Question 1

As a firm grows, the small business owner needs to fill key positions with persons who

Accepted Answer

A)  could be future managers. 
B)  can complement weaker areas of the entrepreneur. 
C)  are able to survive in the culture. 
D)  All of the above are true. 
A)  could be future managers. 
B)  can complement weaker areas of the entrepreneur. 
C)  are able to survive in the culture. 
D)  All of the above are true.

Question 2

Small business service organizations that are patterned after the Agricultural Extension Service are known as

Accepted Answer

A)  student consulting team programs. 
B)  Small Business Development Centers. 
C)  business incubators. 
D)  SCORE. 
A)  student consulting team programs. 
B)  Small Business Development Centers. 
C)  business incubators. 
D)  SCORE.

Question 3

Paul has decided to start a musical venue that also includes a restaurant and an art gallery.  His brother suggested he talk to a consultant to develop his business plan.  What should Paul look for when searching?  What issues should be determined before the consultant is hired?

Accepted Answer

Paul should look for consultants who are

Question 4

Controlling is the managerial function that involves the managerss

Accepted Answer

A)  thinking through issues confronting a firm and developing a plan to increase productivity. 
B)  keeping track of performance and investigating when results deviate from the plan. 
C)  developing an atmosphere of cooperation and teamwork. 
D)  keeping an optimum number of people under supervision. 
A)  thinking through issues confronting a firm and developing a plan to increase productivity. 
B)  keeping track of performance and investigating when results deviate from the plan. 
C)  developing an atmosphere of cooperation and teamwork. 
D)  keeping an optimum number of people under supervision.

Question 5

Budgets are usually prepared for five years in advance using quarterly figures.

Accepted Answer

A) True 
 B)False

Question 6

A manager who grants subordinates the right to act or make decisions is delegating authority .

Accepted Answer

A) True 
 B)False

Question 7

James is talking to another supervisor about the number of employees who report directly to him.  James is talking about his:

Accepted Answer

A)  span of control. 
B)  informal organization. 
C)  organizational structure. 
D)  chain of command. 
A)  span of control. 
B)  informal organization. 
C)  organizational structure. 
D)  chain of command.

Question 8

Which time management suggestion would be the most critical for a small business owner?

Accepted Answer

A)  Set aside time to work undisturbed. 
B)  Have a daily written plan and highlight priorities. 
C)  E-mail, cell phones and the Internet should be used to save time, not be a distraction. 
D)  Complete trivial tasks first to have something completed. 
A)  Set aside time to work undisturbed. 
B)  Have a daily written plan and highlight priorities. 
C)  E-mail, cell phones and the Internet should be used to save time, not be a distraction. 
D)  Complete trivial tasks first to have something completed.

Question 9

Entrepreneurs who follow a win-win negotiating strategy seek a solution that will satisfy at least the basic interests of both parties.

Accepted Answer

A) True 
 B)False

Question 10

Margaret has launched a new event planning company with four employees. With the growth in sales and personnel, the next step of growth will involve

Accepted Answer

A)  increased direct supervision. 
B)  improved quality management. 
C)  intermediate supervision. 
D)  more formal policies. 
A)  increased direct supervision. 
B)  improved quality management. 
C)  intermediate supervision. 
D)  more formal policies.

Question 11

Company planning helps clarify issues and how these issues can be faced, provides focus, and increases credibility with outsiders.

Accepted Answer

A) True 
 B)False

Question 12

The owner of a rapidly growing small business needs to talk to a lender for additional financing.  Which document would increase the company's credibility?

Accepted Answer

A)  control standards 
B)  human resource guidelines 
C)  strategic plan 
D)  All of the above would be needed. 
A)  control standards 
B)  human resource guidelines 
C)  strategic plan 
D)  All of the above would be needed.

Question 13

The use of written policies, budgets, and job descriptions is most closely associated with which  stage of growth?

Accepted Answer

A)  Formal organization 
B)  Intermediate supervision 
C)  One-person operation 
D)  Player-coach 
A)  Formal organization 
B)  Intermediate supervision 
C)  One-person operation 
D)  Player-coach

Question 14

Describe the four stages of small business growth and how the owner would function.

Accepted Answer

Stage 1: One-Person Operation: While som

Question 15

Mario has just begun to personally supervise employees.  His firm likely to be in the ____________ stage of growth.

Accepted Answer

A)  formal organization 
B)  intermediate supervision 
C)  one-person operation 
D)  player-coach 
A)  formal organization 
B)  intermediate supervision 
C)  one-person operation 
D)  player-coach

Question 16

Marvin has just launched a consulting business.  Business has been slower than expected.  What advice would you give Marvin?

Accepted Answer

A)  Post an ad in the local newspaper. 
B)  Tap into his personal and professional network. 
C)  Find a different line of work. 
D)  Take a full-time position with a company while he builds his business part-time. 
A)  Post an ad in the local newspaper. 
B)  Tap into his personal and professional network. 
C)  Find a different line of work. 
D)  Take a full-time position with a company while he builds his business part-time.

Question 17

Frequent and flagrant disregard of the chain of command undermines the position of the

Accepted Answer

A)  founder. 
B)  operative employee. 
C)  staff specialist. 
D)  bypassed manager. 
A)  founder. 
B)  operative employee. 
C)  staff specialist. 
D)  bypassed manager.

Question 18

The SCORE program offers entrepreneurs management advice for a small fee.

Accepted Answer

A) True 
 B)False

Question 19

A small business always has greater constraints in cash flow and employee expertise than found in larger corporations.

Accepted Answer

A) True 
 B)False

Question 20

A corporate marketing executive is moving to a managerial position in a small firm, where she may logically expect to find

Accepted Answer

A)  adequate financial resources and adequate staff. 
B)  inadequate financial resources and inadequate staff. 
C)  adequate financial resources and inadequate staff. 
D)  inadequate financial resources and adequate staff. 
A)  adequate financial resources and adequate staff. 
B)  inadequate financial resources and inadequate staff. 
C)  adequate financial resources and inadequate staff. 
D)  inadequate financial resources and adequate staff.

Exam 19: Professional Management and the Small Business

As a firm grows, the small business owner needs to fill key positions with persons who

Small business service organizations that are patterned after the Agricultural Extension Service are known as

Paul has decided to start a musical venue that also includes a restaurant and an art gallery. His brother suggested he talk to a consultant to develop his business plan. What should Paul look for when searching? What issues should be determined before the consultant is hired?

Controlling is the managerial function that involves the managerss

Budgets are usually prepared for five years in advance using quarterly figures.

A manager who grants subordinates the right to act or make decisions is delegating authority .

James is talking to another supervisor about the number of employees who report directly to him. James is talking about his:

Which time management suggestion would be the most critical for a small business owner?

Entrepreneurs who follow a win-win negotiating strategy seek a solution that will satisfy at least the basic interests of both parties.

Margaret has launched a new event planning company with four employees. With the growth in sales and personnel, the next step of growth will involve

Company planning helps clarify issues and how these issues can be faced, provides focus, and increases credibility with outsiders.

The owner of a rapidly growing small business needs to talk to a lender for additional financing. Which document would increase the company's credibility?

The use of written policies, budgets, and job descriptions is most closely associated with which stage of growth?

Describe the four stages of small business growth and how the owner would function.

Mario has just begun to personally supervise employees. His firm likely to be in the ____________ stage of growth.

Marvin has just launched a consulting business. Business has been slower than expected. What advice would you give Marvin?

Frequent and flagrant disregard of the chain of command undermines the position of the

The SCORE program offers entrepreneurs management advice for a small fee.

A small business always has greater constraints in cash flow and employee expertise than found in larger corporations.

A corporate marketing executive is moving to a managerial position in a small firm, where she may logically expect to find

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Starting a Small Business

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The Location Plan

Understanding a Firm S Financial Statements

Forecasting Financial Requirements

A Firm S Sources of Financing

Planning for the Harvest

Building Customer Relationships

Product Development and Supply Chain Management

Pricing and Credit Decisions

Promotional Planning

Global Opportunities for Small Business

Managing Human Resources

Managing Small Business Operations

Managing the Firm S Assets

Managing Risk

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