Question 1

Small firms have traditionally added more than their proportional share of new jobs to the economy.

Accepted Answer

A) True 
 B)False

Question 2

Production industries make up approximately what percentage of all small businesses?

Accepted Answer

A)   5
B)   10
C)   19
D)   31
E)   41F) None of the above
G) B) and E)

Question 3

Approximately what percentage of the jobs in the United States do small businesses provide?

Accepted Answer

A)   5 percent
B)   10 percent
C)   30 percent
D)   Over 50 percent
E)   Nearly 90 percentF) C) and E)
G) A) and B)

Question 4

What is the Small Business Administration? Who created it?

Accepted Answer

The Small Business Administration (SBA) ...

Question 5

SCORE is a group of retired businesspeople who volunteer their services to small businesses through the SBA.

Accepted Answer

A) True 
 B)False

Question 6

What skills might someone who is starting a new small business need?

Accepted Answer

Someone who is starting a new small busi...

Question 7

The main reason there are fewer production industries than distribution or service industries is that

Accepted Answer

A)   there are few things production industries manufacture.
B)   production industries have no market.
C)   production industries need a large initial investment.
D)   there is little chance for profit in production industries.
E)   few people want to work in production industries.F) All of the above
G) A) and B)

Question 8

Natalie owns a highly successful bakery and coffee shop, Mocha & Muffins. Others have expressed interest in starting nearly identical shops at various locations. Natalie decides to sell franchises of Mocha & Muffins. Why is this option a less expensive way to increase the distribution of her treats?

Accepted Answer

A)   She will only have to build as many shops as there are available franchisees.
B)   The franchisees will be highly motivated to succeed.
C)   She will not incur the high costs of constructing and operating more shops.
D)   She will be able to obtain low-interest loans for the new locations.
E)   She will be able to offer the franchisees free advice about their shops.F) C) and D)
G) B) and D)

Question 9

Your friend has just been awarded a franchise in a particular industry. He explains that his franchisor has licensed him to sell and distribute a product to retailers. Knowing that this type of franchise arrangement is most common in one particular industry, you suspect that your friend has obtained a franchise in the ____ industry.

Accepted Answer

A)   gasoline
B)   automobile sales
C)   soft-drink
D)   fast-food
E)   furnitureF) A) and D)
G) A) and C)

Question 10

What is a small-business development center (SBDC)?

Accepted Answer

A Small Business Development Center (SBD...

Question 11

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 12

All of the following are reasons people go into business except the

Accepted Answer

A)   desire to create a new business.
B)   willingness to accept a challenge.
C)   guaranteed return on investment.
D)   desire for independence.
E)   desire to determine one's own destiny.F) C) and E)
G) A) and B)

Question 13

How has the SBA targeted providing assistance to women? What resources are available to women-owned businesses and why?

Accepted Answer

The Small Business Administration (SBA) ...

Question 14

New ways to do a job with less effort and at lower cost is the basic principle characterizing the

Accepted Answer

A)   increases in productivity for the past two hundred years.
B)   great desire to be an entrepreneur.
C)   motivation for owning a business.
D)   American way of life.
E)   way small businesses fill the needs of other businesses.F) A) and C)
G) None of the above

Question 15

What are small-business investment companies?

Accepted Answer

Small Business Investment Companies (SBI...

Question 16

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

Accepted Answer

A)   Telephone company
B)   Movie theaters
C)   Financial enterprise
D)   Subassembly plant
E)   Transportation companyF) B) and D)
G) A) and E)

Question 17

A main disadvantage of a small business is that employees and customers usually develop too close of a relationship.

Accepted Answer

A) True 
 B)False

Question 18

All of the following are franchise establishments except

Accepted Answer

A)   McDonald's.
B)   Walmart.
C)   Holiday Inn.
D)   Avis.
E)   Dairy Queen.F) B) and C)
G) A) and B)

Question 19

An individual or organization granting a license to operate an individually owned business as though it were part of a chain of outlets or stores is a(n)

Accepted Answer

A)   franchise.
B)   franchisor.
C)   franchisee.
D)   venture capitalist.
E)   entrepreneur.F) B) and C)
G) A) and B)

Question 20

Few Americans take advantage of their freedom to start a business.

Accepted Answer

A) True 
 B)False

Exam 5: Small Business, Entrepreneurship, and Franchises

An individual or organization granting a license to operate an individually owned business as though it were part of a chain of outlets or stores is a(n)

Correct Answer
verified

What are small-business investment companies?

Correct Answer
Answered by ExamLex AI
Small Business Investment Companies (SBI...
View Answer

How has the SBA targeted providing assistance to women? What resources are available to women-owned businesses and why?

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

What is the Small Business Administration? Who created it?

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

New ways to do a job with less effort and at lower cost is the basic principle characterizing the

Correct Answer
verified

All of the following are franchise establishments except

Correct Answer
verified

Production industries make up approximately what percentage of all small businesses?

Correct Answer
verified

What skills might someone who is starting a new small business need?

Correct Answer
Answered by ExamLex AI
Someone who is starting a new small busi...
View 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 Answer
verified

Approximately what percentage of the jobs in the United States do small businesses provide?

Correct Answer
verified

Natalie owns a highly successful bakery and coffee shop, Mocha & Muffins. Others have expressed interest in starting nearly identical shops at various locations. Natalie decides to sell franchises of Mocha & Muffins. Why is this option a less expensive way to increase the distribution of her treats?

Correct Answer
verified

Few Americans take advantage of their freedom to start a business.

Correct Answer
verified

The main reason there are fewer production industries than distribution or service industries is that

Correct Answer
verified

SCORE is a group of retired businesspeople who volunteer their services to small businesses through the SBA.

Correct Answer
verified

Correct Answer
verified

Small firms have traditionally added more than their proportional share of new jobs to the economy.

Correct Answer
verified

What is a small-business development center (SBDC)?

Correct Answer
Answered by ExamLex AI
A Small Business Development Center (SBD...
View Answer

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

Correct Answer
verified

A main disadvantage of a small business is that employees and customers usually develop too close of a relationship.

Correct Answer
verified

All of the following are reasons people go into business except the

Correct Answer
verified

Exam 5: Small Business, Entrepreneurship, and Franchises

An individual or organization granting a license to operate an individually owned business as though it were part of a chain of outlets or stores is a(n)

Correct AnswerverifiedShow Answer

What are small-business investment companies?

Correct AnswerAnswered by ExamLex AISmall Business Investment Companies (SBI...View AnswerShow Answer

How has the SBA targeted providing assistance to women? What resources are available to women-owned businesses and why?

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

What is the Small Business Administration? Who created it?

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

New ways to do a job with less effort and at lower cost is the basic principle characterizing the

Correct AnswerverifiedShow Answer

All of the following are franchise establishments except

Correct AnswerverifiedShow Answer

Production industries make up approximately what percentage of all small businesses?

Correct AnswerverifiedShow Answer

What skills might someone who is starting a new small business need?

Correct AnswerAnswered by ExamLex AISomeone who is starting a new small busi...View AnswerShow 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

Approximately what percentage of the jobs in the United States do small businesses provide?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Few Americans take advantage of their freedom to start a business.

Correct AnswerverifiedShow Answer

The main reason there are fewer production industries than distribution or service industries is that

Correct AnswerverifiedShow Answer

SCORE is a group of retired businesspeople who volunteer their services to small businesses through the SBA.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Small firms have traditionally added more than their proportional share of new jobs to the economy.

Correct AnswerverifiedShow Answer

What is a small-business development center (SBDC)?

Correct AnswerAnswered by ExamLex AIA Small Business Development Center (SBD...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

A main disadvantage of a small business is that employees and customers usually develop too close of a relationship.

Correct AnswerverifiedShow Answer

All of the following are reasons people go into business except the

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
Small Business Investment Companies (SBI...
View Answer

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

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
Someone who is starting a new small busi...
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
A Small Business Development Center (SBD...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified