Question 1

What is the Service Corps of Retired Executives (SCORE)? How does it assist small-business owners?

Accepted Answer

The Service Corps of Retired Executives ...

Question 2

Evan Dean owns a Wendy's franchise.Evan feels that the franchisor is hurting his business by forcing him to use certain high-priced suppliers.The franchisor says that this power is implied in the franchise agreement.Who is likely to arbitrate this dispute?

Accepted Answer

A)   Wendy's CEO
B)   Evan Dean
C)   the court system
D)   National Franchise Mediation Program
E)   Wendy's corporate lawyers

Question 3

International trade will become more important to small-business owners in the new century.

Accepted Answer

A) True 
 B)False

Question 4

What is a business plan? What are its components? Why is it so important?

Accepted Answer

A business plan is a written document th...

Question 5

Service industries account for approximately what percentage of all small businesses?

Accepted Answer

A)   25
B)   35
C)   48
D)   70
E)   80

Question 6

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.

Question 7

Ben has been thinking about going into business.However, he has discounted entering automobile manufacturing because it

Accepted Answer

A)   requires little skill and knowledge.
B)   is not a part of the production industry.
C)   requires huge investments in machinery and equipment.
D)   is unprofitable.
E)   requires by law a corporate form of business.

Question 8

Sarah owns a Sonic Drive-In franchise.For Sarah what is the primary disadvantage of owning a franchise?

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)   Sarah is not allowed to hire her own employees.
E)   Sarah may not find ways to improve operations.

Question 9

Why is helping women to become entrepreneurs a special goal of the SBA?

Accepted Answer

The United States Small Business Adminis...

Question 10

What skills might someone who is starting a new small business need?

Accepted Answer

Someone who is starting a new small busi...

Question 11

Which of the following organizations would be considered a small business?

Accepted Answer

A)   producer of semiconductors with 2,000 employees
B)   wholesaler with fifty employees
C)   retail clothing store chain with annual sales of $26 million
D)   construction company with average annual receipts of $32 million
E)   farmer with annual receipts of $10 million

Question 12

What are the advantages of owning a small business? Give examples.

Accepted Answer

Owning a small business can have several...

Question 13

Small firms have traditionally added more than their proportional share of new jobs to the economy.

Accepted Answer

A) True 
 B)False

Question 14

Nathan's business constructs storage sheds for new housing developments as requested by the builders.Nathan's business would best be classified as a _____.

Accepted Answer

A)   service business
B)   retailer
C)   distribution business
D)   production business
E)   wholesaler

Question 15

There is much less likelihood of failure with a franchised outlet than with an independently owned small business.

Accepted Answer

A) True 
 B)False

Question 16

Is opening your own business usually a way to make big profits quickly? Support your view.

Accepted Answer

Opening your own business is often perce...

Question 17

What is the primary function of SBA financial assistance?

Accepted Answer

The primary function of the U.S. Small B...

Question 18

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.

Question 19

Give examples of how small businesses fill the needs of both society and other businesses.

Accepted Answer

Small businesses play a crucial role in ...

Question 20

Beau works for a small pest-control company that has a total of five employees.From his point of view, the primary disadvantage of a small business is the

Accepted Answer

A)   risk of failure.
B)   limited ability to raise capital.
C)   limited potential for him to advance.
D)   personal relationship with his employer.
E)   complicated management structure.

Exam 5: Small Business, Entrepreneurship, and Franchises

Why is helping women to become entrepreneurs a special goal of the SBA?

Correct AnswerAnswered by ExamLex AIThe United States Small Business Adminis...View AnswerShow Answer

What is a business plan? What are its components? Why is it so important?

Correct AnswerAnswered by ExamLex AIA business plan is a written document th...View AnswerShow Answer

What is the Service Corps of Retired Executives (SCORE)? How does it assist small-business owners?

Correct AnswerAnswered by ExamLex AIThe Service Corps of Retired Executives ...View AnswerShow Answer

Beau works for a small pest-control company that has a total of five employees.From his point of view, the primary disadvantage of a small business is the

Correct AnswerverifiedShow Answer

International trade will become more important to small-business owners in the new century.

Correct AnswerverifiedShow Answer

Evan Dean owns a Wendy's franchise.Evan feels that the franchisor is hurting his business by forcing him to use certain high-priced suppliers.The franchisor says that this power is implied in the franchise agreement.Who is likely to arbitrate this dispute?

Correct AnswerverifiedShow Answer

What skills might someone who is starting a new small business need?

Correct AnswerAnswered by ExamLex AISomeone who is starting a new small busi...View AnswerShow Answer

There is much less likelihood of failure with a franchised outlet than with an independently owned small business.

Correct AnswerverifiedShow Answer

SBA stands for

Correct AnswerverifiedShow Answer

Ben has been thinking about going into business.However, he has discounted entering automobile manufacturing because it

Correct AnswerverifiedShow Answer

Service industries account for approximately what percentage of all small businesses?

Correct AnswerverifiedShow Answer

What is the primary function of SBA financial assistance?

Correct AnswerAnswered by ExamLex AIThe primary function of the U.S. Small B...View AnswerShow Answer

Give examples of how small businesses fill the needs of both society and other businesses.

Correct AnswerAnswered by ExamLex AISmall businesses play a crucial role in ...View AnswerShow Answer

Which of the following organizations would be considered a small business?

Correct AnswerverifiedShow Answer

Is opening your own business usually a way to make big profits quickly? Support your view.

Correct AnswerAnswered by ExamLex AIOpening your own business is often perce...View AnswerShow Answer

Nathan's business constructs storage sheds for new housing developments as requested by the builders.Nathan's business would best be classified as a _____.

Correct AnswerverifiedShow Answer

What are the advantages of owning a small business? Give examples.

Correct AnswerAnswered by ExamLex AIOwning a small business can have several...View AnswerShow Answer

Sarah owns a Sonic Drive-In franchise.For Sarah what is the primary disadvantage of owning a franchise?

Correct AnswerverifiedShow Answer

Small firms have traditionally added more than their proportional share of new jobs to the economy.

Correct AnswerverifiedShow Answer

Which form of franchising is the most common today?

Correct AnswerverifiedShow Answer

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The United States Small Business Adminis...
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A business plan is a written document th...
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The Service Corps of Retired Executives ...
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Someone who is starting a new small busi...
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The primary function of the U.S. Small B...
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Small businesses play a crucial role in ...
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Answered by ExamLex AI
Opening your own business is often perce...
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Answered by ExamLex AI
Owning a small business can have several...
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