One of the most important tasks facing an entrepreneur is

(TCO 8) One of the most important tasks facing an entrepreneur is:

earning enough in the first year to provide an adequate return on investment.

establishing a large-enough reserve of capital.

the deferment of taxes.

determining the funds needed for a company start-up.

Question 2. Question :

(TCO 8) Jane is arguing with Joan about how much cash on hand their small retail outlet needs, as they prepare their cash budget. Jane feels that with the Christmas season coming up, their busiest time, they need more cash handy. Joan feels they don’t because their sales volume will be up significantly. Jane and Joan are discussing which step of the cash budgeting process?

Forecasting cash receipts

Forecasting sales

Determining an adequate minimum cash balance

Forecasting cash disbursements


Question 3. Question :

(TCO 9) The focus of the small company’s marketing plan is:

the customer.

its product or service.

an evaluation of key competitors.

attracting capital.

Question 4. Question :

(TCO 9) Market research answers what important question for the small business owner?

What form of business ownership would be most effective in this market?

What should my goals and objectives be in my marketing plan?

Who are my customers, and what are they looking for?

How shall I set up my distribution system?

Question 5. Question :

(TCO 9) Tami is developing an advertising strategy for her small business. The first step in this process is to:

determine how much she can spend.

identify her target audience.

choose an advertising agency to assist her.

determine the primary purpose of the advertising.

Question 6. Question :

(TCO 9) Which advertising medium offers the greatest ability to selectively target or tailor to a specific audience?




Direct mail

Question 7. Question :

(TCO 9) As a benefit of selling on the Web for many small businesses, launching a website is the equivalent of opening a _____.

new store

new sales channel

closing all stores

closing a store

Question 8. Question :

(TCO 9) Before your website can become the foundation for a successful e-business, you must create it with your ________ in mind.




target audience

Question 9. Question :

(TCO 7) When receiving investment money from friends and relatives, entrepreneurs should:

use a clear verbal contract to ensure no misunderstandings.

discuss all details of the investment up front.

not borrow more than 30% of the necessary capital from them.

only borrow from close friends and relatives who won’t cause them trouble.

Question 10. Question :

(TCO 7) Asset-based financing:

is efficient since the small business borrows only the money it needs.

provides less borrowing capacity than inventory-based financing.

is less desirable than inventory-only deals to bankers.

is more expensive than other types of financing.


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