1 Patents and trademarks are examples of

A)book value.

B)heuristics.

C)discounted cash flows.

D)intangibles.

2) For small businesses, professional management is an issue of education, titles, and credentials.

A)true

B)false

3) Which of the following is most likely to be an advantage of buying an existing business?

A)It is easy to find an appropriate existing business for sale given the technology today.

B)Purchasing a business often requires less cash outlay than creating a start-up.

C)The company's established reputation will aid future success.

D)Facility and equipment needs are eliminated when buying an existing business.

4) Which of the following is not an alternative for transferring or terminating a firm?

A)a sell off

B)a bricolage

C)a pass off

D)a workout

5) A legal agreement that allows a business to be operated using the name and business procedures of another firm is referred to as a

A)franchise.

B)strategic partnership.

C)bricolage.

D)spin-off.

6) Which of the following statements about family businesses succession is true?

A)Inheritance is not restricted to parent-child or grandparent-grandchild.

B)Successful ownership transition of a family business is usually an easy one.

C)The heir to a family business usually assumes authority in a smooth transition.

D)Family-owned businesses usually prosper after the death or retirement of the founder.

7) One way to go about obtaining committed customers prior to start-up is to start your new business as a spin-off from your current employer's business.

A)true

B)false

8) Which of the following is commonly used to estimate the value of a business?

A)affordable loss

B)comparable sales of other firms

C)leverage contingencies

D)point of indifference

9) _______ provides an organization through which independent businesses may combine resources.

A)Product distribution franchising

B)Trade name franchising

C)Conversion franchising

D)Business format franchising

10) The minimum possible expenditure of capital and other resources in order to bring an entrepreneurial idea to market is known as

A)leverage contingencies.

B)affordable loss.

C)bootstrapping.

D)lean business practices.

11) The UFOC is a standard document franchises use to explain their operations, requirements, and costs to potential franchisees

A)true

B)false

12) Causal or predictive reasoning is a logical process in which one analyzes the resources available and restraints on the use of resources to create an attainable goal.

A)true

B)false