 |
1 | |
Low profits and expenditures on product development are characteristics of what stage of the business life cycle? |
| | A) | Stage 1 |
| | B) | Stage 2 |
| | C) | Stage 3 |
| | D) | Stage 4 |
|
|
2 | |
Adding new products, expanding to new markets and improving existing products are strategies that might be used in which stage of the business cycle? |
| | A) | Stage 1 |
| | B) | Stage 2 |
| | C) | Stage 3 |
| | D) | Stage 4 |
|
|
3 | |
Which of the following may occur as a result of business growth? |
| | A) | Shortage of cash |
| | B) | Decreasing employee morale |
| | C) | Decreased coordination of operations |
| | D) | All of the above |
|
|
4 | |
Cygnal Technologies Corp. employed what strategy to enhance business growth? |
| | A) | Incorporated an employee motivation program |
| | B) | Added new services to allow for expansion into new markets |
| | C) | Carefully managed cash flow and inventory levels |
| | D) | None of the above |
|
|
5 | |
An owner's personal lifestyle decision can negatively impact the growth of a small business. |
| | A) | True |
| | B) | False |
|
|
6 | |
Some businesses may experience difficulty in growing because: |
| | A) | They are in rapidly changing industries |
| | B) | They are in markets with volume production restrictions |
| | C) | A and B |
| | D) | None of the above |
|
|
7 | |
A growth plan outlines only short-term sales forecasts and budgets. |
| | A) | True |
| | B) | False |
|
|
8 | |
What is the correct order of steps in developing an expansion plan?I. Identify strategies to achieve goals
II. Forecast possible outcomes of different alternatives
III. Set objectives to be accomplished
IV. Select an alternative that will accomplish long-term success |
| | A) | I, III, II, IV |
| | B) | III, II, I, IV |
| | C) | III, I, II, IV |
| | D) | II, IV, II, I |
|
|
9 | |
How might an entrepreneur achieve high business growth when faced with limited capital? |
| | A) | Embark on many diverse projects to attract new investors to the business |
| | B) | Franchise the business |
| | C) | A and B |
| | D) | None of the above |
|
|
10 | |
Often increased sales obscure the fact that profitability is declining during the maturity stage of the business life cycle. |
| | A) | True |
| | B) | False |
|
|
11 | |
Monitoring the external environment, implementing managerial controls, expanding intelligence and adding capital are: |
| | A) | Requirements that may enhance business growth |
| | B) | Impediments for successful business growth |
| | C) | Absolutely guarantee business growth |
| | D) | None of the above |
|
|
12 | |
When expanding the operations of a business, the owner-manager should spend more time "doing" and less time "thinking". |
| | A) | True |
| | B) | False |
|
|
13 | |
In order to deal with problems that arise from business growth, the owner should: |
| | A) | Be aware of potential growth problems |
| | B) | Review the business life cycle |
| | C) | Learn the steps needed to plan for growth |
| | D) | All of the above |
|
|
14 | |
Linda Hamilton and George Traini of Cotton Basics are experiencing what stage of the business life cycle? |
| | A) | Introduction stage |
| | B) | Growth stage |
| | C) | Maturity stage |
| | D) | Decline stage |
|
|
15 | |
What has alerted the owners of Cotton Basics that their business is entering this particular stage of the business life cycle? |
| | A) | Increasing sales and the need for increased capital |
| | B) | Leveling off of sales and decrease in demand |
| | C) | Decrease in sales and profits |
| | D) | None of the above |
|
2003 McGraw-Hill Higher Education