Q1. Alexandra Hudson, owner of a company that manufactures high quality woodfurniture has forged a long-term partnership with an upscale furniture wholesaler inDenmark to sell her company’s products in that country. The Danish wholesaler hasagreed to handle the distribution details and to provide design ideas to helpHudson’s company create new styles that will appeal to Danish customers inexchange for some price concessions. The relationship between the two companiesbegan when a representative of the Danish furniture wholesaler contacted Hudsonthrough Hudson’s World Wide Web site. Hudson and the Danish company haveformed a:a. foreign joint venture.b. a domestic joint venture.c. countertrading relationship.d. foreign licensing arrangement.Q2. Shopping malls typically average __________ parking spaces per 1,000 square feetof shopping space.a. 2b. 5c. 10d. 16Q3. A movie theater with 8 screens recently opened in Knoxville, Tennessee. A shorttime later, two restaurants, a coffee shop, and a frozen yogurt store opened withinwalking distance of the theater. These businesses are using the location principleof:a. retail consolidationb. retail complexityc. retail compatibilityd. retail consortiumQ4. To obtain needed space for a company, ________ is a common choice because it iseconomical.a. leasingb. buildingc. renovatingd. designingQ5. For which of the following businesses would clustering be an effective locationstrategy?a. a car dealershipb. a flower shopc. a sporting goods stored. a dry cleanerQ6. Online newsletters should be kept to about:a. 600 wordsb. 2000 wordsc. 6 pagesd. 20 pagesQ7. A __________ is an agreement between an exporter’s bank and a foreign buyer’sbank that guarantees payment to the exporter for a specific shipment of goods.a. bank draftb. letter of creditc. promissory noted. freight draftQ8. Which of the following countries represents the top market for U.S. smallbusiness exporters?a. Japanb. Mexicoc. Canadad. GermanyQ9. In a performance appraisal, a manger should:a. keep comments as general as possible to avoid upsetting workers.b. use the time to spring several "surprises" (both good and bad) on employees abouttheir performances over the past year.c. critique employees’ attitudes and abilities rather than their actions.d. spend about 20 percent of the time discussing past performance and use theremaining 80 percent of the time to develop goals and plans for the future.Q10. Experts draw an analogy between today’s successful small business leaderand:a. the conductor of a symphony orchestra.b. the leader of a jazz band.c. a member of a rock and roll band.d. a chamber music concert group.Q11. Web-based businesses invest ____ percent of revenue in marketing, comparedto _____ percent for off-line businesses.a. 65, 4b. 55, 8c. 45, 16d. 35, 32Q12. Under NAFTA, companies have greater protection of their patents, trademarks,and copyrights across national borders.a. trueb. falseQ13. A foreign sales company is a shell company created in an approved U.S.territory or a foreign country that allows a business to reduce its U.S. income taxliability by _____ on earnings from foreign trade.a. 5% to 15%b. 15% to 30%c. 30% to 50%d. More than 30%Q14. A(n) __________ minimizes estate taxes on a business by creating two classes ofstock: preferred voting stock (the value of which remains constant) for the parents,and nonvoting common stock (the value of which reflects the increased value of thebusiness) for the children.a. family limited partnershipb. estate freezec. buy/sell agreementd. grantor retained annuity trustQ15. Domain names can be registered with the U.S. Patent and Trademark Office.a. trueb. falseQ16. A(n) __________ is a tax or a duty that a government imposes on goods andservices shipped into that country.a. tarifb. quotac. embargod. lateral agreementQ17. Experts estimate that __________ of the products U.S. companies export to othernations require little modification to sell in foreign markets.a. one-tenthb. one-fourthc. one-thirdd. one-halfQ18. A __________ layout arranges displays in a rectangular fashion so that aisles areparallel; it is a formal layout that controls the traffic flow through the store and isoften used in supermarkets and drugstores.a. Gridb. free-formc. boutiqued. spiralQ19. What can e-businesses do to enhance customers’ trust in their Web sites?a. post a privacy policy on their sites and stick to it.b. clearly explain shipping costs and return policies.c. protect and respect their customers’ privacy online.d. all of the above.Q20. When a speaker sends conflicting verbal and nonverbal messages, listenersare most likely to believea. the verbal messageb. the nonverbal messagec. neither oned. none of the above.Q21. Effective leaders:a. create a set of values and beliefs for employees and passionately pursue them.b. communicate with their employees.c. value the diversity of their workers.d. All of the above.Q22. Which of the following is an effort by the Small Business Administration (SBA)to speed up processing times and streamline the process for its loan applications?a. Preferred Lender Programb. Low Doc Loan Programc. SBAExpress Programd. All of the aboveQ23. A __________ is a written statement of the duties, responsibilities, reportingrelationships, working conditions, and materials and equipment used in a job.a. job specificationb. job titlec. job descriptiond. work orderQ24. A business owner seeking money to purchase a building and the equipmentneeded to launch a welding shop would need which kind of capital?a. Fixedb. workingc. growthd. disposableQ25. A __________ is a specially designated area that allows resident companies toimport materials and components from foreign countries; assemble, process,package, or manufacture them; and then ship finished products out while incurringlower tariffs and duties, or in some cases, eliminating them altogether.a. enterprise zoneb. business incubatorc. foreign trade zoned. export zoneQ26. The simplest way for entrepreneurs to get their business online is to:a. rent space at an online shopping mall.b. hire an Internet service provider (ISP).c. hire professionals to create a custom site.d. build a site in-house.Q27. The best websites use a variety of fancy typefaces and varying font sizes.a. trueb. falseQ28. A privacy policy is a critical component of a well-designed Internet businessstrategy.a. trueb. falseQ29. Which of the following statements about shopping malls is true?a. The average length of shoppers’ mall visits has climbed steadily over the past decade.b. To keep shoppers coming back, malls are adding a mix of entertainment attractionsand a fresh mix of specialty shops to their retail mix.c. Nearly half of the malls in the United States are less than five years old.d. All of the above.Q30. The most popular estate planning technique among business owners is the:a. buy/sell agreement.b. grantor retained annuity trustc. estate freezed. family limited partnershipQ31. A small company using factoring would prefer which type of factoringarrangement?a. with recourseb. without recoursec. exemptedd. None of the above. A small company should never use factoring as a source offinancing because of its excessively high risks and costs.Q32. Created in 1947, this became the first global tariff agreement, and, today, itincludes 124 countries that account for nearly 90 percent of world trade.a. NAFTAb. WTOc. GATTd. NATOQ33. __________ are privately-owned financial institutions that are licensed andregulated by the Small Business Administration; they use a combination of privateand federally-guaranteed debt to provide long-term capital to small businesses.a. SBICsb. SBDCsc. LDCsd. UDAGsQ34. When searching for a location, a company that develops computer software forthe entertainment industry would be interested in studying which of the followingfactors about the labor supply in a particular area?a. the number of workers availableb. the level of education, training, and experience of the workforcec. the prevailing wage rate in the aread. All of the aboveQ35. When a bank becomes a __________ lender under the Small BusinessAdministration’s loan program, the bank makes the final decision on a smallcompany’s loan application (subject only to review by the SBA) but still receives thesecurity of the SBA’s loan guarantee.a. certifiedb. preferredc. authorizedd. conferredQ36. Business incubators:a. combine low-cost, flexible rental space with a multitude of support services for theirsmall business residents.b. give small companies a greater chance for success by ofering them valuablebusiness services as well as connections to funding sources and management consulting.c. improve their residents’ survival rates;d. All of the above.Q37. The first and foremost obstacle an entrepreneur must overcome to become atruly global business is:a. finding the financing to establish an export program.b. learning to think globally.c. locating a foreign partner to help navigate the market successfully.d. adapting the product or service to suit the tastes, preferences, and customs of foreignmarkets.Q38. Small companies that operate globally are able to:a. ofset sales declines in the domestic market.b. extend their products’ life cycles.c. raise their levels of quality and customer-orientation.d. All of the above.Q39. Small companies can attract and retain high-quality workers by:a. looking inside the company first with a promotion-from-within policy.b. making their employment advertisements stand out.c. forging relationships with schools, colleges, and other sources of workers.d. all of the above.Q40. __________ items are best suited for selling on the World Wide Web.a. high-volumeb. low-marginc. commodityd. all of the above.Q41. The most important ingredient in the recipe for a successful joint venture is:a. negotiating an iron-clad contract that binds both parties.b. choosing the right partner.c. seeing the joint venture for what it really is: a chance for both parties to make largeprofits by joining forces.d. to build a monopoly in the target country.Q42. In a _________ layout, a manufacturer groups workers and equipment accordingto their general function.a. processb. product or linec. fixed positiond. functionalQ43. A company must file a __________ describing both the company and the stockoffering with the Securities and Exchange Commission (SEC) before making aninitial public offering.a. lockup agreementb. letter of intentc. statement of corporate standingd. registration statementQ44. The average Web user spends nearly __________ hours online each week.a. 2b. 6c. 16d. 25Q45. The Arthur Andersen/MassMutual Survey of American Family Businessesreports that __________ percent of small business owners have written estate plans.a. 25b. 40c. 55d. 75Q46. The most popular loan program sponsored by the Small BusinessAdministration (SBA) is:a. Low Doc Programb. Export Working Capital Programc. 7(a) Loan Guaranty Programd. All of the aboveQ47. When Blue Fish Clothing decided to raise money for growth and expansion byselling shares of company stock straight to investors without relying on aninvestment banker (or underwriter), the company was making which kind of stockoffering?a. Rule 147b. direct stock oferingc. Regulation S-Bd. Best-eforts stock oferingQ48. Which of the following statements concerning asset-based loans is false?a. The most common types of asset-based loans are discounting accounts receivableand inventory financing.b. Because of its efficiency and low cost, asset-based loans are an ideal source of longterm financing.c. A small company that qualifies for a $1 million line of credit would be able to borrowas much as $3 million using asset-based loans.d. All of the aboveQ49. Regular special offers that are available only to Web customers will annoymost shoppers.a. trueb. falseQ50. A(n) __________ is a combination of hardware and software operating betweenthe Internet and a company?s computer network that allows employees to haveaccess to the Internet but keeps unauthorized users from entering the company?snetwork and the programs and the data it contains.a. virus detection programb. firewallc. intrusion detection programd. hacker block