Question 1

The fact that insulin and power steering both originated with individual inventors and small companies is testimony to the power of small businesses as providers of

Accepted Answer

A)   employment.
B)   competition.
C)   technical innovation.
D)   capital.
E)   quality products.F) C) and D)
G) None of the above

Question 2

Small businesses have traditionally added ____ new jobs to the economy.

Accepted Answer

A)   more than their proportional share of
B)   less than their proportional share of
C)   very few
D)   the highest paying
E)   the vast majority ofF) C) and E)
G) B) and E)

Question 3

Mc-Queen Chicken
​Lenny decided to open a local franchise of the well-known Mc-Queen Chicken,a fast-food restaurant.Before he took the initiative to open the franchise,he tried to weigh all the advantages and disadvantages.He decided,based on his research and understanding,that it would be beneficial to open a local fast-food restaurant.
-Refer to Mc-Queen Chicken.Which of the following would not be an advantage of a franchise?

Accepted Answer

A)   He gains fast and well-controlled distribution.
B)   He has more capital available to expand.
C)   Outlets are maintained and operated according to a set plan.
D)   He has the opportunity to start a business with limited capital.
E)   Success will cause another outlet to be opened nearby.F) A) and B)
G) C) and D)

Question 4

What are small-business investment companies? Name some companies that were financed through SBICs during their initial stages.

Accepted Answer

A small-business investment company (SBI...

Question 5

A small business is all of the following except

Accepted Answer

A)   independently owned.
B)   operated for profit.
C)   dominant in its field.
D)   difficult to manage.
E)   demanding of the owner's time and attention.F) A) and B)
G) C) and D)

Question 6

What is a common mistake that small-business owners make when their businesses begin growing?

Accepted Answer

A)   They sell more goods and services.
B)   They put too much money in advertising.
C)   They move beyond their local area.
D)   They overexpand without proper planning.
E)   They invest too much of their own money.F) None of the above
G) A) and B)

Question 7

Of the small businesses in the distribution industry,nearly three-quarters of them are involved in

Accepted Answer

A)   wholesaling.
B)   purchasing.
C)   service.
D)   retailing.
E)   communications.F) A) and E)
G) C) and D)

Question 8

To qualify as a small business,a manufacturing plant can employ no more than ____ people.

Accepted Answer

A)   500
B)   1,000
C)   2,000
D)   3,000
E)   3,500F) None of the above
G) A) and B)

Question 9

What do franchisees typically have to pay to the franchisor?

Accepted Answer

A)   One-time franchise fee
B)   Monthly royalties based on sales
C)   Nominal fee for business knowledge
D)   Approximately half of the franchise's profits each month
E)   One-time franchise fee and monthly royalties based on salesF) B) and D)
G) A) and B)

Question 10

Which of the following would most likely be classified as a distribution industry?

Accepted Answer

A)   Subassembly plant
B)   TV repair shop
C)   Insurance agency
D)   Grocery store
E)   Medical officeF) A) and C)
G) A) and E)

Question 11

About one-third of franchised businesses fail during the first two years of operation.

Accepted Answer

A) True 
 B)False

Question 12

A license to operate an individually owned business as though it were part of a chain is a franchise.

Accepted Answer

A) True 
 B)False

Question 13

A franchisor supplies all of the following except

Accepted Answer

A)   land to place the business on.
B)   the name of the shop.
C)   the methods of doing business.
D)   any necessary training.
E)   advertising materials.F) D) and E)
G) None of the above

Question 14

A.J.and April Couch just opened a computer store in a small community.Before opening the store,they listened to their SBA counselor's warnings about the importance of having balanced experience,that is,marketing,finance,and personnel experience in the computer-store business because

Accepted Answer

A)   their business is unlikely to grow and earn large business profits.
B)   the computer-store business is a fad.
C)   management know-how is insignificant to small-business success.
D)   small businesses survive large businesses by three years.
E)   about two out of three small firms close within five years of their founding.F) D) and E)
G) All of the above

Question 15

The franchisee supplies

Accepted Answer

A)   the required training for the franchised business.
B)   a known and advertised business name.
C)   a method of doing business.
D)   the required materials for the franchised business.
E)   labor and capital,and owns and operates the outlet.F) C) and D)
G) B) and D)

Question 16

According to the SBA 2017 data,women-owned businesses are ____ and their risk of failure is ___ average.

Accepted Answer

A)   financially sound and credit-worthy;lower than
B)   not financially sound or credit-worthy;higher than
C)   equal to male-owned businesses in credit-worthiness;about equal to
D)   poorly run;greater thanE) B) and C)
F) All of the above

Question 17

Bryan applies for a small-business loan from the SBA.If he is approved for the loan,where will the money actually come from?

Accepted Answer

A)   The government
B)   Private lenders
C)   Venture capitalists
D)   The Small Business Administration
E)   Other small businessesF) A) and C)
G) A) and E)

Question 18

The incidence of innovation among small-business workers is significantly higher than that among workers in large businesses.

Accepted Answer

A) True 
 B)False

Question 19

The SBA is a private organization rather than a government agency.

Accepted Answer

A) True 
 B)False

Exam 5: Small Business,Entrepreneurship,and Franchises

A license to operate an individually owned business as though it were part of a chain is a franchise.

Correct Answer
verified

What is a common mistake that small-business owners make when their businesses begin growing?

Correct Answer
verified

Bryan applies for a small-business loan from the SBA.If he is approved for the loan,where will the money actually come from?

Correct Answer
verified

A small business is all of the following except

Correct Answer
verified

A.J.and April Couch just opened a computer store in a small community.Before opening the store,they listened to their SBA counselor's warnings about the importance of having balanced experience,that is,marketing,finance,and personnel experience in the computer-store business because

Correct Answer
verified

The franchisee supplies

Correct Answer
verified

Of the small businesses in the distribution industry,nearly three-quarters of them are involved in

Correct Answer
verified

The SBA is a private organization rather than a government agency.

Correct Answer
verified

According to the SBA 2017 data,women-owned businesses are __ and their risk of failure is _ average.

Correct Answer
verified

Correct Answer
verified

The incidence of innovation among small-business workers is significantly higher than that among workers in large businesses.

Correct Answer
verified

To qualify as a small business,a manufacturing plant can employ no more than ____ people.

Correct Answer
verified

The fact that insulin and power steering both originated with individual inventors and small companies is testimony to the power of small businesses as providers of

Correct Answer
verified

Small businesses have traditionally added ____ new jobs to the economy.

Correct Answer
verified

What do franchisees typically have to pay to the franchisor?

Correct Answer
verified

A franchisor supplies all of the following except

Correct Answer
verified

Which of the following would most likely be classified as a distribution industry?

Correct Answer
verified

What are small-business investment companies? Name some companies that were financed through SBICs during their initial stages.

Correct Answer
verified
A small-business investment company (SBI...
View Answer

About one-third of franchised businesses fail during the first two years of operation.

Correct Answer
verified

Exam 5: Small Business,Entrepreneurship,and Franchises

A license to operate an individually owned business as though it were part of a chain is a franchise.

Correct AnswerverifiedShow Answer

What is a common mistake that small-business owners make when their businesses begin growing?

Correct AnswerverifiedShow Answer

Bryan applies for a small-business loan from the SBA.If he is approved for the loan,where will the money actually come from?

Correct AnswerverifiedShow Answer

A small business is all of the following except

Correct AnswerverifiedShow Answer

A.J.and April Couch just opened a computer store in a small community.Before opening the store,they listened to their SBA counselor's warnings about the importance of having balanced experience,that is,marketing,finance,and personnel experience in the computer-store business because

Correct AnswerverifiedShow Answer

The franchisee supplies

Correct AnswerverifiedShow Answer

Of the small businesses in the distribution industry,nearly three-quarters of them are involved in

Correct AnswerverifiedShow Answer

The SBA is a private organization rather than a government agency.

Correct AnswerverifiedShow Answer

According to the SBA 2017 data,women-owned businesses are ____ and their risk of failure is ___ average.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The incidence of innovation among small-business workers is significantly higher than that among workers in large businesses.

Correct AnswerverifiedShow Answer

To qualify as a small business,a manufacturing plant can employ no more than ____ people.

Correct AnswerverifiedShow Answer

The fact that insulin and power steering both originated with individual inventors and small companies is testimony to the power of small businesses as providers of

Correct AnswerverifiedShow Answer

Small businesses have traditionally added ____ new jobs to the economy.

Correct AnswerverifiedShow Answer

What do franchisees typically have to pay to the franchisor?

Correct AnswerverifiedShow Answer

A franchisor supplies all of the following except

Correct AnswerverifiedShow Answer

Which of the following would most likely be classified as a distribution industry?

Correct AnswerverifiedShow Answer

What are small-business investment companies? Name some companies that were financed through SBICs during their initial stages.

Correct AnswerverifiedA small-business investment company (SBI...View AnswerShow Answer

About one-third of franchised businesses fail during the first two years of operation.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

According to the SBA 2017 data,women-owned businesses are __ and their risk of failure is _ average.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
A small-business investment company (SBI...
View Answer

Correct Answer
verified