Money is _active_.
You must do a written _cash flow_ plan every _month_.
Most people hate the word budget for four reasons:
It has a _straight jacket_ connotation.
It has been used to _abuse_ them.
Theyve never had a budget that _wor
21. When an offer of sale does not specify a price or uncertainty regarding place of delivery, time for
shipment, and time for payment. To avoid this, an offer must be definite and certain and should cover:
who, what, when,
19. Greed can motivate executives to act in an unethical way.
20. Environmental concerns include clean air and water, global warming, preservation of wildlife, and
21. The American culture holds that such c
Business intelligence- the information managers use to make decisions, drawn from the company's own
information systems or external sources
Chief information officer (CIO) - the person who heads the department responsible for managing
Bill of materials (BOM) a list of all raw materials and subcomponent demands
Brainstorming- the process of a group of colleagues meeting and working collaboratively to
generate creative solutions and new ideas
Cash management systems (
Affiliate program- an automated electronic program that involves a Web advertiser and recruited
webmasters. The webmasters, as affiliates, place the company's advertisements on their
individually owned websites. The ads in affiliate pr
21. Similarities: The executive functions includes the daily operations of the agency and
the establishment of general policies and objectives. The rules and regulations resemble
the law as passed by a legislature and have t
26. A warranty is a guarantee made by a manufacturer or a seller that the goods offered for sale are what
they are claimed to be, or that the goods are what a reasonable person has a right to expect. An express
21. Fraud is a misstatement or nondisclosure of a material fact; is made with knowledge of its falsity or
with reckless disregard of its truth; is made with the intention of causing the other party to enter into the
31. Without the system of laws that currently exists, society would be in chaos since
the applications of laws consist of all areas of life: personal, business, and
32. The law affects your personal or social lif
26. Signing a mortgage loan or car loan papers where the financial institution offer
to pay for the house or car and gives their interest rates and you agree to pay the
original loan back as well as the interest.
26. If a promise of forbearance has value to one of the parties of a contract, it would satisfy the legal
requirements of consideration.
27. The three characteristics of valid consideration are (1) legality of consideration
26. Depending on the goods, these seemingly incompatible goals might be resolved by both parties
buying futures contracts. Another solution might be for the parties to negotiate the price at a later time.
27. It is importan
22. If a contract is divisible, and if one or more parts have a legal purpose, then the components
are enforceable. However, the part or parts that have an illegal purpose are not enforceable.
23. Agreements that have been
26. Each amendment must be proposed by a two-thirds vote of Congress and
ratified, or approved, by the legislatures of three-fourths of our 50 states.
27. Speech that incites imminent danger; child pornography; speech that i
28. Real property is land and all articles permanently attached to it, such as buildings and trees. Personal
property is all kinds of property other than real property.
29. A title is the ownership and right to possess some
26. Defamation (harming of a persons reputation and good name by the
communication of a false statement), nuisance (interference with the enjoyment of
life or property), conversion (dominion and control over anothers persona
26. A third-party beneficiary has a legal right to the benefits resulting from the contract if it is the intent of
the contracting parties. An incidental beneficiary is one who may benefit as an indirect consequence, even
26. The law defines the age of majority as the age at which a person can enter into binding contracts,
27. Once a minor reaches legal age, a contract must be either ratified or disaffirmed. If a reasonab
26. When all parties to a contract agree, the contract can be terminated.
27. When all parties to a contract perform as agreed, the contract is terminated by performance.
28. When it is impossible to perform the terms of a
26. To be enforceable, the Statute of Frauds states that certain kinds of agreements must be in
writing, such as agreements (1) by an executor or administrator to pay the debts of a deceased
person, (2) to answer for the de
26. The difference between a crime and a tort is that a crime is the violation of the
rights of society, whereas a tort is the violation of the rights of an individual
27. Treason, felony, misdemeanor
28. Nearly all crimes,
1. Which of the following is not mentioned in the article as a common mistake
Finding a lack of comparable companies
Underestimating the time required to secure financing
Answer all questions correctly for 50 points and submit by the due date.
1. What percentage of new business ventures typically survive their first 5 years of operation?
2. In 1997, what percent
1) Which of the following is NOT one of the Five Cs of credit?
2) Although the opportunity costs for accounts receivable may be quite large, the largest current
1) Almost every new business raises its initial money from the founders themselves and
what we call informal investors, including:
A. Venture capitalists.
B. Family members.
C. Private equity firms.
D. Institutional investors.
E. All of th
1. Which of the following could be a trigger for the entrepreneurial process?
A) Being fired by an employer
B) Deep frustration with ones career
C) A conversation with a friend or peer
D) An unexpected financial windfall
E) All of the abov
1. According to the chapter, into what type of opportunity should a business idea translate?
Easy to implement
2. What does moving a seed of an idea to a mo
1. Which of the following is the main component of a business model?
The revenue model
The net income model
The cost model
The cash flow mode
Both A and C
2. Which of the following influence a companys revenue?
1. According to study by Babson College and London Business School, businesses with growth
aspirations plan on employing more than 20 people within the next:
None of the above