Question 1

About half of small businesses are in the production industries.

Accepted Answer

A) True 
 B)False

Question 2

Tim owns a McDonald's franchise that is having some troubles.Where is Tim most likely to go for advice and guidance?

Accepted Answer

A)   the franchisor
B)   the SBA
C)   SCORE
D)   restaurant consultants
E)   the Chamber of CommerceF) D) and E)
G) A) and B)

Question 3

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

Question 4

Unlike nonfranchised business owners, franchise owners have little work to do.

Accepted Answer

A) True 
 B)False

Question 5

An investor who is considering investing in Diane's Burger Bar would not likely want to see her business plan.

Accepted Answer

A) True 
 B)False

Question 6

Why are small businesses prone to failure?

Accepted Answer

Small businesses are prone to failure fo...

Question 7

What is the most popular course offered by the SBA?

Accepted Answer

A)   a How to Get Rich Quick course
B)   a course about accounting for a small business
C)   a course that surveys eight to ten areas of business management
D)   a course on motivating and encouraging your employees
E)   a course on how to obtain more financing for your businessF) A) and B)
G) C) and D)

Question 8

Your friend has just been awarded a franchise in a particular industry.He explains that his franchisor has licensed him to sell and distribute a product to retailers.Knowing that this type of franchise arrangement is most common in one particular industry, you suspect that your friend has obtained a franchise in the ____ industry.

Accepted Answer

A)   gasoline
B)   automobile sales
C)   soft-drink
D)   fast-food
E)   furnitureF) B) and C)
G) None of the above

Question 9

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

Accepted Answer

Franchising can offer several advantages...

Question 10

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

Accepted Answer

There are several examples to support th...

Question 11

Megan always knew she wanted to start her own business.She was very passionate and wanted to create something new.Megan's primary motivation for starting her own business is

Accepted Answer

A)   her need for independence.
B)   her entrepreneurial spirit.
C)   her desire to determine her own destiny.
D)   the lack of good jobs in other companies.
E)   her background with her family.F) A) and B)
G) C) and D)

Question 12

Most Small Business Administration loans are actually made by

Accepted Answer

A)   the Small Business Administration.
B)   the government.
C)   private lenders.
D)   private foundations.
E)   insurance companies.F) A) and B)
G) A) and C)

Question 13

What is the Minority Business Development Agency? Why was it created?

Accepted Answer

The Minority Business Development Agency...

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Price Waterhouse, a large accounting firm, would be most properly classified in the ____ industry, whereas a grocery store such as Kroger would be included in the ____ industry.

Accepted Answer

A)   distribution; production
B)   service; distribution
C)   production; service
D)   service; production
E)   distribution; serviceF) B) and E)
G) D) and E)

Question 16

How can small businesses challenge larger, established firms?

Accepted Answer

Small businesses can challenge larger, e...

Question 17

To qualify as a small business, a retailing establishment may not exceed annual sales of _____.

Accepted Answer

A)   $1.2 million to $4 million
B)   $2.6 million to $5 million
C)   $3 million to $6 million
D)   $7 million
E)   $12.5 millionF) A) and C)
G) A) and E)

Question 18

In a franchise business, the party paying the franchise fee is known as the _____.

Accepted Answer

A)   franchisee
B)   franchisor
C)   entrepreneur
D)   business owner
E)   managerF) A) and C)
G) A) and B)

Question 19

Mary's cleaning business has several customers but is not dominant in its field.This is an example of a(n)  ____ business.

Accepted Answer

A)   entrepreneurship
B)   unsuccessful
C)   small
D)   manufacturing
E)   large corporateF) B) and E)
G) B) and D)

Question 20

All of the following are advantages to the franchisor except

Accepted Answer

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

Exam 5: Small Business, Entrepreneurship, and Franchises

Most Small Business Administration loans are actually made by

Correct Answer
verified

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

Correct Answer
Answered by ExamLex AI
Franchising can offer several advantages...
View Answer

Megan always knew she wanted to start her own business.She was very passionate and wanted to create something new.Megan's primary motivation for starting her own business is

Correct Answer
verified

In a franchise business, the party paying the franchise fee is known as the _____.

Correct Answer
verified

An investor who is considering investing in Diane's Burger Bar would not likely want to see her business plan.

Correct Answer
verified

Tim owns a McDonald's franchise that is having some troubles.Where is Tim most likely to go for advice and guidance?

Correct Answer
verified

Price Waterhouse, a large accounting firm, would be most properly classified in the industry, whereas a grocery store such as Kroger would be included in the industry.

Correct Answer
verified

All of the following are advantages to the franchisor except

Correct Answer
verified

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

Correct Answer
verified

Unlike nonfranchised business owners, franchise owners have little work to do.

Correct Answer
verified

Why are small businesses prone to failure?

Correct Answer
Answered by ExamLex AI
Small businesses are prone to failure fo...
View Answer

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

Correct Answer
Answered by ExamLex AI
There are several examples to support th...
View Answer

What is the Minority Business Development Agency? Why was it created?

Correct Answer
Answered by ExamLex AI
The Minority Business Development Agency...
View Answer

How can small businesses challenge larger, established firms?

Correct Answer
Answered by ExamLex AI
Small businesses can challenge larger, e...
View Answer

About half of small businesses are in the production industries.

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

What is the most popular course offered by the SBA?

Correct Answer
verified

To qualify as a small business, a retailing establishment may not exceed annual sales of _____.

Correct Answer
verified

Correct Answer
verified

Mary's cleaning business has several customers but is not dominant in its field.This is an example of a(n) ____ business.

Correct Answer
verified

Exam 5: Small Business, Entrepreneurship, and Franchises

Most Small Business Administration loans are actually made by

Correct AnswerverifiedShow Answer

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

Correct AnswerAnswered by ExamLex AIFranchising can offer several advantages...View AnswerShow Answer

Megan always knew she wanted to start her own business.She was very passionate and wanted to create something new.Megan's primary motivation for starting her own business is

Correct AnswerverifiedShow Answer

In a franchise business, the party paying the franchise fee is known as the _____.

Correct AnswerverifiedShow Answer

An investor who is considering investing in Diane's Burger Bar would not likely want to see her business plan.

Correct AnswerverifiedShow Answer

Tim owns a McDonald's franchise that is having some troubles.Where is Tim most likely to go for advice and guidance?

Correct AnswerverifiedShow Answer

Price Waterhouse, a large accounting firm, would be most properly classified in the ____ industry, whereas a grocery store such as Kroger would be included in the ____ industry.

Correct AnswerverifiedShow Answer

All of the following are advantages to the franchisor except

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Unlike nonfranchised business owners, franchise owners have little work to do.

Correct AnswerverifiedShow Answer

Why are small businesses prone to failure?

Correct AnswerAnswered by ExamLex AISmall businesses are prone to failure fo...View AnswerShow Answer

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

Correct AnswerAnswered by ExamLex AIThere are several examples to support th...View AnswerShow Answer

What is the Minority Business Development Agency? Why was it created?

Correct AnswerAnswered by ExamLex AIThe Minority Business Development Agency...View AnswerShow Answer

How can small businesses challenge larger, established firms?

Correct AnswerAnswered by ExamLex AISmall businesses can challenge larger, e...View AnswerShow Answer

About half of small businesses are in the production industries.

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

What is the most popular course offered by the SBA?

Correct AnswerverifiedShow Answer

To qualify as a small business, a retailing establishment may not exceed annual sales of _____.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Mary's cleaning business has several customers but is not dominant in its field.This is an example of a(n) ____ business.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
Franchising can offer several advantages...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Price Waterhouse, a large accounting firm, would be most properly classified in the industry, whereas a grocery store such as Kroger would be included in the industry.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
Small businesses are prone to failure fo...
View Answer

Correct Answer
Answered by ExamLex AI
There are several examples to support th...
View Answer

Correct Answer
Answered by ExamLex AI
The Minority Business Development Agency...
View Answer

Correct Answer
Answered by ExamLex AI
Small businesses can challenge larger, e...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified