Small Business Management Review Questions
Course Introduction
Small Business Management explores the fundamental principles and practices required to start, operate, and grow a small business. This course covers essential topics such as entrepreneurial thinking, business planning, financing, marketing strategies, operations management, human resources, and legal considerations unique to small enterprises. Students will learn how to identify business opportunities, develop sustainable business models, and navigate the challenges faced by small business owners in todays dynamic economic environment. Through practical case studies and hands-on projects, learners gain the skills needed to make informed decisions and lead a successful small business venture.
Recommended Textbook Essentials of Entrepreneurship and Small Business Management 9th Edition by Norman M. Scarborough
Available Study Resources on Quizplus
17 Chapters
1957 Verified Questions
1957 Flashcards
Source URL: https://quizplus.com/study-set/2272
Page 2
Chapter 1: The Foundations of Entrepreneurship
Available Study Resources on Quizplus for this Chatper
117 Verified Questions
117 Flashcards
Source URL: https://quizplus.com/quiz/45125
Sample Questions
Q1) Small companies that have expanded successfully into foreign markets tend to rely on all but which of the following strategies?
A)Research foreign markets thoroughly.
B)Focus on many countries initially.
C)Utilize government resources designed to help small companies establish an international presence.
D)Forge alliances with local partners.
Answer: B
Q2) The shift to a service economy has not had a significant impact on entrepreneurial opportunities.
A)True
B)False
Answer: False
Q3) Starting a part-time business is a popular gateway to entrepreneurship.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Ethics and Social Responsibility: Doing the Right Thing
Available Study Resources on Quizplus for this Chatper
109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/45124
Sample Questions
Q1) Sexual harassment is a violation of Title VII of the Civil Rights Act of 1964.
A)True
B)False
Answer: True
Q2) The three parts of the triple bottom line are ________.
A)processes, profits, and people
B)profit, people, and planet
C)processes, profit, and predominance
D)profit, processes, and planet
Answer: B
Q3) Earning a profit may be a company's ________ responsibility.
A)first
B)only
C)singular
D)last
Answer: A
Q4) Immoral managers purposely violate law and ethical standards.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Creativity and Innovation: Keys to Entrepreneurial Success
Available Study Resources on Quizplus for this Chatper
118 Verified Questions
118 Flashcards
Source URL: https://quizplus.com/quiz/45126
Sample Questions
Q1) It may appear in the incubation stage of the creative process that the entrepreneur is loafing, as he is taking time to reflect on the information collected.
A)True
B)False
Answer: True
Q2) Which of the following is not an enhancement to individual creativity?
A)Listening to other people.
B)Recognizing the creative power of mistakes.
C)Keeping a toy box in your office.
D)Working without breaks until the project is complete or the problem is solved.
Answer: D
Q3) The creative process involves seven distinct steps including preparation, investigation, transformation, incubation, illumination, verification, and implementation. A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Conducting a Feasibility Analysis and Designing a Business Model
Available Study Resources on Quizplus for this Chatper
112 Verified Questions
112 Flashcards
Source URL: https://quizplus.com/quiz/45128
Sample Questions
Q1) Generally, an industry is more attractive when quality substitute products are not readily available, the prices of substitute products are higher, and buyers' costs of switching products is high.
A)True
B)False
Q2) The enactment of the Affordable Health Care Act in 2010 is an example of a(n)________ change.
A)economic
B)demographic
C)technological
D)political and legal
Q3) The growth in the number of women entering the workforce is an example of a sociocultural change.
A)True
B)False
Q4) Generally, an industry is more attractive to new entrants when the advantages of economies of scale are present.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Crafting a Business Plan and Building a Solid Strategic Plan
Available Study Resources on Quizplus for this Chatper
129 Verified Questions
129 Flashcards
Source URL: https://quizplus.com/quiz/45129
Sample Questions
Q1) The data shows that writing a business plan increases the odds that a venture will successfully accomplish important tasks (initializing product development, obtaining inputs, starting marketing, talking to customers, and asking for external funds)as well as continue in business.
A)True
B)False
Q2) Large companies have a natural advantage over small firms when it comes to preparing a strategic plan.
A)True
B)False
Q3) The company's mission statement expresses in words the entrepreneur's vision for what her/his company is and what it is to become.
A)True
B)False
Q4) A company's mission statement defines what it stands for, why it exists, and its reason for being.
A)True
B)False
Q5) What is "collateral" and why is it one of the "Cs" of credit?
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Forms of Business Ownership
Available Study Resources on Quizplus for this Chatper
83 Verified Questions
83 Flashcards
Source URL: https://quizplus.com/quiz/45130
Sample Questions
Q1) Should Duke incorporate or should he remain a proprietorship? Why?
Q2) The "Das Spelunker" corporation, formed in Germany and conducting business in the U.S., is considered to be a(n)________ corporation.
A)alien
B)domestic
C)foreign
D)distant
Q3) In a sole proprietorship, the owner has limited liability.
A)True
B)False
Q4) In a partnership, the ________ partner(s)has (have)unlimited liability for the partnership's debts.
A)limited
B)dormant
C)nominal
D)general
Q5) Would you recommend Duke establish an S corporation? What conditions would he have to meet?
Q6) Outline the incorporation process.
Page 8
To view all questions and flashcards with answers, click on the resource link above.
Chapter 7: Buying an Existing Business
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/45131
Sample Questions
Q1) Bizbuysell.com and Bizquest are examples of Internet sites that provide access to
A)business brokers
B)franchises available for sale
C)the hidden market of companies for sale
D)All of the above
Q2) The process of investigating the details of a company that is for sale to determine the strengths, weaknesses, opportunities and threats facing it is known as the ________ process.
A)hidden market
B)due diligence
C)skimming
D)business assessment
Q3) The structure of the deal refers to the ________.
A)price paid
B)method of payment
C)terms and conditions of payment
D)legality of the process
Q4) Asset valuation is an important part of the due diligence process. Why?
Q5) What is an ESOP?
9
To view all questions and flashcards with answers, click on the resource link above.
Chapter 8: Franchising and the Entrepreneur
Available Study Resources on Quizplus for this Chatper
69 Verified Questions
69 Flashcards
Source URL: https://quizplus.com/quiz/45132
Sample Questions
Q1) McDonald's is an example of a ________ franchise.
A)conversion forms
B)trade name
C)product distribution
D)pure
Q2) Examples of some benefits franchise systems offer include management training, brand appeal, standardization of goods and services, national advertising, proven business formats, centralized buying power, and site selection assistance.
A)True
B)False
Q3) When a franchisee buys a franchise, (s)he is purchasing the expertise and the business of the franchisor.
A)True
B)False
Q4) Trade name franchising is a system of franchising in which a franchisee purchases the right to use the franchisor's trade name without distributing particular products under that name.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Building a Powerful Bootstrap Marketing Plan
Available Study Resources on Quizplus for this Chatper
117 Verified Questions
117 Flashcards
Source URL: https://quizplus.com/quiz/45133
Sample Questions
Q1) Adding innovative products and services is important to a companies' success and small entrepreneurial companies may be able to respond faster than larger organizations.
A)True
B)False
Q2) Why is it important for small business owners to clearly define their target market(s)as part of their marketing strategies?
Q3) Which of the following techniques does marketing consultant Faith Popcorn recommend to small business owners interested in tracking market trends?
A)Hire a top-10 market research firm to track trends for you.
B)Watch what the large corporations in your industry are doing.
C)Read as many current publications as possible.
D)Talk with two to three people at random each week to hear what they are buying and why.
Q4) Because a majority of the average company's sales come from present customers, few can afford to alienate any customers.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
11
Chapter 10: E-Commerce and the Entrepreneur
Available Study Resources on Quizplus for this Chatper
142 Verified Questions
142 Flashcards
Source URL: https://quizplus.com/quiz/45134
Sample Questions
Q1) Identify the 11 myths of e-commerce and capture one aspect that negates that myth.
Q2) The top three search engines - Google, Bing, and Yahoo - account for nearly 60 percent of the searches in the United States.
A)True
B)False
Q3) To launch a successful Web site, business owners should consider ________.
A)a simple design that is easy to navigate
B)that to stand out on the Web, the site really has to sparkle
C)all the "bells" and "whistles" technology can provide
D)that flash makes a Web site better
Q4) YouTube has about a 100 million users worldwide.
A)True
B)False
Q5) Businesses selling less well-known brands should ________.
A)reduce prices
B)offer freebies
C)use customer testimonials and endorsements
D)All of the above
Q6) How might a Web site benefit the youth club?
Page 12
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Pricing and Credit Strategies
Available Study Resources on Quizplus for this Chatper
114 Verified Questions
114 Flashcards
Source URL: https://quizplus.com/quiz/45127
Sample Questions
Q1) What does it mean to "focus on value" in relationship to establishing a price? In your response, discuss how customers recognize and evaluate value.
Q2) Which of the following is/are not true regarding pricing for service firms?
A)A service firm must establish a price based on the materials used to provide the service, the labor employed, an allowance for overhead, and a profit.
B)Most service firms base their prices on an hourly rate (usually actual hours), but sometimes standard hours are used.
C)For most service firms, labor and profit comprise the largest portion of the cost of the service.
D)None of the above
Q3) ________ frequently convey the idea of quality, prestige, and uniqueness to customers.
A)Effective packaging
B)Low prices
C)High prices
D)High profile promotions
Q4) Explain the advantages and the disadvantages of a small business accepting credit cards for customer purchases.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 12: Creating a Successful Financial Plan
Available Study Resources on Quizplus for this Chatper
140 Verified Questions
140 Flashcards
Source URL: https://quizplus.com/quiz/45135
Sample Questions
Q1) What is the return on net worth ratio for Meters, Inc.?
A)8.5 percent
B)1.91:1
C)21.8 percent
D)29.3 percent
Q2) A quick ratio of more than 1:1 suggests that a small company is overly dependent on inventory and future sales to satisfy its short-term debt.
A)True
B)False
Q3) What are the advantages and the disadvantages of using break-even analysis?
Q4) The ________ ratio measures the owner's rate of return on the investment in the business.
A)net profit to equity
B)net profit on sales
C)quick profit
D)net sales to working capital
Q5) If a market survey indicates that your firm's sales would be $620,000, what net profit would you expect to earn?
Q6) If Harry's profit target is $15,000, what level of sales must be achieved?
Page 14
To view all questions and flashcards with answers, click on the resource link above.
Chapter 13: Managing Cash Flow
Available Study Resources on Quizplus for this Chatper
144 Verified Questions
144 Flashcards
Source URL: https://quizplus.com/quiz/45136
Sample Questions
Q1) Forty percent of industrial and wholesale sales are on credit and 90 percent of retail sales are on account.
A)True B)False
Q2) Proper cash management techniques call for a small business owner to pay invoices as soon as the invoices arrive.
A)True B)False
Q3) Bartering (exchanging goods and services for other goods and services)is an effective way for small business owners to conserve cash. A)True B)False
Q4) Efficient cash managers set up a payment calendar each month, which allows them to pay their bills on time and to take advantage of cash discounts for early payment. A)True B)False
Q5) Why is cash a unique asset? What are the advantages of efficient cash management?
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Choosing the Right Location and Layout
Available Study Resources on Quizplus for this Chatper
114 Verified Questions
114 Flashcards
Source URL: https://quizplus.com/quiz/45137
Sample Questions
Q1) 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
Q2) Typically located near affluent residential neighborhoods where their target customers live, ________ centers are designed to look less like shopping centers and malls and more like the busy streets in the central business districts that once existed in towns and cites.
A)neighborhood
B)power
C)lifestyle
D)community shopping
Q3) The primary variable(s)that influence(s)the scope of a trading area is/are the
A)character of the transportation network
B)nature of competing businesses
C)type and size of the business operation
D)racial and political barriers in the local community
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Sources of Financing: Equity and Debt
Available Study Resources on Quizplus for this Chatper
117 Verified Questions
117 Flashcards
Source URL: https://quizplus.com/quiz/45138
Sample Questions
Q1) Angels are an excellent source of ________ money, often willing to wait ________ years or longer to cash out their investment.
A)immediate; 5
B)patient; 7
C)long-term; 10
D)passive; 20
Q2) Equity capital is also called risk capital because these investors assume the primary risk of losing their funds if the business fails.
A)True
B)False
Q3) The average venture capital firm screens about ________ investment proposals each year and ultimately invests in ________ of them.
A)10,000; 12
B)1,000; 1
C)5,000; 13
D)5,000; 80
Q4) Explain the difference between equity and debt capital. What advantages and disadvantages characterize each?
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Global Aspects of Entrepreneurship
Available Study Resources on Quizplus for this Chatper
133 Verified Questions
133 Flashcards
Source URL: https://quizplus.com/quiz/45139
Sample Questions
Q1) Learning the habits and the customs of the cultures in which they do business is essential for small business managers trying to go global.
A)True
B)False
Q2) An American executive went to a Middle Eastern country to sign an oil contract. Before the contract was signed, the American and the Arab official met for tea. Relaxing, the American put her/his feet up on a table. The official became angry and left the room. Later it was found that showing the soles of shoes was a serious insult. This represents which barrier to international trade?
A)Tactical
B)Political
C)Strategic
D)Cultural
Q3) The three biggest domestic barriers to exporting facing small businesses are attitude, information, and financing.
A)True
B)False
Q4) Identify and discuss the domestic barriers to trade.
Q5) Identify and discuss the international barriers to trade.
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: Building a New Venture Team and Planning for the Next Generation
Available Study Resources on Quizplus for this Chatper
119 Verified Questions
119 Flashcards
Source URL: https://quizplus.com/quiz/45140
Sample Questions
Q1) Flextime is a work arrangement in which two or more people share the same 40-hour-a-week job.
A)True
B)False
Q2) The type of job design that involves building motivators into a job by increasing the planning, decision-making, organizing, and controlling functions workers perform is
A)job enrichment or vertical job loading
B)job enlargement or vertical job loading
C)job enrichment or horizontal job loading
D)job simplification or lateral job loading
Q3) A job analysis describes what the job is, what its duties and responsibilities are, and what work conditions are involved.
A)True
B)False
Q4) Because their companies are small, entrepreneurs need not develop the leadership skills managers in larger companies need.
A)True
B)False
19
To view all questions and flashcards with answers, click on the resource link above.