Question 1

A franchisor supplies all of the following except

Accepted Answer

A)  land to place the business on. 
B)  the name of the shop. 
C)  the methods of doing business. 
D)  any necessary training. 
E)  advertising materials. 
A)  land to place the business on. 
B)  the name of the shop. 
C)  the methods of doing business. 
D)  any necessary training. 
E)  advertising materials.

Question 2

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

Accepted Answer

A)  don't really like bill collectors much. 
B)  are more innovative than workers in large businesses. 
C)  are especially good at handling inventories in the warehouse to avoid damage and spoilage. 
D)  design ad campaigns that work especially well on network television. 
E)  pay little attention to their salary levels compared to similar workers in small businesses. 
A)  don't really like bill collectors much. 
B)  are more innovative than workers in large businesses. 
C)  are especially good at handling inventories in the warehouse to avoid damage and spoilage. 
D)  design ad campaigns that work especially well on network television. 
E)  pay little attention to their salary levels compared to similar workers in small businesses.

Question 3

Which of the following is not a reason for starting a small business?

Accepted Answer

A)  Desire to determine one's own destiny 
B)  Willingness to find and accept a challenge 
C)  Desire for a guaranteed financial return 
D)  Desire for independence 
E)  Desire to create a new business 
A)  Desire to determine one's own destiny 
B)  Willingness to find and accept a challenge 
C)  Desire for a guaranteed financial return 
D)  Desire for independence 
E)  Desire to create a new business

Question 4

David Fisher, a recently retired corporate executive, is becoming restless in his new role and would like to make this transition smoother by participating in the business community in some limited manner. Since David is financially secure and primarily interested in some sort of volunteer work, he should consider becoming involved with which of the following SBA programs?

Accepted Answer

A)  ACE 
B)  SBIC 
C)  SBDC 
D)  SBI 
E)  SCORE 
A)  ACE 
B)  SBIC 
C)  SBDC 
D)  SBI 
E)  SCORE

Question 5

What organization created by Congress in 1953 assists, counsels, and protects the interests of small businesses?

Accepted Answer

A)  SCORE 
B)  FTC 
C)  SBIC 
D)  SBA 
E)  SBDC 
A)  SCORE 
B)  FTC 
C)  SBIC 
D)  SBA 
E)  SBDC

Question 6

What is a small-business institute? How does it help small-business owners?

Accepted Answer

A small-business institute is an organiz

Question 7

Why is the failure rate lower for franchises than for independent businesses?

Accepted Answer

The failure rate for franchises is gener

Question 8

All franchisors give geographical protection to their franchise holders.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A)  Producer of semiconductors with 2,000 employees 
B)  Wholesaler with 50 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 
A)  Producer of semiconductors with 2,000 employees 
B)  Wholesaler with 50 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 10

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

Accepted Answer

The United States Small Business Adminis

Question 11

Why are small businesses prone to failure?

Accepted Answer

Small businesses are prone to failure fo

Question 12

Is franchising a guarantee of success? Explain.

Accepted Answer

Franchising is not a guarantee of succes

Question 13

To qualify as a small business, an agricultural company's maximum annual receipts must be no more than

Accepted Answer

A)  $500,000. 
B)  $9 million. 
C)  $800,000. 
D)  $1 million. 
E)  $750,000. 
A)  $500,000. 
B)  $9 million. 
C)  $800,000. 
D)  $1 million. 
E)  $750,000.

Question 14

Personal Wellness
Angela 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 her job, she noticed several things as causes of the business not doing as well as the owners were expecting. Angela has been thinking of starting her own small business because she feels she has learned a great deal through working for Personal Wellness.
Due to her education, attention to detail, and organization skills, Angela's manager asked her to create a business plan for Personal Wellness. The manager hoped that this plan would help organize, structure, and focus the business. As part of the plan, Angela suggested that Personal Wellness contact a group of senior and graduate students to provide management counseling for the company as she is concerned that her leaving the company may be detrimental to the slow, but forward, progress that the company is making and her connection with the owners is strong. Angela's most immediate concern is keeping the business from failing.
-Refer to Personal Wellness. A business plan should answer all of the following questions except

Accepted Answer

A)  "Which accounting firm will audit the company?" 
B)  "What exactly is the nature and mission of the new venture?" 
C)  "Why is this new enterprise a good idea?" 
D)  "How much will the new venture cost?" 
E)  "What are the entrepreneur's goals?" 
A)  "Which accounting firm will audit the company?" 
B)  "What exactly is the nature and mission of the new venture?" 
C)  "Why is this new enterprise a good idea?" 
D)  "How much will the new venture cost?" 
E)  "What are the entrepreneur's goals?"

Question 15

Professors at most universities are highly encouraged to participate in community service. What organization that provides low-cost courses and workshops would welcome management professors with an interest in small companies?

Accepted Answer

A)  SBDC 
B)  SBIC 
C)  SBA 
D)  SCORE 
E)  SBI 
A)  SBDC 
B)  SBIC 
C)  SBA 
D)  SCORE 
E)  SBI

Question 16

The disadvantages of small businesses include all of the following except

Accepted Answer

A)  limited potential for growth. 
B)  a high risk of failure. 
C)  no opportunity to support your family. 
D)  limited ability to raise capital. 
E)  limited advancement opportunities for employees. 
A)  limited potential for growth. 
B)  a high risk of failure. 
C)  no opportunity to support your family. 
D)  limited ability to raise capital. 
E)  limited advancement opportunities for employees.

Question 17

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. The international agency advising Mc-King would have recommended that it do all of the following except

Accepted Answer

A)  understand the laws and regulations governing franchising in each country. 
B)  understand that management must be from the home country to teach the new employees the way things are done. 
C)  thoroughly research the competitive situation. 
D)  check trade laws before buying a franchise in another country. 
E)  find out what support the franchisor offers in each country. 
A)  understand the laws and regulations governing franchising in each country. 
B)  understand that management must be from the home country to teach the new employees the way things are done. 
C)  thoroughly research the competitive situation. 
D)  check trade laws before buying a franchise in another country. 
E)  find out what support the franchisor offers in each country.

Question 18

In the 1970s, Steve Jobs and Steve Wozniak, the founders of Apple Computer, Inc., were creative, free-spirited individuals who decided that being corporate underlings was not what they wanted from a career. They had an innovative idea for a product and desired to create their own business based on this idea. All of the following are factors that could have led them to go into business except

Accepted Answer

A)  the independence. 
B)  the willingness to find and accept a challenge. 
C)  the desire to determine their own destiny. 
D)  the low risk and high rewards inherent in entrepreneurship. 
E)  entrepreneurial spirit. 
A)  the independence. 
B)  the willingness to find and accept a challenge. 
C)  the desire to determine their own destiny. 
D)  the low risk and high rewards inherent in entrepreneurship. 
E)  entrepreneurial spirit.

Question 19

An individual's desire to create a new business is referred to as

Accepted Answer

A)  the entrepreneurial spirit. 
B)  the desire for ownership. 
C)  self-determination. 
D)  self-evaluation. 
E)  the laissez-faire spirit. 
A)  the entrepreneurial spirit. 
B)  the desire for ownership. 
C)  self-determination. 
D)  self-evaluation. 
E)  the laissez-faire spirit.

Question 20

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

A franchisor supplies all of the following except

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

Which of the following is not a reason for starting a small business?

What organization created by Congress in 1953 assists, counsels, and protects the interests of small businesses?

What is a small-business institute? How does it help small-business owners?

Why is the failure rate lower for franchises than for independent businesses?

All franchisors give geographical protection to their franchise holders.

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

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

Why are small businesses prone to failure?

Is franchising a guarantee of success? Explain.

To qualify as a small business, an agricultural company's maximum annual receipts must be no more than

Professors at most universities are highly encouraged to participate in community service. What organization that provides low-cost courses and workshops would welcome management professors with an interest in small companies?

The disadvantages of small businesses include all of the following except

An individual's desire to create a new business is referred to as

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

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

Filters

Exam 5: Small Business, Entrepreneurship, and Franchises

A franchisor supplies all of the following except

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

Which of the following is not a reason for starting a small business?

What organization created by Congress in 1953 assists, counsels, and protects the interests of small businesses?

What is a small-business institute? How does it help small-business owners?

Why is the failure rate lower for franchises than for independent businesses?

All franchisors give geographical protection to their franchise holders.

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

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

Why are small businesses prone to failure?

Is franchising a guarantee of success? Explain.

To qualify as a small business, an agricultural company's maximum annual receipts must be no more than

Professors at most universities are highly encouraged to participate in community service. What organization that provides low-cost courses and workshops would welcome management professors with an interest in small companies?

The disadvantages of small businesses include all of the following except

An individual's desire to create a new business is referred to as

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

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

Filters