Question 1

A franchisor supplies all of the following except

Accepted Answer

A)   land to place the business on.
B)   the name of the shop.
C)   the methods of doing business.
D)   any necessary training.
E)   advertising materials.F) A) and D)
G) B) and C)

Question 2

The average size of an SBA-guaranteed business loan is about _____.

Accepted Answer

A)   $25,000
B)   $100,000
C)   $200,000
D)   $300,000
E)   $500,000F) A) and D)
G) A) and E)

Question 3

What do franchisees typically have to pay to the franchisor?

Accepted Answer

A)   a one-time franchise fee
B)   monthly royalties based on sales
C)   nominal fee for business knowledge
D)   approximately half of the franchise's profits each month
E)   one-time franchise fee and monthly royalties based on salesF) None of the above
G) A) and E)

Question 4

Kevin has considered selling franchises of his very successful hardware store.However, he is concerned that the franchises will destroy the reputation of the company and end up hurting his business.What advice would you give Kevin?

Accepted Answer

A)   He should not sell franchises because he will have no control over how the franchisees operate their businesses.
B)   He should instead raise the capital to build and operate the new stores himself because this is a cheaper way to expand.
C)   He should hire the managers of the new franchises so that he has control over their operations.
D)   Through the franchise agreement, he can ensure that the new stores are operated according to his own standards.
E)   Although he will have a little control over how the franchises operate, he will not be able to influence their advertising or level of service.F) B) and E)
G) B) and D)

Question 5

An agreement between two franchisors in which the two franchisors offer their products together is called double franchising.

Accepted Answer

A) True 
 B)False

Question 6

What do small businesses as a group contribute to the U.S.economy?

Accepted Answer

Small businesses as a group play a cruci...

Question 7

Some advantages of the sole proprietorship also apply to the small business.

Accepted Answer

A) True 
 B)False

Question 8

What is a small-business institute? How does it help small-business owners?

Accepted Answer

A small-business institute is an organiz...

Question 9

Megan's business sells souvenirs and craft items to tourists in Myrtle Beach, South Carolina.This is an example of a ____ business.

Accepted Answer

A)   service
B)   communication
C)   production
D)   distribution
E)   wholesalingF) None of the above
G) B) and C)

Question 10

Society usually does not benefit from entrepreneurs who pursue their individual goals; it is only the entrepreneurs who reap the benefits of their own work and creativity.

Accepted Answer

A) True 
 B)False

Question 11

To qualify as a small business, an agricultural company's maximum annual receipts must be no more than _____.

Accepted Answer

A)   $500,000
B)   $9 million
C)   $800,000
D)   $1 million
E)   $750,000F) A) and E)
G) B) and E)

Question 12

For those who like dealing with people, small business is the place to be.

Accepted Answer

A) True 
 B)False

Question 13

What is the main advantage of small business that helps retain effective employees who could earn more at a larger firm?

Accepted Answer

A)   better pay and employee benefits
B)   ability to adapt to change
C)   simplified record keeping
D)   limited ability to raise capital
E)   personal relationships with customers and employeesF) All of the above
G) D) and E)

Question 14

Which statement best describes the general success rate for franchises?

Accepted Answer

A)   Franchises, like other small businesses, have a very high rate of failure.
B)   Franchises are slightly more successful overall than other types of businesses.
C)   Franchises have about a 50 percent chance of being successful.
D)   Franchises have a very high success rate compared to other small businesses.
E)   Obtaining a franchise is a guarantee for a successful business.F) B) and D)
G) B) and E)

Question 15

Franchising is limited only to fast foods.

Accepted Answer

A) True 
 B)False

Question 16

According to the Census Bureau and Federal Reserve surveys, about 50 percent of all new businesses begin with less than ____ in total capital.

Accepted Answer

A)   $1,000
B)   $25,000
C)   $30,000
D)   $50,000
E)   $100,000F) None of the above
G) B) and D)

Question 17

Which of the following is the most likely example of a production industry?

Accepted Answer

A)   wholesale outlet
B)   retail outlet
C)   financial enterprise
D)   subassembly plant
E)   transportation companyF) A) and B)
G) A) and E)

Question 18

A license to operate an individually owned business as though it were part of a chain is a franchise.

Accepted Answer

A) True 
 B)False

Question 19

Which organization issues management, marketing, and technical publications of interest to present and prospective small-business managers that can be obtained from the U.S.Government Printing Office?

Accepted Answer

A)   SBI
B)   SBIC
C)   SEC
D)   SBA
E)   SBDCF) None of the above
G) A) and D)

Question 20

What is the Small Business Administration? Who created it?

Accepted Answer

The Small Business Administration (SBA) ...

Exam 5: Small Business, Entrepreneurship, and Franchises

Some advantages of the sole proprietorship also apply to the small business.

Correct AnswerverifiedShow Answer

What is a small-business institute? How does it help small-business owners?

Correct AnswerAnswered by ExamLex AIA small-business institute is an organiz...View AnswerShow Answer

What is the main advantage of small business that helps retain effective employees who could earn more at a larger firm?

Correct AnswerverifiedShow Answer

A license to operate an individually owned business as though it were part of a chain is a franchise.

Correct AnswerverifiedShow Answer

According to the Census Bureau and Federal Reserve surveys, about 50 percent of all new businesses begin with less than ____ in total capital.

Correct AnswerverifiedShow Answer

The average size of an SBA-guaranteed business loan is about _____.

Correct AnswerverifiedShow Answer

Society usually does not benefit from entrepreneurs who pursue their individual goals; it is only the entrepreneurs who reap the benefits of their own work and creativity.

Correct AnswerverifiedShow Answer

Which of the following is the most likely example of a production industry?

Correct AnswerverifiedShow Answer

Which statement best describes the general success rate for franchises?

Correct AnswerverifiedShow Answer

Which organization issues management, marketing, and technical publications of interest to present and prospective small-business managers that can be obtained from the U.S.Government Printing Office?

Correct AnswerverifiedShow Answer

What is the Small Business Administration? Who created it?

Correct AnswerAnswered by ExamLex AIThe Small Business Administration (SBA) ...View AnswerShow Answer

A franchisor supplies all of the following except

Correct AnswerverifiedShow Answer

An agreement between two franchisors in which the two franchisors offer their products together is called double franchising.

Correct AnswerverifiedShow Answer

What do franchisees typically have to pay to the franchisor?

Correct AnswerverifiedShow Answer

For those who like dealing with people, small business is the place to be.

Correct AnswerverifiedShow Answer

Megan's business sells souvenirs and craft items to tourists in Myrtle Beach, South Carolina.This is an example of a ____ business.

Correct AnswerverifiedShow Answer

Franchising is limited only to fast foods.

Correct AnswerverifiedShow Answer

Kevin has considered selling franchises of his very successful hardware store.However, he is concerned that the franchises will destroy the reputation of the company and end up hurting his business.What advice would you give Kevin?

Correct AnswerverifiedShow Answer

To qualify as a small business, an agricultural company's maximum annual receipts must be no more than _____.

Correct AnswerverifiedShow Answer

What do small businesses as a group contribute to the U.S.economy?

Correct AnswerAnswered by ExamLex AISmall businesses as a group play a cruci...View AnswerShow Answer

Correct Answer
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Answered by ExamLex AI
A small-business institute is an organiz...
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
The Small Business Administration (SBA) ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
Small businesses as a group play a cruci...
View Answer