Question 1

All of the following are reasons people go into business except the

Accepted Answer

A)  desire to create a new business. 
B)  willingness to accept a challenge. 
C)  guaranteed return on investment. 
D)  desire for independence. 
E)  desire to determine one's own destiny. 
A)  desire to create a new business. 
B)  willingness to accept a challenge. 
C)  guaranteed return on investment. 
D)  desire for independence. 
E)  desire to determine one's own destiny.

Question 2

Approximately what percentage of the jobs in the United States do small businesses provide?

Accepted Answer

A)  5 percent 
B)  10 percent 
C)  30 percent 
D)  Over 50 percent 
E)  Nearly 90 percent 
A)  5 percent 
B)  10 percent 
C)  30 percent 
D)  Over 50 percent 
E)  Nearly 90 percent

Question 3

Natalie owns a highly successful bakery and coffee shop, Mocha & Muffins. Others have expressed interest in starting nearly identical shops at various locations. Natalie decides to sell franchises of Mocha & Muffins. Why is this option a less expensive way to increase the distribution of her treats?

Accepted Answer

A)  She will only have to build as many shops as there are available franchisees. 
B)  The franchisees will be highly motivated to succeed. 
C)  She will not incur the high costs of constructing and operating more shops. 
D)  She will be able to obtain low-interest loans for the new locations. 
E)  She will be able to offer the franchisees free advice about their shops. 
A)  She will only have to build as many shops as there are available franchisees. 
B)  The franchisees will be highly motivated to succeed. 
C)  She will not incur the high costs of constructing and operating more shops. 
D)  She will be able to obtain low-interest loans for the new locations. 
E)  She will be able to offer the franchisees free advice about their shops.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

What is a small-business development center (SBDC)?

Accepted Answer

A Small Business Development Center (SBD

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

SCORE is a group of retired businesspeople who volunteer their services to small businesses through the SBA.

Accepted Answer

A) True 
 B)False

Question 8

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 9

Production industries make up approximately what percentage of all small businesses?

Accepted Answer

A)  5 
B)  10 
C)  19 
D)  31 
E)  41 
A)  5 
B)  10 
C)  19 
D)  31 
E)  41

Question 10

The main reason there are fewer production industries than distribution or service industries is that

Accepted Answer

A)  there are few things production industries manufacture. 
B)  production industries have no market. 
C)  production industries need a large initial investment. 
D)  there is little chance for profit in production industries. 
E)  few people want to work in production industries. 
A)  there are few things production industries manufacture. 
B)  production industries have no market. 
C)  production industries need a large initial investment. 
D)  there is little chance for profit in production industries. 
E)  few people want to work in production industries.

Question 11

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 company 
A)  Telephone company 
B)  Movie theaters 
C)  Financial enterprise 
D)  Subassembly plant 
E)  Transportation company

Question 12

An individual or organization granting a license to operate an individually owned business as though it were part of a chain of outlets or stores is a(n)

Accepted Answer

A)  franchise. 
B)  franchisor. 
C)  franchisee. 
D)  venture capitalist. 
E)  entrepreneur. 
A)  franchise. 
B)  franchisor. 
C)  franchisee. 
D)  venture capitalist. 
E)  entrepreneur.

Question 13

What is the Small Business Administration? Who created it?

Accepted Answer

The Small Business Administration (SBA)

Question 14

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)  furniture 
A)  gasoline 
B)  automobile sales 
C)  soft-drink 
D)  fast-food 
E)  furniture

Question 15

How has the SBA targeted providing assistance to women? What resources are available to women-owned businesses and why?

Accepted Answer

The Small Business Administration (SBA)

Question 16

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. 
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.

Question 17

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

Accepted Answer

Someone who is starting a new small busi

Question 18

All of the following are franchise establishments except

Accepted Answer

A)  McDonald's. 
B)  Walmart. 
C)  Holiday Inn. 
D)  Avis. 
E)  Dairy Queen. 
A)  McDonald's. 
B)  Walmart. 
C)  Holiday Inn. 
D)  Avis. 
E)  Dairy Queen.

Question 19

Society usually does not benefit from entrepreneurs who pursue their individual goals; it is only the entrepreneurs who reap the benefits of their own work and creativity.

Accepted Answer

A) True 
 B)False

Question 20

What are small-business investment companies?

Accepted Answer

Small Business Investment Companies (SBI

Exam 5: Small Business, Entrepreneurship, and Franchises

All of the following are reasons people go into business except the

Approximately what percentage of the jobs in the United States do small businesses provide?

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

What is a small-business development center (SBDC)?

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

SCORE is a group of retired businesspeople who volunteer their services to small businesses through the SBA.

A main disadvantage of a small business is that employees and customers usually develop too close of a relationship.

Production industries make up approximately what percentage of all small businesses?

The main reason there are fewer production industries than distribution or service industries is that

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

An individual or organization granting a license to operate an individually owned business as though it were part of a chain of outlets or stores is a(n)

What is the Small Business Administration? Who created it?

How has the SBA targeted providing assistance to women? What resources are available to women-owned businesses and why?

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

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

All of the following are franchise establishments except

Society usually does not benefit from entrepreneurs who pursue their individual goals; it is only the entrepreneurs who reap the benefits of their own work and creativity.

What are small-business investment companies?

Exploring the World of Business and Economics

A: Being Ethical and Socially Responsible

B: Being Ethical and Socially Responsible

A: Exploring Global Business

B: Exploring Global Business

Choosing a Form of Business Ownership

Understanding the Management Process

Creating a Flexible Organization

Producing Quality Goods and Services

Attracting and Retaining the Best Employees

Motivating and Satisfying Employees and Teams

Enhancing Union-Management Relations

Building Customer Relationships Through Effective Marketing

A: Creating and Pricing Products That Satisfy Customers

B: Creating and Pricing Products That Satisfy Customers

Wholesaling, Retailing, and Physical Distribution

Developing Integrated Marketing Communications

Social Media, E-Business, and Accounting

Using Management and Accounting Information

Understanding Money, Banking, and Credit

Mastering Financial Management

A: Understanding Personal Finances and Investments

B: Understanding Personal Finances and Investments

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