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Study Resources (Business Management)

  1) Entrepreneurs needing between $100,000 and $3 million in the current financial environment will likely find acquiring financing to be: A) challenging. B) confusing. C) attainable. D) easy. 2) Unlike entrepreneurs of the past, today's entrepreneurs: A) are finding more government interest and funding for business start-ups than in the past decade. B) find fewer closed doors.
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  161) The rules of the Americans with Disabilities Act protecting customers are designed to ensure that disabled customers have equal access to a company's goods and services. 162) Any company with 15 or more employees and any buildings occupied after January 25, 1993, must comply with the Americans with Disabilities Act. 163).
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  111) Bootstrapping is a method of raising capital that taps the power of social networking and allows entrepreneurs to post their elevator pitches and proposed investment terms on specialized Web sites and raise money from ordinary people who invest as little as $100. 112) After an entrepreneur invests his own.
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  204) What are the advantages and disadvantages of the restaurant's current location? 205) What city-related factors does Fred need to consider when evaluating this community as a location for a bar? 206) What publications could Fred use to investigate whether or not this is a good region for this bar?     .
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  192) Explain the difference between equity capital and debt capital. What advantages and disadvantages characterize each? 193) Your text describes a variety of common sources of equity capital. Outline and briefly describe five. 194) Sarah's aunt and cousin have offered to provide some financial assistance for her new business. Should an entrepreneur.
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  121) Retail compatibility describes the benefits a company receives by locating near other businesses selling complementary products and services. 122) The Index of Retail Saturation (IRS) is a measure of the potential sales per square foot of store space for a given product in a specific trading area. 123) To calculate the.
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  195) Angels fill an important role in equity financing of a small business. Discuss their role, their typical profile, and how to find an angel. 196) Venture capital companies are an important source of equity funding for small businesses. Discuss their policies, ownership control, and investment preferences regarding funding small businesses. 197).
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  11) Locating close to ________ is critical for manufacturers, service providers and other companies that will be competitive. A) markets they plan to serve B) suppliers C) transportation routes D) airports and rail transportation 12) When the cost of transporting finished goods to market is high relative to their value, the key location criterion is: A).
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  151) Banks prefer to make loans to business start-ups because although the risk level is higher, the potential returns are also much higher. 152) A line of credit is a form of financing employed by sellers of big-ticket items such as cars, boats, and furniture, which the retailers pledge as collateral.
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  151) A foreign trade zone is an area designated as economically disadvantaged in which businesses get tax breaks on the investments they make within zone boundaries. 152) There are 256 foreign trade zones and 498 subzones, which are special foreign trade zones that are established for limited purposes, operating in the.
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  121) Networking through personal contacts and the Internet is one of the best ways to find angels, who usually prefer to invest in local businesses operating in industries they know something about. 122) An option for acquiring equity capital is for the entrepreneur to take on partner(s); however, it is important.
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  194) Discuss the various sources of information available to the small business owner for deciding in which region of the country to locate her business. 195) Identify and explain five of the seven criteria a small business owner should consider when selecting the state in which to locate her business.     .
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  11) The largest single source of external equity capital for small businesses is: A) angels. B) venture capitalists. C) Small Business Administration loans. D) the stock market; i.e., "going public." 12) When looking for an angel, the key is: A) networking. B) waiting until you need the money. C) looking across industries. D) using computer matches. 13) Angels are an.
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  101) The U.S. Census departments "TIGER" file is a computerized map of the entire United States that gives entrepreneurs the power to pinpoint existing and potential customers. 102) By studying the demographics of a proposed location, a small business owner can determine how well it matches the market for the owner's.
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  41) For product-based businesses, ________ often represents their largest capital investment. A) account receivables B) inventory C) plant and equipment D) real estate 42) Which of the following is true about inventory management for the small business owner? A) Most small business owners have turned to technology and computer spreadsheets to achieve maximum efficiency in managing.
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  91) Selling the small company's accounts receivable outright to another business is called: A) collateral. B) factoring. C) trade credit. D) a line of credit. 92) Factoring: A) is a more expensive method of financing than borrowing from a bank. B) places the risk of uncollected accounts receivable on the small business owner. C) is best used as.
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  51) Asset-based borrowing permits small businesses: A) to borrow up to 100 percent of the value of their inventory or their accounts receivable for the money they need for long-term goals. B) to use normally unproductive assets such as accounts receivable and inventory. C) to obtain loans more easily but with less borrowing.
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  204) Review the various loan programs under the Small Business Administration designed to help finance businesses like Christine's. Which of these programs would most likely help Christine get the capital she needs? 205) What other sources of capital would you suggest that Christine explore? 206) Explain to Jim the possible (and realistic).
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  81) Products with the highest markup should be placed: A) so as to pull customers into the store. B) in prime selling space. C) near the front of the store. D) anywhere since they draw their own customers. 82) When the typical shopper enters a store, (s)he turns ________ and moves in a ________ fashion.
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  200) Briefly explain the fundamental considerations in evaluating an existing building as a location. Utilize the explanation of zoning laws, ergonomics and the Americans with Disabilities Act in your explanation. 201) Identify and describe the goal/purpose of the three types of manufacturing layouts.     .
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  200) Explain the differences in the lending practices of commercial banks, commercial finance companies, and savings and loans associations. 201) What is involved with vendor financing in the form of trade credit? How important is it as a source of debt financing to small firms? What role does it play in.
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  21) When evaluating a company as a potential investment target, venture capitalists look for all but which of the following? A) A competent management team B) Potential for high returns C) Convenient and profitable exit strategy D) Stable industry 22) Approximately ________ percent of all venture capital invested comes from corporations. A) 2 B) 8 C) 14 D).
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  71) A federally sponsored program which offers loan guarantees to create and expand businesses in areas with below-average income and high unemployment is called: A) the Small Business Administration. B) the Economic Development Administration. C) SBIC. D) U.S. Department of Agriculture's Rural Business Co-op Service. 72) Grants to small businesses made to strengthen the local.
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  81) The maximum loan under the SBA's Community Express Program is ________ with an SBA guarantee of up to ________ percent with a streamlined application process . A) $250,000; 35 B) $250,000; 75 C) $250,000; 85 D) $500,000; 85 82) In the ________ program, participating lenders use their own loan procedure and applications to make.
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  61) A margin loan: A) is one made by a commercial bank to a small business whose financial performance is marginal. B) carries much higher rates because the collateral supporting it is so risky. C) is a loan from an entrepreneur's stockbroker that uses the entrepreneur's investment portfolio as collateral for the loan. D).
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  1) The first phase of determining where to locate a business is: A) choosing a state in which the business owner wants to live. B) determining which city has the demographics that best fit the business. C) conducting a specific site analysis. D) determining which regions of the country are experiencing growth. 2) The location.
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  181) Well-designed floor displays are critical to a retailer's success. 182) In a retail layout, impulse and convenience goods should be located near the front of the store. 183) Prime selling space should be reserved for items that are slow sellers so that customers will notice them. 184) Prime selling space should be.
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  171) Attributes such as lighting, sound and scent are unimportant attributes to most retail stores. 172) When designing the layout of a store, office, or plant, a business owner's primary focus should be minimizing costs. 173) Office design has little impact on workers' job performance, job satisfaction, and ease of communication. 174) Environmentally.
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  207) Explain which manufacturing layout would be best for each of the three manufacturing issues the Wises face. 208) What other considerations should be included in the layout? 209) Assuming that the new store space is 2,100 square feet (30' × 70'), and that the shape is rectangular, draw a layout for.
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  171) Private placement debt is a hybrid between a conventional loan and a bond. 172) SBICs, privately owned financial institutions that are licensed and regulated by the SBA, provide both debt and equity financing to small businesses. 173) SBICs provide financing to small businesses that are at least 51 percent owned by.
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  91) Two important criteria for selecting and designing a production layout are: A) worker effectiveness and material handling costs. B) worker effectiveness and maximum visibility. C) space use and proximity to raw materials. D) material handling costs and overall convenience factors. 92) An arrangement in which materials do not move down a production line but.
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  21) Geographic concentrations of interconnected companies, specialized suppliers, and service providers that are present in a region are called: A) zones. B) clusters. C) trading areas. D) variances. 22) ________ is a system that divides a county or city into small cells or districts to control the use of land, buildings,.
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  131) A location that has housed several businesses that have failed within the past few years is likely to have a bad reputation and a negative image. 132) Because they are centrally located, central business district locations offer business owners the ability to attract customers from the entire trading area of.
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  51) Leasing allows business owners to forecast cash flows more ________ because lease payments are ________ amounts paid over a particular time period. A) often; fixed B) accurately; variable C) accurately; fixed D) often; variable 52) "Stick to what you are good at and ________ everything else" is an approach to reduce overhead costs..
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  61) It is likely that young companies and rapidly growing companies will experience cash flow difficulties. 62) The shorter a company's cash flow cycle, the more likely it is to encounter a cash crisis. 63) A highly profitable company rarely experiences cash flow problems. 64) Developing a cash forecast is essential for.
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  31) The formal underwriting agreement between the company and the underwriter is signed: A) on the last day before the registration statement becomes effective. B) when the statement of registration is filed. C) during the road show. D) at the time of the letter of intent. 32) Typically, the entire process of going public takes.
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