Info
Warning
Danger

Study Resources (Business Management)

  51.All of these are intangible items EXCEPT:  A. industry experience B. education C. initial financing D. name branding 52.James has the benefit of gaining customer loyalty by being the first company to bring out a new gourmet burger. This is a form of _________.  A. sustainable competitive advantage B. first mover advantage C. leader advantage D. tangible assets advantage 53._________ are firms that enter a market after the.
0 Views
View Answer
  51.New businesses should try to _________ the amount of both fixed and total assets in order to conserve cash.  A. maximize B. minimize C. increase D. decrease 52._________ are used to measure the level of indebtedness of a small business.  A. Profitability ratios B. Activity ratios C. Leverage ratios D. Financial ratios 53.The _________ ratio provides information on the portion of a business owned by the lenders and.
2 Views
View Answer
  True / False Questions 1.Extra expenses not counted on in the planning stage can quickly eat up cash intended for growth.  2.Funding for a small business starts with the founders and their personal resources.  3.Dan asked Mike to invest in his Sports Shop. Mike gave $10,000.00 and wants 25 percent of the profits..
8 Views
View Answer
  88.List and describe the four classic techniques for financial analysis.  89.Define liquidity ratios and detail the two liquidity ratios.  90.List and define the five profitability ratios.  91.Describe the importance of surveys to a small business owner.  92.Explain why a small business owner must monitor the performance of the firm. What changes could impact the.
3 Views
View Answer
  31.Worker's compensation insurance rates are regulated by the federal government and are uniform across the country.  32.OSHA has attempted to shape its regulations to be more lenient in its regulations on large businesses than on small businesses.  33.Unemployment compensation is the financial assistance for some period of time for those employees who.
1 Views
View Answer
  31.Current liabilities could be mortgage payables and stockholders equity.  32.Long-term liabilities could be notes payable and bank notes.  33.Current liabilities that are owed by the company need to be paid in 18 months.  34.On a balance sheet, the assets minus the liabilities of a company reflected in the balance sheet should total zero.  35.A.
2 Views
View Answer
  41.Which of the following laws prohibits discrimination in hiring, dismissal, or promotion on the basis of race, color, gender, religious beliefs, or national origins?  A. Americans with Disabilities Act B. Civil Rights Act C. Fair Labor Act D. Age Discrimination Act 42.In an interview, an interviewer can ask questions about:  A. disability B. prior convictions C. arrest record D. religion 43.A job offer is finalized by _________.  A. a handshake B. employer.
2 Views
View Answer
  71.Generating a cash flow statement starts with:  A. estimating expenses B. estimating profits C. predicting losses D. predicting debts 72.All of the following are categories of expenses EXCEPT:  A. insurance B. profits C. employee benefits D. salaries 73.Which of the following terms is used to describe assets that can be easily converted to cash?  A. fixed liabilities B. fixed assets C. current assets D. current profits 74.In the Numi Organic Tea case study, Numi Organic Tea was.
2 Views
View Answer
  41.What is the disadvantage of choosing a sole proprietorship?  A. It cannot have more than one founder. B. The law does not recognize other equity investors. C. Liability is solely on the owner. D. All of these. 42.What are the two types of partnerships?  A. general, unlimited B. limited, unlimited C. general, limited D. general, specific 43.In a partnership it is expected that the founders will contribute _________.
2 Views
View Answer
  51._________ percent of actual expenses must be accounted for in a cash flow statement.  A. 25 B. 33 1/3 C. 50 D. 100 52._________ is an analysis by a small business owner of the best and worst case financial scenarios.  A. Gap analysis B. Deficit analysis C. Sensitivity analysis D. Forecast analysis 53.A cash flow statement determines the most likely case scenario, which is called:  A. gap analysis B. deficit analysis C. sensitivity analysis D. forecast.
1 Views
View Answer
  61.A _________ occurs when a firm seeks to be the lowest-cost competitor in the industry.  A. differentiation approach B. low-cost approach C. first mover approach D. sustainable competitive advantage approach 62.A focus differentiation strategy revolves around:  A. knowing all your potential customers B. a consistent set of activities C. establishing measurable goals D. making the capability valuable 63.A company should develop its strategy based on:  A. mission statement B. resource-based analysis C. elasticity of.
0 Views
View Answer
  21.Many large and established businesses are willing to make equity investments in start-up companies.  22.A cash-based accounting system recognizes expenses as they are paid and recognizes revenue when it is received.  23.Accrual-based accounting is expenses and revenues being recorded when they apply.  24.Only the smallest businesses can use the accrual-based accounting system.  25.A chart.
5 Views
View Answer
  31.A new small business does not need to worry about monitoring how well its inventory management system is operating; only larger businesses experience these kinds of problems.  32.Deviation analysis tracks changes in competitors' marketing efforts and alerts a small business owner quickly.  33.Deviation analysis and sensitivity analysis are very similar.  34.Sensitivity analysis is.
2 Views
View Answer
  11.The current ratio is computed by dividing current assets by current liabilities.  12.The quick acid ratio removes the ability to sell inventory from the calculation, and examines the pure cash position relative to the current liabilities.  13.An important concept in conducting a ratio analysis is to ensure the business is comparing their.
5 Views
View Answer
  51.Which of the following laws states an employer cannot discriminate in pay to men and women who do the same job?  A. Americans with Disabilities Act B. Civil Rights Act C. Equal Pay Act D. Fair Labor Standards 52.The government regulates the employment of children under the age of _________.  A. 16 B. 18 C. 20 D. 21 53.An example of a benefit a company can offer is:  A. 401(k) B. retirement.
2 Views
View Answer
  21.Pro forma analysis involves taking the current cash flow statement and using it to look at how sensitive the company is to various factors.  22.Sensitivity analysis allows a business person an opportunity to test out assumptions and view the potential financial impact of assumptions about future income and expenses prior to.
2 Views
View Answer
  True / False Questions 1.Emerging economies are based upon laws.  2.The law present in a country is called an institution.  3.In the Friend's Home Health case study, the main concern of the potential investor was the type of business being formed.  4.The Friend's Home Health was setting up a Subchapter S Corporation.  5.A sole proprietorship.
5 Views
View Answer
  81._________ assets are the capabilities and skills of the founders or employees.  82._________ are the resources that combine to allow a firm to do things better than its competitors.  83.A _________ is the benefit of gaining customer loyalty by being the first firm to provide a new product or service in the.
1 Views
View Answer
  Essay Questions 79.What are the three common forms of debt for a small business?  80.What is the operational impact of equity investments?  81.List and describe two types of equity investors.  82.List and describe the two accounting systems available for a small business.  83.A payroll check will list these items for every employee.    .
5 Views
View Answer
  11.A compact is an agreement between two parties to perform certain activities for some consideration.  12.Small businesses deal with more regulations than large businesses.  13.If a small business has employees, it must have an EIN (Employer Identification Number).  14.The Americans with Disability Act (ADA) pertains only to a firm with more than 15.
2 Views
View Answer
  41.An investment in a firm by the owner is called _________.  A. equity B. profit C. receivables D. margin 42._________ is the difference between when the money goes out and when it comes in.  A. Accounts payable B. Difference gap C. Spending gap D. Float 43.According to the book, the most dangerous situation for a new business is _________.  A. uneven growth B. no growth C. rapid growth D. slow growth 44.A _________ projects all the expenses.
2 Views
View Answer
  41._________ investment involves selling a percentage of a business to an outside party.  A. Collateral B. Asset C. Equity D. Non-equity 42.All of these are a source of equity investments EXCEPT:  A. venture capitalists B. other firms C. founders D. business angels 43.Established businesses are willing to make _________ investments in other start-up firms.  A. collateral B. asset C. non-equity D. equity 44._________ is a fund that is organized as a limited partnership.  A. Asset capital B. Venture capital C. Business angel D. Equity 45.Venture capitalists.
1 Views
View Answer
  71.All of the following items should be included in a contract EXCEPT:  A. parties that are in the contract B. the timing of payment C. the expiration date of business license D. warranties 72.Which of the following questions should a new business owner examine when considering leases?  A. Who is responsible for maintenance and improvements? B. Is there an ability to renew the.
4 Views
View Answer
  51._________ is an organizational form that treats a firm as a unique entity (separate from the owners), and is responsible for its own taxes.  A. Subchapter A Corporation B. Subchapter X Corporation C. Subchapter B Corporation D. Subchapter C Corporation 52.All of the following are benefits of a Subchapter C Corporation EXCEPT:  A. no limit to the number of shareholders B. fringe benefits.
2 Views
View Answer
  61.A pro forma _________ projects the future income of an entrepreneurial firm.  A. balance sheet B. income statement C. current liabilities D. cash flow 62.The focus of an income statement is on:  A. profits B. assets C. liabilities D. cash 63.An income statement provides both the _________ and the _________ profit figures for a firm.  A. current; long-term B. gross; net C. fixed; varied D. goods; service 64.When a company starts making money, this is called:  A. cash flow.
1 Views
View Answer
  81.Rent is an example of a fixed _________.  82._________ is the situation where there is a difference between when the money goes out to pay business expenses and when it comes in from sales.  83._________ is an examination of the best and worst case cash flow scenarios.  84._________ is a term that describes.
2 Views
View Answer
  71.Deviation analysis is used to compare:  A. this year's ratios with previous year's ratios B. this year's ratios with industry standard ratios C. this year's ratios with both previous year's ratios and industry standard ratios D. none of these 72.Which of the following statements about deviation analysis is NOT correct?  A. A deviation analysis chart should be maintained at least monthly. B. Any.
2 Views
View Answer
  81._________ analysis allows an owner to quickly evaluate the performance of the organization on those items that the individual considers most important to the success of the firm.  82._________ analysis allows a small business owner to look at how the business would react to various factors such as a dramatic increase.
2 Views
View Answer
  51.Which type of accounting system recognizes expenses and revenues being recorded when they apply?  A. inventory based B. cash based C. accrual based D. subchapter based 52.A(n) _________ is a listing of each type of activity (expense) and each asset within the company.  A. systems account B. accrual account C. chart of accounts D. inventory account 53._________ is a fund that is used when an expense is too.
4 Views
View Answer
  True / False Questions 1.Cash flow is the positive movement of money into a firm to pay the bills.  2.Cash flow in a business is the same as profit.  3.A firm obtains profits when its sales revenue is higher than its expenses.  4.It is possible to sell products and have no cash coming into.
8 Views
View Answer
  71.New businesses need to be aware of what issue(s) related to start-up?  A. funding B. accounting system C. flow of information D. all of these 72.In the case study Friend's Home Health, the owners were concerned with what need when they realized they did not know the true cost of any individual service in their operation?  A. need for funding B. need for.
2 Views
View Answer
  61.What should a new business owner keep in mind when seeking investments from business angels?  A. evaluate the nature of their advice B. evaluate their business experience C. the contacts and relationships of these persons D. all of these 62.What are the advantages of leasing equipment for a new business?  A. beginning operations with a minimum cash outlay B. no hassles of an.
2 Views
View Answer
  21.In the Flow Right Brewery case study, Chris had difficulty hiring family members.  22.Worker's compensation is a law designed so that employees who are disabled or injured while on the job are provided with some type of compensation.  23.OSHA stands for Office Standards and Health Administration.  24.Every state has a different unemployment compensation.
1 Views
View Answer
  11.James invested $800 into his gourmet hamburger restaurant; this would be considered his equity in the company.  12.If James's company has a profit margin, it means there will be enough cash to pay the bills.  13.A new small business must pay their vendors by using purchase orders.  14.A float reflects a setting where.
4 Views
View Answer
  31.Patents are inexpensive and easy to obtain and maintain.  32.The insurance coverage obtained by a small business is directly proportional to the cost. As the coverage increases, the cost also increases.  33.Damage from floods and earthquakes is covered by a special form of insurance coverage. A small business owner, who chooses, may.
2 Views
View Answer
  21.In the Flow Right Brewery & Bar: A Family Affair case study, Chris discovered he needed only one license to open up his business.  22.A business can obtain liability insurance, which covers lawsuits/judgments.  23.A small business should research buying bonding insurance, which is insurance where the employee is bonded for illegal activities.  24.According.
2 Views
View Answer
  True / False Questions 1.No operating business ever matches the proposed business exactly.  2.The first step in the evaluation of a firm starts with a financial analysis of the organization.  3.A business has a limited number of items upon which to perform a financial analysis.  4.In the Friend's Home Health case study, the founders.
6 Views
View Answer
  61.Dennis's stockholders want him to constantly improve his firm's _________ ratio as it improves the future value of their investment in the firm.  A. return on total assets B. profit margin on sales C. return on equity D. fixed asset turnover 62.A _________ analysis is a chart tracking various performance measures from one time period to the next.  A. deviation B. sensitivity C. leverage D. financial 63.A _________.
1 Views
View Answer
  True / False Questions 1.In the Friend's Home Health case study, the founders required all employees to call into the central office system at the start of work.  2.The owners in the Friend's Home Health case study felt firing employees would send a message to the remaining employees.  3.In a small business, the.
9 Views
View Answer
  88.Explain the three steps for identifying a sustainable competitive advantage.  89.What is the difference between a tangible and an intangible asset? Provide examples.  90.List the four criteria for developing an unorthodox capability.  91.Describe the four logical steps in developing a firm's strategy.  92.The resource-based perspective is an effective method to analyze a firm's resources.
2 Views
View Answer
  Multiple Choice Questions 41.Company analysis should proceed from the _________ and move toward the _________.  A. negative; positive B. lowest; highest C. general; specific D. specific; general 42.A classic technique for financial analysis is:  A. ratio analysis B. sensitivity analysis C. short surveys D. all of these 43._________ is a series of ratios along four areas of company performance (liquidity, activity, leverage, and profitability) that provides a picture of.
1 Views
View Answer
  71.An example of tangible assets includes all of the following, EXCEPT:  A. industry experience B. contacts C. education D. none of these 72.An example of intangible assets includes all of the following, EXCEPT:  A. previous start-up experience B. unique knowledge of the industry C. skill set of founders D. all of these 73.In the Flow Right Brewery & Bar: A Family Affair case study, what decision did Chris.
0 Views
View Answer
  21.An accurate overall cash position provides a small business owner with an accepted means to meet financial obligations.  22.All of a firm's expenses need to be included in the cash flow statement.  23.Revenues should be separated into as few categories as possible to provide maximum insight to the owner.  24.A sensitivity analysis of.
2 Views
View Answer
  88.Describe the four benefits of a Subchapter S Corporation.  89.What information needs to be included in the charter of a Subchapter C Corporation?  90.List and describe the required elements of a legal contract.  91.Describe a few issues that a new business owner needs to consider in leasing.  92.Explain the difference between copyright, trademark, and.
6 Views
View Answer
  88.Name the two liabilities and give examples of both.  89.How is an income statement used by a new business?  90.Why is a break-even analysis important to a new business?  91.Compare and contrast fixed costs and variable costs; clearly identify the differences. Include examples of each.  92.What is the meaning of the term proforma? Why.
5 Views
View Answer
  61.The Americans with Disabilities Act includes all of the following EXCEPT:  A. providing accessibility to people with physical disabilities B. preventing dismissal of employees with disabilities C. testing people with disabilities D. managing people with disabilities 62.The legal means to protect intellectual property is _________.  A. copyright B. trademark C. patent D. all of these 63.A _________ is a claim of intellectual property that covers a specific invention.  A. copyright B. trademark C. patent D. watermark 64.A.
2 Views
View Answer
  31.A common form of debt for a small business can be classified as follows:  A. loans B. credit cards C. supplier credit D. all of these 32.A _________ is a contractual agreement where the business receives money and must be repaid over a period of time.  A. credit card B. loan C. compact D. lease 33._________ have been a major source of funds for established firms, but are.
3 Views
View Answer
  81.A _________ is an agreement between two parties to perform certain activities for some consideration.  82.A(n) _________ is the legal means to protect intellectual property such as books or other printed materials.  83.A _________ is the claim of intellectual property that covers a specific invention.  84.A _________ is a claim of intellectual property.
5 Views
View Answer