Question 1

The average life for an SBA-guaranteed business loan is ____ years.

Accepted Answer

A)   twenty-five
B)   eighteen
C)   fifteen
D)   twelve
E)   eightF) B) and E)
G) D) and E)

Question 2

The SBA has defined a small business as one independently owned, operated for profit, and not dominant in its field.

Accepted Answer

A) True 
 B)False

Question 3

A company generally needs more than ____ employees in order to be considered large.

Accepted Answer

A)   50
B)   100
C)   300
D)   500
E)   1,000F) A) and B)
G) A) and E)

Question 4

Unlike nonfranchised business owners, franchise owners have little work to do.

Accepted Answer

A) True 
 B)False

Question 5

Small businesses are expected to remain the dominant form of organization in this country.

Accepted Answer

A) True 
 B)False

Question 6

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 employeesF) C) and D)
G) A) and D)

Question 7

Through her university, Gwen and her classmates work together to provide management counseling to small businesses in their community. This is called a

Accepted Answer

A)   small-business administration.
B)   small-business development center.
C)   small-business investment company.
D)   small-business institute.
E)   community improvement council.F) None of the above
G) All of the above

Question 8

Which of the following would least likely be started as a small business?

Accepted Answer

A)   Flower shop
B)   Restaurant
C)   Electricity company
D)   Landscaping business
E)   Furniture repair storeF) A) and C)
G) C) and D)

Question 9

How quickly can a small business respond to a new competitor moving into the same block? Why?

Accepted Answer

The speed at which a small business can ...

Question 10

Which of the following organizations aids small businesses with selling overseas?

Accepted Answer

A)   The U.S. Commercial Service
B)   The Federal Trade Commission
C)   Small-Business Investment Company
D)   Service Corps of Retired Executives
E)   The Small Business InstituteF) B) and E)
G) A) and B)

Question 11

Distribution industries account for approximately what percentage of all small businesses?

Accepted Answer

A)   20
B)   25
C)   33
D)   55
E)   70F) A) and B)
G) B) and C)

Question 12

Large firms generally buy parts and assemblies from smaller firms because

Accepted Answer

A)   doing so creates goodwill.
B)   they are required to do so by government regulations.
C)   they can control small businesses this way.
D)   it is less expensive than making their own.
E)   large firms want to keep small firms in business.F) A) and E)
G) A) and B)

Question 13

In a franchise business, the party paying the franchise fee is known as the

Accepted Answer

A)   franchisee.
B)   franchisor.
C)   entrepreneur.
D)   business owner.
E)   manager.F) A) and D)
G) A) and C)

Question 14

Most Small Business Administration loans are actually made by

Accepted Answer

A)   the Small Business Administration.
B)   the government.
C)   private lenders.
D)   private foundations.
E)   insurance companies.F) A) and D)
G) B) and C)

Question 15

What 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) B) and C)
G) C) and D)

Question 16

Imagine that you want to open your own small business. You will probably be most concerned with having

Accepted Answer

A)   a lot of inventory in the warehouse on opening day.
B)   a really good lawyer and an even better accountant.
C)   the best Madison Avenue ad agency money can buy.
D)   a good source of capital and good management skills.
E)   a top-notch marketing consultant and a lot of inventory in the warehouse.F) C) and D)
G) A) and C)

Question 17

Ben has been thinking about going into business. However, he has discounted entering automobile manufacturing because it

Accepted Answer

A)   requires little skill and knowledge.
B)   is not a part of the production industry.
C)   requires huge investments in machinery and equipment.
D)   is unprofitable.
E)   requires by law a corporate form of business.F) B) and D)
G) C) and D)

Question 18

Which form of franchising is the most common today?

Accepted Answer

A)   Franchising has become a very unpopular option and is used infrequently today.
B)   A manufacturer authorizes a number of retail stores to sell a certain brand- name item.
C)   A producer licenses distributors to sell a given product to retailers.
D)   A distributor authorizes a producer to make and sell a given product to the ultimate consumer.
E)   A franchisor supplies brand names, techniques, or other services instead of a complete product.F) All of the above
G) None of the above

Question 19

What are some industries that attract small businesses?

Accepted Answer

Small businesses are attracted to a vari...

Question 20

Which of the following is an advantage to the franchisor in a franchise agreement?

Accepted Answer

A)   Opportunity to start a business with limited capital
B)   Access to local advertising materials
C)   Fast and selective distribution of products
D)   Chance to participate in national advertising
E)   Chance to minimize costs through cooperative buyingF) A) and E)
G) A) and B)

Exam 5: Small Business, Entrepreneurship, and Franchises

The average life for an SBA-guaranteed business loan is ____ years.

Correct AnswerverifiedShow Answer

What are some industries that attract small businesses?

Correct AnswerAnswered by ExamLex AISmall businesses are attracted to a vari...View AnswerShow Answer

Which of the following organizations aids small businesses with selling overseas?

Correct AnswerverifiedShow Answer

Through her university, Gwen and her classmates work together to provide management counseling to small businesses in their community. This is called a

Correct AnswerverifiedShow Answer

Ben has been thinking about going into business. However, he has discounted entering automobile manufacturing because it

Correct AnswerverifiedShow Answer

Imagine that you want to open your own small business. You will probably be most concerned with having

Correct AnswerverifiedShow Answer

A company generally needs more than ____ employees in order to be considered large.

Correct AnswerverifiedShow Answer

What 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

How quickly can a small business respond to a new competitor moving into the same block? Why?

Correct AnswerAnswered by ExamLex AIThe speed at which a small business can ...View AnswerShow Answer

Unlike nonfranchised business owners, franchise owners have little work to do.

Correct AnswerverifiedShow 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

Distribution industries account for approximately what percentage of all small businesses?

Correct AnswerverifiedShow Answer

Which form of franchising is the most common today?

Correct AnswerverifiedShow Answer

Most Small Business Administration loans are actually made by

Correct AnswerverifiedShow Answer

Small businesses are expected to remain the dominant form of organization in this country.

Correct AnswerverifiedShow Answer

In a franchise business, the party paying the franchise fee is known as the

Correct AnswerverifiedShow Answer

Which of the following would least likely be started as a small business?

Correct AnswerverifiedShow Answer

The SBA has defined a small business as one independently owned, operated for profit, and not dominant in its field.

Correct AnswerverifiedShow Answer

Which of the following is an advantage to the franchisor in a franchise agreement?

Correct AnswerverifiedShow Answer

Large firms generally buy parts and assemblies from smaller firms because

Correct AnswerverifiedShow Answer

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Small businesses are attracted to a vari...
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The speed at which a small business can ...
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