________. A) prototyping the product or service B) creating a top management team C) financing the venture D) launching the venture

Q: ________ provide services like financial counseling, child care referrals, elder care referrals, adoption assistance, mental health counseling, and life event planning. A) Pension plans B) Employee assistance programs C) Family-friendly benefits D) Benefit management systems

Q: During the organizing phase of an entrepreneurial venture, an entrepreneur ________. A) states a mission B) selects a legal business organization form C) creates a business plan D) selects an organizational design

Q: During the first step of the planning phase of an entrepreneurial venture, this is accomplished. A) selecting a legal business organization form B) stating a mission C) selecting an organizational design D) performing a copyright search

Q: Which of the following provides guidelines regarding what rates of return employers should use in computing their pension plan values? A) Employee Retirement Income Security Act B) Job Creation and Worker Assistance Act C) Social Security Act D) Equal Pay Act

Q: Which of the following requires that pension rights be vested and protected by the Pension Benefits Guarantee Corporation? A) Economic Growth and Tax Relief Conciliation Act B) Employee Retirement Income Security Act C) Job Creation and Worker Assistance Act D) Social Security Act

Q: This is an important part of researching a firm's feasibility. A) exploring finance options B) researching the legal business forms C) pinpointing potential competitive advantages D) identifying potential opportunities

Q: Uncovering business ideas, looking at competitors, and exploring financing options are part of this phase of the entrepreneurial process. A) identifying competitive advantage B) exploring business forms C) researching the venture's feasibility D) identifying potential opportunities

Q: All of the following characterize cash balance plans EXCEPT ________. A) lacks portability B) offers predictable benefits C) considered hybrid pension plans D) employees earn interest on contributed amounts

Q: Which of the following refers to a plan in which employees contribute a portion of their earnings to a fund and the employer typically matches the contribution in whole or part? A) group investment plan B) 401(k) plan C) deferred profit-sharing plan D) employee stock ownership plan

Q: Which of the following is typically involved in exploring the entrepreneurial context of a new venture? A) researching the venture's feasibility B) uncovering business ideas C) exploring finance options D) pinpointing potential competitive advantages

Q: In most cases, the first step in the initial (pre-planning) phase of the entrepreneurial process is this. A) planning the venture B) identifying potential opportunities C) exploring finance options D) researching the venture's feasibility

Q: All of the following are characteristic of 401(k) plans EXCEPT ________. A) categorized as a defined contribution plan B) deduction replaces Social Security tax C) pretax salary deductions invested D) considered a savings and thrift plan

Q: A plan in which the employer's contribution to employees' retirement savings funds is specified is known as a ________. A) portable plan B) default investment plan C) defined benefit pension plan D) defined contribution pension plan

Q: Survival rates of entrepreneurial ventures that started in a recession are ________ those that started in an expansion. A) somewhat greater than B) less than C) about the same as D) much greater than

Q: After four years, ________ business. A) 56 percent of entrepreneurial ventures are out of B) 56 percent of entrepreneurial ventures are still in C) 31 percent of entrepreneurial ventures are out of D) two-thirds of entrepreneurial ventures are out of

Q: Jenny must contribute at least 5% of her annual salary to her pension plan, and her employer contributes a set amount as well. She is given choices regarding how the money is invested. When she retires, the amount she has available will depend on how much she invested herself, and the rate of return on the investments she chose. This pension plan is most likely classified as ________. A) qualified, defined benefit B) non-contributory, defined benefit C) contributory, defined contribution D) contributory, non-qualified

Q: In the wake of high unemployment, statistics show that entrepreneurship is ________. A) low B) high C) falling D) neither rising nor falling

Q: Malcolm is interviewing for a new job and he is evaluating the quality of the pension plans offered for each company he is considering. One company offers a pension plan in which the company will make all contributions to the plan and will base his pension benefit on a formula linked to his pay at the time of retirement and the number of years he was with the firm. This pension plan is most likely classified as ________. A) qualified, defined benefit B) non-contributory, defined benefit C) non-contributory, defined contribution D) contributory, defined benefit

Q: A plan that contains a formula for determining retirement benefits is known as a ________. A) defined contribution pension plan B) defined benefit pension plan C) cash balance plan D) 401(k) plan

Q: An "accidental entrepreneur" is someone who became an entrepreneur because he or she ________. A) always had a dream to start a company B) lost his or her job C) identified a great opportunity D) quit his or her job

Q: When an employer makes all of the contributions to the pension plan, the pension plan is classified as ________. A) qualified B) non-qualified C) defined contribution D) non-contributory

Q: Besides being innovative in some way, a second defining characteristic of an entrepreneurial venture is that it is ________. A) small in size B) focused on growth C) dedicated to quality D) original and creative

Q: Medicare provides a wide range of health services to people ________ or over. A) 55 B) 60 C) 65 D) 70

Q: When it was first starting out, the Viking Range company qualified as an entrepreneurial organization because its products were ________. A) high in quality B) expensive C) innovative and different D) loved by serious cooks

Q: Taxes on employee wages to fund Social Security apply to all earnings up to ________. A) $46,500 B) $63,700 C) $113,700 D) $124,300

Q: One key difference between an entrepreneurial venture and a small business is that the entrepreneurial venture focuses on ________. A) productivity B) efficiency C) quality D) innovation

Q: Which of the following provides a fixed sum when employees reach a predetermined retirement age or can no longer work due to disability? A) workers' compensation B) Social Security C) pension plan D) group life insurance

Q: An entrepreneurial venture and a small business ________. A) are superficially similar B) are identical C) have nothing in common D) are impossible to tell apart

Q: Which of the following is most likely to provide a competitive edge for a person applying for a job in a law firm? A) exceptional math skills B) exceptional writing skills C) computer programming experience D) musical ability

Q: How is the Social Security program funded? A) sale of government bonds B) tax on employee wages C) tax on homeowners D) tax on luxury goods

Q: A ________ is an edge that makes a person attractive to employers in a job market. A) job requirement B) qualification C) job skill D) competitive advantage

Q: Social Security offers all of the following EXCEPT ________. A) survivor's benefits for those insured under the Social Security Act B) disability payments to employees who become totally disabled C) tax refunds for retirees who are 55 and older D) Medicare program administration

Q: For individuals born in 1960 or later, the full retirement age for non-discounted Social Security benefits is ________. A) 62 B) 65 C) 67 D) 70

Q: An individual with a college degree earns ________ than a person without a college degree. A) over $20,000 more per year B) over $800,000 more per year C) almost $28,000 more per year D) no more

Q: A college degree ________. A) is valuable for status only B) has educational, but not financial, value C) has both educational and financial value D) has financial value only

Q: Which of the following is LEAST likely to explain the growing percentage of part-time workers? A) economic recession B) phased retirement programs C) desire to better balance work and life D) minimum wage increases

Q: Which of the following is an example of a well-defined career choice that is not too broad nor too narrow? A) pharmaceutical research B) working in the medical field C) researching new headache remedies D) working as an executive for Pfizer

Q: Which of the following provides lower rates for the employer or employee and includes all employees regardless of health or physical condition? A) workers' compensation insurance B) group life insurance C) disability insurance D) pension plans

Q: Which of the following issues is NOT one of the top three factors that have been identified by today's college graduates as important in selecting a new job? A) job security B) job location C) job benefits D) compensation

Q: All of the following are health care cost-control methods used by employers EXCEPT ________. A) requiring employees to pay high premiums B) auditing medical claims for errors C) requiring disability insurance D) encouraging medical tourism

Q: In which of the following can employers and employees deposit pretax wages to pay for non-catastrophic medical expenses? A) health maintenance organizations B) health benefits funds C) health savings accounts D) deferred savings plans