11. The _____ marketing philosophy is the most consistent with long-term success for a small

business.

a.production-oriented

b.market-oriented

c.sales-oriented

d.consumer-oriented

12.The key to strong management in a new firm is:

a.balance, with each member having competence in at least one area.

b.financial competence of the chief executive.

c.a strong marketing manager who understands financial statements.

d.close friendship among all members of the team.

13. An important advantage an entrepreneur gains by leasing rather than buying a facility is

a.receipt of an investment tax credit

b.a decrease in risk by minimizing investment

c.a decrease in the amount of promotion required

d.a customized layout

14.Kate's banker would like to know the profit of her business from January 1 through December 31. She should show him the:

a.statement of cash flows

b.income statement

c.balance sheet

d.harvest plan

15. Verlin wants to avoid a common mistake often made by new entrepreneurs. Which of the

following would you advise him to do?

a.Spend as little as possible

b.Carry no inventory

c.Be sure to have adequate financing

d.Do without anything that is not essential

16. A basic idea forming the foundation of customer loyalty for small firms includes the notion that:

a.superior customer service always leads to customer purchases

b.customer loyalty will mean constant customer satisfaction

c.small businesses have the potential to provide superior customer service

d.customer satisfaction is being ignored by large firms

17. If a small firm is to maintain its performance over time, it is most essential to

a.continue to reinvent itself

b.extend the competitive advantage of the firm

c.replicate the strategies that have led to success in the past

d.retain the personnel who made the firm successful in the first place

18. Which of the following has helped level the playing field for small firms competing with

larger companies?

a.Quality performance

b.Customer focus

c.Financial services

d.Innovation

19. Jacob has worked for the past five years to build his business but wants to travel more, so he

is thinking it is time to harvest. Harvesting refers to

a.starting a business.

b.managing the growth of a business.

c.exiting a business.

d.diversifying a business.

20. An entrepreneur's success generally arises from all of the following EXCEPT

a.having a desire to lead.

b.having a clear mission.

c.discounting ideas from others to improve products.

d.recognizing that business success requires hard work and long hours.