Chapter.14 Fundamentals Of Resource Planning Test Bank

Chapter 14: Fundamentals of Resource Planning

= Correct answer

Multiple Choice/Fill in the Blank

1. Assets that have a physical form are called ________.

A. intangible

B. intellectual property

C. necessary

D. tangible

Difficulty: Easy

1. All of the following are examples tangible resources except ________.

A. computers

B. raw materials

C. trademarks

D. vehicles

Difficulty: Easy

1. Which of the following is a word, phrase, symbol, or graphic that identifies the origin or source of a service?

A. copyright

B. patent

C. service mark

D. trademark

Difficulty: Easy

1. PEST stands for ________.

A. patents, economies, sales, technology

B. persistence, earnings, sales, technologies

C. political, economic, sociocultural, technological

D. political, earnings, sociocultural, trademarks

Difficulty: Easy

1. At which stage in the business cycle are resources most scarce?

A. decline

B. maturity

C. rapid growth

D. startup

Difficulty: Easy

1. Which of the following is a good starting point for developing a job description?

A. advertising on a job search website

B. determining the skills and experience the team should have

C. deciding how many employees you might need

D. setting the hours of operation

Difficulty: Moderate

1. All of the following are political factors to consider except ________.

A. environmental laws

B. inflation

C. insurance costs

D. tax laws

Difficulty: Difficult

1. Which of the following refers to limiting the number of items entering a country?

A. inflation

B. quota

C. tariffs

D. trademark

Difficulty: Easy

1. Intangible resources are ________.

A. assets that cannot be seen, touched, or felt

B. assets that have a physical form

C. monetary resources necessary to start and operate a business

D. the amount of money that a bank allows a business to borrow on demand

Difficulty: Easy

1. Which of the following is (are) the cost(s) of all the resources needed to open the business to the public?

A. funding sources

B. line of credit

C. pre-launch costs

D. tariffs

Difficulty: Easy

1. How can SCORE contribute to the needed resources for the entrepreneur?

A. SCORE provides monetary contributions.

B. SCORE provides qualified employees.

C. SCORE is a strong network for finding a mentor.

D. SCORE helps to find and secure grants.

Difficulty: Moderate

1. Which of the following is used to explore the outcomes of different decisions?

A. advisory board

B. decision tree

C. outsourcing

D. service mark

Difficulty: Easy

1. People hired by the entrepreneur to perform various duties in the business are called ________.

A. advisory board

B. human resources

C. mentors

D. tariffs

Difficulty: Easy

1. Why should entrepreneurs create an employee handbook?

A. The handbook can be used to recruit employees.

B. The handbook can take the place of background checks.

C. The handbook should outline procedures for firing employees.

D. The handbook can protect against conflicts with employees.

Difficulty: Difficult

1. Why are venture capitalists likely to fund businesses in technology, media/entertainment, and pharmaceutical industries?

A. because they expect to have a high payout in three to five years

B. because they have worked in those industries previously

C. because those industries are the least likely to fail

D. because those industries have the highest stocks prices on average

Difficulty: Moderate

1. The type of patent that is granted to someone who discovers a new type of plant is referred to as a(n) ________.

A. agricultural patent

B. facility patent

C. plant patent

D. utility patent

Difficulty: Easy

1. Which of the following funding types requires the least amount of investment?

A. bank loans

B. bootstrapping

C. friends/family

D. venture capitalist

Difficulty: Difficult

1. All the following are economics factors to consider except ________.

A. employment rates

B. exchange rates

C. labor expenses

D. state of the economy

Difficulty: Moderate

1. The ________ model explains how forming networks can help mitigate dependencies among member groups.

A. decision tree

B. PEST

C. RDT

D. SCORE

Difficulty: Moderate

1. The phase of the business cycle in which branding and outsourcing are identified as resource needs is called ________.

A. decline

B. maturity

C. rebirth

D. startup

Difficulty: Moderate

1. Which of the following is a drawback of utilizing angel investors as a funding source?

A. must pay interest over a period of many years

B. might be embarrassing and hurt your reputation

C. potential loss of collateral

D. possibly being forced out of your own company

Difficulty: Difficult

1. Factors such as visibility, building maintenance required, and property taxes are used to assess ________.

A. leasing/owning vehicles

B. machinery

C. place of operation

D. technology needs

Difficulty: Moderate

True/False

1. True or false? Exchange rates are important to consider if you are operating in your home country.

Difficulty: Easy

1. True or false? No matter what industry you are in, you must invest in technology to support the day-to-day functioning of the operation.

Difficulty: Moderate

1. True or false? When you lease a vehicle, you can deduct a deprecation value.

Difficulty: Difficult

1. True or false? You can contact the secretary of state’s office in your state to ensure your business meets the legal requirements for licensing and permits.

Difficulty: Moderate

1. True or false? Intellectual property is considered a tangible resource.

Difficulty: Easy

1. True or false? The first step to obtaining a patent is filing for provisional two-year patent protection.

Difficulty: Difficult

1. True or false? A design patent involves the actual design of an invention.

Difficulty: Easy

1. True or false? Copyrights are issued by the secretary of state’s office.

Difficulty: Moderate

1. True or false? A decision tree can help the entrepreneur explore all the decision alternatives and their possible outcomes.

Difficulty: Easy

1. True or false? Most entrepreneurs start their business by using their personal savings.

Difficulty: Easy

1. True or false? A line of credit is most helpful when the business doesn’t have the money to expand operations by buying new equipment.

Difficulty: Difficult

1. True or false? Grants are an easy way to get funding for your new business venture.

Difficulty: Easy

1. True or false? It is important to understand the sociocultural factors of your customers in order to allocate your marketing resources optimally.

Difficulty: Moderate

1. True or false? Payroll is a pre-launch cost to consider.

Difficulty: Easy

1. True or false? Advisory boards are most helpful during the maturity phase of the business cycle.

Difficulty: Difficult

1. True or false? During the growth stage of the business cycle, the market could be saturated, and there may be lower cost alternatives for the customers.

Difficulty: Difficult

1. True or false? Resource dependence theory can eliminate the effects of competing with other businesses.

Difficulty: Moderate

1. True or false? A 3-D printer is one of the basic investments in technology that you will need to make for your business.

Difficulty: Moderate

Short Answer

1. Discuss the advantages and disadvantages of leasing versus owning a vehicle for business use.

Students’ answers should include the usage of the vehicle as being primarily business or mixed business/personal use. Answers should also include a discussion about the tax implications with both options. A fully developed response would include mention of maintenance expenses and the anticipated length of time that the vehicle will be used for the business.

Difficulty: Moderate

1. Distinguish between tangible and intangible resources, giving specific examples of each.

Students’ answers must include a definition of both types of resources. Specific examples might include items such as office furniture or a patent for a proprietary formulation developed by your company.

Difficulty: Easy

1. Using the business life cycle as a guide, discuss which types of funding sources might be appropriate at each phase in the cycle.

Difficulty: Difficult

1. Describe the differences between patents, copyrights, and trademarks.

Difficulty: Easy

1. Consider a grocery delivery service. Develop a decision tree for the business decision about hiring employees or securing independent contractors to run your business.

Difficulty: Difficult

1. Discuss the similarities and differences between bootstrapping and utilizing your personal savings to fund a business venture.

Difficulty: Moderate

1. Compare and contrast venture capitalists and angel investors.

Difficulty: Easy

1. Discuss how the PEST framework relates to assessing resource needs in a business. Use specific examples.

Students’ answers should demonstrate an understanding of the framework and the factors under each aspect. The answer could include specific references to quotas and tariffs. The answer could also include a discussion of how sociocultural aspects might impact a marketing strategy in a business and how that relates to allocation of resources to marketing.

Difficulty: Difficult

1. Using a specific example, discuss how an advisory board might be helpful to a boutique business. Include a few examples of key skills that should be reflected in the advisory board.

Difficulty: Moderate

1. Briefly discuss the resources needed at each phase of the business cycle.

Difficulty: Easy

1. Discuss the steps of the human resources process.

Difficulty: Easy

1. Discuss several considerations when determining the location/facility needs of a new business venture.

Students’ answers should include a discussion of whether there will be customer interaction and how much space (square footage) is required. The answer should also reference the need for storage, traffic flows, signage, visibility, and the needs of potential employees as examples.

Difficulty: Moderate

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