Quiz on ENTREP CHAPTER 2

A small business owner is calculating their financial needs. They need funds to purchase equipment that will last the business's lifetime. What type of capital is required for this expense?

• Working capital

• Fixed capital

• Pre-operating capital

• Contingency capital

A new business is assessing credit sources for a loan. Which factor should they consider to determine if the lender has the ability to repay the loan?

• Character

• Capital

• Capacity

• Collateral

An entrepreneur needs funds for business registration, license acquisition, and prelaunch expenses. What type of capital is necessary?

• Working capital

• Fixed capital

• Pre-operating capital

• Investment capital

A company is creating a pay structure based on the specific duties of each occupation role. This approach is called:

• Incentive pay

• Job-based compensation

• Skill-based compensation

• Experience-based compensation

An entrepreneur wants to maintain sufficient funds to cover operating costs such as raw materials and utilities for the first few months. Which type of capital is being managed?

• Fixed capital

• Working capital

• Pre-operating capital

• Contingency capital

A business owner decides to hire a recruitment firm to handle the hiring process due to a lack of inhouse resources. This recruitment source is classified as:

• Internal recruiting

• Competitor recruiting

• External recruiting

• Campus recruiting

During the interview stage, a candidate's responses reveal strong interpersonal skills and adaptability. What would be the next step in assessing the candidate's potential fit?

• Training

• Orientation

• Reference checking

• Onboarding

A company wants to reward employees based on their advanced technical training or additional certifications. Which compensation approach aligns with this goal?

• Job-based compensation

• Pay-for-performance

• Skill-based compensation

• Tenure-based compensation

A newly hired employee is given an overview of the company's rules, benefits, and job expectations. This process is called:

• Induction

• Training

• Selection

• Evaluation

To assess a job candidate's potential for future growth, a company administers an aptitude test. This helps evaluate the candidate's:

• Current job knowledge

• Attitude towards work

• Potential to learn new skills

• Physical ability