Shared Flashcard Set

Details

Small Business Management
N/A
90
Business
Undergraduate 2
12/09/2014

Additional Business Flashcards

 


 

Cards

Term
Which of the following is not one of the three components of intellectual capital?
Definition
competitor
Term
The strongest of the five forces in most industries is:
Definition
rivalry among companies competing in the industry
Term
The aggregation of factors that sets a company apart from its competitors and gives it a unique position in the market superior to its competition is its:
Definition
competitive advantage
Term
The process in which entrepreneurs test their business models on a small scale before committing serious resources to launch a business that might not work is known as:
Definition
business prototyping
Term
________ are a unique set of capabilities that a company develops in key operational areas “such as service, innovation, and others” that allow it to potentially vault past its competitors.
Definition
core competencies
Term
Conducting ________ research involves collecting data firsthand and analyzing it while ________ research involves gathering data that has already been complied and is available.
Definition
primary; secondary
Term
The key to entrepreneurial success over time is to build a ________ competitive advantage.
Definition
sustainable
Term
The primary purpose of a business plan is to:
Definition
guide a company by charting its future course and devising a strategy for success
Term
A small company's mission statement:
Definition
all of the above (defines what the company is, why it exists, and its reason for being, gives the business and everyone in it a sense of direction, establishes its purpose in writing)
Term
The three "tests" associated with a business plan are:
Definition
reality, competitive, and value
Term
Kevin Abt noticed that people were cooking meals in their homes less often but wanted to avoid the hassle of going out to eat. They wanted to "eat in" without cooking. Abt launched a company, Takeout Taxi that delivers restaurant-prepared food to his customers' homes and businesses. Takeout Taxi is the result of a(n):
Definition
opportunity
Term
The reality test that a business plan must pass in order to attract financing from lenders and investors involves proving:
Definition
that a market for the company's product or service actually does exist and that the company can actually build it for the cost estimates included in the plan
Term
Gathering competitive intelligence, such as "dumpster diving" in a competitors trash, may raise questions regarding:
Definition
ethical standards
Term
The ________ serves as the "thesis statement" for the entire business plan and is the broadest expression of a company's purpose and defines the direction in which it will move.
Definition
mission statement
Term
Which of the following is not a recommended method of collecting competitive intelligence?
Definition
Pay competitors' employees to become informants about their companies' strategies, markets, and trade secrets.
Term
The key to choosing the right form of ownership is:
Definition
understanding the characteristics of each form and knowing how they affect your business and personal circumstances
Term
A franchise is a system of distribution in which semi-independent business owners pay ________ and ________ to a parent company in return for the right to become identified with its trademark, to sell its product or services, and often to use its business format and system.
Definition
fees; royalties
Term
When done correctly, the due diligence process will:
Definition
reveal both the positive and negative aspects of an existing business
Term
The most critical disadvantage of the sole proprietorship is:
Definition
the owner's unlimited personal liability
Term
McDonald's is an example of a ________ franchise.
Definition
pure
Term
The first step an entrepreneur should take when buying an existing business is to:
Definition
analyze his or her skills, abilities, and interests in an honest self-audit
Term
Probably the most important reason to have a partnership agreement is that it:
Definition
resolves potential sources of conflict that, if not addressed in advance, could later result in partnership battles and dissolution of an otherwise successful business
Term
Which of the following is not a potential advantage of franchising for the franchisee?
Definition
limited product line
Term
During the acquisition process, the potential buyer usually must sign a ________, which is an agreement to keep all conversations and information secret and legally binds the buyer from telling anyone any information the seller shares with her.
Definition
nondisclosure document
Term
In a general partnership:
Definition
each partner is held responsible for an agreement/decision made by any one of the partners
Term
When it comes to purchasing products, equipment, and incurring other expenses, the franchiser:
Definition
can set prices franchisees pay for the products but cannot set the retail price the franchisees charge
Term
The three main sources of potential legal liabilities for the buyer of an existing business include all but which of the following?
Definition
errors and omissions
Term
Acme Corporation is chartered in Delaware, but its primary area of operation is in South Carolina. In South Carolina, Acme would be considered a(n) ________ corporation.
Definition
foreign
Term
Which of the following should make a potential franchisee suspicious about a franchiser's honesty?
Definition
claims that the franchise contract is a standard agreement and that there is no need to read it or have an attorney look it over
Term
A study by the International Franchises Association reports that minorities own more than ________ percent of all franchises and women own ________ percent of franchises.
Definition
19; 25
Term
________ is the process of creating and delivering desired goods and services to customers and involves all of the activities associated with winning and retaining loyal customers.
Definition
marketing
Term
The two regions of the world with the highest penetration of the Internet are ________ and ________.
Definition
North America; Oceania/Australia
Term
The focus of a small company's marketing plan should be on:
Definition
the customer
Term
To avoid unpleasant surprises in launching an e-commerce effort an entrepreneur should:
Definition
test the Web site with real customers to make sure it is easy to navigate
Term
Entrepreneurs should make sure they do not fall victim to any of the e-commerce myths. Which of the following is not an e-commerce myth?
Definition
privacy and site security is an important issue on the Web
Term
Which of the following is not one of the objectives a guerrilla marketing plan should accomplish?
Definition
determine how the company will be able to serve all customers
Term
Successful e-tailers have discovered that these factors enhance their reputations for online customer service:
Definition
all of these factors enhance a Web-based reputation
Term
Companies whose products or services are ________ from major social, demographic, and economic trends rather than ________ with them must change their course or run the risk of failing.
Definition
diverging; converging
Term
Before a Web site can become the foundation for a successful e-business:
Definition
it must be created with the target audience in mind
Term
Which of the following is not a secondary source of market research data?
Definition
focus groups
Term
Which of the following is not a common reason customers leave Web sites before checking out?
Definition
the privacy policy was not posted
Term
The ________ while downloading a Web page is one of the most important determinants of its sales effectiveness.
Definition
time required
Term
Research shows that repeat customers spend ________ percent more than new customers.
Definition
67
Term
For entrepreneurial companies that lack brand and name recognition, and if building name recognition is one of the keys to success on the Web, one effective and affordable option may be to:
Definition
form strategic alliances with larger companies that can add credibility
Term
Attracting a new customer costs ________ as much as keeping an existing one.
Definition
5 times
Term
Setting prices for products and services requires entrepreneurs to balance a multitude of complex forces as entrepreneurs determine prices for their goods and services that will draw customers and:
Definition
produce a profit
Term
The ________ shows what assets the business owns and what claims creditors and owners have against those assets, and is built on the basic accounting equation: Assets = Liabilities + Owner's Equity.
Definition
balance sheet
Term
Generally, entrepreneurs should avoid head-to-head price competition with other firms that can more easily achieve lower prices through:
Definition
lower cost structures
Term
________ are those items of value the business owns; ________ are those things the business owes.
Definition
assets; liabilities
Term
When pricing a new product, a small business owner should strive to always satisfy which three objectives?
Definition
product acceptance, maintaining market share, and earning a profit
Term
The ________ ratio is a conservative measure of a firm's liquidity and shows the extent to which a firm's most liquid assets cover its current liabilities.
Definition
quick
Term
Although many retailers much match competitors' prices on identical items, maintaining a ________ pricing policy may not be healthy for a small business because it robs the company of the opportunity to create a distinctive image in its customers' eyes.
Definition
follow-the-leader
Term
________ is one indication that a small business may be undercapitalized.
Definition
a debt-to-net worth ratio above 1:1
Term
The fee that banks collect from retailers whenever customers use a credit or a debit card to pay for a purchase is known as the:
Definition
interchange fee
Term
Which ratio would be most helpful to a business owner to measure the profit per dollar of sales?
Definition
net profit on sales
Term
One of the requirements to be able to offer ________ is to make certain that the firms' cash position is ________.
Definition
trade credit; strong enough to support the additional pressure
Term
Which of the following is an assumption of break-even analysis?
Definition
all of the above (variable expenses change in direct proportion to changes in sales volume, fixed expenses remain constant for all levels of sales volume, changes in sales volume have no effect on unit sales price)
Term
A reliable cost accounting system is necessary for accurate pricing. The traditional method of product costing, where the costs of direct materials, direct labor, and factory overhead are included in a finished product's total cost is called ________.
Definition
absorption costing
Term
________ ratios help a business owner evaluate the company's performance and indicate how effectively the business employs its resources.
Definition
operating
Term
An MP3 player is sold at a price close to the break even point, but the accessories for the product are priced at a premium, offer impressive contribution margins. This is an example of:
Definition
captive-product pricing
Term
________ is the most important, yet least productive, asset that a small business owns.
Definition
cash
Term
Unlike entrepreneurs of the past, today's entrepreneurs:
Definition
have to piece their capital together from several sources
Term
________ typically lead(s) sales; ________ typically lag(s) sales.
Definition
production; receivables
Term
The primary advantage of equity capital is:
Definition
that it does not have to be repaid like a loan does
Term
Jane is arguing with Joan about how much cash their small retail outlet needs as they prepare their cash budget. Jane feels that with the Christmas season coming, their busiest time, they need more cash available while Joan feels they do not because their sales volume will be up significantly. Jane and Joan are discussing which step of the cash budgeting process?
Definition
forecasting cash receipts
Term
When looking for an angel, the key is:
Definition
networking
Term
When a firm sells goods or services on credit, the owner needs to remember that for cash budgeting purposes:
Definition
she must account for a delay between the sale and the actual collection of the proceeds
Term
Which of the following is not a characteristic of a typical angel investor?
Definition
purchasing majority ownership in the company
Term
Venture capitalists look for ________ as the most important ingredient in the success of any business.
Definition
competent management
Term
By planning cash needs ahead of time, a small business is able to achieve all but which of the following?
Definition
provide the opportunity to forgo quantity and cash discounts
Term
Less than ________ percent of all U.S. companies are publicly held corporations.
Definition
1
Term
________ small businesses take the time to conduct a credit check.
Definition
few
Term
Typically, the entire process of going public takes ________, but it can take much longer if the issuing company is not properly prepared for the process.
Definition
60 to 180 days
Term
Once a small business has established a firm written credit policy and has clearly communicated it, the next step in building an effective credit policy is to:
Definition
send invoices promptly
Term
Which of the following kinds of securities can an entrepreneur sell through a Small Company Offering Registration (SCOR)?
Definition
all of the above (convertible preferred stock, preferred stock, common stock)
Term
The first phase of determining where to locate a business is:
Definition
determining which regions of the country are experiencing growth
Term
For an entrepreneur, expanding into international markets:
Definition
helps it grow faster and survive competition better
Term
Posting job openings on the Internet has proven to be:
Definition
a cost effective method to attract candidates from other areas
Term
TIGER
Definition
contains the names of every street in the country and detailed block statistics for 345 urban areas
Term
An export trading company:
Definition
typically offer a wide range of services such as exporting, shipping, storing, distributing, and others to their clients
Term
Luisa, the director of human resources, is discussing the duties and responsibilities of a new position and its working conditions with Delmar, the manager over the position. Luisa and Delmar are discussing a:
Definition
job description
Term
Which of the following characteristics for selecting a city would be of greatest interest to a retail store selling fine china and collectibles?
Definition
population characteristics
Term
The most important ingredient for a successful joint venture is:
Definition
choosing the right partner
Term
Effective interviewers spend about ________ percent of the interview talking and ________ percent listening.
Definition
25; 75
Term
The purpose of zoning regulations is to:
Definition
contain similar types of activities in suitable locations
Term
Nature's Way, a health food store, has just opened in a popular neighborhood shopping center next to Silver's Gym, a physical fitness center catering to both men and women. Nature's Way is relying on which location principle?
Definition
retail compatibility
Term
Foreign licensing is:
Definition
an agreement in which a licenser gives a licensee in another country the right to use that licenser's patent, trademark, copyright, technology, and products in return for a percentage of the licensee's sales or profits
Term
Which government agency is responsible for enforcing employment laws?
Definition
the Equal Employment Opportunity Commission
Term
Central Business District (CBD)
Definition
all of the above (in many cities experienced decay in years past as customers began shopping more frequently at malls and shopping centers, but are now going through revitalization programs, is the traditional center of town, attracts customers from the entire trading area of the city)
Term
Which of the following is not one of the three major advantages to establishing an international location?
Definition
need for smaller staff
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