1) To protect against lawsuits brought by anyone injured by your product, you will need to buy<\/p>\n
________.<\/p>\n
A) casualty insurance <\/p>\n
B) business insurance <\/p>\n
C) liability insurance<\/p>\n
2) Which is not a potential penalty for breaking a contract?<\/p>\n
A) A court may order you to pay damages to the other party who signed the contract.<\/p>\n
B) You may be sued in a court of law by the other party who signed the contract.<\/p>\n
C) You may lose a share of the ownership of your business to the other party who signed the<\/p>\n
contract.<\/p>\n
3) ________ are the building blocks of business. <\/p>\n
A) Personal relationships <\/p>\n
B) Contracts <\/p>\n
C) Letters of agreements<\/p>\n
4) The form of protection offered under U.S. law to the authors of “original works of authorship” is<\/p>\n
a(n) ________.<\/p>\n
A) patent. <\/p>\n
B) electronic right. <\/p>\n
C) copyright.<\/p>\n
5) A good contract will spell out ________, or unforeseeable “acts of God” beyond anyone’s control, for which neither party is responsible.<\/p>\n
A) amendments <\/p>\n
B) liabilities <\/p>\n
C) contingencies<\/p>\n
6) In a corporation, all profits go to ________.<\/p>\n
A) the stockholders as salaries<\/p>\n
B) the owners and the shareholders<\/p>\n
C) reduce the surplus<\/p>\n
D) the partners according to the terms of the agreement<\/p>\n
7) Every corporation is recognized and treated under the law as ________. <\/p>\n
A) an entity, much like a person, that has expenses and earnings<\/p>\n
B) a large business<\/p>\n
C) a small business<\/p>\n
D) if it were its owners and employees<\/p>\n
8) Obtain a trademark in order to ________. <\/p>\n
A) protect your logo<\/p>\n
B) protect all your intellectual property<\/p>\n
C) register your business name<\/p>\n
9) What is used to identify and distinguish the source of a service rather than a product? <\/p>\n
A) sales mark <\/p>\n
B) trademark <\/p>\n
C) service mark<\/p>\n
10) If you invent something and don’t patent it, it falls into the public domain, meaning that ________. <\/p>\n
A) you can sell the right to manufacture the invention<\/p>\n
B) anyone can manufacture your invention and profit from selling it without paying the you<\/p>\n
C) you can sell your invention publicly without paying the U.S. Patent Office<\/p>\n
11) Infringement of intellectual property is ________. <\/p>\n
A) profitable <\/p>\n
B) a crime <\/p>\n
C) a business tactic<\/p>\n
12) The number of stockholders in a Subchapter S Corporation is limited to ________. <\/p>\n
A) 75 <\/p>\n
B) 12 <\/p>\n
C) 50 <\/p>\n
D) 250<\/p>\n
13) Engineers from what company developed Six Sigma in the 1980s? <\/p>\n
A) Intel <\/p>\n
B) Motorola <\/p>\n
C) General Motors<\/p>\n
14) Which of the following is given by the President of the United States? <\/p>\n
A) Benchmarking Excellence Award<\/p>\n
B) ISO9000:2001<\/p>\n
C) Malcolm Baldrige National Quality Award<\/p>\n
15) A measure of quality that may be used in Total Quality Management (TQM) is ________. <\/p>\n
A) return rates <\/p>\n
B) on-time delivery<\/p>\n
C) compliance with product specifications <\/p>\n
D) All of the above.<\/p>\n
16) ________ is the management of sourcing, procuring, production, and logistics to go from rawmaterials to end consumers across multiple intermediate steps.<\/p>\n
A) Supply Chain Management<\/p>\n
B) Total Quality Management<\/p>\n
C) The Production-Distribution chain<\/p>\n
17) Within Six Sigma, the statistical methods are designed to eliminate defects to a failure rate of ________ defects per one million opportunities , or a 99.9997% success rate.<\/p>\n
A) 34 <\/p>\n
B) 0.34 <\/p>\n
C) 3.4<\/p>\n
18) Factors to consider when selecting a ________ include conformance to quality standards, extension of trade credit and timely delivery.<\/p>\n
A) customer <\/p>\n
B) supplier <\/p>\n
C) sales representative<\/p>\n
19) The set of actions that produce goods and services is called ________. <\/p>\n
A) shipping <\/p>\n
B) operations <\/p>\n
C) manufacturing<\/p>\n
20) ________, an American economist, argued that business should focus on making quality products instead of maximizing profits — and that profits would follow.<\/p>\n
A) Conrad Hilton <\/p>\n
B) Paul Samuelson <\/p>\n
C) W. Edwards Deming<\/p>\n
21) Retail point-of-sales systems, restaurant menu order systems, and concert venue ticketing systems are all examples of ________.<\/p>\n
A) industry-specific technology<\/p>\n
B) systems for large businesses<\/p>\n
C) custom software applications<\/p>\n
22) A tool that can assist an entrepreneur in time management is a PERT chart. The acronym stands for ________.<\/p>\n
A) Project Estimation and Review Technique<\/p>\n
B) Process Emulation and Review Test<\/p>\n
C) Program Evaluation and Review Technique<\/p>\n
23) Which is not an effective way to protect yourself from a wrongful termination suit brought by an employee whom you have fired?<\/p>\n
A) I can conduct regular reviews of employee performance.<\/p>\n
B) I can hire a lawyer to protect me from lawsuits.<\/p>\n
C) I can keep documentation of all my reasons for firing the employee to prove that he\/she violated company ethics or was not performing his\/her duties.<\/p>\n
24) Research indicates that ________ is the most important characteristic required for successful leadership.<\/p>\n
A) drive <\/p>\n
B) intelligence<\/p>\n
C) business knowledge <\/p>\n
D) self esteem<\/p>\n
25) Employees who feel used by their company ________. <\/p>\n
A) may exhibit negative behaviors to customers<\/p>\n
B) may quit the business<\/p>\n
C) will not do their best<\/p>\n
D) All of the above.<\/p>\n
26) One of the most important things you can do when you start a business is to learn how to manage your ________ so that you can get more done with efficiency.<\/p>\n
A) time <\/p>\n
B) sales<\/p>\n
C) costs <\/p>\n
D) None of the above.<\/p>\n
27) Why are entrepreneurs not always the best managers for their businesses?<\/p>\n
A) Entrepreneurs are lazy.<\/p>\n
B) Managers are better at coming up with fresh ideas for new businesses than entrepreneurs are.<\/p>\n
C) Entrepreneurs tend to be creative types who get bored with the day-to-day details of running a business.<\/p>\n
28) Many companies staff their human resources organizations using a ratio of one HR executive per ________ employees.<\/p>\n
A) 50 – 200 <\/p>\n
B) 250 – 1000 <\/p>\n
C) 50 -100<\/p>\n
D) 10 – 50<\/p>\n
29) Ways to value a business include comparison to other firms, benchmarking, or looking at a multiple of net earnings. Any of the methods is an attempt to arrive at a ________.<\/p>\n
A) fair market value <\/p>\n
B) profit maximizing price<\/p>\n
C) net present value <\/p>\n
D) future value<\/p>\n
30) Which of the following is a harvest strategy, not an exit strategy? <\/p>\n
A) IPO (initial public offering) <\/p>\n
B) franchising<\/p>\n
C) acquisition <\/p>\n
D) merger<\/p>\n
31) A brand is a combination of name, logo, design that ________. <\/p>\n
A) expresses the philanthropic intentions of a company to consumers<\/p>\n
B) becomes associated in the minds of consumers with the products or services of a company<\/p>\n
C) identifies the owner of a company<\/p>\n
32) To take a business public means to sell its stock on the stock market. The first offering of a business’ stock has been acronymed ________.<\/p>\n
A) IPO <\/p>\n
B) FIFO <\/p>\n
C) IMPO <\/p>\n
D) ALPO<\/p>\n
33) It typically requires at least ________ years to develop a company worth harvesting. <\/p>\n
A) five <\/p>\n
B) twenty<\/p>\n
C) ten<\/p>\n
34) A(n) ________ is the amount of loss or damage that you agree to cover before any insurance coverage takes over.<\/p>\n
A) premium <\/p>\n
B) deductible <\/p>\n
C) carrying cost<\/p>\n
35) If you purchase $250,000 worth of insurance to protect your restaurant, with a $10,000 deductible, how much money are you entitled to receive as a payout if a fire destroys your store which is valued at $250,000?<\/p>\n
A) $250,000 <\/p>\n
B) $10,000 <\/p>\n
C) $240,000<\/p>\n
36) Some contracts specify that conflicts may be settle through ________ instead of court. <\/p>\n
A) coercion <\/p>\n
B) arbitration<\/p>\n
C) negotiation <\/p>\n
D) None of the above.<\/p>\n
37) Tax-exempt, nonprofit corporations ________. <\/p>\n
A) do not have boards of directors<\/p>\n
B) pay dividends more often than for-profit corporations<\/p>\n
C) are set-up with a specific mission to improve society<\/p>\n
D) do not have legal liability<\/p>\n
38) A(n) ________ is a model or pattern that serves as an example of how a product would look and operate if it were manufactured.<\/p>\n
A) prototype <\/p>\n
B) blueprint <\/p>\n
C) specification<\/p>\n
39) Which of the following is not a step in the production-distribution chain? <\/p>\n
A) A retailer buys 6 rings.<\/p>\n
B) A consumer wears jewelry to work.<\/p>\n
C) A goldsmith crafts 10 rings.<\/p>\n
D) A consumer enters a jewelry shop and buys a ring.<\/p>\n
40) One sub-methodology employed in Six Sigma is DMAIC which stands for ________. <\/p>\n
A) define, minimize, assess, improve, and collect<\/p>\n
B) describe, measure, assess, improve, and control<\/p>\n
C) define, measure, analyze, improve, and control<\/p>\n
41) Make sure your business is run in an ethical manner by ________. <\/p>\n
A) create an advisory board<\/p>\n
B) keep accurate records and use financial controls<\/p>\n
C) never take company profits just to pay yourself<\/p>\n
D) All of the above.<\/p>\n
42) Which is not an effective method for a manager to motivate employees? <\/p>\n
A) threatening employees with disciplinary action.<\/p>\n
B) recognizing outstanding employee contributions.<\/p>\n
C) rewarding achievements by employees.<\/p>\n
D) involving employees in decisions.<\/p>\n
43) In order to be successful, an entrepreneur must choose ________. <\/p>\n
A) the level of risk that he\/she can comfortably tolerate<\/p>\n
B) a high level of risk<\/p>\n
C) a moderate level of risk, but no more than a quantifiable 10%<\/p>\n
44) One of the advantages of an Employee Stock Ownership Plan is that ________. <\/p>\n
A) employees will likely quit and leave<\/p>\n
B) ESOPs offer tax breaks to the company<\/p>\n
C) the owner will have to look for buyers in the general public<\/p>\n
D) it will prevent employees from having control of the company<\/p>\n
45) A ________ is an official document that gives you the right to carry out a specific activity, such as an outdoor festival.<\/p>\n
A) certificate <\/p>\n
B) permit <\/p>\n
C) license<\/p>\n
46) ________ are the amounts of inventory or raw materials and work-in-process kept to guarantee service levels.<\/p>\n
A) Safety stock levels <\/p>\n
B) Sufficiency levels <\/p>\n
C) Minimum lots<\/p>\n
47) What is the difference between strategic planning and operational planning? <\/p>\n
A) Strategic plans are for one year or less and have very specific objectives, while operational<\/p>\n
plans are more vague and long-term.<\/p>\n
B) Strategic planning covers the short-term day-to-day workings of a business, while<\/p>\n
operational<\/p>\n
planning sets out long-term goals.<\/p>\n
C) Strategic planning sets out strategies for the business to achieve long-term growth and other<\/p>\n
goals, while operational planning covers the day-to-day operations of the business.<\/p>\n
48) Why are franchisees typically assigned territories? <\/p>\n
A) so that they are not placed in direct competition with other franchises from the same company<\/p>\n
B) to avoid conflict with franchises from different companies<\/p>\n
C) so they can be assigned to managers<\/p>\n
49) Which of the following are not usually not-for-profit organizations? <\/p>\n
A) trade associations <\/p>\n
B) churches<\/p>\n
C) book stores <\/p>\n
D) charitable foundations<\/p>\n
50) Lost sales and goodwill are potentially significant costs that may arise from ________. <\/p>\n
A) too little inventory <\/p>\n
B) too much inventory <\/p>\n
C) Both A and B.<\/p>\n","protected":false},"excerpt":{"rendered":"
1) To protect against lawsuits brought by anyone injured by your product, you will need to buy ________. A) casualty insurance B) business insurance C) liability insurance 2) Which is not a potential penalty for breaking a contract? A) A Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-144194","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/144194","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=144194"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/144194\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=144194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=144194"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=144194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}