BMM 4253 SMALL BUSINESS MANAGEMENT

TEST 1
ONLINE
45 minutes

Suggestion:
30minutes to answer;
15 minutes to download question and upload the answer

INSTRUCTIONS: Answer ALL Questions

1. Which of the following is a type of intangible business property that is protected by law:
A. Acreage
B. Inventory
C. Trademark
D. Equipment

2. Basic torts relating to businesses often involve disputes concerning

A. emotional stress.
B. assaults.
C. defamation.
D. contracts.

3. Which
A. The name of the business is chosen by the franchisee.
B. Products are bought directly from the supplier.
C. It is the least popular franchise arrangement.
D. Continuous assistance is provided by the franchisor.

4. Limited liability, indefinite length of life, ease of expansion, legal entity, and transfer of ownership are considered
advantages of a
A. sole proprietorship.
B. partnership.
C. trade union.
D. corporation.

5. Channels of distribution benefit consumers by

A. increasing profits for businesses.
B. lowering the prices of all consumer products.
C. raising the quality of all consumer products.
D. making a variety of products available to them.

6. For which of the following markets would producers use a short channel of distribution:
A. Local consumers
B. Generation X
C. Baby boomers
D. Senior citizens

7. If a business considers where the consumers are and who they are before selecting a channel of distribution, the
business is considering the factor.
A. Human
B. promotion
C. market
D. sales

8. What do business employees often need to do before they are able to write proposals?
A. Research the problem
B. Analyse personal biases
C. Contact the customer
D. Evaluate technical skills

9. Which of the following is an example of a manager developing a policy that impacts customer relations:
of the following is a characteristic of a business-format franchise:
A. Increasing use of security devices
B. Extending business hours on weekends
C. Revising bookkeeping procedures
D. Scheduling employees' work hours

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10. What should a successful brand promise be able to do?
A. Customize the product for each customer
B. Clarify the company's processes
C. Communicate an appealing benefit
D. Convey a high-quality image

11. Which of the following is one way that freedom in a private enterprise system is limited by laws:
A. Certain occupations must be licensed.
B. All workers must take ability tests.
C. Specific pay scales are regulated.
D. Employees must register with the state.

12. During the month of July, sales at Handy's Shoe Mart totaled $2,500. The cost of the shoes was $1,025. The
owner paid $866 for supplies, insurance, rent, and utilities during the month. The $609 left over represents the
owner's
A. net profit.
B. gross profit.
C. sales income.
D. operating expenses.

13. Non-corporations are taxed as pass-through entities, meaning that

A. profits and losses are claimed on owners' personal tax returns.
B. they do not have to pay payroll taxes.
C. their income tax rates are lower than those of corporations.
D. they pay only state and local taxes.

14. Which of the following activities is an example of preparing before attempting to sell an idea:
A. Explaining solutions to audience needs
B. Determining the details of your idea
C. Overcoming objections from the audience
D. Affirming the audience's decision to "buy"

15. Managers are more likely to be able to persuade employees to follow new procedures if the managers have
A. organizational skills.
B. credibility.
C. enthusiasm.
D. self-motivation.

16. Ali wants to negotiate with her boss to take on more job responsibilities. Before approaching her boss, Ali needs
to determine her boss's position and
A. abilities.
B. interests.
C. standards.
D. procedures.

17. After writing your personal vision, what must you do to achieve it?
A. Commit to your vision through hard work and dedication.
B. Put your vision in a safe space and look at it again in five years.
C. Get the highest-paying job that you can find out of high school.
D. Spend all of your free time working on self-improvement.

18. Ryan keeps a list of his goals to remind himself of what he's working toward. Which tip for smart goal setting is
Ryan following?
A. Putting goals in writing
B. Tying goals to a timetable
C. Making goals specific
D. Making goals difficult but possible

19. The future that you desire to create is known as a

A. mission statement.
B. goal.
C. prediction.
D. vision.

20. Why is it important for entrepreneurs to talk with industry experts when developing new business concepts?
A. The industry experts usually improve your management skills.
B. The industry experts typically provide useful information.
C. The industry experts commonly enhance your confidence.
D. The industry experts frequently offer financial support.