logo image

Small Business Management (End of Year)

When Darla prepares her company’s balance sheet, she should include ___________ in the list of current assets.
Accounts receivable
For Webster to understand how his company performed during calendar year 2012, he must begin with firm’s financial position on:
January 1, 2012
To calculate his company’s _______________, Edgar will subtract operating expenses from gross profits.
Operating income
Ignazio has just opened his business. One of the first things he should learn is:
Which numbers are the most important for him to watch and to watch them like a hawk
For investment purposes, Wilma needs a snapshot of the firm’s financial position at a specific point in time. She should look at the
Balance sheet
For any business, both the _______ and ________ are needed to determine a firm’s financial position.
Income statement, balance sheet
A two year-old asset has a depreciable life of 10 years. Its initial purchase cost was $450,000 and it is depreciated by 10 percent annually. What is the remaining depreciable value of the asset?
$360,000
Eugenia’s company bought a delivery truck to deliver merchandise to customers. This truck should appear as ___________ on the balance sheet.
A fixed asset
The balance sheet and income statement are separate reports, but actually…
Complement each other
The cash flow statement answers the questions “From where did the

Need essay sample on "Small Business Management (End of Year)"? We will write a custom essay sample specifically for you for only $13.90/page

cash come?’ and “Where did the cash go?”

True
False

True
Astoria is using a software application to prepare the balance sheet. She wasn’t sure which of the following should be included in the fixed asset category. What would you tell her?
Land
Martina invested her savings into her business when she started it. Later she added more capital and she has kept some of her profits. Together these are known as:
Owner’s equity
Jasper bought some new equipment for his business. Six months later he wants to know whether this was a good idea. To do that, he can calculate the:
Return on assets
Coronado cannot use the income statement as a measure of cash flows because it is calculated on a(n) _______ rather than a(n) _______ basis.
Accrual; cash
The liquidity of a firm is…
Often measured by a ratio of current assets to current liabilities
The cash flow statement measures cash flows on…
A cash basis
Depreciation is the cost of a firm’s land and building allocated over its useful life.

True
False

False
Lucille is preparing the _____, which shows all cash receipts and payments involved in operating the business and managing its financial activities.
Cash flow statement
A profitable company may not have positive cash flows.

True
False

True
If an asset can quickly be converted to cash, it is considered to be a(n):
Current asset
Liquidity represents the degree to which a firm can meet maturing short-term debt obligations with available working capital.

True
False

True
The income statement shows a firm’s financial position on a specific date.

True
False

False
Marvin is preparing one of the annual financial statements and has asked you which of the following should be included in operating expenses. You tell him it is:
Marketing-related expenses
Ignatio applied for a loan for his business that he will repay in 9 months. The best way to describe this loan is as a(n):
Short-term note
Ownership equity represents the owner’s investment in the company, which can be either his/her cash invested in the company or money borrowed from a bank to purchase fixed assets.

True
False

False
In order to determine the cash flows from day-to-day operations, the firm must convert the company’s income statement from a cash basis to an accrual basis.

True
False

False
If Hector’s firm’s current ratio _____, its liquidity _____.
Increases; increases
Depreciation is added back on the cash flow statement in which activity section?
Operating
The terms earnings, profits and income refer to different amounts on the income statement.

True
False

False
Lance is trying to decide whether to purchase a new bulldozer to expand his business. He is confident he has enough work to keep the bulldozer busy and that repaying the loan will not be a problem. What advice would you give Lance?
If the interest rate on the loan is less than the return on assets for the dozer, buy
For investment purposes, Wilma needs a snapshot of the firm’s financial position at a specific point in time. She should look at the…
Balance sheet
The items on the income statement are expressed in dollars but the corresponding margins are expressed as:
Percentages
Cameron and Ashley bought $40 of “premium pink lemonade mix” and paper cups for their lemonade stand. These items are considered:
Inventory
The major difference between cash-basis accounting and accrual-basis accounting is when the firm recognizes revenue and profits.

True
False

True
Accounts payable consist of payments due from a firm’s customers.

True
False

False
To determine her company’s gross profits, Edith should:
Subtract cost of goods sold from sales
To determine his company’s debt ratio, Hector should divide the firm’s total debt by the total _____.
Assets
A conventional measure of a firm’s liquidity is a comparison of current assets to current liabilities.

True
False

True
Net income is used to measure the return on the firm’s total assets.

True
False

False
Profits reward owners for investing in a company, but they do little to promote future growth.

True
False

False
Kevin wants to open his own car repair shop. To do that he will need tools and other equipment. The two methods Kevin can use to pay for these items are:
Debt and equity
Guenther bought merchandise for his retail business on credit and sold some of it for cash. To record his purchases on his cash flow statement, Guenther will:
Subtract the increase in inventory from the increase in accounts payable
Stephanie ordered merchandise from one of her vendors but she doesn’t have to pay for it right away. The amount of this purchase will increase Stephanie’s:
Accounts Payable
Raul needed an expensive piece of equipment to expand his business. He borrowed the money from the bank and pledged the equipment as ___________. If Raul does not repay the loan, the bank can take his equipment.
Collateral
The cash flow activities on the cash flow statement are divided into these categories:
Cash from operations, buying or selling assets, and financing the business.
Natalya is confused about the difference between cash-basis and accrual-basis accounting. So you tell her that the:
Point of recognition of revenue and expenses is different.
The three activities that explain the cash inflows and outflows of a business are the selling, investment and financing activities.

True
False

False
Comparing this year’s results to last year’s, Hector discovered that his firm’s current ratio improved from 1.5 to 2.0. What has happened?
Current liabilities have decreased
Total assets less outstanding debt equals ownership equity.

True
False

False
Jan’s bank has asked her to show them how her firm’s financial position has changed in the past year. She should provide the company’s balance sheet.

True
False

False
Qualified small businesses that cannot obtain business loans through normal lending channels can get loans directly from the SBA through its 7(a) Loan Guaranty Program.

True
False

False
Many venture capitalists:
intend to cash out after five to seven years
Barry needs financing to start his inner-city venture. His goal is to provide part-time employment for at-risk youths to keep them off the streets and engaged in learning marketable skills. Barry may find some assistance from:
a community-based financial institution
A line of credit is the _____ amount of credit a bank will provide a borrower at any one time.
Maximum
Around 5 percent of the business plans reviewed by venture capitalists are funded.

True
False

False
A firm with potential for large profits, as opposed to high growth potential, has many more possible sources of financing than does a firm that offers only unattractive returns.

True
False

False
A source of early-stage capital financing for a company is financing from commercial banks.

True
False

False
Venture capital companies
are often limited partnerships that raise capital from other investors.
Companies that have business dealings with a new firm are possible sources of funds for financing inventory and equipment.

True
False

True
Business angels, as opposed to venture capitalists, provide:
informal venture capital
Glenda is trying to decide between the use of debt and the use of equity to finance her young business. She should remember that:
debt must be repaid even if the company does not make a profit.
For entrepreneurial ventures with the potential for becoming significant businesses, initial public offerings have been the fastest-growing source of financing over the past two decades.

True
False

False
Maguire was considering selling stock as a source of funds but was concerned about:
the loss of voting control of the company.
One potential problem with acquiring funds from friends and relatives is that they might feel they have the right to interfere in the management of the business.

True
False

True
Sandy is using a governmental program to help finance her new business. Her company is not eligible for a loan through a normal lending channel and is receiving $120,000 with the SBA guaranteeing 85 percent of the loan. She also had to submit a loan application to the lender. Ellie is participating in the:
7(a) Loan Guaranty Program
Althouth not the primary source of financing for most small business startups, another source of early financing is:
Family members
Williams Alternative Power, Inc. a company developing solar panels, is applying for a loan. The research the company has done for the manufacturing process would be a(n) _____ asset for the loan evaluation.
Intangible
The amount of trade credit available to a new company is dependent on the supplier’s confidence in the firm and not the type of business.

True
False

False
Qualified small businesses that cannot obtain business loans through normal lending channels can get loans directly from the SBA through its 7(a) Loan Guaranty Program

True
False

False
Assets such as the quality of a firm’s employees are considered tangible in nature and thus have substantial value as collateral.

True
False

False
Novelty Shirts is a manufacturing company needing to expand its production facilities. Which SBA program would be best to acquire real estate valued at $150,000?
Certified Development Company 504 Loan
In the beginning, some entrepreneurs use ____________ as a source of financing.
personal credit cards
Joann is buying an existing convenience store. When she considers which bank to use, her best choice would be:
a bank close to her store.
Small firms frequently run into problems when:
they fail to match a term loan’s payment terms with the expected cash inflows from the equipment purchased with the loan.
To determine how well her business is doing, Darlene should monitor the return on her investment (equity) because it is a better measure of performance than
the absolute dollar amount of income.
Small Business Administration loans include guaranty loans and loans directly from the SBA.

True
False

False
In his presentation to his banker when he applies for a business loan to purchase additional equipment, Alan should emphasize:
how he will be able to repay the principal of the loan.
Commercial investors are sometimes called business angels.

True
False

False
If a firm finances with equity rather than with debt, it will bear no interest expense and thus yield greater net income.

True
False

True
When a stock sale is restricted to private placement, an entrepreneur can avoid many of the demanding requirements of the securities laws.

True
False

True
Floyd’s income statement showed for the current year his company had an operating income of $30,000 and his balance sheet showed total assets of $200,000. His return on assets is _________ percent.
15
The main advantage of using credit cards for financing is the relatively low interest rate compared to bank loans.

True
False

False
One potential problem with acquiring funds from friends and relatives is that they might feel they have the right to interfere in the management of the business

True
False

True
The private sale of a firm’s common stock is regulated by the Securities and Exchange Commission.

True
False

False
In most cases of IPOs, the equity capital raised is used for growth as opposed to an immediate exit strategy of the original entrepreneur.

True
False

True
The boost to employee motivation and effort that results from an ESOP will vary significantly from firm to firm.

True
False

True
Uncertainties accompanying an impending sale of a business often
lead to lower employee morale.
Entrepreneurs should think very carefully about their motives for exiting a business and what they plan to do after the harvest.

True
False

True
The opportunity to exit a business is triggered by an interested seller.

True
False

False
Eleanor has money to invest and is considering buying a company. When comparing her alternatives, her opportunity cost on a any investment is the:
rate of return that she could earn on a similar investment.
Paul is approaching retirement and has decided to siphon off funds form his company rather than sell it. From his perspective, the advantage of systematically withdrawing cash from the firm is:
Retaining control
More recently, the bust-up leveraged buyout was replaced with the build-up leveraged buyout.

True
False

True
The effects of the harvesting process include
poor performance
Jill is purchasing a web design company that has patented a new form of technology. Which purchase would be best for her in relation to the web design company’s liabilities?
Buy the firm’s assets.
The harvesting process encompasses more than just selling and leaving a business.

True
False

True
Valerie is beginning to think of harvesting her company. Which question should be asked first?
What is the value of her firm?
One of the drawbacks of harvesting by withdrawing cash flows slowly is that the owner must seek out a buyer for the eventual sale of the business.

True
False

False
Evangeline has sold her small boutique to a large retail chain but has agreed to stay on and manage the store. Evangeline should expect:
culture conflict
Which statement best characterizes business valuation?
Negotiation skills play an important part in valuation.
Vasily is selling his business. As a harvesting owner we would expect him to prefer _____ over _____.
cash, stock
Harvesting is the method entrepreneurs and investors use to grow their firms.

True
False

False
The build-up leveraged buyout is typically used in industries that are dominated by large firms.

True
False

False
Steve wants to sell his business but the bank will not lend the buyer enough money. Between personal savings and the bank loan, the buyer has about 80% of the asking price. Which of the following options would be best for Steve in this situation?
Offer to finance the remaining 20%, accepting payments over the next few years.
Matt owns a car dealership that is very profitable. Since he plans to retire in 5-10 years, Matt has decided to retain ownership for now, but without continuing to grow the business. This change would also allow him to invest for retirement some of the cash that the business is now generating. Which harvesting method does this example illustrate?
A strategy to release the firm’s free cash flows to the owners
For the entrepreneur who is simply tired of the day-to-day operations of the business, slowly withdrawing cash flows over time may require too much patience.

True
False

True
Arthur’s company is doing well but he has grown a bit tired of the daily grind. The idea of selling is appealing to him. What would you recommend Arthur do next?
Get advice from someone who has sold a business.
Millard has worked for the past five years to build his business but as retirement nears, he is thinking it is time for the harvest. Harvesting refers to
exiting a business.
In earlier years, leveraged buyouts became synonymous with the ____ LBO.
bust-up
Going public can be beneficial to a firm by helping it
create a liquid currency to fund future acquisitions.
Marvin is planning to sell his company to his management team. Marvin will be financing part of the purchase. This type of arrangement is a form of:
LBO
Lack of in-house expertise is a major justification for using outside CRM services.

True
False

True
Information taken from warranty cards would be stored in which category of a customer profile?
personal information
Initial CRM support efforts should be placed with the website as those personnel have the most customer contact.

True
False

False
Consumer needs can be completely satisfied by proper customer relationship management.

True
False

False
The reason that a group of uniformed people walking down the street playing musical instruments is recognized as a band is the result of
perceptual categorization.
The ability to enjoy one-on-one contact with customers has always been a competitive advantage for large firms.

True
False

False
Which consumer option for dealing with product or service dissatisfaction is the only one that is desirable to a business?
privately complain to the business
Nikita’s decision to buy her shoes at the same shop that her boss patronizes is the result of which sociological influence?
opinion leaders
It is important to keep in touch with a customer and make a sales pitch each time.

True
False

False
There must be a company-wide commitment to CRM concept if CRM is to be productive.

True
False

True
Most customer service problems are identified by
customer complaints
Molly has had repeated positive experiences with her local coffee shop. They suggest new flavors, call her by her first name, and donate to a local charity that Molly supports. Molly’s experiences, as a result, contribute to the firm’s CRM _______.
value equation
CRM software programs
are often implemented into sales departments first since this area of a company typically generates the greatest amount of customer contact.
In general, a person can be an opinion leader even if he or she is not
nationally known
A consumer’s recognition of a problem can be characterized as routine if the problem evolves over time.

True
False

False
To establish an effective customer service program, what should be completed first?
customer service quotient
Only three classes of needs—social, psychological, and spiritual— can be connected to behavior through motivations.

True
False

False
Addressing a customer by name typically means very little to them.

True
False

False
As an owner of a floral design business, Tim’s highest priority for the florist’s CRM program should be
determining if existing customers are satisfied with past floral arrangements.
CRM is the business version of
The Golden Rule
Economic benefits associated with maintaining relationships with current customers include:
Small increases in customer retention can translate into large increases in profits.
Julie’s preference for the a certain style of barbeque developed in her state is the result of which sociological influence?
culture
An enduring opinion that is based on a combination of knowledge, feeling, and behavioral tendency is referred to as
an attitude
An evoked set is a group of brands that a consumer is both aware of and willing to consider as a solution to a purchase problem.

True
False

True
Attending a prayer breakfast is most likely an attempt to satisfy which category of need?
Spiritual
A basic idea forming the foundation of customer loyalty for small firms includes the notion that
small firms possess great potential for providing superior customer service.
Bob never purchases bottled water when he is thirsty even if it is available. This behavior indicates that bottled water
is not included in Bob’s evoked set.
June has always believed that the resale furniture store doesn’t have quality furniture as it has been used by others. This _____ may cause her to avoid the store and shop at a store specializing in new furniture across town.
attitude
Customer relationship management means different things to different businesses.

True
False

True
Yelp.com
is an online forum where unhappy customers can post a negative review.
A winery promotes its products by holding wine tastings at the restaurants of outstanding local chefs. The winery is utilizing which sociological influence?
opinion leaders
An approach that recognizes that, with every interaction, customers learn something about a company that will affect their desire to do business there in the future is known as
customer experience management
Product testing is the last step in the product development process.

True
False

True
Cooking for Collin, a small manufacturer of holiday cakes, sells its product through independent retailers and mail-order marketing. Cooking for Collin is relying on
a dual distribution channel.
Judy is opening a small business producing high-quality paper products and has decided to place a green pine tree on all product boxes and on the sign outside the facilities to symbolize the business. At this point, the symbol is an example of a
brandmark
3PLs are considered more cost effective by many small businesses because it allows the company to focus on the primary operations and outsource the accounting challenges to another company.

True
False

False
A small firm’s “special signature” is called a logo

True
False

True
The business analysis stage of new product development is critical since
one to three years may pass before profits are realized.
Physical distribution of products includes only transportation.

True
False

False
iPad is a
brand
The product life cycle, as opposed to the competitive advantage life cycle,
helps an entrepreneur visualize the sales and profits of a product from the time it is introduced until it is no longer on the market.
During the competitive advantage life cycle, firms can exploit a competitive advantage during the develop stage.

True
False

False
Trademarks and service marks are legal terms indicating the exclusive right to use a brand.

True
False

True
If inventory needs grow with higher sales, the increase in accounts receivables will cover this cost.

True
False

False
The distinctive operating image of a product, including features such as size, shape, color or color combinations, texture, graphics, or even particular sales techniques, can be protected
as trade dress
A sustainable competitive advantage is
a value-creating industry position that is likely to endure over time.
Beatrice is contemplating whether to offer a warranty on her product. She should remember that warranties are important for products:
that are relatively complex to repair.
A product strategy that includes a new product that is quite different from existing products
can be more challenging to manage.
Before a company’s competitive advantage moves into the decline stage, it should
implement previously developed plans for the hidden curves.
Because they have limited resources, small business need not formalize the product development process.

True
False

False
Small businesses should view distribution costs as
an investment
ntermediaries exist because
they provide more efficient means of distrubtion than the product producer
A brand includes the verbal identification of a product as well as symbols or other means of identifying a product.

True
False

True
All small firms want to grow

True
False

False
Hillary wants to purchase a refrigerator on credit. If she uses an installment plan, what is most likely to occur?
A down payment will be required.
Markups may be expressed as a percentage of either the firm’s cost or the industry-standard cost.

True
False

False
Which card is a retailer credit card?
Sears Card
A revolving charge account would be typical for larger purchases; smaller purchases are typical on installment accounts.

True
False

False
Trade credit is extended to consumers purchasing large volumes of products.

True
False

False
Price lining refers to the systematic determination of the right price for a product or service.

True
False

False
When she uses her American Express card, Cathy obtains possession of goods or services when they are purchased. Payment is due when billed at a later date. American Express is a type of:
open charge account
Markup pricing may be expressed in terms of a percentage of either the ____ or the cost.
selling price
Services are generally easier to price than products.

True
False

False
Information Express is a privately owned and operated organization that collects credit information on business firms. After the organization analyzes and evaluates the data, it makes credit ratings available to client companies for a fee. Information Express is a
trade-credit agency
Which “C” defines the customer’s asset conservation?
Capacity
Break-even analysis is an accurate tool for pricing because it points directly to the correct price for a given product.

True
False

False
Credit bureaus maintain credit histories on individuals based on information reported to them by banks, mortgage companies, department stores, and other creditors.

True
False

True
Which option is designed for long-term credit?
Installment accounts
Under certain circumstances, local, state, and federal laws must be considered in setting prices in a small business.

True
False

True
Zemann’s, a large firm selling custodial supplies to other businesses, has decided to begin offering trade credit. Its major objective in granting credit is
To make sales
The bad-debt ratio is the ratio of bad debts to total sales.

True
False

False
Retro Hits, a local band covering songs from the 1980’s and 1990’s, decided they wanted to expand to more college students. Research showed students thought the current $15 ticket price was too high for a local band. To strengthen ticket demand, Retro Hits began offering $10 tickets to all fans who checked in on Facebook. The band was using a
variable pricing strategy
The seller’s measure of what he or she is willing to receive in exchange for transferring ownership or use of a product or service is
price
The Golf Global Company sells 1,000 shirts annually at a price of $35 each. If the company’s pricing policies adhere to a 40% markup of selling price, the cost of each shirt is
$21
A business that has a gaming console intended to compete directly with Sony’s Playstation gaming console would likely use a ____ pricing strategy.
follow-the-leader
Trade-credit agencies collect credit information on business firms and consumers in a given area.

True
False

False
A primary purpose of the federal Consumer Credit Protection Act is to
require creditors to specify how finance charges are computed
Because it is a standard practice for many business types, selling on credit cannot often be avoided.

True
False

True
Which type of organization is a good source of consumer credit information?
Credit bureaus
Because small businesses are small by definition, pricing and credit considerations are relatively unimportant to their overall performance.

True
False

False
Trade show groups claim that the cost of an exhibit is less than one-fourth the cost of a sales call

True
False

True
Promotional funds are determined according to past experience in which of the following methods?
percentage of sales
Hands-on experience with a product is possible with
trade show exhibits
Straight salaries are best for motivating salespeople because of the financial security salaries provide.

True
False

False
The key to effective ___________ is that they last.
specialities
Both wholesalers and retailers can utilize sales promotion tools to increase sales.

True
False

True
HubSpot, Inc. used a(n) ______ to establish the company’s platform of inbound marketing.
Blog
A small business that is search engine-friendly will have lower ranks and therefore it will attract more visitors.

True
False

False
Inspiring Toys, a small manufacturer of educational toys, is formulating a budget for next year’s promotional activities. What method should be considered to react to a short run promotional tactic done by Mattel?
spending as much as the competition
Ned’s company has supported the Little League, Pop Warner football, the high school band, and many other local charities but isn’t getting the amount of press he feels his actions deserve. Why might this be true?
A good publicity program requires regular contacts with the news media so Ned needs to make them aware of his support.
Specialty items are effective because they last, are generally delivered personally, and have value to the customer while they keep the name of the company or product in front of them.

True
False

True
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.
product, institutional
Product advertising is intended to keep the public conscious of the company and its good reputation.

True
False

False
A widely dispersed market favors which promotional method?
Advertising
The way a business combines its communications is a promotional mix.

True
False

False
Rebecca is starting a new consulting business for a small, local target market. She has determined the amount for the four methods: percentage of sales $2,000; how much to spare $1,000; competition spending $5,000; and specific results $3,000. How much should she spend?
$3,000 because it is within the range and also for specific results.
A generous salary with a commission cap is typically best for most small businesses.

True
False

False
Personal selling is an effective method for promoting light bulbs.

True
False

False
Stephen is a new entrepreneur who would like to advertise his business but feels his creativity is insufficient to the task. Where can he find help?
Advertising media
Advertising can make a product successful in the long term.

True
False

False
Marcia is considering offering a promotional item for her sales people to give to prospects at their first appointment. Which of the following would be the best choice?
a calendar
Most small businesses create their own promotional messages.

True
False

False
Telephone calls and mail surveys are examples of
marketer-initiated contacts
Trade show groups claim that the cost of an exhibit is less than one-fourth the cost of a sales call.

True
False

True
Herbert is considering whether to advertise on the placemats used in many local restaurants. One of the arguments in favor of this action is:
publicity is important to a small business and should be used at every opportunity.
At its core, successful promotion is all about effective _____.
communication
Advertising seeks to sell by informing, persuading, and reminding customers of the existence or superiority of a firm’s product or service.

True
False

True
Publicity is accurately described as free advertising.

True
False

False
Martel visited the website of his favorite music store looking for a specific CD from years past. The website touted a vast library of classic rock CDs but after just a few minutes Martel gave up and left the site. It is probable the website suffered from:
slow downloading
Inquiries by a potential customer that do not lead to a sale can still create what is known as a “promising prospect.”

True
False

False
Spending as much as the competition does for promotional efforts can lead the firm to copy the mistakes and successes of a rival.

True
False

True
Payment for banner advertising is usually based on the number of people who actually
click on the banner
A salesperson at Carpet Warehouse searches public records of new building permits to identify potential customers for new carpets. This salesperson is relying on ____ to identify sales prospects.
impersonal referrals
Anne owns a small business dealing with industrial products. She currently uses personal selling extensively, but she wants to reduce her cost without losing exposure. Which promotional tool should she use?
Trade show exhibits
Nike and many other companies engage in international outsourcing, which refers to
accessing foreign labor through contracts with independent providers.
By informing consumers about the lifestyles of others, globalization is leading toward more diverse consumer preferences.

True
False

False
Entrepreneurs decide to go global to expand their opportunities, but sometimes they are forced to enter foreign markets to compete with firms that have already done so.

True
False

True
Experience curve efficiencies refers to
the outcomes of learning effects and economies of scale.
Small businesses that are either already or interested in exporting or importing can receive information from the SBA through conferences, seminars, publications and counseling.

True
False

False
Mattel has allowed a producer in Thailand to manufacture and sell its branded dolls in overseas markets. The company in Thailand is a:
licensee
Twenty-five percent of the world’s population lives in the United States.

True
False

False
Learning effects occur when
insights gained by employees enhance their work performance.
The U.S. Department of Industry provides information for entrepreneurs considering global operations.

True
False

False
Exporting involves the sale of goods made in the home country to customers in another country.

True
False

True
The Federation of International Trade Associations website is a source of trade
leads
A Canadian grocery store chain with its corporate headquarters in Quebec has approached Antonio, the owner of a company that produces pasta, about exporting its pasta into Canada. Which question would need to be answered in relation to the company’s production capacity objectives?
Will Canadian sales hurt USA sales?
Some small firms choose to outsource internationally in order to
cut costs and access talented foreign employees
Allen is considering entering the global marketplace. What question should be answered first?
Is the company up to the task?
The motivation to take domestic products to foreign markets is more relevant today than in the past.

True
False

False
As Antonio’s pasta company increases in size, the business is able to realize economies of scale:
by spreading of an investment across more units of production.
When the exchange rate for a currency rises relative to that of another country, the rising currency
has increased in value relative to the other currency.
Perhaps the easiest way to break into international markets is to use a trade intermediary.

True
False

True
The unique features of a local environment can yield benefits to small firms locating there even when the costs are greater.

True
False

True
In the past, companies have left the United States to:
find raw materials
In Antonio accepts the offer of the Canadian grocery to sell his American-made pasta in Canada, he will be:
exporting
Trade leads are accessed most often through contacts.

True
False

False
Once a small business owner decides to expand internationally, s/he should study the competitive forces in the foreign market.

True
False

False
An economic risk for a global company is the threat of new labeling regulations.

True
False

False
A small company can deal with changing currency rates by
stating contracts in US dollars as opposed to the international currency.
When a firm reaches Stage 2, the entrepreneur engages extensively in both the coordination of the efforts of others as well as performing basic work activities.

True
False

True
Entrepreneurs who follow a win-win negotiating strategy seek a solution that will satisfy at least the basic interests of both parties.

True
False

True
It is critical for entrepreneurs to set aside time to work undisturbed.

True
False

True
In a line-and-staff organization, which division is a line activity?
Production
Linda’s high standards and expectations of employee excellence is typical of ____ leaders.
pacesetting
The use of written policies, budgets, and job descriptions is most closely associated with which stage of growth?
Formal organization
A small business typically has greater constraints in cash flow and employee expertise than found in larger corporations.

True
False

True
The consulting resources of universities are made available to small business firms by
student consulting team program
Margaret has launched a new event planning company with four employees. With the growth in sales and personnel, the next step of growth will involve
intermediate supervision.
The maximum number of employees who can be supervised effectively by a capable manager is four.

True
False

False
As a firm grows, the small business owner needs to fill key positions with persons who
could be future managers.
can complement weaker areas of the entrepreneur.
are able to survive in the culture.
Top-level executives in a large corporation have a distinct advantage over the leader of a small business in exerting their influence.

True
False

False
Marvin has just launched a consulting business. Business has been slower than expected. What advice would you give Marvin?
Tap into his personal and professional network.
Small business service organizations that are patterned after the Agricultural Extension Service are known as
Small Business Development Centers
Having more than one supervisor is a violation of the:
Chain of command
The greatest time saver is the effective use of time.

True
False

True
If a company successfully creates properly functioning self-managed teams among employees, the supervisors will
likely become fewer in number
Work teams require a lower level of participation of employees than empowerment.

True
False

False
James is talking to another supervisor about the number of employees who report directly to him. James is talking about his:
span of control
As a firm moves from Stage 1 to Stage 4, the entrepreneur becomes less of a manager and more of a doer.

True
False

False
The owner of a rapidly growing small business needs to talk to a lender for additional financing. Which document would increase the company’s credibility?
strategic plan
Marcia, owner of Drapes by Design, has groups of employees in production and installation. If she decides to use work teams as part of her leadership approach, she may be able to:
decrease the number of supervisors
LaToya, as the owner of a minority firm, should look to which organization first for assistance?
SBDC
Small firms suffer a recruiting handicap because of the ability of large companies to offer more freedom on the job.

True
False

False
The cost of employee benefits is ____ the cost of salary and wage payments.
31 percent
Orientation refers to instructions given during the interview with an applicant.

True
False

False
Job descriptions are used primarily to avoid lawsuits that might result from the Americans with Disabilities Act.

True
False

False
One of the largest expense categories for most businesses is
payroll
The Civil Rights Act applies to any employer of _______ or more people.
15
Small companies are more likely to employ immigrants than larger firms.

True
False

True
What type of interviewing involves asking applicants how they might react to hypothetical situations?
Behavioral
Planned efforts to help workers master the knowledge, skills, and behaviors they need to perform their duties is known as
employee training
Which item plays the central role in attracting and motivating employees?
Compensation
A small electrical contractor with nine employees hears that they would like to join a union. This contractor realizes that the firm
must negotiate if a majority of employees decide to unionize.
In small firms, a professional’s versatility and flexibility may be more important than technical competence.

True
False

True
ESOPs can motivate employees as well as allow for owners to withdraw from a business without having to sell the firm to outsiders.

True
False

True
Small firms give employees a share of ownership in the business through
employee stock ownership plans
Universities are good sources of candidates for positions that require a high level of experience.

True
False

False
Because help-wanted advertising tends to be ineffective, most well-managed organizations reject this method of recruitment.

True
False

False
Profit-sharing plans
provide a more direct incentive in small firms than in large firms.
In addition to it use to attract and hold key personnel, ESOPs can also:
give owners a way to cash out of the business
Small firms need to identify their distinctive advantages if they are to recruit outstanding prospects successfully.

True
False

True
Employee benefits are expensive, amounting to more than 40 percent of payroll expense for many small firms.

True
False

False
A job description refers to a listing of the knowledge, skills, abilities, and other characteristics necessary to perform a job.

True
False

False
Judy, a small business owner of a CPA firm, wishes to persuade a highly qualified applicant to consider a position with her firm, even though the applicant has also had offers from large corporate CPA firms. What should Judy emphasize to the applicant?
more freedom to structure job responsibilities
Employers will often provide such perks as health insurance and paid vacation that are designed to be attractive and useful to employees. Collectively these perks are known as:
employee benefits
Since Cynthia needs to obtain a replacement for Olivia (who is having a baby and will be out for 12 weeks), what would be the expected first choice to locate a replacement?
temporary help agencies
Legislation that provides protection to employees within a business is called the
Family and Medical Leave Act.
Occupational Safety and Health Act.
Fair Labor Standards Act.
Karen is checking references and finds former employers reluctant to do more than verify dates of employment even though the applicants have given their consent. A probable reason for their reluctance is that
respondents may fear litigation by former employees who fail to get jobs they seek.

Can’t wait to take that assignment burden offyour shoulders?

Let us know what it is and we will show you how it can be done!
×
Sorry, but copying text is forbidden on this website. If you need this or any other sample, please register
Signup & Access Essays

Already on Businessays? Login here

No, thanks. I prefer suffering on my own
Sorry, but copying text is forbidden on this website. If you need this or any other sample register now and get a free access to all papers, carefully proofread and edited by our experts.
Sign in / Sign up
No, thanks. I prefer suffering on my own
Not quite the topic you need?
We would be happy to write it
Join and witness the magic
Service Open At All Times
|
Complete Buyer Protection
|
Plagiarism-Free Writing

Emily from Businessays

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out https://goo.gl/chNgQy