Exam 5: Small Business and the Entrepreneur

Only 20 percent of small businesses survive after five years of operation.

When borrowing money from friends or family members,you should ________.

What is the worst thing that could happen to small business owners who use credit cards as a source of financing?

If an individual needs funds to finance a small business and does not want to finance the business using loans,what other sources of funding might be available? Briefly describe each potential source of funding and indicate what kind of business enterprise would be the ideal candidate for each source of funding.

Which of the following is LEAST likely to be a characteristic of successful entrepreneurs?

Only two-thirds of start-up businesses survive the first two years,and just over half survive after five years of operation.What are the most significant reasons that account for such a high rate of start-up business failures?

In the United States,small businesses hire a larger proportion of part-time workers than large corporations do.

Maggie wants to start a fine dining restaurant in her town and dreams someday of having a chain of restaurants all over the country.She can be considered a growth entrepreneur because she ________.

Isaac is a franchise owner of a fast food restaurant.When another franchisee is accused of using artificial meat in its hamburgers,sales at Isaac's franchise location drop dramatically.What disadvantage of franchising is BEST demonstrated by Isaac's situation?

Franchisees are independent third-party operators who market and sell a company's products or services under the company's name.

Many e-commerce businesses failed in the late 1990s because ________.

Which of the following is NOT an advantage of buying an existing business?

Which of the following does a franchise company offer to people who want to start a business?

Peter has applied for a loan to purchase a franchise of a popular convenience store in an area that is experiencing rapid population growth.If the loan is approved,it will MOST likely be because ________.

Joe is very confident about his purchase of a franchise from a well-known full-service restaurant company.What is one of the things he MOST likely did before he bought the franchise?

When a wealthy individual invests his or her own money into a business project or start-up company with little intention to influence decision making,he or she is MOST often called a(n)________.

Small business owners interested in venture capital funding should know that venture capitalists ________.

Advisory boards generally do NOT have the authority to ________.

A franchise is a method of doing business in which ________.

Sam is eager to start a local magazine that will include articles about health and fitness and provide a place for local health and fitness professionals to advertise their services.Which of the following does he NOT need to include in his business plan?