Question 1

To start any business,large or small,you must first have a general idea.

Accepted Answer

A) True 
 B)False

Question 2

All of the following have helped to create new opportunities abroad for small businesses except

Accepted Answer

A)  technological advances. 
B)  an increase in service exports. 
C)  free trade agreements. 
D)  communication advances. 
E)  deregulation. 
A)  technological advances. 
B)  an increase in service exports. 
C)  free trade agreements. 
D)  communication advances. 
E)  deregulation.

Question 3

Which of the following is not an advantage of small-business ownership?

Accepted Answer

A)  Lower cost of formation 
B)  Flexibility in decision making 
C)  Ability to focus on specific groups of customers 
D)  Low failure rate 
E)  Ability to gain a solid reputation 
A)  Lower cost of formation 
B)  Flexibility in decision making 
C)  Ability to focus on specific groups of customers 
D)  Low failure rate 
E)  Ability to gain a solid reputation

Question 4

Many service businesses are considered retailers because they

Accepted Answer

A)  sell small quantities of goods. 
B)  sell their services to consumers. 
C)  sell from a single store location. 
D)  open their businesses for the same hours that most retailers are open. 
E)  employ only a small number of people. 
A)  sell small quantities of goods. 
B)  sell their services to consumers. 
C)  sell from a single store location. 
D)  open their businesses for the same hours that most retailers are open. 
E)  employ only a small number of people.

Question 5

Which of the following is an advantage of small-business ownership?

Accepted Answer

A)  Lower cost of formation 
B)  Stress level 
C)  Failure rate 
D)  Lack of flexibility 
E)  Poor reputation 
A)  Lower cost of formation 
B)  Stress level 
C)  Failure rate 
D)  Lack of flexibility 
E)  Poor reputation

Question 6

Franchisees pay the franchiser a monthly or annual fee based on a percentage of sales or profits.

Accepted Answer

A) True 
 B)False

Question 7

A small business's ability to focus on narrow niches can help it develop

Accepted Answer

A)  a poor reputation. 
B)  lower startup costs. 
C)  higher costs. 
D)  flexibility. 
E)  an enviable reputation for quality and service. 
A)  a poor reputation. 
B)  lower startup costs. 
C)  higher costs. 
D)  flexibility. 
E)  an enviable reputation for quality and service.

Question 8

Which of the following is not part of the definition of a small business?

Accepted Answer

A)  It employs 1,000 or more employees. 
B)  It employs fewer than 500 employees. 
C)  It is independently owned. 
D)  It is not dominant in its field. 
E)  It is independently operated. 
A)  It employs 1,000 or more employees. 
B)  It employs fewer than 500 employees. 
C)  It is independently owned. 
D)  It is not dominant in its field. 
E)  It is independently operated.

Question 9

Persons or organizations that agree to provide some funds for a new business in exchange for ownership interest or stock are called

Accepted Answer

A)  entrepreneurs. 
B)  corporate raiders. 
C)  venture capitalists. 
D)  stockholders. 
E)  shareholders. 
A)  entrepreneurs. 
B)  corporate raiders. 
C)  venture capitalists. 
D)  stockholders. 
E)  shareholders.

Question 10

Which of the following is not a reason why small businesses choose to become retailers?

Accepted Answer

A)  Starting a retail business is relatively easy. 
B)  Retailing does not require a large capital investment. 
C)  It is easy to compete with large chains. 
D)  Gaining knowledge and experience in retailing is relatively easy. 
E)  The owner can capitalize on personal expertise or interests. 
A)  Starting a retail business is relatively easy. 
B)  Retailing does not require a large capital investment. 
C)  It is easy to compete with large chains. 
D)  Gaining knowledge and experience in retailing is relatively easy. 
E)  The owner can capitalize on personal expertise or interests.

Question 11

A precise statement of the rationale for a business and a step-by-step explanation of how it will achieve its goals is a

Accepted Answer

A)  mission statement. 
B)  corporate charter. 
C)  business plan. 
D)  corporate statement. 
E)  balance sheet. 
A)  mission statement. 
B)  corporate charter. 
C)  business plan. 
D)  corporate statement. 
E)  balance sheet.

Question 12

The money used to start a business and keep it running is also called

Accepted Answer

A)  capital. 
B)  trade. 
C)  currency. 
D)  leverage. 
E)  stock. 
A)  capital. 
B)  trade. 
C)  currency. 
D)  leverage. 
E)  stock.

Question 13

People who operate service businesses are almost never considered to be retailers.

Accepted Answer

A) True 
 B)False

Question 14

What is a business plan and why is it important?

Accepted Answer

The key element of any business success

Question 15

Downsizing is one way firms try to enhance their competitiveness.

Accepted Answer

A) True 
 B)False

To start any business,large or small,you must first have a general idea.

All of the following have helped to create new opportunities abroad for small businesses except

Which of the following is not an advantage of small-business ownership?

Many service businesses are considered retailers because they

Which of the following is an advantage of small-business ownership?

Franchisees pay the franchiser a monthly or annual fee based on a percentage of sales or profits.

A small business's ability to focus on narrow niches can help it develop

Which of the following is not part of the definition of a small business?

Persons or organizations that agree to provide some funds for a new business in exchange for ownership interest or stock are called

Which of the following is not a reason why small businesses choose to become retailers?

A precise statement of the rationale for a business and a step-by-step explanation of how it will achieve its goals is a

The money used to start a business and keep it running is also called

People who operate service businesses are almost never considered to be retailers.

What is a business plan and why is it important?

Downsizing is one way firms try to enhance their competitiveness.

The Dynamics of Business and Economics

Business Ethics and Social Responsibility

Business in a Borderless World

Options for Organizing Business

The Nature of Management

Organization, teamwork, and Communication

Managing Service and Manufacturing Operations

Motivating the Workforce

Managing Human Resources

Customer-Driven Marketing

Dimensions of Marketing Strategy

Digital Marketing and Social Networking

Accounting and Financial Statements

Money and the Financial System

Financial Management and Securities Markets

Filters

Exam 5: Small Business, entrepreneurship, and Franchising

To start any business,large or small,you must first have a general idea.

All of the following have helped to create new opportunities abroad for small businesses except

Which of the following is not an advantage of small-business ownership?

Many service businesses are considered retailers because they

Which of the following is an advantage of small-business ownership?

Franchisees pay the franchiser a monthly or annual fee based on a percentage of sales or profits.

A small business's ability to focus on narrow niches can help it develop

Which of the following is not part of the definition of a small business?

Persons or organizations that agree to provide some funds for a new business in exchange for ownership interest or stock are called

Which of the following is not a reason why small businesses choose to become retailers?

A precise statement of the rationale for a business and a step-by-step explanation of how it will achieve its goals is a

The money used to start a business and keep it running is also called

People who operate service businesses are almost never considered to be retailers.

What is a business plan and why is it important?

Downsizing is one way firms try to enhance their competitiveness.

The Dynamics of Business and Economics

Business Ethics and Social Responsibility

Business in a Borderless World

Options for Organizing Business

The Nature of Management

Organization, teamwork, and Communication

Managing Service and Manufacturing Operations

Motivating the Workforce

Managing Human Resources

Customer-Driven Marketing

Dimensions of Marketing Strategy

Digital Marketing and Social Networking

Accounting and Financial Statements

Money and the Financial System

Financial Management and Securities Markets

Filters