Question 1

The SBA's website resource targeted at assisting women-owned business is known as the SBA's Online Women's Resource and Growth Center.

Accepted Answer

A) True 
 B)False

Question 2

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

Question 3

A small-business investment company (SBIC)is a government agency that provides venture capital to small enterprises.

Accepted Answer

A) True 
 B)False

Question 4

All of the following are advantages that small businesses have except

Accepted Answer

A)   the ability to adapt to change.
B)   personal relationships with their customers.
C)   simplified record keeping.
D)   independence.
E)   greater potential for making a profit.F) A) and B)
G) A) and E)

Question 5

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

Question 6

Your friend,Linda,started a graphic design firm about a year ago.The business has done well,but it needs a lot more equipment,computers,and employees to continue expanding.Linda does not see any problem because she thinks she can easily get all the money she will need from her local bank.What advice might you give her?

Accepted Answer

A)   She is right,the bank is likely to lend her as much as she needs because banks primarily focus on supporting small businesses.
B)   She is crazy,banks do not lend money to small businesses but only to well- known,well-established organizations.
C)   She should sell her business immediately before it fails because most small businesses fail during the first five years.
D)   She should not accept any new clients so that she can end the need to add additional equipment and employees.
E)   She should consider alternative sources of financing because banks provide only about one-fourth of the total capital to small businesses.F) A) and E)
G) A) and B)

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

By age 26,Marco was a plant manager in the snack-foods division.By 33,he headed the division,one of the most profitable in the corporation.Eventually,however,the company decided to move its corporate offices.Although he loved the job and thought the work was great,Marco's lifestyle was awful.He was on the road so often that he was giving up much of his family life.Marco had also become disenchanted with corporate life.He saw that the closer one got to the top,the more vulnerable one's position became.Thus,Marco left the corporation to start his own snack-foods company.His thoughts and actions most clearly reveal his

Accepted Answer

A)   entrepreneurial spirit.
B)   need for independence.
C)   desire to determine his own destiny.
D)   willingness to find and accept a challenge.
E)   lack of self-confidence.F) B) and D)
G) A) and C)

Question 9

Luis Fisher,a recently retired corporate executive,is becoming restless in his new role and would like to make this transition smoother by participating in the business community in some limited manner.Since Luis is financially secure and primarily interested in some sort of volunteer work,he should consider becoming involved with which of the following SBA programs?

Accepted Answer

A)   ACE
B)   SBIC
C)   SBDC
D)   SBI
E)   SCOREF) B) and E)
G) B) and D)

Question 10

Which of the following is not considered a category in the distribution industries?

Accepted Answer

A)   Manufacturing
B)   Wholesaling
C)   Retailing
D)   Transportation
E)   CommunicationsF) D) and E)
G) A) and C)

Question 11

Franchising experienced tremendous growth during the early 1930s.

Accepted Answer

A) True 
 B)False

Question 12

"This business will create a caring,learning environment for elementary school children after regular school hours to meet the needs of working parents." This statement answers which of the following issues that should be addressed in a business plan?

Accepted Answer

A)   How much will the new business cost?
B)   Why is this new business a good idea?
C)   What are Deborah's goals for the business?
D)   What is the nature and mission of the business?
E)   How often will the business advertise?F) C) and D)
G) A) and B)

Question 13

Some franchisors claim that contracts are unfairly tilted toward the franchisees.

Accepted Answer

A) True 
 B)False

Question 14

Some of the entrepreneurs' personal factors in small-business success include

Accepted Answer

A)   ​independence and a desire to determine one's own destiny.
B)   ​high I.Q.and advanced age.
C)   ​high I.Q.and youth.
D)   ​independence and access to large sums of capital.E) C) and D)
F) A) and B)

Question 15

Many small firms seek to establish a particular niche in the market,realizing that they cannot afford to operate on a larger scale without exposing themselves to considerable risk of retaliation from larger companies.When a number of small businesses are operating in this manner,they are forcing the larger businesses to recognize and account for their influence on the market.In this way,small businesses are primarily

Accepted Answer

A)   fostering competition.
B)   providing technical innovation.
C)   creating jobs.
D)   satisfying the needs of other businesses.
E)   avoiding competition.F) A) and E)
G) A) and D)

Question 16

Martin owns his own motorcycle and ATV store.He notices that many of his customers talk about golf while in his store.He quickly adds golf carts and golf clubs to his merchandise selection.Rapidly adjusting to the needs of his customers is possible because small businesses

Accepted Answer

A)   have personal relationships with their customers.
B)   have the ability to quickly adapt to change.
C)   are independent.
D)   have simplified record keeping.
E)   run the risk of failure.F) A) and B)
G) A) and C)

Question 17

Which of the following is not a reason for starting a small business?

Accepted Answer

A)   Desire to determine one's own destiny
B)   Willingness to find and accept a challenge
C)   Desire for a guaranteed financial return
D)   Desire for independence
E)   Desire to create a new businessF) All of the above
G) A) and B)

Question 18

Cindy owns a 7-Eleven franchise.What is the primary disadvantage of owning a franchise for Cindy?

Accepted Answer

A)   She has to pay royalties to the franchisor.
B)   She cannot use her name as the restaurant name.
C)   The franchisor still retains a great deal of control.
D)   Cindy is not allowed to hire her own employees.
E)   Cindy may not find ways to improve operations.F) A) and D)
G) B) and E)

Question 19

Economically,the U.S.government is not concerned with whether or not small businesses make it.

Accepted Answer

A) True 
 B)False

Question 20

Money invested in small firms with the potential to become very successful is known as venture capital.

Accepted Answer

A) True 
 B)False

Exam 5: Small Business,Entrepreneurship,and Franchises

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 Answer
verified

Economically,the U.S.government is not concerned with whether or not small businesses make it.

Correct Answer
verified

Money invested in small firms with the potential to become very successful is known as venture capital.

Correct Answer
verified

A small-business investment company (SBIC)is a government agency that provides venture capital to small enterprises.

Correct Answer
verified

"This business will create a caring,learning environment for elementary school children after regular school hours to meet the needs of working parents." This statement answers which of the following issues that should be addressed in a business plan?

Correct Answer
verified

Correct Answer
verified

Which of the following is not considered a category in the distribution industries?

Correct Answer
verified

The SBA's website resource targeted at assisting women-owned business is known as the SBA's Online Women's Resource and Growth Center.

Correct Answer
verified

Martin owns his own motorcycle and ATV store.He notices that many of his customers talk about golf while in his store.He quickly adds golf carts and golf clubs to his merchandise selection.Rapidly adjusting to the needs of his customers is possible because small businesses

Correct Answer
verified

Correct Answer
verified

Which form of franchising is the most common today?

Correct Answer
verified

Some franchisors claim that contracts are unfairly tilted toward the franchisees.

Correct Answer
verified

Some of the entrepreneurs' personal factors in small-business success include

Correct Answer
verified

Correct Answer
verified

Franchising experienced tremendous growth during the early 1930s.

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

All of the following are advantages that small businesses have except

Correct Answer
verified

Cindy owns a 7-Eleven franchise.What is the primary disadvantage of owning a franchise for Cindy?

Correct Answer
verified

Which of the following is not a reason for starting a small business?

Correct Answer
verified

Exam 5: Small Business,Entrepreneurship,and Franchises

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

Economically,the U.S.government is not concerned with whether or not small businesses make it.

Correct AnswerverifiedShow Answer

Money invested in small firms with the potential to become very successful is known as venture capital.

Correct AnswerverifiedShow Answer

A small-business investment company (SBIC)is a government agency that provides venture capital to small enterprises.

Correct AnswerverifiedShow Answer

"This business will create a caring,learning environment for elementary school children after regular school hours to meet the needs of working parents." This statement answers which of the following issues that should be addressed in a business plan?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is not considered a category in the distribution industries?

Correct AnswerverifiedShow Answer

The SBA's website resource targeted at assisting women-owned business is known as the SBA's Online Women's Resource and Growth Center.

Correct AnswerverifiedShow Answer

Martin owns his own motorcycle and ATV store.He notices that many of his customers talk about golf while in his store.He quickly adds golf carts and golf clubs to his merchandise selection.Rapidly adjusting to the needs of his customers is possible because small businesses

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which form of franchising is the most common today?

Correct AnswerverifiedShow Answer

Some franchisors claim that contracts are unfairly tilted toward the franchisees.

Correct AnswerverifiedShow Answer

Some of the entrepreneurs' personal factors in small-business success include

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Franchising experienced tremendous growth during the early 1930s.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

All of the following are advantages that small businesses have except

Correct AnswerverifiedShow Answer

Cindy owns a 7-Eleven franchise.What is the primary disadvantage of owning a franchise for Cindy?

Correct AnswerverifiedShow Answer

Which of the following is not a reason for starting a small business?

Correct AnswerverifiedShow Answer

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