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Study Resources (Business Management)

    51) Drawbacks of owning a small business include all but: A) unbalanced family life. B) no guarantee that the business would make profits. C) too many financial statements. D) Both A and B   52) Joanne is thinking about running her own business. What risks does she face? A) Getting stuck in a job she hates B).
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  68) Most boards of advisers have between 3 and 5 members.   69) More people are willing to serve on a company's board of directors than board of advisors.   70) A business ________ is an individual who gives professional or expert advice, on a volunteer or fee basis. A) consultant B) intern C) employee D) virtual assistant E).
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  40) Which of the following statement is incorrect regarding how balance sheets are prepared? A) The left-hand side of a balance sheet shows a firm's assets. B) The assets on a balance sheet are shown in order of liquidity. C) Assets are recorded at fair market value rather than cost. D) The right-hand side.
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  41) An organizational chart is a graphic representation of how authority and responsibility are distributed within a company.   42) A sources and uses of funds statement is a document that lays out specifically how much money a firm needs, where the money will come from, and what the money will be.
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  48) A(n) ________ industry is an industry that is experiencing significant international sales. A) global B) mature C) fragmented D) declining E) emerging 49) The two most common strategies pursued by firms in global industries are the ________ strategy and the ________ strategy. A) inclusive, multidomestic B) multidomestic, global C) multidomestic, worldwide D) inclusive, global E) home, worldwide   50) Firms that pursue.
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  51) Networking is building and maintaining relationships with people whose interests are similar or whose relationship could bring advantages to a firm.   52) A skills profile is a chart that depicts the most important skills that are needed and where skills gaps exist.   53) A virtual assistant is a freelancer who provides.
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  98) Explain at least five of the factors that are feeding the entrepreneurial boom in the United States and abroad.   99) Entrepreneurial activity is culturally diverse. Discuss the role of women, minorities, and immigrant entrepreneurs in this activity, profiling their characteristics, their impact, and the specific barriers they need to overcome.
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  60) Which of the following statements is incorrect regarding the marketing plan section of a business plan? A) The marketing plan focuses on how the business will market and sell its product or service. B) The two most important items to include in a marketing plan are (1) overall marketing strategy and.
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  35) All of the following are advantages of a sole proprietorship except ________. A) creating one is easy and inexpensive B) unlimited liability C) it is not subject to double taxation D) the owner maintains complete control of the business E) business losses can be deducted against the sole proprietor's other sources of income   36) Which.
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  15) Describe the purpose of a nondisclosure agreement. Provide an example of when a nondisclosure agreement kicks in. 16) A(n) ________ is a written document that deals with issues such as the relative split of the equity among the founders of the firm, how individual founders will be compensated for the.
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  11) Which of the following statements is incorrect about business plans? A) Writing a business plan forces a firm's founders to systematically think through each aspect of their new venture. B) For most new ventures, the business plan is a dual-purpose document used both inside and outside the firm. C) A business plan.
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  65) A disadvantage of a general partnership is that the liquidity of each partner's investment is low.   66) The major difference between a general and a limited partnership is that a limited partnership includes two classes of owners-general and limited partners.   67) Corporations are organized as either C corporations, T corporations, or.
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  31) Pro forma financial statements are projections for future periods based on forecasts and are typically completed for 2 to 3 years into the future. 32) Describe the difference between historical and pro forma financial statements.   33) Which of the following selections correctly matches the financial statement with its description? A) Income statement.
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  11) The most important thing that any entrepreneur, or team of entrepreneurs, can do to build a strong ethical culture in their organization is to hire an aggressive attorney.   12) An ethical dilemma is a situation that involves doing something that is beneficial to oneself or the organization, but may be.
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  70) Most business plan writers interpret or make sense of a firm's historical and/or pro forma financial statements through ________ analysis. A) ratio B) assumptions C) scenario D) proportion E) relative   71) What is an "executive summary?" Why is the executive summary often called the most important part of a business plan?   72) Why is the "management.
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  30) Tim Rutherford is thinking about starting a firm in the medical equipment industry. In the industry analysis Tim has been conducting, one thing he has noticed is that the medical equipment industry is characterized by buyer group concentration. This factor concerns Tim because it tells him that the profitability.
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  21) ________ are itemized forecasts of a company's income, expenses, and capital needs and are also an important tool for financial planning and control. A) Profitability statements B) Financial statements C) Owners' equity statements D) Budgets E) Statements of cash flows   22) Match the financial term with its proper definition. A) Forecasts — depict relationships between items.
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    41) Money driven and wild risk takers are both: A) common characteristics of entrepreneurs. B) entrepreneur's techniques to success. C) common misconceptions of entrepreneurs. D) None of the above   42) "Copreneurs" are: A) personality traits of entrepreneurs. B) entrepreneurial couples who work together as co-owners of their business. C) business magazines targeted towards entrepreneurs. D) None of.
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    1) The nation is rapidly moving from: A) industrial to capitalism. B) capitalism to industrial. C) industrial to knowledge-based. D) None of the above   2) Which of the following corporate trends have contributed to the growth of entrepreneurship? A) The acquisition and merging of mega corporations B) The idea that "small is beautiful" in large companies, resulting.
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    61) To many entrepreneurs, the opportunity for future earnings is more important than the immediate earning potential of the business.   62) Research has isolated a set of characteristics that can predict who will succeed as an entrepreneur.   63) Studies indicate that the opportunity to make a difference is a significant benefit in.
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  1) The fact that companies often falter because the people who start the firms can't adjust quickly enough to their new roles and because the firm lacks a "track record" with outside buyers and sellers, is referred to as the ________. A) liability of preparedness B) liability of newness C) burden of novelty D).
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  11) A company's merchandise, raw materials, and products waiting to be sold are called its ________. A) set aside B) accumulation C) reserve D) inventory E) stock   12) Peggy Owens owns a store that sells exercise equipment. Each January 1, she makes a very accurate account of all her merchandise and products waiting to be sold.
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  50) In the context of a firm's statement of cash flows, ________ activities include the purchase, sale, or investment in fixed assets (e.g., real estate, equipment, and buildings). A) operating B) investing C) capital D) financing E) liquidity   51) In the context of a firm's statement of cash flows, ________ activities include cash raised during the.
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  21) The process of building and maintaining relationships with people whose interests are similar or whose relationship could bring advantages to the firm is called ________. A) linking B) socializing C) networking D) associating E) connecting   22) Sam Simpson is a four time business owner. One thing that has served Sam well throughout his entrepreneurial career.
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  45) Corporations are organized as either ________ corporations or ________ corporations. A) permanent; temporary B) general; limited C) voluntary; statutory D) C; subchapter S E) regular; limited liability 46) Large firms like Apple, Facebook, General Electric, and Microsoft, that trade on organized stock exchanges, are ________. A) limited partnerships B) limited liability companies C) subchapter S corporations D) C corporations E).
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  100) What role do corporate cast-offs and corporate dropouts play in the growth of entrepreneurship in the United States?     101) What are the primary causes of small business failure in the United States?   102) What can an entrepreneur do to avoid the failure of his/her company? Discuss at least six actions they.
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  58) What is an emerging industry? What is the primary opportunity available to entrepreneurial firms in emerging industries? Name three examples of firms in emerging industries. 59) According to the textbook, the first step in a competitor analysis is to ________. A) develop a marketing plan B) develop the strategic plan C) study the.
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    11) Kyoto has started an interior decoration business. Everything about the business, from its name to the color schemes used in the corporate letterhead, is an expression of her personality. She sees this business as her greatest personal achievement. Kyoto is experiencing the opportunity ________ of small business ownership. A) to.
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  21) To make the best impression, a business plan should follow a ________. A) conventional structure for companies with standard business models and a nonconventional structure for firms with disruptive business models B) conventional structure for manufacturing firms and a nonconventional structure for service firms C) conventional structure D) nonconventional structure E) nonconventional structure for.
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    81) The trend in corporate downsizing and the resulting trust gap have spawned both the "corporate castoff" and the "corporate dropout." 82) Small businesses create more jobs than either medium or large businesses.   83) Lack of experience is the number one cause of small business failures.   84) The two common pitfalls of poor.
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    91) Entrepreneurs are more wild risk-takers than calculated risk takers.   92) Idealists make up the largest group amongst different entrepreneurial personalities.   93) The flurry of corporate "pink slips" has slowed down a new population of entrepreneurs 94) Two characteristics common to entrepreneurs are creativity and an eye for opportunity.   95) Because of advances in.
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  31) For most business plans, 25 to 35 pages are sufficient.   32) According to the textbook, the executive summary is arguably the most important section of the business plan.   33) The executive summary is a lengthy overview of the entire business plan.   34) A company's industry analysis and target market analysis are usually.
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  50) Which of the following statements is incorrect regarding the industry analysis portion of a firm's business plan? A) It is important to focus simultaneously on a business's industry and its target market. B) Industry structure refers to how concentrated or fragmented an industry is. C) Most industries have 6 to 10 key.
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  41) Melissa Jones just launched a firm in the wireless communications industry. Shortly after the company was launched, Melissa announced that a prominent Silicon Valley venture capitalist had agreed to serve on her board of directors. Melissa knows that such a high quality appointment will send an important message to.
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    21) Part-time entrepreneurship has an additional advantage over starting up a company full-time in that: A) it is a much lower risk for the entrepreneur. B) it doesn't require a business plan. C) the entrepreneur can change products and markets more easily. D) the entrepreneur doesn't need to know the industry as well. 22) Which.
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  31) In the context of boards of directors, a(n) ________ director is a person who is also an officer of the firm. A) outside B) junior C) inside D) expert E) senior   32) In the context of boards of directors, a(n) ________ director is someone who is not employed by the firm. A) outside B) inside C) external D) impartial E).
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  67) The Savvy Entrepreneurial Firm feature in Chapter 5 focuses on three firms that are doing well in crowded industries as ________. A) they have effectively differentiated themselves from their competitors and have captured a first-mover advantage B) they have passionate leaders and run savvy promotional campaigns C) they have captured a first-mover.
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    71) Companies started by women tend to be smaller than those started by men.   72) Immigrant entrepreneurs tend to arrive in the United States with less education and experience but more drive and access to capital through their "ethnic" connections.   73) Although it is a lower risk way to start, very few.
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  60) In the context of a firm's statement of cash flows, operating activities include the purchase, sale, or investment in fixed assets (e.g., real estate, equipment, and buildings).   61) Describe the purpose of the income statement, the balance sheet, and the statement of cash flows.   62) What is ratio analysis? Why is.
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  20) The price of prescription medicine is high, partly because when someone is sick there is no real alternative to buying medicine if they want to get better. Which of Porter's five forces explains how this aspect of the prescription medicine industry helps keep profitability high? A) Rivalry among existing firms B).
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