Question 1

The acronym SCORE stands for

Accepted Answer

A)   Standard Card Options for Retirees.
B)   Sam's Cooperatives Operating in Reno.
C)   Service Corps of Retired Employees.
D)   Service Corps of Retired Executives.
E)   Sonoma City Options for Retired Employees.

Question 2

Chelsea is about to purchase a Baskin-Robbins franchise because she loves ice cream. How much work should Chelsea expect to have to do to make the franchise successful?

Accepted Answer

A)   Most franchisees simply hire managers to run the operations, so she will have to work very little.
B)   She will need to work about twenty hours a week to make sure things are running smoothly.
C)   She should expect to work very hard, putting in long hours about six days a week.
D)   She will have to work a standard forty-hour work week, just as she did at her previous corporate job.
E)   Her franchising agreement likely requires her to be at the store whenever it is open.

Question 3

Joe decides to start his own business designing websites for other businesses. Joe's business would be classified as a

Accepted Answer

A)   distribution business.
B)   retailer.
C)   production business.
D)   wholesaling business.
E)   service business.

Question 4

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

Accepted Answer

Franchising can offer several advantages...

Question 5

The purchaser of a franchise is called the franchisee.

Accepted Answer

A) True 
 B)False

Question 6

The following statement answers which major question that a business plan should address? "This business will serve over 200 customers by the end of the year and employ seven full-time employees."

Accepted Answer

A)   How much will the new business cost?
B)   Why is this new business a good idea?
C)   What are the goals for the business?
D)   What is the nature and mission of the business?
E)   How often will the business advertise?

Question 7

All of the following are advantages that small businesses have except

Accepted Answer

A)   the ability to adapt to change.
B)   personal relationships with their customers.
C)   simplified record keeping.
D)   independence.
E)   greater potential for making a profit.

Question 8

Franchising is limited only to fast foods.

Accepted Answer

A) True 
 B)False

Question 9

The SBA's website resource targeted at assisting women-owned business is known as the SBA's Online Women's Resource and Growth Center.

Accepted Answer

A) True 
 B)False

Question 10

Carmen Catucci is considering going into business. She wants to offer an income tax service. To minimize her chances of failure, she might consider

Accepted Answer

A)   buying a franchise.
B)   starting from scratch.
C)   dealing only with wealthy people.
D)   trying to enter the manufacturing industry instead.
E)   borrowing money from the SBA.

Question 11

The average size of an SBA-guaranteed business loan is about

Accepted Answer

A)   $25,000.
B)   $100,000.
C)   $200,000.
D)   $300,000.
E)   $500,000.

Question 12

Your friend, Shonta, started a graphic design firm about a year ago. The business has done well, but it needs a lot more equipment, computers, and employees to continue expanding. Shonta does not see any problem because she thinks she can easily get all the money she will need from her local bank. What advice might you give her?

Accepted Answer

A)   She is right―the bank is likely to lend her as much as she needs because banks primarily focus on supporting small businesses.
B)   She is crazy―banks do not lend money to small businesses but only to well- known, well-established organizations.
C)   She should sell her business immediately before it fails because most small businesses fail during the first five years.
D)   She should not accept any new clients so that she can end the need to add additional equipment and employees.
E)   She should consider alternative sources of financing because banks provide only about one-fourth of the total capital to small businesses.

Question 13

What can the Small Business Administration do for a small business?

Accepted Answer

The Small Business Administration (SBA) ...

Question 14

Which of the following was established to arbitrate disputes between franchisors and franchisees?

Accepted Answer

A)   Court system
B)   Federal Trade Commission
C)   National Franchise Mediation Program
D)   Partnership for Franchisees' Rights
E)   Association for Franchise Arbitration

Question 15

Small businesses are generally managed by professional managers.

Accepted Answer

A) True 
 B)False

Question 16

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.

Question 17

SCORE is a group of active business executives offering their services to small businesses for a fee.

Accepted Answer

A) True 
 B)False

Question 18

Mc-King Chicken
Brian decided to open a local franchise of the well-known Mc-King 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.
Mc-King has become quite successful domestically, and now it is exploring the possibility of opening franchises internationally. The company hired an international agency to help it learn what and what not to do. After the agency met with the managers of Mc-King a few times, the Mc-King management decided it would go ahead with its decision to expand internationally.
-Refer to Mc-King Chicken. Which of the following would be an advantage for Brian?

Accepted Answer

A)   Guidance from the franchisor
B)   Franchise holders paying for their security
C)   Disagreements increasing
D)   Contract disputes
E)   The franchisor maintaining a great deal of control

Question 19

Statistically, one can expect about two out of every three new businesses to fail within six years of their founding.

Accepted Answer

A) True 
 B)False

Question 20

The business plan should deceive neither investors nor loan officers and should convey accurate and realistic expectations of business potential.

Accepted Answer

A) True 
 B)False

Exam 5: Small Business, Entrepreneurship, and Franchises

Joe decides to start his own business designing websites for other businesses. Joe's business would be classified as a

Correct Answer
verified

What can the Small Business Administration do for a small business?

Correct Answer
Answered by ExamLex AI
The Small Business Administration (SBA) ...
View Answer

SCORE is a group of active business executives offering their services to small businesses for a fee.

Correct Answer
verified

Statistically, one can expect about two out of every three new businesses to fail within six years of their founding.

Correct Answer
verified

Chelsea is about to purchase a Baskin-Robbins franchise because she loves ice cream. How much work should Chelsea expect to have to do to make the franchise successful?

Correct Answer
verified

Franchising is limited only to fast foods.

Correct Answer
verified

The purchaser of a franchise is called the franchisee.

Correct Answer
verified

The average size of an SBA-guaranteed business loan is about

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

Which of the following was established to arbitrate disputes between franchisors and franchisees?

Correct Answer
verified

The SBA's website resource targeted at assisting women-owned business is known as the SBA's Online Women's Resource and Growth Center.

Correct Answer
verified

Small businesses are generally managed by professional managers.

Correct Answer
verified

The business plan should deceive neither investors nor loan officers and should convey accurate and realistic expectations of business potential.

Correct Answer
verified

The following statement answers which major question that a business plan should address? "This business will serve over 200 customers by the end of the year and employ seven full-time employees."

Correct Answer
verified

The acronym SCORE stands for

Correct Answer
verified

Carmen Catucci is considering going into business. She wants to offer an income tax service. To minimize her chances of failure, she might consider

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

Correct Answer
verified

Correct Answer
verified

All of the following are advantages that small businesses have except

Correct Answer
verified

Exam 5: Small Business, Entrepreneurship, and Franchises

Joe decides to start his own business designing websites for other businesses. Joe's business would be classified as a

Correct AnswerverifiedShow Answer

What can the Small Business Administration do for a small business?

Correct AnswerAnswered by ExamLex AIThe Small Business Administration (SBA) ...View AnswerShow Answer

SCORE is a group of active business executives offering their services to small businesses for a fee.

Correct AnswerverifiedShow Answer

Statistically, one can expect about two out of every three new businesses to fail within six years of their founding.

Correct AnswerverifiedShow Answer

Chelsea is about to purchase a Baskin-Robbins franchise because she loves ice cream. How much work should Chelsea expect to have to do to make the franchise successful?

Correct AnswerverifiedShow Answer

Franchising is limited only to fast foods.

Correct AnswerverifiedShow Answer

The purchaser of a franchise is called the franchisee.

Correct AnswerverifiedShow Answer

The average size of an SBA-guaranteed business loan is about

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

Which of the following was established to arbitrate disputes between franchisors and franchisees?

Correct AnswerverifiedShow Answer

The SBA's website resource targeted at assisting women-owned business is known as the SBA's Online Women's Resource and Growth Center.

Correct AnswerverifiedShow Answer

Small businesses are generally managed by professional managers.

Correct AnswerverifiedShow Answer

The business plan should deceive neither investors nor loan officers and should convey accurate and realistic expectations of business potential.

Correct AnswerverifiedShow Answer

The following statement answers which major question that a business plan should address? "This business will serve over 200 customers by the end of the year and employ seven full-time employees."

Correct AnswerverifiedShow Answer

The acronym SCORE stands for

Correct AnswerverifiedShow Answer

Carmen Catucci is considering going into business. She wants to offer an income tax service. To minimize her chances of failure, she might consider

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

All of the following are advantages that small businesses have except

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
The Small Business Administration (SBA) ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified