Question 1

About half of small businesses are in the production industries.

Accepted Answer

A) True 
 B)False

Question 2

According to a recent survey, approximately what percentage of all new businesses can be expected to survive their first ten years?

Accepted Answer

A)   16
B)   23
C)   31
D)   46
E)   52F) C) and D)
G) B) and C)

Question 3

Few people take advantage of their freedom to start a business.

Accepted Answer

A) True 
 B)False

Question 4

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 C)
G) C) 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

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

Question 7

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 million.F) B) and C)
G) D) and E)

Question 8

The SBA makes a special effort to

Accepted Answer

A)   assist minorities wanting to start small businesses or expand existing ones.
B)   send SCORE programme executives to high schools.
C)   hand-deliver their publications.
D)   raise money for small businesses.
E)   encourage teenage entrepreneurship.F) A) and E)
G) A) and D)

Question 9

"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) C) and D)
G) A) and B)

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Suppose that Diane plans to open a new, deluxe hamburger bar near your college.Her business plan most likely would not include

Accepted Answer

A)   the nature and mission of her new business.
B)   an explanation of why the new business is a good idea.
C)   a detailed discussion of her goals.
D)   an actual sample of the product.
E)   an analysis of costs.F) A) and E)
G) C) and D)

Question 12

Money that is invested in small and sometimes struggling firms that have the potential to become very successful is called

Accepted Answer

A)   seed money.
B)   franchise funds.
C)   SBA-guaranteed loans.
D)   growth funds.
E)   venture capital.F) A) and E)
G) C) and D)

Question 13

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

Question 14

New ways to do a job with less effort and at lower cost is the basic principle characterising 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) None of the above
G) B) and E)

Question 15

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

Accepted Answer

A)   Telephone company
B)   Movie theaters
C)   Financial enterprise
D)   Subassembly plant
E)   Transportation companyF) B) and C)
G) All of the above

Question 16

A new business is built around the entrepreneur.

Accepted Answer

A) True 
 B)False

Question 17

Before seeking financial backing for his new business, Tyler puts together a concise document explaining the nature, mission, and goals of his new business and its expected costs and potential.Tyler has constructed a(n)

Accepted Answer

A)   marketing plan.
B)   organisational mission statement.
C)   business policy.
D)   business plan.
E)   organisational guide.F) A) and E)
G) B) and D)

Question 18

Mustaffah always knew he wanted to start his own business.He was very passionate and wanted to create something new.Mustaffah's primary motivation for starting his own business is

Accepted Answer

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

Question 19

Megan's business sells souvenirs and craft items to tourists on a beach.This is an example of a ____ business.

Accepted Answer

A)   Service
B)   communication
C)   production
D)   distribution
E)   wholesalingF) A) and B)
G) B) and D)

Question 20

You have decided to open a pet store and have engaged in a contract with Dog & Cat Centres, 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 & 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) C) and D)
G) C) and E)

Exam 5: Small Business, Entrepreneurship, and Franchises

Penicillin, airplanes, and air conditioning were all

Correct Answer
verified

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

Correct Answer
verified

According to a recent survey, approximately what percentage of all new businesses can be expected to survive their first ten years?

Correct Answer
verified

About half of small businesses are in the production industries.

Correct Answer
verified

Correct Answer
verified

Most Small Business Administration loans are actually made by

Correct Answer
verified

Megan's business sells souvenirs and craft items to tourists on a beach.This is an example of a ____ business.

Correct Answer
verified

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

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

Mustaffah always knew he wanted to start his own business.He was very passionate and wanted to create something new.Mustaffah's primary motivation for starting his own business is

Correct Answer
verified

A new business is built around the entrepreneur.

Correct Answer
verified

Money that is invested in small and sometimes struggling firms that have the potential to become very successful is called

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

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

Correct Answer
verified

Few people take advantage of their freedom to start a business.

Correct Answer
verified

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

Correct Answer
verified

The SBA makes a special effort to

Correct Answer
verified

Correct Answer
verified

Before seeking financial backing for his new business, Tyler puts together a concise document explaining the nature, mission, and goals of his new business and its expected costs and potential.Tyler has constructed a(n)

Correct Answer
verified

Suppose that Diane plans to open a new, deluxe hamburger bar near your college.Her business plan most likely would not include

Correct Answer
verified

Exam 5: Small Business, Entrepreneurship, and Franchises

Penicillin, airplanes, and air conditioning were all

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

According to a recent survey, approximately what percentage of all new businesses can be expected to survive their first ten years?

Correct AnswerverifiedShow Answer

About half of small businesses are in the production industries.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Most Small Business Administration loans are actually made by

Correct AnswerverifiedShow Answer

Megan's business sells souvenirs and craft items to tourists on a beach.This is an example of a ____ business.

Correct AnswerverifiedShow Answer

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

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

Mustaffah always knew he wanted to start his own business.He was very passionate and wanted to create something new.Mustaffah's primary motivation for starting his own business is

Correct AnswerverifiedShow Answer

A new business is built around the entrepreneur.

Correct AnswerverifiedShow Answer

Money that is invested in small and sometimes struggling firms that have the potential to become very successful is called

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

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

Correct AnswerverifiedShow Answer

Few people take advantage of their freedom to start a business.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The SBA makes a special effort to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Before seeking financial backing for his new business, Tyler puts together a concise document explaining the nature, mission, and goals of his new business and its expected costs and potential.Tyler has constructed a(n)

Correct AnswerverifiedShow Answer

Suppose that Diane plans to open a new, deluxe hamburger bar near your college.Her business plan most likely would not include

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

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