Small Business Entrepreneurship

Objective 8-13 Review

Ramondo plans to open a small store. He will sell gasoline, milk, bread, soft drinks,

snack items, and other similar convenience goods. The best location for his store is:

• A stand-alone building located near the entrance to a heavily populated neighborhood

• A stand-alone building located on the property of a regional shopping center

• An available shop space in the central downtown area

• An available space in the community shopping center

Which would contribute to improving the image of a company’s employees?

• Giving the employees two weeks paid vacation

• Providing a free sample of a new coffee to the first 100 customers

• Providing inservice training to update employee product knowledge

• Sponsoring a student to the national FBLA conference

Due to the nature of their merchandise, designer boutiques must offer their customers access to the

merchandise. Which of the following prevention methods allows access to the merchandise, but sets off an alarm if unpaid merchandise is taken

from the store?

• Closed-circuit television

• Electronic sensors

• Locked display cases

• Two-way mirrors

Business image is:

• A promotional plan designed to influence customers to buy a product or service

• The perception or belief that people have about a business.

• The principal approach needed to carry out a promotional plan.

• The reflection that is seen in the front door of the business as potential customers enter.

Owners of Top Dog Cleaners have outlined promotional activities to inform potential

customers about their grand opening and create interest in their new business. What

type of promotional strategies are they outlining?

• Advertising plan

• Ongoing plan

• Preopening plan

• Product strategy plan

An employee decides to file a complaint involving illegal

discrimination procedures in the workplace. Which agency would

handle this complaint?

• Equal Employment Opportunity Commission

• Fair labor Standards Commission

• Occupational Safety and Health Administration

• SCORE

Businesses try to avoid employee theft by:

• Educating employees on shoplifting prevention techniques

• Making sure that alarms are set and doors are locked at night

• Providing adequate lighting and orderly displays• Utilizing pre-employment testing to determine att

itudes about honesty.

A small department store is searching for a location that offers high shopping traffic without the high rent of a mall. Which is the best location choice for

this store?• Central downtown district

• Community shopping center

• Neighborhood shopping center

• Regional shopping center

The “catch of the day” was priced at $12.95 on Monday and at $15.00 on

Saturday. The price changed because seafood is often priced according to:

• Government regulations

• Market Price

• Minimum Price laws

• Opportunity cost

If sales of winter coats declines as the season progresses, merchants will lower prices in an effort to stimulate sales. This example illustrates how:

• Business expenses affect profit.

• Demand affects profit

• Prices affect profit

• The economy affects profit

A local convenience store makes sure that two employees are always on duty during the late night hours. How is this business dealing with business risk?

• Avoidance

• Reduction

• Retention

• Transfer

Elvin was injured on his construction job. During recovery, he will continue to receive

compensation because his employer is required to make contributions to:

• Errors-and-omissions insurance

• Fidelity Bonds

• On-the-job training

• Workers’ Compensation

The power-oriented management style characterized by top management control of all

decisions is:• Autocratic leadership

• Democratic leadership

• Laissez-faire leadership

• Socialist leadership

Promotion that is used to create a favorable image of the business in

the eyes of the consumer is:

• Institutional promotion

• Product promotion

• Sales promotion

• Specialty promotion

Business layout is a/an:

• Arrangement of products and services on the shelves.

• Description of a service business

• Floor plan or map of the space in the business site

• List of items needed to start the business.

A customer falls while entering a business. What type of insurance

protects the business from a potential lawsuit resulting from this accident?

• Casualty insurance

• Fidelity bonds

• Life insurance

• Product liability insurance

The price change used to move merchandise that is part of broken

assortments is a/an:

• Discount

• Expense

• Markdown

• Premium

The outline of promotional activities for a new business before its

opening is a/an:

• Advertising plan

• Ongoing plan

• Preopening plan

• Promotional plan

Which type of media includes newspaper and magazines?

• Broadcast

• Direct mail

• On-line

• Print

The Family Medical Leave Act places special leave requirements

on employers having:

• 25 or more employees

• 25 or more female employees

• 50 or more employees

• 50 or more female employees

The first consideration in the staffing process is to:

• Check applicant references

• Determine employment needs

• Distribute application forms

• Screen applicants

Rules to govern the work of children under age 16 are

established by the:

• Americans with Disabilities Act

• Equal Employment Act.

• Fair labor Standards Act

• Occupational Safety and Health Act

A promotional strategy that helps maintain and build sales after a business has opened is a/an:

• Advertising plan

• Ongoing plan

• Preopening plan

• Promotional plan

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