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Exam 5: Small Business,Entrepreneurship,and Franchises

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Question 31

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The SBA has defined a small business as one independently owned,operated for profit,and not dominant in its field.

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Question 32

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Zully has obtained an SBA loan to start a new business in her town.She has an arrangement with Ford Motor Company to be the exclusive seller of Ford vehicles.She has used the SBA loan to purchase this dealership,purchase land,build the dealership buildings,and pay for all of the initial advertising.What is the most likely form of business she has adopted for this company?

A) She most likely has a manufacturing franchise.
B) She most likely has a producer distributor franchise.
C) She most likely has a brand franchise.
D) She most likely has an independent sales franchise.

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Question 33

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Maria owns and operates a catering business.This is an example of a

Mario Dean owns a Wendy's franchise.Mario 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?

The purchaser of a franchise is called the franchisee.

The various types of businesses attracting small business are generally grouped into service industries,distribution industries,and financial industries.

Devon has owned his own business for five years but is having trouble accounting for the business assets.He has read about the SBA SCORE Association and would like to have a SCORE volunteer mentor him.Which of the following most accurately explains the services and purpose of SCORE?

​Teenage entrepreneurship is growing especially in the _____ industry.

Studies have shown that the incidence of ______ among small-business workers is significantly higher than among workers in larger businesses.

About three-quarters of all small businesses are in the service industry.

​Jackie has been working for a local small business called Personal Wellness for the last three years.It is a retail business that sells sporting goods equipment.When she started to work there,she noticed several things that were possibly the cause of the business not doing as well as it hoped.Jackie has been thinking of starting her own small business because she feels she has learned much through working for Personal Wellness. ​Jackie's manager asked her to create a business plan for Personal Wellness.The manager hoped that this plan would put things into perspective to help the company do better.After creating the plan,Jackie suggested that Personal Wellness contact a group of senior and graduate students to provide management counseling for the company.Jackie wants to make sure that her leaving does not become the cause of the company going under. -Refer to Personal Wellness.When Jackie suggested that the company contact a group,what type of group was she referring to?

You have just opened a new small business.You're really happy to learn that studies show that small-business workers

All of the following are franchise establishments except

What is a franchise? Name several and popular franchises.

Which of the following statements is true regarding the profitability of new businesses?

Statistically,one can expect about 50 percent of new businesses to fail within five years of their founding.

What is the primary function of SBA financial assistance? Where do most SBA loans originate?

SBA stands for

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

Small-business investment companies