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Question
Relying primarily on debt financing is very dangerous for a company because ________.A) creditors can force a company into bankruptcy or take over company property
B) creditors can sabotage the business by refusing to lend it money
C) creditors can gain a majority share of the company and take it over
D) it can be very stressful for the owners, thus causing them to make mistakes
Answer
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Related questions
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Why is it not a good idea to tell investors in your business plan that your exit strategy is simply "to take the business public"?
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One of the advantages of an Employee Stock Ownership Plan is that ________.
A) the owner will have to look for buyers in the general public
B) it will prevent employees from having control of the company
C) employees will likely quit and leave
D) ESOPs offer tax breaks to the company
Q:
Describe three simple methods that can be used to estimate a selling price for a business:
Q:
One of the methods for computing a company's valuation is called the market-based technique. This means to look at a company as assets minus liabilities.
Q:
What is franchising and how is it different from licensing?
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Which of the following is not a benefit of franchising to the franchisor?
A) growth with minimal capital investment
B) higher marketing and promotional costs
C) royalties
D) the minimal number of regulations regarding franchising
Q:
A ________ represents the company's promise to consistently deliver a specific set of benefits to customers.
A) product life cycle
B) product line extension program
C) brand
D) customer service policy
Q:
A ________ is a business that markets a product or service in the manner prescribed by the parent business.
A) license
B) franchise
C) replica
D) branch
Q:
Explain replication strategies and harvesting and how they differ.
Q:
Companies that have faced ethical scandals typically did not have ________ in place to ensure that managers did not misuse funds or otherwise behave illegally or unethically.
A) better business regulations
B) penalties
C) corporate governance
D) a code of ethics
Q:
Many companies staff their human resources organizations using a ratio of one HR executive per ________ employees.
A) 50 -100
B) 50 - 200
C) 10 - 50
D) 250 - 1000
Q:
An organizational structure in which each person reports to one supervisor is called a ________ organization.
A) line
B) staff
C) flat
D) smooth
Q:
Why is it important for an entrepreneur to pay him/herself regularly in a consistent manner out of the business's earnings?
Q:
A pacesetting style of leadership consists of a leader who sets very high personal performance standards and challenges employees to meet them too.
Q:
No matter the size of a business, the leader sets the ________ for how the organization operates. If the leader is chaotic, chances are the business will be too. If the leader is well organized and efficient, the business may well be too.
A) asset optimization
B) expense constraints
C) profit expectations
D) tone
Q:
If a business owner wants his/her pay to be a variable operating cost, a ________ is most appropriate.
A) bonus
B) wage
C) salary
D) commission
Q:
The central focus of total quality management (TQM) is continuous improvement.
Q:
________, an American economist, argued that business should focus on making quality products instead of maximizing profits - and that profit would follow.
A) Conrad Hilton
B) W. Edwards Deming
C) Paul Samuelson
D) Adam Smith
Q:
What organization administers the Malcolm Baldrige National Quality Award?
A) United Nations (UN)
B) National Aeronautical and Space Administration (NASA)
C) National Institute of Standards and Technology (NIST)
D) National Merit Award Administration (NMAA)
Q:
________ are three of the eight quality management principles for organizational improvement.
A) Conflicted supplier relationships, process approach, and leadership
B) Customer focus, leadership, and policy approach
C) Customer focus, continual improvement, and involvement of people
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Q:
Engineers from what company developed Six Sigma in the 1980s?
A) Intel
B) General Motors
C) Motorola
D) General Electric
Q:
The visual control approach to inventory management is a scientific method.
Q:
________ are the amounts of inventory or raw materials and work-in-process kept to guarantee service levels.
A) Safety stock levels
B) Sufficiency levels
C) Minimum lots
D) Minimum-Maximum balance
Q:
Factors to consider when selecting a ________ include charging a price you are willing to pay and timely delivery.
A) customer
B) supplier
C) sales representative
D) manufacturer
Q:
You do not need a patent unless you ________.
A) have invented a product that you intend to market yourself or sell to a manufacturer
B) believe that someone else could successfully sell the product by copying your invention
C) Both of the above.
D) None of the above.
Q:
What is used to identify and distinguish the source of a service rather than a product?
A) sales mark
B) trademark
C) service mark
D) intellectual property
Q:
Obtain a trademark in order to ________.
A) protect your logo
B) register your business name
C) protect all your intellectual property
D) protect your business name
Q:
An injured party whose rights in a contract have been breached can bring a(n) ________ against the other party.
A) arbitration
B) motion
C) mediation
D) lawsuit
Q:
A good contract will spell out ________, or unforeseeable "acts of God" beyond anyone's control, for which neither party is responsible.
A) contingencies
B) liabilities
C) amendments
D) disasters
Q:
________ are the building blocks of business.
A) Letters of agreements
B) Contracts
C) Personal relationships
D) Customer services