Exam 5: Small Business, Entrepreneurship, and Franchises

Eric decides to purchase and operate a SUBWAY restaurant. Eric is the

You have been running a successful art and framing shop for three years. You have decided to allow others to use your business name, materials, and methods in operating their own business for a fee. You are going to enter a

The disadvantages of franchising mainly affect the franchisee because the franchisor retains a great deal of control.

As a businessperson planning to open a new small business, you know that the business plan should not contain

The Hamptons enjoy owning and operating their own restaurant. They enjoy being the masters of their own destinies and closing down the restaurant for one week a year so that they can take a vacation. The Hamptons seem to enjoy which advantage of a small business?

Small businesses are typically managed by

Cindy compiles a business plan for a business she hopes to start. This plan should answer all of the following questions except

Why should small-business owners have good skills in working with people?

A friend of yours has recently received his MBA. He wants to open his own business but feels that it might be too risky at this point in his career. As an SBA counselor, you are able to advise him and explain more clearly to him some of the advantages and disadvantages of starting a small business. Which of the following statements best represents something you might tell him?

To qualify as a small business, a retailing establishment may not exceed annual sales of

Businesses are generally placed into three broad categories: service industries, production industries, and ____ industries.

Why do certain industries tend to be more attractive for the start-up of a small business?

A new small business, Underwater Wildlife, has opened to sell tours of underwater sites around the country and in South America. However, money has to be paid up front by the Underwater staff to book hotels and other travel arrangements before its clients have paid for the tours. That means Underwater is facing a potential

SBA stands for

In her small retail shop, Jocelyn knows most of her best customers by name and knows their preferences in clothing and shoes. This demonstrates which advantage of a small business?

Volunteers for SCORE are

What is the primary function of SBA financial assistance?

University-based groups providing individual counseling and practical training to owners of small businesses are known as

Tim owns a McDonald's franchise that is having some troubles. Where is Tim most likely to go for advice and guidance?

Marielena Lopez owns a Wendy's franchise. Marielena 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?