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1.
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Small firms represent _______________ of all employer firms.
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  99.7 percent
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50-60 percent
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45 percent
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20 percent
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2.
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______________________ is NOT likely a deciding factor in buying an existing business.
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Sales and net income
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Owner's FICO score
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Goodwill
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Proprietary items
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3.
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Which is NOT a method of determining a business value?
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Book value (net worth)
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Break-even point
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Similar business value
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Integrated method
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4.
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A business value may be computed by multiplying earnings by a _____________ typical in the industry.
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Price earnings multiplier
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Sales revenue multiplier
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Income multiplier
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Excess earnings multiplier
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5.
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There are many ways to determine the value of a business. One of the popular methods that determines the value of a business based on the revenue generating capacity of the company is
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Adjusted net assets method
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Capitalization of earnings method
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Gross revenue multiplier method
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Price-earnings ratio method
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6.
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Assume that gross revenue is $32,500,000 and gross revenue multiplier is .4, then the valuation is
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$15,000,000
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$13,000,000
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$32,000,000
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$19,500,000
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7.
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The tough questions to ask when starting a business do NOT include?
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Downside risks
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Industry trends
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Goodwill
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Economic outlook
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8.
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Where should a retail store be located?
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Near your market
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Near other stores
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Near your customers
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Near your suppliers
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9.
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A well-prepared business plan serves what functions?
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A blue print for success
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Raising money
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Getting the business started off right
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All the above
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10.
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A business plan does NOT include
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Preface
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Executive summary
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Table of contents
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Cover
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11.
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A business plan can be a(n) _____________________
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Marketing plan
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Long-term expenditure budget
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Loan proposal
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Cash budget
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12.
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What of the following is not a factor to be considered in deciding upon a source of financing?
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13.
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Which one of the following provides a cost-free source of financing for a firm?
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Trade credit
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Mortgage bonds
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Accounts receivable
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Debentures
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14.
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SBA borrowers seeking to start a new business should prepare a
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Business plan
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Power of attorney
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Prequalification application
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Statement of financial position
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15.
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Leasing advantages include all EXCEPT
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Balloon payments
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Expert service
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Few financing restrictions
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Flexible payments
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16.
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All of the following are alternative marketable securities suitable for short-term investment EXCEPT
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U.S. Treasury bills
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Convertible bonds
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Eurodollars
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Commercial paper
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17.
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A working capital technique that increases the payable float and therefore delays the outflow of cash is
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Concentration banking
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A draft
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Electronic Data Interchange (EDI)
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A lockbox system.
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18.
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When managing cash and short-term investments, a corporate treasurer is primarily concerned with
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Maximizing rate of return
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Minimizing taxes
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Liquidity and safety
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Investing in Treasury bonds since they have no default risk
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19.
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In managing inventory you should NOT
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Keep careful records of back orders
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Guard against theft loss
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Maximize lead time
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Order economically
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20.
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The result of the economic order quantity formula indicates the
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Annual quantity of inventory to be carried
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Quantity of each individual order during the year
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Annual usage of materials during the year
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Safety stock plus estimated inventory for the year
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21.
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The ordering costs associated with inventory management include
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Insurance costs, purchasing costs, shipping costs, and spoilage
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Obsolescence, setup costs, quantity discounts lost, and storage costs
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Purchasing costs, shipping costs, setup costs, and quantity discounts lost
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Shipping costs, obsolescence, setup costs, and capital invested
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22.
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In inventory management, the safety stock will tend to increase if the
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Carrying cost increases
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Cost of running out of stock decreases
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Variability of the lead time increases
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Variability of the usage rate decreases
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23.
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To qualify as an S corporation, a corporation cannot have more than _____ shareholders.
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24.
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Legal purchase contracts do NOT include
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Seller warranties
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The purchase price
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Key personnel contract
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Date the buyer effectively owns the business
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25.
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To protect yourself from competitive infringement you need to
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Register with the Better Business Bureau
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Patent a product
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Place an advertisement
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Send out the press release
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26.
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The Trademark Electronic Application System is found at
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www.quicken.com
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www.uspto.gov
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www.sba.gov
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www.pueblo.us.gov
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27.
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Adequate financial record keeping systems include all EXCEPT
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Profit comparison with last year
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How i am doing relative to my competition
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Sales promotions
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What is my net worth
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28.
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Financial ratios can be classified into all but one of the following
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Vector ratios
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Liquidity ratios
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Activity ratios
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Leverage ratios
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29.
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Startup costs do NOT include
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Advertising costs
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Professional fees
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Amortization expenses
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Architect fees
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30.
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Most states provide specific exemptions from sales taxes to all EXCEPT
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Wholesalers
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Retailers
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Manufacturers
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Businesses conducting sales across state lines
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31.
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Major areas of marketing research do NOT include
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Internal information
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Objective research
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Secondary research
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Primary research
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32.
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Advantages of new product introduction does NOT include
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Increased sales and profitability
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Product design
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Reducing overall overhead by using idle facilities
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Strengthening existing products
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33.
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Social media are:
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The means to harness the collective knowledge of a crowd to solve problems and complete tasks.
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The online means of communication, conveyance, collaboration, and cultivation among interconnected and interdependent networks.
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Sets of labels or tags that individuals choose in a way that makes sense to them, as opposed to using predefined keywords.
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People who share their views about a product or service even though they're not affiliated with the company.
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34.
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Personal selling involves
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Face-to-face dealing
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Telecommunication
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Mass media
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Local advertising
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35.
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Which one of the following is NOT a factor establishing a selling price
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Type of item
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Life cycle of product
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Use of leaders
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Manufacturers' variable costs
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36.
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The different basic pricing approaches for a new product will NOT include:
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Bid pricing
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Competitive pricing
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A low price (penetration)
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A high price (skimming)
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37.
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In selecting an insurer you should NOT consider
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Ability to modify coverage
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Agent accessibility
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Cost
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Insurance services needed
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38.
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_____________________ is accounting software:
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Peachtree
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Turbo-tax
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Excel
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Lotus notes
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39.
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The disadvantages of using a temporary agency for temporary help include:
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They offer flexibility,
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They command a higher hourly rate
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They can be used on a need basis
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They impose no cost for fringe benefits.
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40.
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Typical information sources for running a small business do NOT include:
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Fortune magazine
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SCORE
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U.S. Chamber of Commerce
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Small Business Administration
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41.
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________________ is NOT a credit bureau:
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Trans Union
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Dow Jones
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Experian
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Equifax
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42.
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You may obtain a patent granting exclusive right for _______ years:
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43.
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The equity at the end of the period consists of:
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Assets
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Assets + liabilities
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Capital investments made plus the profits earned less any withdrawals
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Revenue - expenses
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44.
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Activity ratios do NOT include:
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Accounts receivable turnover ratio
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Collection period
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Inventory turnover
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Times interest earned (interest coverage) ratio
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45.
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Reasons to start a franchise instead of an entirely new business include all of the following EXCEPT:
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Lower startup costs
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Established reputation
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Ability to leverage existing marketing expertise
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Higher probability of success
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