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WorksheetsME12 - Unit 5
Total questions: 59
Worksheet time: 30mins
In the event of a power outage, a business has generators available, so it can continue operating and helping its customers. Where should the completed procedures for implementing the process be outlined?
During an environmental scan
In the contingency plan
In the evacuation plan
During a regulatory scan
Which component of the business plan sets specific assignments and deadlines for putting the plan into action?
Company description
Market analysis
Strategy and implementation
Product(s) offered
Which are characteristics of a well-written executive summary?
Creative, concise, and informal
Error-free, simple, and creative
Clear, concise, and error-free
Concise, informal, and error-free
Why do many businesses use the computer technology known as dashboards and scorecards?
To track key performance indicators
To gather information for databases
To maintain security of the systems
To develop new software programs
What should the first section of an executive summary contain?
A recommended course of action
A statement of the report's purpose
A letter of authorization
An acknowledgement of the report's sponsors
A competitive analysis should be included in which component of the business plan?
Appendices
Executive summary
Market analysis
Financial plan
Mary is seeking employment with a company that provides flexible working hours, on-site child care, and limited traveling. Which image would the company be portraying?
Culturally diverse
Family-friendly
Team-centered
Creative
When negotiating a lease with a commercial property company, a small-business owner should consider issues such as building maintenance, exterior landscaping, and which other factors?
Product warranties
Labor laws
Signage restrictions
Royalty payments
A company considers hiring multigenerational and multicultural prospective employees. Which image does the company want to portray?
Culturally diverse
Family-friendly
Team-centered
Creative
What should be done first before trying to persuade others?
Understand the audience.
Provide good information.
Explain the benefits.
Motivate others to act.
Which question are businesses often asking during the process of applying for a loan?
"Who will disburse the money?"
"Where will the money be kept?"
"How will the money be used?"
"Who will pick up the money?"
An important aspect of continuous quality improvement within an entire business organization requires management to perform which activity?
Hire additional staff to oversee quality control
Make as few changes as possible
Solicit input from employees
Obtain daily reports to monitor progress
What usually reduces the amount of the premium that a business pays for insurance?
Increasing the deductible from $500 to $1,000
Purchasing insurance from a private agent
Paying the premium in monthly installments
Negotiating a security deposit of $2,000
What is one advantage of dealing with independent insurance agents?
They represent several companies.
They work for a low commission.
They provide limited coverage.
They charge discounted rates.
A new business owner is applying for start-up funds from a commercial bank. What should the owner include in the loan application?
Summary of sales receipts
Accounts receivable information
Personal financial statement
Explanation of credit policies
Which would a bank consider when analyzing the personal financial statement of a prospective entrepreneur?
Credit report, personal tax returns, debts
Projected income, salary, assets
Estimated equipment costs, insurance policies
Personal tax returns, education, projected expenses
What could entrepreneurs do to strengthen their businesses' relationship with their bankers?
Tell the bankers how important the loan is to the bank
Explain how they will repay the money
Strengthen their marketing plans
Invite their bankers to visit their place of business
Why do businesses evaluate their relationships with banks?
To make sure the bank understands the business
To ensure the bank honors the business
To ensure the bank will lower theier interest rates
To ensure the bank operates worldwide
When developing an executive summary for a written report, what should the writer include?
Technological jargon
All supporting evidence
The most important points
Mostly background information
Businesses develop a quality culture by a combination of continuous improvement and which other component?
Goodwill
Teamwork
Research
Security
John is trying to ensure that his business is attractive to potential employees. Which activity should he take?
Practice nondisclosure about his business's future
Avoid networking events
Promote sales to potential employees
Promote responsibility
What does the management plan component of a business plan address?
Cash flow
Organizational resumes
Market research
Legal documents
What do businesses often negotiate with banks during the process of obtaining a loan?
Stock value
Accounts payable
Interest rate
Personal equity
Which statement regarding prospective risks is true?
Prospective risks are typically more common than retrospective risks.
Prospective risks have occurred in the past and in the future.
Prospective risks are usually easier to identify than retrospective risks.
Prospective risks have not happened before but could occur in the future.
Which techniques helps to build trust in negotiations?
Always have an answer ready.
Provide a lot of documentation.
Show respect by actively listening.
Share information to disprove opponent.
What would be part of a business's efforts toward risk management?
Training employees
Securing loans
Setting prices
Scheduling workers
Businesses should view negotiation as a way to perform which activity?
Build strong relationships.
Get something done.
Get the action they want.
Keep negative people quiet.
In which situation might a small business be able to reduce the premiums it pays for insurance coverage?
Acquires additional protection
Decreases amount of deductible
Develops a self-insurance program
Buys from its professional organization
A crucial part of creating a quality culture within a business involves encouraging all employees to perform which activity?
Work with supervision
Give up their authority
Compete for attention
Find ways to improve
One reason why banks often consider a business's collateral when evaluating a loan application is because the collateral is which component?
Mirror of the current economic situation
Secondary source for repaying the loan
Indication of the business's character
Primary example of permanent inventory
When do businesses often decide to purchase a facility rather than lease space?
When gross profit is low.
When cash flow is limited.
When interest rates are low.
When mortgage money is limited.
Why would a business owner consider developing a relationship with a virtual bank?
It has convenient daytime hours.
It is located in the same community.
It might offer lower rates on loans.
It is not controlled by regulations.
Which is a factor that might make a business decide to buy rather than to lease a facility?
Current cash flow
Long-term cost
Decreasing land values
Negative credit rating
Why banks might be reluctant to lend money to a start-up business?
The start-up will not have collateral.
The start-up has no record repaying loans.
The start-up has a solid business plan.
The start-up must incorporate first.
Which is a true statement about elevator pitches?
A well-planned elevator pitch should not need to be updated on a regular basis.
The elevator pitch should be short and emphasize the competition's weaknesses.
An effective elevator pitch includes the business's competitive advantage.
The primary purpose of an elevator pitch is to reinforce the business's brand.
Why do lending institutions use loan evaluation criteria?
To reduce the possibility that the borrower will pay off the loan
To reduce the possibility that the borrower will refinance the loan
To reduce the possibility that the borrower will default on the loan
To reduce the possibility that the borrower will buy out the loan
Persuasion is an important part of which function?
Education
Motivation
Communication
Self-control
Which situation is a business paying more for insurance than it should?
Property is essential to the operator of the business.
Premium is $500 a year on property valued at $2,000.
Replacement cost is more than purchase price of property.
Premium is $1,000 a year for liability coverage of $100,000.
Which is a common negotiating strategy?
Using authority
Speaking
Bargaining
Being aggressive
Which statement regarding risk management is true?
It helps a business to be reactive in facing risk.
It reduces uncertainty about the past.
It involves taking calculated risks.
It reduces business assets and sales.
Building permits may show up in which component of a business plan?
Executive summary
Table of contents
Product(s) offered
Appendices
What is a guideline to follow when completing a loan application?
Use all uppercase letters when completing online applications.
Present in a positive manner but be honest.
Leave questions blank when they are not applicable.
Use overly large letters to make the application easy to read.
Joe's employees plugged the electrical cord for display lights into an old, worn extension cord. Joe instructed them to get a new heavy-duty cord. Joe is implementing which measures?
Security precaution
Expense control
Employee control
Loss prevention
Which is a barrier for businesses in the adoption of a quality culture?
Focusing on quick fixees
Having management lead the way
Stressing standardization of products and services
Making employees aware of the company's quality program
An organization with a quality culture would have which executive-level managers?
Managers who able to enlist the expertise of outside contractors for quality.
Managers good at delegating all commitments for quality assurance.
Managers that are flexible, indifferent, and not responsible for quality.
Managers committed, involved, and take responsibility for quality.
How does borrowing money to purchase a facility often result in a tax savings for a business?
Maintenance fees are part of the monthly payment.
Ownership improves a business's credit rating.
Mortgages require a substantial security deposit.
Interest paid on a mortgage is tax deductible.
When trying to persuade others, why is it often helpful to use stories and anecdotes?
They make people feel comfortable.
They reinforce a message.
They add energy to an explanation.
They exaggerate the benefits.
It is important for management to monitor all quality factors that affect business activities, so it can ensure that they company is performing which activity?
Creating a positive work environment
Developing short-term goals
Meeting the customers' expectations
Establishing credibility among its competitors
One of the most important reasons why management often focuses on improving quality throughout the organization is to achieve which goal?
Allocate resources
Remain competitive
Implement change
Delegate authority
Why would a business negotiate loans with the same bank where it maintains a checking account?
Due to a legal agreement
Due to an investment opportunity
Due to a marketing contract
Due to an established relationship
Poor product development, unreliable manufacturing equipment, and product shortages are examples of which risks?
Strategic
Hazard
Financial
Operational
Which statement regarding executive summaries is true?
Sequence the main ideas the executive summary in the same order that they appear in the full report.
Summary should be approximately one-fourth to one-third as long as the entire report.
Always write an executive summary before writing the body and appendices of a report.
Use jargon, technical language, abbreviations, and slang frequency throughout the executive summary.
Why is it important for businesses to develop standards?
To achieve quality by providing employees with ways to stay healthy
To achieve quality by providing employees with procedures for repairing equipment
To achieve quality by providing employees with guidelines to follow
To achieve quality by providing employees with activities for being safe
Existing businesses need to provide what kind of data in the financial plan component of their business plans?
Competitive financial data
Management resumes
Contracts and licenses
Historical financial data
What is the primary goal of negotiation?
To improve relationships
To reach an agreement
To develop self-confidence
To encourage unrealistic expectations
Besides having a clear understanding of what is wanted from negotiation, it is important to also know which other factor?
What the other person wants.
How long negotiation is expected to take.
How many people will be negotiating.
Who will be required to implement the outcome of the negotiation.
A business owner often has considerable influence when negotiating facility lease terms for which situation?
If the property is located in a prime or popular location
If the tax rate is higher than the national average
If the facility owner possesses more than one property
If the real estate market is saturated or slow
Which do individuals usually need to be able to persuade others?
Flexibility
Credibility
Creativity
Responsibility
Which is an example of people using persuasion in business?
Presenting the company's annual financial statement to the board of directors
Delivering or distributing goods to a customer on a timely basis
Requesting product specifications from a vendor or manufacturer
Distributing a report to company officers that recommends policy changes
