E II - OBJ 1.05 - 1.06 MC

Which of the following questions would Allison ask herself when deciding if she should hire an assistant for her growing business:

• Does the workload require a fulltime or part-time employee?

• How will I recruit applicants for the job?

• Can I trust this person to get the work done on time?

• Does this applicant meet my minimal educational requirements?

What important factors should a small-business owner consider when deciding if s/he should hire an additional employee?

• Necessary skills and affordability

• Property taxes and benefits

• Screening process and skill set

• Training needs and attitude

Before a business owner decides to hire a new employee, s/he must first

• consider the demand for the business's product.

• obtain application forms from the government.

• ask current employees to increase their workloads.

• advertise the position in the newspaper.

When determining its hiring needs, a business must first consider its financial status and its __________ needs.

• productivity

• secondary

• uniform

• temporary

Managers should understand the factors in a business's external environment because these factors

• are the result of government regulation.

• affect all businesses in the same ways.

• exist in an unchanging environment.

• affect the direction a business takes.

Which of the following would be part of a business's efforts toward risk management:

• Training employees

• Securing loans

• Setting prices

• Scheduling workers

Which of the following statements regarding risk management is true:

• It reduces uncertainty about the past.

• It helps a business to be reactive in facing risk.

• It involves taking calculated risks.

• It reduces business assets and sales.

Which of the following is a risk a business might face if it obtains a long-term loan from a financial institution and pays off the loan before it is due:

• Paying a processing fee

• Being charged a penalty

• Receiving a variable rate

• Losing interest on the account

A small business is having temporary financial problems. A risk that the business might encounter if it has a loan from a bank is the possibility that the bank will

• call the loan.

• raise the interest rate.

• close the account.

• require more collateral.