Question 1

A guaranteed SBA loan may be as large as

Accepted Answer

A)   $5 million.
B)   $3.5 million.
C)   $2.0 million.
D)   $1.5 million.
E)   $750,000.F) C) and D)
G) None of the above

Question 2

A friend of yours has recently received his MBA.He wants to open his own business but feels that it might be too risky at this point in his career.As an SBA counselor,you are able to advise him and explain more clearly to him some of the advantages and disadvantages of starting a small business.Which of the following statements best represents something you might tell him?

Accepted Answer

A)   Although opening a small business is risky,there is practically unlimited potential.
B)   The cost of opening a small business is relatively low,and financing is easily obtained.
C)   Record keeping will be complicated,and public disclosure of most transactions is required.
D)   Small businesses foster personal relationships and offer flexibility and independence.
E)   Opening a small business is especially difficult because there is little help available for those desiring to do so.F) C) and D)
G) A) and B)

Question 3

Penicillin,airplanes,and air conditioning were all

Accepted Answer

A)   invented in the nineteenth century.
B)   invented by Russians.
C)   created through government-sponsored research.
D)   created by individual inventors and small companies.
E)   created by large corporations.F) B) and D)
G) C) and E)

Question 4

Professors at most universities are highly encouraged to participate in community service.What organization that provides low-cost courses and workshops would welcome management professors with an interest in small companies?

Accepted Answer

A)   FDIC
B)   FDA
C)   SBA
D)   SCORE
E)   SBIF) B) and E)
G) All of the above

Question 5

George 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 George?

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) None of the above
G) A) and E)

Question 6

University-based groups providing individual counseling and practical training to owners of small businesses are known as

Accepted Answer

A)   the Small Business Administration.
B)   small-business development centers.
C)   small-business institutes.
D)   special task forces.
E)   none of these answer choices.F) C) and D)
G) B) and D)

Question 7

Small businesses account for all nongovernment employment.

Accepted Answer

A) True 
 B)False

Question 8

Large companies often find it less expensive to purchase parts from small companies than to manufacture their own.

Accepted Answer

A) True 
 B)False

Question 9

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) A) and E)
G) A) and B)

Question 10

Joel decides to purchase and operate a Subway restaurant.Joel is the

Accepted Answer

A)   franchise.
B)   franchisee.
C)   licensor.
D)   franchisor.
E)   trainer.F) A) and B)
G) All of the above

Question 11

Shai 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) A) and B)
G) A) and E)

Question 12

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) All of the above
G) A) and E)

Question 13

Why are small businesses prone to failure?

Accepted Answer

The most common reasons for failure incl...

Question 14

You have decided to open a pet store and have engaged in a contract with Dog N' Cat Centers,Inc.You and the company have drawn up an agreement that allows you to use the company's name and its proven method of doing business,to receive training,and to use its advertising materials.In this agreement,Dog N' Cat is the ____ and you are the ____.

Accepted Answer

A)   entrepreneur;corporation
B)   franchisor;franchisee
C)   employee;employer
D)   entrepreneur;local chain
E)   corporation;managerF) A) and B)
G) A) and E)

Question 15

Many entrepreneurs lack the management skills required to run a business.

Accepted Answer

A) True 
 B)False

Question 16

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) A) and B)
G) A) and C)

Question 17

Give examples to support the statement,"There must be some motivation to start a business."

Accepted Answer

Answers will vary.Motivation to start a ...

Question 18

All of the following are disadvantages to the franchisee except

Accepted Answer

A)   a loss of control.
B)   continuing royalty fees.
C)   hard work.
D)   a fee for advertising.
E)   starting a business with limited capital.F) A) and E)
G) C) and E)

Question 19

Data from 2017 from the Small Business Administration shows women-owned businesses as a dominate part of the U.S.economy.What were some of the findings of that data?

Accepted Answer

Answers will vary.Women owned at least 3...

Question 20

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) C) and E)
G) A) and E)

Exam 5: Small Business,Entrepreneurship,and Franchises

Why are small businesses prone to failure?

Correct Answer
verified
The most common reasons for failure incl...
View Answer

George 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 George?

Correct Answer
verified

Data from 2017 from the Small Business Administration shows women-owned businesses as a dominate part of the U.S.economy.What were some of the findings of that data?

Correct Answer
verified
Answers will vary.Women owned at least 3...
View Answer

Professors at most universities are highly encouraged to participate in community service.What organization that provides low-cost courses and workshops would welcome management professors with an interest in small companies?

Correct Answer
verified

A guaranteed SBA loan may be as large as

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Small businesses account for all nongovernment employment.

Correct Answer
verified

Penicillin,airplanes,and air conditioning were all

Correct Answer
verified

Many entrepreneurs lack the management skills required to run a business.

Correct Answer
verified

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

Correct Answer
verified

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

Give examples to support the statement,"There must be some motivation to start a business."

Correct Answer
verified
Answers will vary.Motivation to start a ...
View Answer

All of the following are disadvantages to the franchisee except

Correct Answer
verified

Correct Answer
verified

Large companies often find it less expensive to purchase parts from small companies than to manufacture their own.

Correct Answer
verified

University-based groups providing individual counseling and practical training to owners of small businesses are known as

Correct Answer
verified

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

Correct Answer
verified

Joel decides to purchase and operate a Subway restaurant.Joel is the

Correct Answer
verified

Exam 5: Small Business,Entrepreneurship,and Franchises

Why are small businesses prone to failure?

Correct AnswerverifiedThe most common reasons for failure incl...View AnswerShow Answer

George 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 George?

Correct AnswerverifiedShow Answer

Data from 2017 from the Small Business Administration shows women-owned businesses as a dominate part of the U.S.economy.What were some of the findings of that data?

Correct AnswerverifiedAnswers will vary.Women owned at least 3...View AnswerShow Answer

Professors at most universities are highly encouraged to participate in community service.What organization that provides low-cost courses and workshops would welcome management professors with an interest in small companies?

Correct AnswerverifiedShow Answer

A guaranteed SBA loan may be as large as

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Small businesses account for all nongovernment employment.

Correct AnswerverifiedShow Answer

Penicillin,airplanes,and air conditioning were all

Correct AnswerverifiedShow Answer

Many entrepreneurs lack the management skills required to run a business.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Give examples to support the statement,"There must be some motivation to start a business."

Correct AnswerverifiedAnswers will vary.Motivation to start a ...View AnswerShow Answer

All of the following are disadvantages to the franchisee except

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Large companies often find it less expensive to purchase parts from small companies than to manufacture their own.

Correct AnswerverifiedShow Answer

University-based groups providing individual counseling and practical training to owners of small businesses are known as

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Joel decides to purchase and operate a Subway restaurant.Joel is the

Correct AnswerverifiedShow Answer

Correct Answer
verified
The most common reasons for failure incl...
View Answer

Correct Answer
verified

Correct Answer
verified
Answers will vary.Women owned at least 3...
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
verified

Correct Answer
verified

Correct Answer
verified
Answers will vary.Motivation to start a ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified