Family Business Management
Practice Questions
Course Introduction
Family Business Management explores the unique dynamics, challenges, and opportunities faced by family-owned enterprises. The course examines the interplay between family relationships and business operations, succession planning, governance structures, conflict resolution, and strategies for growth and sustainability. Through case studies, practical examples, and theoretical frameworks, students learn how to balance family interests with sound business practices, ensure long-term viability, and navigate the complexities that distinguish family businesses from non-family firms.
Recommended Textbook
Essentials of Entrepreneurship and Small Business Management 9th Edition by Norman M. Scarborough
Available Study Resources on Quizplus
17 Chapters
1957 Verified Questions
1957 Flashcards
Source URL: https://quizplus.com/study-set/2272
Page 2
Chapter 1: The Foundations of Entrepreneurship
Available Study Resources on Quizplus for this Chatper
117 Verified Questions
117 Flashcards
Source URL: https://quizplus.com/quiz/45125
Sample Questions
Q1) Research has isolated a set of characteristics that can predict who will succeed as an entrepreneur.
A)True
B)False
Answer: False
Q2) The profile of an entrepreneur includes ________.
A)a desire for responsibility and moderate risk
B)confidence in the ability to succeed and determination
C)a high level of energy, a desire for immediate feedback and a future orientation
D)All the above
Answer: D
Q3) The only people who ________ are those who never do anything or never attempt anything new.
A)succeed
B)prosper
C)profit
D)fail
Answer: D
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Ethics and Social Responsibility: Doing the Right Thing
Available Study Resources on Quizplus for this Chatper
109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/45124
Sample Questions
Q1) Ethical behavior is doing what is ________.
A)"right"
B)"profitable"
C)"credible"
D)All of the above
Answer: A
Q2) What is ethics and how is it different from social responsibility?
Answer: Ethics is a branch of philosophy that studies and creates theories about the basic nature of right and wrong, duty, obligation, and virtue. Ethical behavior is doing what is "right" as opposed to what is "wrong." On the other hand, social responsibility involves how an organization responds to the needs of the many elements in society, including shareholders, lenders, employees, consumers, governmental agencies, and the environment. While both ethics and social responsibility set behavioral boundaries for decision makers, social responsibility refers to an organization's obligations to behave in ways that benefit all of society, in return to being allowed to operate.
Q3) Actions that are legal, however, may not be ethical.
A)True
B)False
Answer: True
Page 4
To view all questions and flashcards with answers, click on the resource link above.
Chapter 3: Creativity and Innovation: Keys to Entrepreneurial Success
Available Study Resources on Quizplus for this Chatper
118 Verified Questions
118 Flashcards
Source URL: https://quizplus.com/quiz/45126
Sample Questions
Q1) Research shows that not everyone can be creative.
A)True
B)False
Answer: False
Q2) Christine has the ability to evaluate several options and pick the best one to solve a problem. The reasoning ability that Christine has is called ________.
A)convergent
B)divergent
C)lateral
D)intuitive
Answer: A
Q3) The focus of which of the following step in the creative process is to transform the idea into reality?
A)Implementation
B)Preparation
C)Illumination
D)Verification
Answer: A
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Conducting a Feasibility Analysis and Designing a Business Model
Available Study Resources on Quizplus for this Chatper
112 Verified Questions
112 Flashcards
Source URL: https://quizplus.com/quiz/45128
Sample Questions
Q1) The strongest of the five forces in most industries is the rivalry that exists among the businesses competing in a particular market.
A)True
B)False
Q2) The force from the five forces model that considers economies of scale, initial capital requirements, cost advantages relevant to company size, and lack of brand loyalty is the ________.
A)bargaining power of suppliers
B)threat of new entrants
C)threat of substitute products or services
D)rivalry among companies competing
Q3) What are sociocultural changes and why are they important?
Q4) The Five Forces Model would assess economies of scale factors in the "threat of new entrants" portion of the model.
A)True
B)False
Q5) The ideal size of a focus group is 20-25.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Crafting a Business Plan and Building a Solid Strategic Plan
Available Study Resources on Quizplus for this Chatper
129 Verified Questions
129 Flashcards
Source URL: https://quizplus.com/quiz/45129
Sample Questions
Q1) One of the areas a business plan presentation should cover is the capital structure.
A)True
B)False
Q2) Which of the following is a basic area that a business plan presentation should cover?
A)The company and its products
B)The problem to be solved
C)The company's business model
D)All of the above
Q3) "Big box retailers" present an opportunity for many small business owners.
A)True
B)False
Q4) An entrepreneur may find that the business plan indicates that the business concept is not viable. This is another potential benefit of writing a business plan; this revelation occurred before the owner committed significant resources (time and money)to the venture.
A)True
B)False
Q5) Explain at least two functions or purposes of preparing a business plan.
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Forms of Business Ownership
Available Study Resources on Quizplus for this Chatper
83 Verified Questions
83 Flashcards
Source URL: https://quizplus.com/quiz/45130
Sample Questions
Q1) In a partnership, profits (and losses)must be shared according to the ratio of capital originally invested in the partnership.
A)True
B)False
Q2) A limited partner is treated as an investor in a business venture and does not take an active role in managing it.
A)True
B)False
Q3) A special type of partnership in which all partners, who in many states must be professionals, are limited partners is called ________ partnership.
A)general
B)limited
C)silent
D)limited liability
Q4) If a sole proprietor dies, retires, or becomes incapacitated, the business automatically terminates.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Buying an Existing Business
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/45131
Sample Questions
Q1) Opportunity cost is the cost of the next best alternative.
A)True
B)False
Q2) One of the closing documents required is the non-disclosure agreement (NDA).
A)True
B)False
Q3) Goodwill is the difference between an established, successful business and one that has yet to prove itself.
A)True
B)False
Q4) Book value is the same as market value.
A)True
B)False
Q5) The business acquisition process should begin with the search for potential companies to acquire.
A)True
B)False
Q6) Discounted future earnings is the most common business valuation method.
A)True
B)False
Page 9
To view all questions and flashcards with answers, click on the resource link above.
Chapter 8: Franchising and the Entrepreneur
Available Study Resources on Quizplus for this Chatper
69 Verified Questions
69 Flashcards
Source URL: https://quizplus.com/quiz/45132
Sample Questions
Q1) The failure rate for franchises is ________.
A)higher than the average rate for new businesses
B)no different from the rate for new businesses
C)lower than the average rate for new businesses
D)indeterminable because of the Right to Privacy Act
Q2) Franchises total annual sales represent more than ________ and employ nearly ________ workers in the Unities Sates in more than 300 industries.
A)$17 billion; 17 million
B)$120 billion; 8.2 million
C)$710 billion; 7.8 million
D)$225 billion; 21 million
Q3) In a ________ franchise, a franchisee has the right to create a semi-independent organization in a particular territory to recruit, sell, and support other franchisees.
A)multiple-unit
B)master
C)conversion
D)cobranding
Q4) Explain three trends that are currently shaping the franchising industry.
Q5) Outline the recommended procedure for buying a franchise.
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Building a Powerful Bootstrap Marketing Plan
Available Study Resources on Quizplus for this Chatper
117 Verified Questions
117 Flashcards
Source URL: https://quizplus.com/quiz/45133
Sample Questions
Q1) Faith Popcorn offers several ways Lloyd Dixon could collect information about his customers and competitors. Explain at least five of those ways.
Q2) Which of the following was not identified as one of the bootstrap marketing principles in your text?
A)Strive to be like everyone else so that your company "fits in."
B)Create an identity for your business.
C)Connect with customers on an emotional level.
D)Do not just sell - entertain.
Q3) Explain the concept of total quality management. How is it different from the quality inspection of a final product just before being packaged?
Q4) Describe what is meant by bootstrap marketing. What objectives should a bootstrap marketing plan accomplish? List at least five bootstrap marketing tactics your small business might be able to use successfully.
Q5) Which of the following is not a secondary source of market research data?
A)Census data
B)Trade publications
C)Focus groups
D)Magazines
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: E-Commerce and the Entrepreneur
Available Study Resources on Quizplus for this Chatper
142 Verified Questions
142 Flashcards
Source URL: https://quizplus.com/quiz/45134
Sample Questions
Q1) The typical Internet user now spends more time on the Internet than watching television.
A)True
B)False
Q2) A valuable method of preventing online fraud is to ________.
A)ask customers for their card verification value
B)not accept credit cards
C)run background checks on customers
D)All of the above
Q3) For many entrepreneurs, the key barrier to not using the Web as a business tool is that they do not see any benefits to selling online.
A)True
B)False
Q4) A measurement of the cost a company incurs to generate each purchase or customer registration is the ________.
A)cost per acquisition (CPA)
B)bounce rate
C)conversion ratio
D)browser-to-buy ratio
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Pricing and Credit Strategies
Available Study Resources on Quizplus for this Chatper
114 Verified Questions
114 Flashcards
Source URL: https://quizplus.com/quiz/45127
Sample Questions
Q1) A technique that involves selling a product for a low price and charging a higher price for the accessories that accompany it is called ________ pricing.
A)multiple-unit
B)optional product
C)captive-product
D)by product
Q2) Which of the following is/are true regarding cost-plus pricing?
A)It encourages the manufacturer to operate efficiently.
B)It fails to consider competitors' prices appropriately.
C)It fails to guarantee the manufacturer a desired profit margin.
D)A and C only.
Q3) An entrepreneurial company can differentiate itself by creating a distinctive image in customers' minds or by offering ________.
A)superior service and quality
B)exceptional design and convenience
C)speed and performance
D)All the above
Q4) How would Penny Matthews go about determining how to price the services her business plans to offer?
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Creating a Successful Financial Plan
Available Study Resources on Quizplus for this Chatper
140 Verified Questions
140 Flashcards
Source URL: https://quizplus.com/quiz/45135
Sample Questions
Q1) If Anita's net profit target is $32,000, what level of net sales must she achieve?
A)$74,941
B)$97,264
C)$326,531
D)$219,178
Q2) Port Royal's net profit-to-equity ratio is ________ percent.
A)23.8
B)37.4
C)16.1
D)232.7
Q3) A high current ratio guarantees that the small firm's assets are being used in the most profitable manner.
A)True
B)False
Q4) Suppose that the manufacturer desires a profit of $9,000 on this product. How many units must be sold?
Q5) Were the bankers correct? Do you think Jim should expand the business?
Q6) Compute a break-even point in dollars.
Q7) Calculate Harry's break-even point.
14
To view all questions and flashcards with answers, click on the resource link above.
Chapter 13: Managing Cash Flow
Available Study Resources on Quizplus for this Chatper
144 Verified Questions
144 Flashcards
Source URL: https://quizplus.com/quiz/45136
Sample Questions
Q1) Why is cash a unique asset? What are the advantages of efficient cash management?
Q2) The first step in preparing a cash budget is to forecast sales.
A)True
B)False
Q3) It is considered unethical for small business owners to regulate payments to their company's advantage.
A)True
B)False
Q4) The primary problem with cash management tools is that they are too complex and time-consuming for small business owners to use practically.
A)True
B)False
Q5) ________ small businesses take the time to conduct a credit check.
A)All
B)Most
C)Few
D)None of the above
Q6) What steps can a small business owner take to avoid the cash "crunch"?
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Choosing the Right Location and Layout
Available Study Resources on Quizplus for this Chatper
114 Verified Questions
114 Flashcards
Source URL: https://quizplus.com/quiz/45137
Sample Questions
Q1) What site analysis criteria are relevant to Terry and Judy's evaluation of the restaurant's location?
Q2) The first level of the location decision is the selection of a particular region of the country.
A)True
B)False
Q3) TIGER ________.
A)is a software package combining the ability to draw detailed maps with the power to search through databases
B)breaks down the population, retail sales, etc., by census region
C)contains the names of every street in the country and detailed block statistics for 345 urban areas
D)All of the above
Q4) A location that has housed several businesses that have failed within the past few years is likely to have a bad reputation and a negative image.
A)True
B)False
Q5) What are the advantages and disadvantages of the restaurant's current location?
Q6) List and explain the main location criteria for retail and service businesses.
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Sources of Financing: Equity and Debt
Available Study Resources on Quizplus for this Chatper
117 Verified Questions
117 Flashcards
Source URL: https://quizplus.com/quiz/45138
Sample Questions
Q1) Explain to Jim the possible (and realistic)sources of capital for expansion. Where would you recommend that he go for the funds he needs? Why?
Q2) Typically, the entire process of going public takes ________, but it can take much longer if the issuing company is not properly prepared for the process.
A)30 days
B)6 months
C)120 to 180 days
D)one year
Q3) A small company needs fixed capital to purchase its permanent assets.
A)True
B)False
Q4) The most common method used by commercial finance companies to provide credit to small businesses is ________.
A)asset based
B)insurance based
C)unsecured lines of credit or "character loans"
D)profitability based
Q5) What other sources of capital would you suggest that Christine explore?
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Global Aspects of Entrepreneurship
Available Study Resources on Quizplus for this Chatper
133 Verified Questions
133 Flashcards
Source URL: https://quizplus.com/quiz/45139
Sample Questions
Q1) The first step to create a sound export strategy is to ________.
A)recognize that even the smallest companies and least experienced entrepreneurs have the potential to export
B)analyze your product or service
C)analyze your commitment
D)research markets and pick your target
Q2) Learning the habits and the customs of the cultures in which they do business is essential for small business managers trying to go global.
A)True
B)False
Q3) A letter of credit is an agreement between an exporter's bank and a foreign buyer's bank that guarantees payment to the exporter for a specific shipment of goods.
A)True
B)False
Q4) Outline the eight strategies for "going global" available to the small business owner.
Q5) Identify and discuss the international barriers to trade.
Q6) Identify and discuss the domestic barriers to trade.
To view all questions and flashcards with answers, click on the resource link above.
Page 18
Chapter 17: Building a New Venture Team and Planning for the Next Generation
Available Study Resources on Quizplus for this Chatper
119 Verified Questions
119 Flashcards
Source URL: https://quizplus.com/quiz/45140
Sample Questions
Q1) Cora arrived at work at 7 a.m. today, and she will get off at 4 p.m. so that she can watch her son's soccer game. Her office mate, Emma, is not a "morning person" and usually arrives at the office at 10 a.m. and gets off at 7 p.m. Their company uses
A)job sharing
B)flextime
C)flexplace
D)job enrichment
Q2) The job ________ design strategy involves building motivators into a job by increasing the planning, decision-making, organizing, and controlling functions workers perform.
A)simplification
B)enlargement
C)enrichment
D)rotation
Q3) A strong leader does not share aspects of his or her company's financial health, its future plans, or her vision for it with employees.
A)True
B)False
Page 19
To view all questions and flashcards with answers, click on the resource link above.