Question 1

Volunteers for SCORE are

Accepted Answer

A)   mostly university business professors.
B)   active executives from large corporations.
C)   generally either lawyers or accountants.
D)   graduate business students working on projects.
E)   retired businesspeople from different industries.F) C) and E)
G) A) and B)

Question 2

What is the primary function of SBA financial assistance?

Accepted Answer

The primary function of the U.S. Small B...

Question 3

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

Accepted Answer

A)   franchise.
B)   franchisee.
C)   licensor.
D)   franchisor.
E)   trainer.F) B) and C)
G) A) and D)

Question 4

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

Accepted Answer

Small-business owners should have good s...

Question 5

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

Accepted Answer

Certain industries tend to be more attra...

Question 6

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

Accepted Answer

A)   financial
B)   manufacturing
C)   distribution
D)   transportation
E)   retailingF) A) and C)
G) A) and B)

Question 7

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

Accepted Answer

A)   insurance difficulty.
B)   cash-flow problem.
C)   inventory-flow problem.
D)   business plan crunch.
E)   employee expansion task.F) A) and D)
G) A) and C)

Question 8

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

Accepted Answer

A)   joint venture.
B)   small-business development center.
C)   franchise agreement.
D)   venture capitalist agreement.
E)   business contraction.F) C) and D)
G) B) and C)

Question 9

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?

Accepted Answer

A)   Limited potential
B)   Personal relationships with customers
C)   Independence
D)   Personal relationships with employees
E)   Ability to adapt to changeF) A) and C)
G) B) and E)

Question 10

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

Accepted Answer

A)   The franchisor
B)   The SBA
C)   SCORE
D)   Restaurant consultants
E)   Chamber of CommerceF) D) and E)
G) A) and D)

Question 11

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

Accepted Answer

A)   How much will the new business cost?
B)   Why is this new business a good idea?
C)   What are Cindy's goals for the business?
D)   What is the nature and mission of the business?
E)   How often will the business have a sale?F) C) and E)
G) A) and E)

Question 12

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?

Accepted Answer

A)   Wendy's CEO
B)   Marielena Lopez
C)   The court system
D)   National Franchise Mediation Program
E)   Wendy's corporate lawyersF) All of the above
G) B) and C)

Question 13

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

Accepted Answer

A)   $1.2 million to $4 million.
B)   $2.6 million to $5 million.
C)   $3 million to $6 million.
D)   $7 million.
E)   $12.5 million.F) D) and E)
G) A) and B)

Question 14

Small businesses are typically managed by

Accepted Answer

A)   relatives.
B)   professional managers.
C)   friends.
D)   the people who start and own them.
E)   a board of directors.F) A) and D)
G) None of the above

Question 15

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

Accepted Answer

A)   a discussion of the nature and mission of the new business.
B)   information about how much it will cost to open and operate the new business.
C)   any mention of the businessperson's goals; financial institutions just aren't interested in these.
D)   an explanation of why opening a business of this type makes good business sense.
E)   pages and pages of detailed facts and figures.F) A) and B)
G) A) and C)

Question 16

SBA stands for

Accepted Answer

A)   Special Business Agency.
B)   Small Bond Administration.
C)   Society for Business Alliances.
D)   Special Business Association.
E)   Small Business Administration.F) A) and D)
G) B) and E)

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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?

Accepted Answer

A)   Although opening a small business is risky, there is practically unlimited potential.
B)   The cost of opening a small business is relatively low, and financing is easily obtained.
C)   Record keeping will be complicated, and public disclosure of most transactions is required.
D)   Small businesses foster personal relationships and offer flexibility and independence.
E)   Opening a small business is especially difficult because there is little help available for those desiring to do so.F) B) and D)
G) B) and E)

Question 19

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

Accepted Answer

A)   the Small Business Administration.
B)   small-business development centers.
C)   small-business institutes.
D)   special task forces.
E)   none of the above.F) A) and D)
G) A) and E)

Question 20

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?

Accepted Answer

A)   Ability to adapt to change
B)   Independence from customer's desires
C)   Simplified record keeping
D)   Personal relationships with customers
E)   Small customer baseF) None of the above
G) B) and C)

Exam 5: Small Business, Entrepreneurship, and Franchises

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

Correct Answer
verified

Small businesses are typically managed by

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
Answered by ExamLex AI
Certain industries tend to be more attra...
View Answer

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

Correct Answer
Answered by ExamLex AI
Small-business owners should have good s...
View Answer

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

SBA stands for

Correct Answer
verified

Volunteers for SCORE are

Correct Answer
verified

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

Correct Answer
verified

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?

Correct Answer
verified

What is the primary function of SBA financial assistance?

Correct Answer
Answered by ExamLex AI
The primary function of the U.S. Small B...
View Answer

Correct Answer
verified

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?

Correct Answer
verified

Exam 5: Small Business, Entrepreneurship, and Franchises

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

Correct AnswerverifiedShow Answer

Small businesses are typically managed by

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerAnswered by ExamLex AICertain industries tend to be more attra...View AnswerShow Answer

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

Correct AnswerAnswered by ExamLex AISmall-business owners should have good s...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

SBA stands for

Correct AnswerverifiedShow Answer

Volunteers for SCORE are

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

What is the primary function of SBA financial assistance?

Correct AnswerAnswered by ExamLex AIThe primary function of the U.S. Small B...View AnswerShow Answer

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
Certain industries tend to be more attra...
View Answer

Correct Answer
Answered by ExamLex AI
Small-business owners should have good s...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
The primary function of the U.S. Small B...
View Answer

Correct Answer
verified

Correct Answer
verified