ASK EXAM QUESTIONS AND ANSWERS
One way that an advertising agency can protect the original song it created for a client's television
commercial is by obtaining a - CORRECT ANSWER✅✅Copyright
What is a characteristic of a product trade-name franchise? (Fast food) - CORRECT ANSWER✅✅The
franchisee can choose the name of the business
Jackie is a dentist. Which channel of distribution will Jackie use to provide services to clients? - CORRECT
ANSWER✅✅Direct
Managers are responsible for directing the business's employees in ways that prompt goodwill and build
positive customer relationships, which often improve - CORRECT ANSWER✅✅Customer retention rates
When Charlyne buys gasoline for her car, she is surprised that she doesn't have to pay any tax in
addition to the price of the gasoline. Why is this? - CORRECT ANSWER✅✅Charlyne is paying an excise
tax that is already included in the purchase price.
What kind of attitude should an entrepreneur have about new technological developments? - CORRECT
ANSWER✅✅The impact of new technologies should always be evaluated
What is an example of demographic trend that has encouraged entrepreneurial discovery? - CORRECT
ANSWER✅✅Increased cultural diversity
What is a characteristic of well-conducted feasibility study? - CORRECT ANSWER✅✅Complete
What is a major cost that every new startup must plan for? - CORRECT ANSWER✅✅Capital
expenditures
What is an example of a person financing a new business by selling assets? - CORRECT
ANSWER✅✅Jonathan sells his vintage sports car
, Jamal assembled a small group of independent business professionals to guide him through the early
stages of his new business venture. What type of external resource is Jamal using to supplement his
expertise? - CORRECT ANSWER✅✅Advisory Board
When Deanna, a small-business owner, allocates 6% of her company's profit to product development,
she is investing what type of resource? - CORRECT ANSWER✅✅Financial
What venture-harvesting methods usually supports a venture's future growth and facilitates the
business owner's exit? - CORRECT ANSWER✅✅Initiating a public stock offering
Bennett has just finished college and has moved into her own apartment that is located on a bus line.
She'll be able to take the bus to her new job that she's scheduled to start in a month. In fact, she'll need
to rely on bus transportation until she saves money to buy a car. What insurance coverage should she
have? - CORRECT ANSWER✅✅Renter's insurance and temporary short-term health insurance
To prevent business failure, even a very profitable company must - CORRECT ANSWER✅✅manage its
cash flow
What is an advantage of a loan program provided by state or local development corporations? -
CORRECT ANSWER✅✅It may offer small-business loans at lower rates
Changes in accounts receivable are reflected in - CORRECT ANSWER✅✅cash from operations
When businesses help employees work together and share their knowledge in order to complete a
project, they are managing - CORRECT ANSWER✅✅collaboration
During the employee-selection process, most businesses first require job applicants to - CORRECT
ANSWER✅✅fill out an employment application
Should employees be part of management's efforts to create an equitable work environment? -
CORRECT ANSWER✅✅Yes, employees should be involved
One way that an advertising agency can protect the original song it created for a client's television
commercial is by obtaining a - CORRECT ANSWER✅✅Copyright
What is a characteristic of a product trade-name franchise? (Fast food) - CORRECT ANSWER✅✅The
franchisee can choose the name of the business
Jackie is a dentist. Which channel of distribution will Jackie use to provide services to clients? - CORRECT
ANSWER✅✅Direct
Managers are responsible for directing the business's employees in ways that prompt goodwill and build
positive customer relationships, which often improve - CORRECT ANSWER✅✅Customer retention rates
When Charlyne buys gasoline for her car, she is surprised that she doesn't have to pay any tax in
addition to the price of the gasoline. Why is this? - CORRECT ANSWER✅✅Charlyne is paying an excise
tax that is already included in the purchase price.
What kind of attitude should an entrepreneur have about new technological developments? - CORRECT
ANSWER✅✅The impact of new technologies should always be evaluated
What is an example of demographic trend that has encouraged entrepreneurial discovery? - CORRECT
ANSWER✅✅Increased cultural diversity
What is a characteristic of well-conducted feasibility study? - CORRECT ANSWER✅✅Complete
What is a major cost that every new startup must plan for? - CORRECT ANSWER✅✅Capital
expenditures
What is an example of a person financing a new business by selling assets? - CORRECT
ANSWER✅✅Jonathan sells his vintage sports car
, Jamal assembled a small group of independent business professionals to guide him through the early
stages of his new business venture. What type of external resource is Jamal using to supplement his
expertise? - CORRECT ANSWER✅✅Advisory Board
When Deanna, a small-business owner, allocates 6% of her company's profit to product development,
she is investing what type of resource? - CORRECT ANSWER✅✅Financial
What venture-harvesting methods usually supports a venture's future growth and facilitates the
business owner's exit? - CORRECT ANSWER✅✅Initiating a public stock offering
Bennett has just finished college and has moved into her own apartment that is located on a bus line.
She'll be able to take the bus to her new job that she's scheduled to start in a month. In fact, she'll need
to rely on bus transportation until she saves money to buy a car. What insurance coverage should she
have? - CORRECT ANSWER✅✅Renter's insurance and temporary short-term health insurance
To prevent business failure, even a very profitable company must - CORRECT ANSWER✅✅manage its
cash flow
What is an advantage of a loan program provided by state or local development corporations? -
CORRECT ANSWER✅✅It may offer small-business loans at lower rates
Changes in accounts receivable are reflected in - CORRECT ANSWER✅✅cash from operations
When businesses help employees work together and share their knowledge in order to complete a
project, they are managing - CORRECT ANSWER✅✅collaboration
During the employee-selection process, most businesses first require job applicants to - CORRECT
ANSWER✅✅fill out an employment application
Should employees be part of management's efforts to create an equitable work environment? -
CORRECT ANSWER✅✅Yes, employees should be involved
