Q1. In a _________ layout, a manufacturer arranges workers and equipment according to the sequence of operations. a. process b. product or line c. fixed position d. functionalQ2. One important characteristic of Web surfers is that they are patient. a. true b. falseQ3. When financing a business startup with angel financing, entrepreneurs should remember that: a. angels are most likely to finance startups in the $5 to $10 million range. b. angels are willing to wait no more than two years to “cash out” their investments and expect to earn at least 60 to 75 percent returns annually. c. angels usually invest their money locally, so it is wise to look close to home for them – usually within a 50-to 100-mile radius. d. All of the above.Q4. When a speaker sends conflicting verbal and nonverbal messages, listeners are most likely to believe a. the verbal message b. the nonverbal message c. neither one d. none of the above.Q5. The average success rate of joint ventures is __________ percent , while its average life is __________ years. a. 81; 20 b. 62; 10.5 c. 43: 3.5 d. 25; 1.5Q6. A __________ is relatively small, containing from three to twelve stores and serving a population of up to 40,000 people who live within a 10-minute drive. a. neighborhood shopping center b. community shopping center c. regional shopping mall d. power centerQ7. Business incubators: a. combine low-cost, flexible rental space with a multitude of support services for their small business residents. b. give small companies a greater chance for success by offering them valuable business services as well as connections to funding sources and management consulting. c. improve their residents’ survival rates; d. All of the above.Q8. Studies show that __________ percent of first-generation family businesses fail to survive into the second generation, and of those that do survive, __________ make it to the third generation. a. 20; 81 b. 40; 75 c. 70; 12 d. 90; 24Q9. Created in 1947, this became the first global tariff agreement, and, today, it includes 124 countries that account for nearly 90 percent of world trade. a. NAFTA b. WTO c. GATT d. NATOQ10. Experts draw an analogy between today’s successful small business leader and: 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. A survey by Arthur Andersen and National Small Business United found that __________ percent of small and medium-sized companies had used credit cards as a source of financing for their businesses. a. 10 b. 25 c. 50 d. 67Q12. The advance rate on an asset-based loan secured by a company’s inventory typically would be __________ percent. a. 90-100 b. 75-85 c. 55-85 d. 10-50Q13. Which of the following statements concerning asset-based loans is false? a. The most common types of asset-based loans are discounting accounts receivable and inventory financing. b. Because of its efficiency and low cost, asset-based loans are an ideal source of long-term financing. c. A small company that qualifies for a $1 million line of credit would be able to borrow as much as $3 million using asset-based loans. d. All of the aboveQ14. When searching for a location, a company that develops computer software for the entertainment industry would be interested in studying which of the following factors about the labor supply in a particular area? a. the number of workers available b. the level of education, training, and experience of the workforce c. the prevailing wage rate in the area d. All of the aboveQ15. 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.Q16. Small companies that operate globally are able to: a. offset 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.Q17. The first and foremost obstacle an entrepreneur must overcome to become a truly 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 foreign markets.Q18. In an interview, effective interviewers spend about __________ percent of the time talking. a. 25 b. 50 c. 75 d. 90Q19. When Blue Fish Clothing decided to raise money for growth and expansion by selling shares of company stock straight to investors without relying on an investment banker (or underwriter), the company was making which kind of stock offering? a. Rule 147 b. direct stock offering c. Regulation S-B d. Best-efforts stock offeringQ20. The most popular loan program sponsored by the Small Business Administration (SBA) is: a. Low Doc Program b. Export Working Capital Program c. 7(a) Loan Guaranty Program d. All of the aboveQ21. Which of the following statements concerning global trade is true? a. Today, the global marketplace is as much the territory of small, upstart companies as it is that of giant multinational corporations. b. Ninety-six percent of the world’s population and 67 percent of the world’s purchasing power lie outside the borders of the United States. c. Small companies that export grow more rapidly than those that operate domestically only. d. All of the above.Q22. A __________ trust is a special type of irrevocable trust that has become one of the most popular tools for entrepreneurs seeking to transfer ownership of their companies while maintaining control over it and minimizing their estate taxes. a. bypass b. irrevocable life insurance c. irrevocable asset d. grantor retained annuity trustQ23. The typical venture capital company receives more than 1,200 business plans each year, and ultimately invests in __________ of them. a. 3 to 6 b. 15 to 20 c. 30 to 35 d. about 100Q24. A(n) __________ is a tax or a duty that a government imposes on goods and services shipped into that country. a. tariff b. quota c. embargo d. lateral agreementQ25. Genuine leaders: a. are self-appointed. b. know that their success is determined by their employees’ success. c. treat their employees severely to earn their respect. d. know that what they say to employees is more important than what they actually do.Q26. When a company is doing business in a country that lacks the cash to pay for imported goods or whose currency is basically worthless outside that country’s borders, it: a. should stop doing business there. b. can use bartering. c. can use countertrading. d. can use bartering or countertrading.Q27. A(n) __________ is a loan arrangement with a commercial bank in which a small company can borrow up to a predetermined amount at any time during the year quickly and conveniently by writing itself a loan. a. commercial bank loan b. line of credit c. floor plan d. installment loanQ28. The biggest barrier to exporting facing small companies that have never exported is: a. not knowing how or where to start. b. government regulations that make it nearly impossible for small companies to export. c. the lack of products and services that would sell successfully in foreign markets. d. intense competition in international markets from major multinational corporations.Q29. A __________ Web site is one that visitors are willing to share with their friends because they find it to be useful, informative, or just plain fun. a. sticky b. viral c. collaborative d. robustQ30. The simplest and least expensive way for a small business to begin conducting business globally is to: a. establish a site on the World Wide Web (WWW). b. launch an export program. c. set up a foreign joint venture with a company in another country. d. establish a location in a foreign country.Q31. A business owner seeking money to purchase a building and the equipment needed to launch a welding shop would need which kind of capital? a. Fixed b. working c. growth d. disposableQ32. Retail customers on the Web demand: a. good product selection at competitive prices b. well-designed product presentations c. easy ordering with fast and reliable shipping and handling d. All of the above.Q33. Small companies account for __________ percent of the companies involved in exporting, and they generate about __________ of the dollar value of the nation’s exports. a. 20; one-fifth b. 45; one tenth c. 58; two-thirds d. 97; one-thirdQ34. Which of the following statements concerning the interview process is false? a. To avoid the threat of lawsuits, business owners should ask only questions calling for “yes/no” answers. b. Creating hypothetical situations candidates would be likely to encounter on the job and asking how they would handle them gives insight into their work habits and attitudes. c. Develop a series of core questions and ask them of every candidate. d. Business owners should ask candidates about a recent success and a recent failure and then look for those who describe them both with equal enthusiasm.Q35. Which of the following countries represents the top market for U.S. small business exporters? a. Japan b. Mexico c. Canada d. GermanyQ36. Under NAFTA, companies have greater protection of their patents, trademarks, and copyrights across national borders. a. true b. falseQ37. Which of the following statements concerning e-commerce is true? a. Once an entrepreneur launches a Web site, customers typically flock to it even without advertising and promoting the site. b. More than 90 percent of all commercial Web sites are profitable. c. Web retailers invest more of their revenues in marketing and advertising than traditional, “off-line” retailers do. d. Because of the security precautions modern technology provides, customer privacy is not an important issue on the Web.Q38. According to a study by Jupiter Communications, setting up an e-commerce site takes most companies at least __________ to complete. a. one month b. six months c. one year d. two yearsQ39. A __________ is an exemption from the Security and Exchange Commission’s full-blown registration process that is designed to make it easier and less expensive for small companies to make initial public offerings. The ceiling on this type of issue is $1 million, and the price of the shares must be at least $5. a. Regulation S-B b. Regulation A c. Small Company Offering Registration (SCOR) d. Direct Public OfferingQ40. A(n) __________ minimizes estate taxes on a business by creating two classes of stock: 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 the business) for the children. a. family limited partnership b. estate freeze c. buy/sell agreement d. grantor retained annuity trustQ41. Which of the following questions is illegal in an interview? a. Do you drink alcohol? b. Why should we hire you? c. Have you ever been arrested? d. Is there any limit to your ability to work overtime or to travel?Q42. The average Web user spends nearly __________ hours online each week. a. 2 b. 6 c. 16 d. 25Q43. __________ are privately-owned financial institutions that are licensed and regulated by the Small Business Administration; they use a combination of private and federally-guaranteed debt to provide long-term capital to small businesses. a. SBICs b. SBDCs c. LDCs d. UDAGsQ44. Domain names can be registered with the U.S. Patent and Trademark Office. a. true b. falseQ45. When a bank becomes a __________ lender under the Small Business Administration’s loan program, the bank makes the final decision on a small company’s loan application (subject only to review by the SBA) but still receives the security of the SBA’s loan guarantee. a. certified b. preferred c. authorized d. conferredQ46. To finance her inventory of cars, auto dealer Sarah Ann Lopez would most likely rely on which type of loan? a. commercial bank loan b. line of credit c. floor plan d. installment loanQ47. The central business district (CBD) in most cities is characterized by: a. the ability to draw customers from the entire trading area of the city. b. traffic congestion. c. inadequate parking facilities. d. All of the aboveQ48. One distinct advantage of a loan guaranteed by the Small Business Administration (SBA) is: a. its below-market interest rate. b. its longer payback period. c. the small company’s ability to defer payments on the loan until its cash position is strong enough. d. All of the above.Q49. Small business owners consider __________ to be lenders of first resort. a. insurance companies b. SBICs c. commercial banks d. commercial finance companiesQ50. An entrepreneur who wants to open a bed and breakfast inn in an area that is zoned “residential” is going before the local zoning board seeking a(n) __________, a special exemption to the zoning ordinance that would allow her to locate her business in this area. a. exception b. variance c. redemption d. exclusion