Small Business: An Overview chapter 1

97. Which of the following was not cited as necessary for getting a business off on the right foot?

a) A market large enough to generate profit

b) Sufficient capital

c) A global perspective

d) Accurate information

98. Allen Campbell’s small tire business has recently closed due to credit foreclosure. This is an example of

a) Voluntary withdrawal

b) Bankruptcy

c) Business failure

d) Adequate management

99. The valuable skills and knowledge that employees of a business possess are collectively called

a) Business assets

b) Tangible inventory

c) Outsourcing

d) Intellectual capital

100. The lifeblood of any new small business is which of the following?

a) Cash

b) A large target market

c) A customer base

d) A quality product/service

101. The most valuable asset a small business owner has is

a) A quality product

b) Buildings and equipment

c) A good relationship with his/her banker

d) Employees

102. Intellectual capital is the skill and knowledge possessed by

a) The small business owner

b) The small business consultant

c) The small business employees

d) The banker for a small business

103. A business failure occurs when a business closes for any of the following reasons except

a) Bankruptcy

b) A reorganization

c) A receivership

d) A merger

104. In the Entrepreneurial Snapshot, Samuel Adams Brewery can attribute its incredible growth and success to all but which of the following?

a) Fanatical attention to quality

b) The use of marketing tools never before used in the microbrewery industry

c) The perseverance of the founder, Jim Koch

d) A Madison Avenue advertising campaign

105. In the Entrepreneurial Snapshot, Jim Koch, the founder of Boston Beer, spent the majority of his time, even after the microbrewery was successful, doing which of the following?

a) Managing

b) Finding sources of finance

c) Selling the product

d) Improving the product

106. In the Entrepreneurial Snapshot, what has allowed Boston Beer to become the first to enter the chasm between microbrewery and major brewery?

a) sexy commercials

b) different sized bottles

c) lowest prices for beer

d) passion for quality