Question 1

The SBA is offering to help the nation's small-business owners enter world markets.SBA assistance includes all of the following except

Accepted Answer

A)   counseling on how to enter markets overseas.
B)   counseling on where to enter markets overseas.
C)   matching U.S.small-business executives with potential overseas customers.
D)   bringing small U.S.firms into direct contact with potential overseas buyers and partners.
E)   offering long-term loans to U.S.business owners.F) A) and C)
G) D) and E)

Question 2

Which of the following organizations would be considered a small business?

Accepted Answer

A)   Producer of semiconductors with 2,000 employees
B)   Wholesaler with 50 employees
C)   Retail clothing store chain with annual sales of $26 million
D)   Construction company with average annual receipts of $32 million
E)   Farmer with annual receipts of $10 millionF) A) and E)
G) D) and E)

Question 3

​A ____ purchases products in quantity from manufacturers and then resells them to retailers.

Accepted Answer

A)   ​wholesaler
B)   ​distribution hub
C)   ​importer
D)   ​exporterE) A) and C)
F) B) and D)

Question 4

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

Accepted Answer

A)   5
B)   10
C)   19
D)   31
E)   41F) B) and C)
G) C) and D)

Question 5

According to 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) A) and C)
G) A) and B)

Question 6

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

Question 7

Victor owns a highly successful bakery and coffee shop,Mocha & Muffins.Others have expressed interest in starting nearly identical shops at various locations.Victor 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)   He will only have to build as many shops as there are available franchisees.
B)   The franchisees will be highly motivated to succeed.
C)   He will not incur the high costs of constructing and operating more shops.
D)   He will be able to obtain low-interest loans for the new locations.
E)   He will be able to offer the franchisees free advice about their shops.F) None of the above
G) B) and E)

Question 8

The average length of an SBA loan is about twenty-five years.

Accepted Answer

A) True 
 B)False

Question 9

All of the following are advantages to the franchisor except

Accepted Answer

A)   fast and selective distribution of products.
B)   no involvement in national advertising campaigns.
C)   assurance of how the outlets will be maintained and operated.
D)   gains from the franchisee's high motivation.
E)   a freeing up of capital for expansion of goods and services.F) B) and C)
G) D) and E)

Question 10

Franchising is limited only to fast foods.

Accepted Answer

A) True 
 B)False

Question 11

Through her university,Marilyn 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) C) and E)
G) B) and C)

Question 12

Approximately how many businesses are there in the United States?

Accepted Answer

A)   900,000
B)   11 million
C)   27 million
D)   1 billion
E)   4 billionF) C) and D)
G) D) and E)

Question 13

What is the Small Business Administration? Who created it?

Accepted Answer

The Small Business Administration (SBA)i...

Question 14

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

Accepted Answer

A)   27
B)   35
C)   48
D)   72
E)   84F) A) and B)
G) B) and E)

Question 15

Jack works for a small pest-control company that has a total of five employees.From his point of view,the primary disadvantage of a small business is the

Accepted Answer

A)   risk of failure.
B)   limited ability to raise capital.
C)   limited potential for him to advance.
D)   personal relationship with his employer.
E)   complicated management structure.F) A) and C)
G) A) and B)

Question 16

​Jackie has been working for a local small business called Personal Wellness for the last three years.It is a retail business that sells sporting goods equipment.When she started to work there,she noticed several things that were possibly the cause of the business not doing as well as it hoped.Jackie has been thinking of starting her own small business because she feels she has learned much through working for Personal Wellness.
​Jackie's manager asked her to create a business plan for Personal Wellness.The manager hoped that this plan would put things into perspective to help the company do better.After creating the plan,Jackie suggested that Personal Wellness contact a group of senior and graduate students to provide management counseling for the company.Jackie wants to make sure that her leaving does not become the cause of the company going under.
-Refer to Personal Wellness.What is not one of the key reasons Personal Wellness would possibly fail?

Accepted Answer

A)   Capital
B)   Employees
C)   Management
D)   Money
E)   PlanningF) A) and B)
G) A) and C)

Question 17

Jessie'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) A) and E)
G) A) and D)

Question 18

What are the advantages and disadvantages to the franchisee of having a franchise?

Accepted Answer

The franchisee gets the opportunity to s...

Question 19

Money that is invested in small and sometimes struggling firms that have the potential to become very successful is called

Accepted Answer

A)   seed money.
B)   franchise funds.
C)   SBA-guaranteed loans.
D)   growth funds.
E)   venture capital.F) B) and E)
G) None of the above

Question 20

The business plan should deceive neither investors nor loan officers and should convey accurate and realistic expectations of business potential.

Accepted Answer

A) True 
 B)False

Exam 5: Small Business,Entrepreneurship,and Franchises

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

Correct Answer
verified

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

Correct Answer
verified

Jack works for a small pest-control company that has a total of five employees.From his point of view,the primary disadvantage of a small business is the

Correct Answer
verified

All of the following are advantages to the franchisor except

Correct Answer
verified

The SBA is offering to help the nation's small-business owners enter world markets.SBA assistance includes all of the following except

Correct Answer
verified

Approximately how many businesses are there in the United States?

Correct Answer
verified

The average length of an SBA loan is about twenty-five years.

Correct Answer
verified

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

Correct Answer
verified

What is the Small Business Administration? Who created it?

Correct Answer
verified
The Small Business Administration (SBA)i...
View Answer

Money that is invested in small and sometimes struggling firms that have the potential to become very successful is called

Correct Answer
verified

Victor owns a highly successful bakery and coffee shop,Mocha & Muffins.Others have expressed interest in starting nearly identical shops at various locations.Victor 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

Correct Answer
verified

The business plan should deceive neither investors nor loan officers and should convey accurate and realistic expectations of business potential.

Correct Answer
verified

A ____ purchases products in quantity from manufacturers and then resells them to retailers.

Correct Answer
verified

What are the advantages and disadvantages to the franchisee of having a franchise?

Correct Answer
verified
The franchisee gets the opportunity to s...
View Answer

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Which of the following organizations would be considered a small business?

Correct Answer
verified

Franchising is limited only to fast foods.

Correct Answer
verified

Exam 5: Small Business,Entrepreneurship,and Franchises

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Jack works for a small pest-control company that has a total of five employees.From his point of view,the primary disadvantage of a small business is the

Correct AnswerverifiedShow Answer

All of the following are advantages to the franchisor except

Correct AnswerverifiedShow Answer

The SBA is offering to help the nation's small-business owners enter world markets.SBA assistance includes all of the following except

Correct AnswerverifiedShow Answer

Approximately how many businesses are there in the United States?

Correct AnswerverifiedShow Answer

The average length of an SBA loan is about twenty-five years.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What is the Small Business Administration? Who created it?

Correct AnswerverifiedThe Small Business Administration (SBA)i...View AnswerShow Answer

Money that is invested in small and sometimes struggling firms that have the potential to become very successful is called

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The business plan should deceive neither investors nor loan officers and should convey accurate and realistic expectations of business potential.

Correct AnswerverifiedShow Answer

​A ____ purchases products in quantity from manufacturers and then resells them to retailers.

Correct AnswerverifiedShow Answer

What are the advantages and disadvantages to the franchisee of having a franchise?

Correct AnswerverifiedThe franchisee gets the opportunity to s...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following organizations would be considered a small business?

Correct AnswerverifiedShow Answer

Franchising is limited only to fast foods.

Correct AnswerverifiedShow 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
verified
The Small Business Administration (SBA)i...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

A ____ purchases products in quantity from manufacturers and then resells them to retailers.

Correct Answer
verified

Correct Answer
verified
The franchisee gets the opportunity to s...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified