QUESTION $1$

Cheryl is presenting the new payroll system to the managers of her company. She was unable to reserve the large conference room, so she scheduled the presentation in the cafeteria, which is not designed for giving presentations and has poor acoustics. Which of the following is a challenge she is most likely to face?

a$.$

Intercultural communication

b$.$

The inability to use active voice

c$.$

Physical barriers that are likely to create noise

d$.$

Nonverbal communication

$2$ points

QUESTION $2$

In business communications, conciseness:

a$.$

has little to do with the effectiveness of the message.

b$.$

tends to be ineffective when the message is intended for friends and coworkers.

c$.$

is desirable, as long as it isn$$t at the expense of completeness.

d$.$

should be avoided at all costs.

$2$ points

QUESTION $3$

The number of key ideas covered in a presentation should be:

a$.$

at least five, but no more than eight.

b$.$

based on the material.

c$.$

two to four, where three ideas would be ideal.

d$.$

as many as the speaker can cover $($without rushing$)$ in the time provided.

$2$ points

QUESTION $4$

Red Oak Partners recently funded Feast, a rapidly$-$growing chain of restaurants, in exchange for a $43$ percent share of ownership. Red Oak Capital is an example of a$($n$)$:

a$.$

commercial bank.

b$.$

venture capital firm.

c$.$

angel investor.

d$.$

credit union.

$2$ points

QUESTION $5$

Venture capitalists $\_\_\_\_\_.$

a$.$

only invest in companies that are likely to grow at $30-40$ percent per year and then go public

b$.$

fund high$-$potential new companies in exchange for a share of ownership

c$.$

partially guarantee loans from local commercial lenders.

d$.$

lend small amounts of money to start$-$up businesses through community nonprofit organizations

$2$ points

QUESTION $6$

A recent survey claims that half of all start$-$ups are funded $\_\_\_\_\_,$ even though this source can result in very high financing costs.

a$.$

with credit cards

b$.$

through revolving credit agreements with commercial banks

c$.$

with Small Business Administration microloans

d$.$

by venture capital firms

$2$ points

QUESTION $7$

Active listening means the listener:

a$.$

only demonstrates good eye contact.

b$.$

empathizes with the speaker.

c$.$

frequently interrupts the speaker with questions and comments.

d$.$

completely focuses on the speaker during the delivery of the message.

$2$ points

QUESTION $8$

Small businesses generate about $\_\_\_\_\_$ percent of the U$.$S$.$ gross domestic product.

a$.$

$10$

b$.$

$70$

c$.$

$30$

d$.$

$50$

$2$ points

QUESTION $9$

The $\_\_\_\_\_$ is supported by the Small Business Administration and provides comprehensive counseling for small businesses from qualified volunteers.

a$.$

Service Corps for Retired Executives

b$.$

Federal Advice for Small Business Panel

c$.$

Securities and Exchange Commission

d$.$

Entrepreneurial Services Council

$2$ points

QUESTION $10$

Justin Rolando decided to operate his own web design firm and is leaning toward organizing it as a sole proprietorship. One factor Justin should realize is that by choosing this form of business he would be:

a$.$

creating a business that was legally separate and distinct from himself.

b$.$

required to fill out special forms and pay proprietorship fees to get the company legally established.

c$.$

exposing himself to unlimited personal liability for the company$$s debts.

d$.$

incurring the problem of double taxation.

$2$ points

QUESTION $11$

A look at survival rates for small businesses over their first $10$ years shows that:

a$.$

the majority of small businesses fail before they have been in business for three years.

b$.$

they fall at a slow but steady rate over the first five years, but failures occur more frequently after the fifth year.

c$.$

the majority of all small firms remain in business for at least seven years, and many remain after $10$ years.

d$.$

survival rates tend to drop more rapidly during the first five years, but then they fall more slowly.

$2$ points

QUESTION $12$

Hans is considering forming a company that specializes in international consultations. He wants to serve as a liaison between domestic and Chinese toy distributors, offering the U$.$S$.$ firms access to lower cost labor and offering the Chinese firms access to one of the largest markets in the world. In addition, he will need to access capital for the operation by offering shares of common stock. Which business entity should he choose?

a$.$

An LLC

b$.$

A sole proprietorship

c$.$

An LLP

d$.$

A corporation