HRM 550 Final Exam

10%
25%
75%
99%

No labor force to work in small businesses
Opportunity to perform the work large businesses no longer perform
An availability of workers with no skills
Lack of financial backing for small businesses

Ability to remain flexible and innovative
Management expertise
Emphasis on variety
Emphasis on quantity

The startup process
Hiring of key employees
Maintaining a positive cash flow
Building and maintaining a sufficient customer base

Sole proprietorships
Partnerships
Corporations
Joint ventures

Price, presence, place, and promotion
Price, presence, place, and product
Price, promotion, place, and product
Promotion, price, place, and production

Price skimming
Promotional pricing
Penetration price
Prestige pricing

two
three
four
five

Volume discounts cannot be taken.
Annual demand can be accurately predicted.
Average inventory level is equal to maximum inventory level minus minimum inventory level divided by two.
Average inventory level is equal to minimum inventory level minus maximum inventory level divided by two.

Direct channels
Indirect channels
Distribution channels
Streamline channels

lease
rental contract
legally liable contract
business contract

best product for the highest price
most reasonable product at the highest price
most reasonable product at the lowest price
best product for the most reasonable price

Profit area
Loss area
Breakeven point
Profit point

Gross sales
Gross profit
Net profit
Pretax revenue

manufacturing business
service business
seasonal or cyclical business
healthcare business

Spare time
The excitement and emotions involved in beginning a new business
Hiring good employees
Making a profit

in the short run
in the long run
for tax purposes
for bank audits

Freedom to create
Ability to create a distinctive competitive advantage
No negative image due to someone else’s mistake
Well-established clientele

their local areas
their regional areas
outside their home regions and internationally
within 100 miles of their businesses

The product life cycle
The product growth stages
The product timeline
The product opportunity stages

Applications
Resumes
Drug testing
None of the above

identify the tasks needed to implement your business plan
identify the human capital needed to implement your business plan
identify the skills needed to implement your business plan
None of the above

40%
55%
68%
80%

Inputs
Transformation processes
Outputs
Feedback

Routing
Sequencing
Dispatching
Controlling

Computer system
Accounting system
Record system
Data system

short-term assets
long-term assets
capital assets
financial assets

Ethical
Economical
Sensible
Philanthropic

economic responsibility
legal responsibility
ethical responsibility
philanthropic responsibility

Economic and legal only
Legal and sociocultural only
Technological and competitive only
Economic, legal, sociocultural, competitive, and technological

1. (TCO 1) Compare and contrast a sole proprietorship, a partnership, and a corporation. Provide examples of where you would use each structure.(Points : 14)
2. (TCO 3) Analyze the advantages and disadvantages of buying an existing business. Under what circumstances would one be more advantageous?(Points : 14)
3. (TCO 4) Compare and contrast patents, copyrights, and trademarks. Evaluate how these provisions can improve the financial position of a small business.(Points : 14)