Archive for May 2017

If you do business abroad, you will have to learn about the cultures of the countries in which you plan to do business because

If you do business abroad, you will have to learn about the cultures of the countries in which you plan to do business because





a. different cultures use different types of computer software
b. culture makes businesses more competitive
c. different cultures have different currencies
d. culture affects how people do business




Answer: D

Exporting via the World Wide Web is

Exporting via the World Wide Web is




a. not cost-effective
b. direct exporting
c. indirect exporting
d. not possible without commissioned agents






Answer: B

To meet your environmental responsibilities, you should

To meet your environmental responsibilities, you should



a. use nonrenewable resources
b. dispose of hazardous material improperly
c. recycle as many materials as possible
d. none of these





Answer: C

Regulations that protect employees involve

Regulations that protect employees involve



a. discrimination in the workplace
b. working conditions
c. minimum wages
d. all of these





Answer: D

E-mail is a popular form of business communication because

E-mail is a popular form of business communication because



a. there is only a small charge for sending a message
b. messages can be read at the recipient's convenience
c. messages are received the next day
d. messages are more formal than memos





Answer: B

Below the break-even point,

Below the break-even point,



a. sales equal expenses
b. you neither make nor lose money
c. expenses exceed revenues
d. revenues exceed expenses





Answer: C

To improve your cash flow, you can

To improve your cash flow, you can



a. decrease accounts payable
b. increase accounts receivable
c. decrease accounts receivable
d. increase disbursements


Answer: C

The columns of a cash budget show

The columns of a cash budget show




a. estimated cash disbursements
b. estimated cash receipts
c. the difference between estimated and actual cash flow
d. all of these




Answer: C

Net cash flow is positive if cash receipts are

Net cash flow is positive if cash receipts are



a. less than disbursements
b. equal to disbursements
c. greater than disbursements
d. none of these





Answer: C

Net cash flow is negative if cash receipts are

Net cash flow is negative if cash receipts are




a. less than disbursements
b. equal to disbursements
c. greater than disbursements
d. none of these




Answer: A

To be a good leader, you need to

To be a good leader, you need to



a. listen, speak, and write effectively
b. hire appropriate employees
c. delegate responsibility
d. all of these





Answer: A

A want ad should

A want ad should



a. be sent to employment agencies in your area
b. be placed in your store window
c. briefly describe the position you want to fill
d. be used when evaluating an employee






Answer: C

An advantage of radio advertising is that

An advantage of radio advertising is that




a. you can communicate through both sight and sound
b. it reaches large numbers of people
c. you can select a station whose listeners share the same demographics as your target market
d. it is very inexpensive





Answer: C

Advertising can be very important for new businesses because it

Advertising can be very important for new businesses because it




a. helps you communicate with potential customers
b. allows you to set up a network of reliable distributors
c. is a free form of promotion
d. helps identify your target customers




Answer: A

By positioning its product in a certain market, a business can

By positioning its product in a certain market, a business can




a. get a desired customer response
b. satisfy a specific customer need
c. compete with businesses that sell a similar product or service
d. all of these




Answer: D

The level of a reorder point depends on

The level of a reorder point depends on





a. how long it takes to get merchandise
b. your monthly sales
c. how important it is not to be out of stock
d. all of these




Answer: D

You should mark all of the following on your trade area map except

You should mark all of the following on your trade area map except




a. all your competitors
b. all locations that might be appropriate for your business
c. all businesses for sale
d. all businesses that do not compete with you but that may attract the same kind of customer







Answer: C

On your trade area map, you should mark the locations of

On your trade area map, you should mark the locations of



a. all businesses that do not compete with you but that may attract the same kind of customer
b. all buildings for lease
c. all businesses for sale
d. all real estate offices





Answer: A

All businesses face the risk of

All businesses face the risk of




a. robbery
b. employee theft
c. credit card fraud
d. shoplifting





Answer: A

Your insurance agent should

Your insurance agent should




a. work for a single insurance company
b. be someone you trust
c. work for many different insurance companies
d. not work on commission




Answer: B

Installing mounted video cameras can help to

Installing mounted video cameras can help to



a. prevent robberies
b. prevent or reduce shoplifting
c. prevent employee theft
d. all of these




Answer: D

The reason a bank may turn down your loan application is

The reason a bank may turn down your loan application is





a. you have not owned a business before
b. a start-up business is less likely to default on a loan
c. your business plan is poorly written
d. you have invested too much of your own money



Answer: C

To keep customers, you will need to

To keep customers, you will need to



a. identify your target market
b. respond to their concerns
c. lease space in a mall
d. segment your target market




Answer: B

Primary data are collected

Primary data are collected




a. to set up focus groups
b. because they are less expensive than secondary data
c. to help identify the target market
d. from published sources



Answer: C

Focus groups

Focus groups



a. allow for in-depth discussion about a topic
b. are never used to collect primary data
c. should include your competitors
d. can help you interpret your data




Answer: A

The executive summary

The executive summary



a. should be convincing and persuasive
b. is the first introductory element
c. is less important than the statement of purpose
d. should be written before the business plan has been completed




Answer: A

The appendix includes supporting evidence such as

The appendix includes supporting evidence such as



a. current financial statements
b. newspaper articles
c. letters of recommendation
d. loan requirements





Answer: C

In researching all the parts of your business, you can

In researching all the parts of your business, you can



a. learn a great deal about running a business
b. find specific ideas for starting up your company
c. find information through trade associations
d. all of these






Answer: D

Short-term goals for a business might include

Short-term goals for a business might include



a. hire five employees
b. lease or buy a facility
c. purchase equipment and supplies
d. all of these






Answer: D

Marginal benefit measures the advantages of

Marginal benefit measures the advantages of




a. changing a fixed cost to a variable cost
b. increased opportunity costs
c. producing one additional unit of a good or service
d. a competitive market




Answer: C

In a market economy,

In a market economy,



a. individuals are usually able to obtain exactly what they want
b. there is very little choice in what is available
c. production decisions are made by the government
d. scarcity does not exist





Answer: A

Government influences production in a market economy by

Government influences production in a market economy by



a. determining what goods and services are to be produced
b. providing subsidies to producers of certain kinds of goods
c. selling goods and services
d. taxing monopolies at a high rate





Answer: B

An entrepreneur uses the concept of marginal cost to

An entrepreneur uses the concept of marginal cost to



a. change a variable cost to a fixed cost
b. determine opportunity costs
c. reduce scarcity
d. decide whether a business change is desirable




Answer: D

The fixed costs of a business

The fixed costs of a business



a. are different each month
b. include interest on business loans
c. include the cost of production materials
d. are based on the quantity of goods produced




Answer: B

In a command economy,

In a command economy,




a. individuals are usually able to obtain exactly what they want
b. there is very little choice in what is available
c. production decisions are made by individuals
d. scarcity does not exist



Answer: B

Which of the following loans has the lowest yearly interest?

Which of the following loans has the lowest yearly interest?




a. $30,000 loan at a rate of 7.25%
b. $25,000 loan at a rate of 8.5%
c. $40,000 loan at a rate of 6%
d. $35,000 loan at a rate of 8%





Answer: B

Business letters are written to

Business letters are written to



a. make pricing decisions
b. congratulate employees
c. negotiate purchases
d. develop sales projections






Answer: C

Entrepreneurs in the field of transportation were

Entrepreneurs in the field of transportation were




a. Olive Beech and Lydia Bradley
b. Rose Knox and Cyrus McCormick
c. Henry Ford and Cyrus McCormick
d. Olive Beech and Henry Ford




Answer: D

Setting specific financial goals before starting a business

Setting specific financial goals before starting a business



a. helps you compare different business opportunities
b. is not necessary for most entrepreneurs
c. ensures the business is able to earn the profits you want
d. will increase your personal satisfaction




Answer: C

Entrepreneurs who were leaders in the food industry were

Entrepreneurs who were leaders in the food industry were




a. Olive Beech and Henry Ford
b. Rose Knox and Olive Beech
c. Rose Knox and Clarence Birdseye
d. Clarence Birdseye and Cyrus McCormick



Answer: C
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