Question 1

The primary financial function of the Small Business Administration is to

Accepted Answer

A)  lend money.
B)  guarantee loans.
C)  find sources of financial aid.
D)  help owners apply for loans.
E)  provide aid only when a natural disaster occurs.F) B) and E)
G) B) and C)

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

In the early days of franchise agreements, franchising was used primarily for automobile dealerships and

Accepted Answer

A)  auto-parts stores.
B)  dry cleaners.
C)  fast-food outlets.
D)  larger restaurants.
E)  service stations.F) B) and D)
G) A) and E)

Question 4

SBA stands for

Accepted Answer

A)  Special Business Agency.
B)  Small Bond Administration.
C)  Society for Business Alliances.
D)  Special Business Association.
E)  Small Business Administration.F) B) and C)
G) A) and E)

Question 5

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 6

An individual's desire to create a new business is referred to as

Accepted Answer

A)  the entrepreneurial spirit.
B)  the desire for ownership.
C)  self-determination.
D)  self-evaluation.
E)  the laissez-faire spirit.F) B) and D)
G) A) and E)

Question 7

"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 Cindy's goals for the business?
D)  What is the nature and mission of the business?
E)  How often will the business advertise?F) D) and E)
G) B) and E)

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A)  Wholesale outlet
B)  Retail outlet
C)  Financial enterprise
D)  Subassembly plant
E)  Transportation companyF) A) and B)
G) All of the above

Question 10

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

Question 11

Francis wants to operate a business that represents (is one of)  99.7 percent of all employers in the United States. To do this she will operate a ​

Accepted Answer

A)  ​small business.
B)  ​multi-national corporation.
C)  ​foreign corporation.
D)  ​conglomerate.E) A) and D)
F) A) and C)

Question 12

Small businesses are typically managed by

Accepted Answer

A)  relatives.
B)  professional managers.
C)  friends.
D)  the people who start and own them.
E)  a board of directors.F) A) and B)
G) B) and C)

Exam 5: Small Business, Entrepreneurship, and Franchises

Small businesses are typically managed by

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

The primary financial function of the Small Business Administration is to

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

In the early days of franchise agreements, franchising was used primarily for automobile dealerships and

Correct Answer
verified

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

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

SBA stands for

Correct Answer
verified

Francis wants to operate a business that represents (is one of) 99.7 percent of all employers in the United States. To do this she will operate a

Correct Answer
verified

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

Correct Answer
verified

An individual's desire to create a new business is referred to as

Correct Answer
verified

Exam 5: Small Business, Entrepreneurship, and Franchises

Small businesses are typically managed by

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

Correct AnswerverifiedShow Answer

The primary financial function of the Small Business Administration is to

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

In the early days of franchise agreements, franchising was used primarily for automobile dealerships and

Correct AnswerverifiedShow Answer

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

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

SBA stands for

Correct AnswerverifiedShow Answer

Francis wants to operate a business that represents (is one of) 99.7 percent of all employers in the United States. To do this she will operate a ​

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An individual's desire to create a new business is referred to as

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

Francis wants to operate a business that represents (is one of) 99.7 percent of all employers in the United States. To do this she will operate a

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified