1. (TCO 1) Approximately what percentage of businesses have a payroll with fewer than 500 people?
(Points: 5)
10 percent
25 percent
75 percent
99 percent
2. (TCO 1) The impact downsizing has on small business is which of the following?
(Points: 5)
No labor force to work in small businesses
Opportunity to perform the work large businesses no longer perform
An availability of workers with no skills
Lack of financial backing for small businesses
3. (TCO 1) Which of the following are the inherent factors that work in favor of small businesses?
(Points: 5)
Ability to remain flexible and innovative
Management expertise
Emphasis on variety
Emphasis on quantity
4. (TCO 1) Which of the following is the key element needed to bring the entrepreneurial idea to reality during the implementation stage?
(Points: 5)
Capital/money
Commitment
Management expertise
A college education
5. (TCO 1) Which of the following is the most common form of business ownership?
(Points: 5)
Sole proprietorships
Partnerships
Corporations
Joint ventures
6. (TCO 4) Which of the following may an employer do under the Americans with Disabilities Act?
(Points: 5)
Question applicants about the severity, nature, or origin of a known disability
Refuse employment due to the employee needing special accommodation
Require drug tests at any time in the employment process
Require medical or physical exams prior to a conditional offer of employment
7. (TCO 4) Which of the following methods of bankruptcy would be best for a business that has no hope of getting out of its financial indebtedness?
(Points: 5)
Chapter 7
Chapter 12
Chapter 13
Chapter 11
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
9. (TCO 4) Product refers to:
(Points: 5)
Tangible goods only
Tangible services only
Tangible goods, intangible services, or a combination of both
Intangible services only
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?
11. (TCO 4) A type of retail layout with a predominant 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
12. (TCO 4) Which of the following is one of the most flexible components of the marketing mix?
(Points: 5)
Product
Promotion
Place
Price
13. (TCO 4) The point at which total cost equals total revenue and the business is neither making or losing money is known as the _______.
(Points: 5)
Profit area
Loss area
Breakeven point
Profit point
14. (TCO 2) Through the franchise agreement, the ________ gains the benefit of the parent company’s expertise, experience, management systems, marketing, and financial help.
(Points: 5)
Franchisor
Franchisee
Leaser
Lessee
15. (TCO 2) The financial document that is used by startup businesses to show where capital comes from and for what it will be used is called:
(Points: 5)
Cash-flow statement
Projected earnings statement
Sources and uses of funds
Income statement
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
17. (TCO 3) Industry averages for expense ratios comparing expenses to ________ exist for every size and type of business.
(Points: 5)
Profits
Assets
Liabilities
Sales
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.
