Deck 1: Foundations for Small Business

Question 1

It is increasingly obvious that small business has become an attractive option for minority groups.

Answer 1

True

Question 2

The only definition of success for the small business owner and the entrepreneur is the generation of large profits.

Answer 2

False

Question 3

The Small Business Administration (SBA) puts the number of small businesses at 99.7 percent of the total number of businesses.

Answer 3

True

Question 4

The small business growth stages are applicable to all small businesses.

Question 5

The changes that occur in organizations have a predictable pattern.

Question 6

For the period 1993 to 2008 small businesses were responsible for 65 percent of net new jobs.

Question 7

The concept that corporations have "personhood" was written into the very beginning of the Constitution.

Question 8

During the last quarter century, small businesses have not played a major role in the US economy or and job creation.

Question 9

The definitions of what constitutes a small business are the same regardless of what country you are in.

Question 10

It has been estimated that two thirds of business failures are due to the incompetence of the owner - manager.

Question 11

An important element of the definition of success for small business owners is that they seek to be free and independent.

Question 12

Early Americans had some suspicions about large business enterprises (corporations).

Question 13

The purchase of the Small Business Administration (SBA) is to find and punish wrong doings by smaller businesses.

Question 14

The Robinson-Patman Act of 1936 and the Miller-Tydings Act of 1937 were designed to protect small retailers.

Question 15

Small businesses are not as innovative as large businesses.

Question 16

The proportion of the U.S. GDP that comes from small business has remained relatively constant at 50 percent for the last 30 years.

Question 17

In the United States the term small business refers to those businesses with less than ten employees.

Question 18

In comparison to small business owner, some "entrepreneurs" will place more emphasis on growth in their definition of success.

Question 19

The definition of business failure small businesses simply means of the firm is going bankrupt.

Question 20

Evidence shows that the vast majority of small businesses will survive their first five years of operation.

Question 21

Ethics are synonymous with the law.

Question 22

One third of all US corporate bankruptcies are caused directly by employee theft.

Question 23

Only some of the stages of business evolution will be characterized by different requirements, opportunities, challenges, risks, and internal and external threats.

Question 24

When a small business is faced with an ethical dilemma, the decision may be unduly influenced by profits and legality.

Question 25

E-business and e-commerce mean the same thing.

Question 26

The notion that a corporation has "personhood" came about because of the

A) Clayton Act
B) The Supreme Court case Santa Clara County V. Southern Pacific Railroad
C) The Sherman Act
D) The "Bank Wars"
E) The Robinson-Patman Act

Question 27

Ethics are the same as values.

Question 28

One of the costs of unethical behavior is the loss of physical assets.

Question 29

Ethics are about following cultural norms.

Question 30

Customer value is the difference between the benefits that a customer receives from a product or a service and the costs associated with obtaining that product or service.

Question 31

Twenty-first century small businesses should maintain an intense focus on three major themes:

A) Making a profit, hiring new employees, and reducing costs
B) Creativity, new product development, and automation
C) Identifying customer value, exploiting digital technology, and managing cash flow
D) Reducing costs, finding new customers, and globalization
E) New product development, finding new customers, and globalization

Question 32

Some small businesses may stick with the very simple organizational structures because they are not interested in growing to the point where more complicated structures are required.

Question 33

Ethical behavior in business improves the workplace climate and will ultimately improve the bottom line.

Question 34

Failure to properly plan cash flow is one of the leading causes for small business failure.

Question 35

The e-environment refers to the digital environment in which all companies compete.

Question 36

The stages of the industry life cycle will be experienced the same by all industries.

Question 37

Moral or religious principles have the most influence on the ethics of a small business owner.

Question 38

The explosive rise of big businesses in America didn't occur until

A) the period immediately after the Revolution
B) the inauguration of Thomas Jefferson
C) the Era of Jackson
D) the post Civil War era
E) World War II

Question 39

There is a greater willingness by employees to report misconduct if they observe the business's leaders modeling ethical behavior.

Question 40

Ethics are about doing the right thing.

Question 41

The small business administration puts the number of small businesses as a percentage of the total number of business and the United States as greater than

A) 15 percent
B) 45 percent
C) 65 percent
D) 90 percent
E) 99 percent

Question 42

Which of the following applies to ethics?

A) They are the same as our feelings.
B) They are synonymous with the law.
C) They are the same as values.
D) They are not synonymous with science.
E) They are the same as religion.

Question 43

The form of business failure in which the owner recognizes that the business isn't generating sufficient returns to warrant the effort to continue operations is known as

A) Bankruptcy
B) Losses to creditors
C) Avoidance of losses to creditors
D) Failure of opportunity cost
E) Discontinuance

Question 44

The form of business failure that is attributable to the owner dying or simply choosing to discontinue operations is known as

A) bankruptcy
B) losses to creditors
C) avoidance of losses to creditors
D) failure of opportunity cost
E) discontinuance

Question 45

Business ethics are relevant to which of the following aspects of business conduct?

A) Workplace issues
B) Product and brand
C) Corporate wrong doing
D) Professional ethics
E) All of the above

Question 46

Which stage of the industry life cycle finds the industry in its infancy?

A) Birth
B) Introduction
C) Growth
D) Formulation
E) Beginning

Question 47

In this stage of business growth the business becomes increasingly complex. The owner must decide how to grow rapidly and finance growth.

A) Success
B) Success-growth substage
C) Resource maturity
D) Take-off
E) Shooting star

Question 48

If innovation is lacking, risk aversion is prevalent, and the entrepreneurial spirit is gone, a business may exhibit stalled or halted growth. This is referred to as:

A) the end of the organizational life cycle
B) deterioration
C) business mummification
D) ossification
E) desecration

Question 49

Cash-flow management includes all of the following activities except for:

A) a focus on the future
B) expense control
C) receivables management
D) developing a close relationship with commercial vendors
E) All of the above

Question 50

In 2008, the dollar value of total US exports represented by small business firms were approximately

A) 10 percent
B) 30 percent
C) 50 percent
D) 75 percent
E) 97 percent

Question 51

In this stage of small business growth the business is viable, and the focus shifts to revenues and expenses.

A) Existence
B) Success
C) Take-off
D) Survival
E) Success-growth substage

Question 52

The Small Business Administration (SBA) runs a program which has more than 12,000 volunteers who assist small firms with counseling and training. This program is

A) Small Business Development Center
B) Export Assistance Center
C) the SBA loan program
D) the SCORE program
E) Women's Business Center

Question 53

The Small Business Administration (SBA) now defines the limit of how many employees for most industrial firms as:

A) 10 employees
B) 25 employees
C) 50 employees
D) 250 employees
E) 500 employees

Question 54

The form of business failure where the owner ceases operation because the firm is losing money and wants to avoid losses to its creditors is known as

A) bankruptcy
B) losses to creditors
C) avoidance of losses to creditors
D) failure of opportunity cost
E) discontinuance

Question 55

The form of business failure where the firms operations have led to losses forwards creditors is known as

A) bankruptcy
B) losses to creditors
C) avoidance of losses to creditors
D) failure of opportunity cost
E) discontinuance

Question 56

_____ are enduring beliefs that a given behavior or outcome is desirable or good.

A) Business ethics
B) Values
C) Cultural norms
D) Ethics
E) Code of conduct

Question 57

There are two types of accounting systems, cash based and:

A) incremental
B) gradual
C) accrual
D) regressive
E) progressive

Question 58

Which of the following is NOT true about developing an ethics policy?

A) It should be tailored to fit your business.
B) You should develop the policy on your own and then distribute it to your employees.
C) You should follow up on any ethical violations you uncover.
D) You should walk the talk.
E) You should focus on business practices and specific issues.

Question 59

Which of the following is NOT true?

A) Ethics are about standards that help us decide between right and wrong.
B) The community and peers heavily influence small business ethics.
C) There are often conflicts between business success and ethical behavior.
D) The ethical decisions of a small business will likely impact the same number of people as will the ethical decisions of individual employees.
E) Ethics do not provide easy answers to hard questions.

Question 60

In this stage of the industry life cycle the business is very large, very bureaucratic, and top-management heavy.

A) Growth
B) Decline
C) Success
D) Ossification
E) Maturity

Question 61

_____ is about applying the virtue and discipline of ethics to business behavior.

Question 62

In comparison to small-business owners entrepreneurs are much more interested in the ____________ of their business.

Question 63

The term business failure can be broken down into five different types. These being: __________, __________, _________, __________ and _________ .

Question 64

Seeking out efficiencies and cost-reduction strategies is referred to as _____.

Question 65

It is been estimated that _____ percent of America's scientific and engineering talent are employed by small businesses.

Question 66

Establishing an _____ is critical for creating an ethical work environment.

Question 67

The rules and expectations about workplace behavior comprise the _____.

Question 68

_____ are important because they provide structure and stabilization for society.

Question 69

The _____ stage of the small business growth stages is when a business has demonstrated success. There is a strong chance of continued growth and success if entrepreneurial spirit can be maintained.

Question 70

The _____ stage of the small business growth stages is when a business owner risks all resources in financing growth.

Question 71

The _____ stage of the industry life cycle is triggered by a product or service innovation that renders the industry obsolete.

Question 72

_____ refers to trying to receive customer payments as quickly as possible.
a. Liquidity
b. Enterprise resource planning
c. Resource management
d. Receivables management
e. Debt collection

Question 73

The Small Business Administration limits its definition of a small business (for a majority of industrial firms) to ____ employees.

Question 74

Four organizational life cycle stages can be observed: _____, youth, midlife, and maturity.

Question 75

The _____ specifically acknowledges that organizations go through different life cycles, just like people do.

Question 76

_____ involves the marketing, selling, and buying of goods and services online.

Question 77

The most small business owners one of the prime rewards of operating their own business is the desire for ___________________.

Question 78

_____ is a small device that enables the tracking of inventory items.

Question 79

_____ is a firm's lifeblood.

Question 80

_____ uses the Internet and online technologies to create operational efficiencies, thereby increasing value to the customer.