Page 1
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) The single biggest disadvantage of sole proprietorships is which of the following?
(Points : 5)
Limited resources
Limited skills
Unlimited liability
Double taxation
Question 6. 6. (TCO 4) What are the four Ps of the marketing mix?
(Points : 5)
Price, presence, place, and promotion
Price, presence, place, and product
Price, promotion, place, and product
Promotion, price, place, and production
Question 7. 7. (TCO 4) Which one below is NOT a pricing strategy discussed in our course? (Points : 5)
Price skimming
Promotional pricing
Penetration price
Prestige pricing
Question 8. 8. (TCO 4) Peter Drucker stated that businesses have _____ basic functions.
(Points : 5)
two
three
four
five
Question 9. 9. (TCO 4) The basic economic order quantity model assumes all but which of the following?
(Points : 5)
Volume discounts cannot be taken.
Annual demand can be accurately predicted.
Average inventory level is equal to maximum inventory level minus minimum inventory level divided by two.
Average inventory level is equal to minimum inventory level minus maximum inventory level divided by two.
Question 10. 10. (TCO 4) _____ cause the product to go directly from producers to consumers.
(Points : 5)
Direct channels
Indirect channels
Distribution channels
Streamline channels
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) People often equate quality with price. This belief has lead to which of the following pricing strategies?
(Points : 5)
Prestige pricing
Odd pricing
Reference 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) Adequate cash flow can be especially critical if the business is a _____.
(Points : 5)
manufacturing business
service business
seasonal or cyclical business
healthcare business
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) No matter what type of business a person is starting, one of the most important resources is _____. (Points : 5)
inventory
low rental rates
high wages
time
Question 19. 19. (TCO 3) Most Inc. 500 companies receive more than half of their revenue from _____.
(Points : 5)
their local areas
their regional areas
outside their home regions and internationally
within 100 miles of their 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) Dan Pink, the author of Drive: The Surprising Truth About What Motivates Us, states that people will be motivated if they have _____, _____, and _____. (Points : 5)
autonomy; mastery; purpose
talent; effort; luck
autonomy; mastery; intelligence
incentives; mastery; intelligence
Question 23. 23. (TCO 5) Which percentage of major U.S. employers offer some form of child care assistance?
(Points : 5)
40%
55%
68%
80%
Question 24. 24. (TCO 6) What a business does to add value to inputs when converting them to outputs is known as which of the following?
(Points : 5)
Inputs
Transformation processes
Outputs
Feedback
Question 25. 25. (TCO 6) Scheduling is necessary to maximize levels of _____. (Points : 5)
efficiency and customer service
customer service and expense
sales and expense
efficiency and effectiveness
Question 26. 26. (TCO 7) In double-entry accounting systems, debits must always equal what?
(Points : 5)
Assets
Liabilities
Credits
Owner’s equity
Question 27. 27. (TCO 7) Equity funds never need to be _____. (Points : 5)
repaid
accounted for
stated on the income statement
stated on the balance sheet
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) Philanthropic goodwill would be concerned with which of the following?
(Points : 5)
Reasonable profit
Meeting the legal requirements of all laws dealing with discrimination
Meeting obligations to society
Improving quality of life and promoting goodwill
Question 30. 30. (TCO 9) Threats and opportunities to a business can be found in which of the following environments?
(Points : 5)
Economic and legal only
Legal and sociocultural only
Technological and competitive only
Economic, legal, sociocultural, competitive, and technological
Page 2
Question 1. 1. (TCO 1) Compare and contrast a small business manager and an entrepreneur. Provide examples of where each of these talents would be important. (Points : 14)
Question 2. 2. (TCO 3) Analyze the advantages and disadvantages of buying an existing business. Under what circumstances would one be more advantageous? (Points : 14)
Question 3. 3. (TCO 4) Compare and contrast economic order quantity and just in time as inventory control methods. Evaluate how these control methods can improve the financial position of a small business. (Points : 14)
Question 4. 4. (TCO 6) Compare and contrast the process layout and the product layout. Evaluate the effectiveness of each. (Points : 14)
Question 5. 5. (TCO 9) Analyze the relationships among social responsibility, ethics, and strategic planning. (Points : 14)
