Question 1

What is a business plan? What are its components? Why is it so important?

Accepted Answer

A business plan is a carefully construct...

Question 2

Money that is invested in small and sometimes struggling firms that have the potential to become very successful is called

Accepted Answer

A)  seed money.
B)  franchise funds.
C)  SBA-guaranteed loans.
D)  growth funds.
E)  venture capital.F) A) and C)
G) A) and B)

Question 3

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.
-Refer to Mc-King Chicken. When Brian opens the Mc-King Chicken restaurant in his town, he would be known as the

Accepted Answer

A)  franchisor.
B)  franchising.
C)  franchise.
D)  franchisee.
E)  franchises.F) A) and C)
G) D) and E)

Question 4

Jamie applies for a small-business loan from the SBA. If he is approved for the loan, where will the money actually come from?

Accepted Answer

A)  The government
B)  Private lenders
C)  Venture capitalists
D)  The Small Business Administration
E)  Other small businessesF) A) and B)
G) A) and E)

Question 5

In a franchise, the franchisee gets the opportunity to start a business with limited capital and to make use of the business experience of others.

Accepted Answer

A) True 
 B)False

Question 6

Small businesses have traditionally added ____ new jobs to the economy.

Accepted Answer

A)  more than their proportional share of
B)  less than their proportional share of
C)  very few
D)  the highest paying
E)  the vast majority ofF) C) and D)
G) C) and E)

Question 7

A group of senior and graduate students in business administration providing management counseling to small businesses is known as a

Accepted Answer

A)  small-business administration.
B)  small-business development center.
C)  small-business institute.
D)  special task force.
E)  none of the above.F) D) and E)
G) None of the above

Question 8

It is rare that managers of small businesses lack the management skills necessary to run their businesses.

Accepted Answer

A) True 
 B)False

Question 9

Ben has been thinking about going into business. However, he has discounted entering automobile manufacturing because it

Accepted Answer

A)  requires little skill and knowledge.
B)  is not a part of the production industry.
C)  requires huge investments in machinery and equipment.
D)  is unprofitable.
E)  requires by law a corporate form of business.F) B) and D)
G) A) and E)

Question 10

For those who like dealing with people, small business is the place to be.

Accepted Answer

A) True 
 B)False

Question 11

About half of small businesses are in the production industries.

Accepted Answer

A) True 
 B)False

Question 12

The franchisee supplies

Accepted Answer

A)  the required training for the franchised business.
B)  a known and advertised business name.
C)  a method of doing business.
D)  the required materials for the franchised business.
E)  labor and capital, and owns and operates the outlet.F) B) and D)
G) A) and B)

Question 13

Approximately how many businesses are there in the United States?

Accepted Answer

A)  900,000
B)  11 million
C)  27 million
D)  1 billion
E)  4 billionF) D) and E)
G) A) and C)

Question 14

Beau works for a small pest-control company that has a total of five employees. From his point of view, the primary disadvantage of a small business is the

Accepted Answer

A)  risk of failure.
B)  limited ability to raise capital.
C)  limited potential for him to advance.
D)  personal relationship with his employer.
E)  complicated management structure.F) D) and E)
G) A) and E)

Question 15

In the past, the SBA could guarantee loans up to $5 million.

Accepted Answer

A) True 
 B)False

Question 16

Which statement best describes the general success rate for franchises?

Accepted Answer

A)  Franchises, like other small businesses, have a very high rate of failure.
B)  Franchises are slightly more successful overall than other types of businesses.
C)  Franchises have about a 50 percent chance of being successful.
D)  Franchises have a very high success rate compared to other small businesses.
E)  Obtaining a franchise is a guarantee for a successful business.F) A) and B)
G) C) and D)

Question 17

What are the advantages and disadvantages to the franchisee of having a franchise?

Accepted Answer

The franchisee gets the opportunity to s...

Question 18

A guaranteed SBA loan may be as large as

Accepted Answer

A)  $5 million.
B)  $3.5 million.
C)  $2.0 million.
D)  $1.5 million.
E)  $750,000.F) None of the above
G) A) and B)

Question 19

Which of the following would least likely be started as a small business?

Accepted Answer

A)  Flower shop
B)  Restaurant
C)  Electricity company
D)  Landscaping business
E)  Furniture repair storeF) A) and B)
G) A) and E)

Question 20

​Women were 51 percent of the U.S. population, and, according to the SBA, they owned at least ___ percent of all small businesses in 2012.

Accepted Answer

A)  ​30 percent
B)  ​25 percent
C)  ​50 percent
D)  ​70 percentE) A) and C)
F) All of the above

Exam 5: Small Business, Entrepreneurship, and Franchises

Women were 51 percent of the U.S. population, and, according to the SBA, they owned at least ___ percent of all small businesses in 2012.

Correct Answer
verified

Approximately how many businesses are there in the United States?

Correct Answer
verified

It is rare that managers of small businesses lack the management skills necessary to run their businesses.

Correct Answer
verified

Correct Answer
verified

Jamie applies for a small-business loan from the SBA. If he is approved for the loan, where will the money actually come from?

Correct Answer
verified

In the past, the SBA could guarantee loans up to $5 million.

Correct Answer
verified

What are the advantages and disadvantages to the franchisee of having a franchise?

Correct Answer
verified
The franchisee gets the opportunity to s...
View Answer

Beau works for a small pest-control company that has a total of five employees. From his point of view, the primary disadvantage of a small business is the

Correct Answer
verified

For those who like dealing with people, small business is the place to be.

Correct Answer
verified

What is a business plan? What are its components? Why is it so important?

Correct Answer
verified
A business plan is a carefully construct...
View Answer

Which of the following would least likely be started as a small business?

Correct Answer
verified

In a franchise, the franchisee gets the opportunity to start a business with limited capital and to make use of the business experience of others.

Correct Answer
verified

The franchisee supplies

Correct Answer
verified

Which statement best describes the general success rate for franchises?

Correct Answer
verified

About half of small businesses are in the production industries.

Correct Answer
verified

Small businesses have traditionally added ____ new jobs to the economy.

Correct Answer
verified

A group of senior and graduate students in business administration providing management counseling to small businesses is known as a

Correct Answer
verified

Money that is invested in small and sometimes struggling firms that have the potential to become very successful is called

Correct Answer
verified

A guaranteed SBA loan may be as large as

Correct Answer
verified

Ben has been thinking about going into business. However, he has discounted entering automobile manufacturing because it

Correct Answer
verified

Exam 5: Small Business, Entrepreneurship, and Franchises

​Women were 51 percent of the U.S. population, and, according to the SBA, they owned at least ___ percent of all small businesses in 2012.

Correct AnswerverifiedShow Answer

Approximately how many businesses are there in the United States?

Correct AnswerverifiedShow Answer

It is rare that managers of small businesses lack the management skills necessary to run their businesses.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Jamie applies for a small-business loan from the SBA. If he is approved for the loan, where will the money actually come from?

Correct AnswerverifiedShow Answer

In the past, the SBA could guarantee loans up to $5 million.

Correct AnswerverifiedShow Answer

What are the advantages and disadvantages to the franchisee of having a franchise?

Correct AnswerverifiedThe franchisee gets the opportunity to s...View AnswerShow Answer

Beau works for a small pest-control company that has a total of five employees. From his point of view, the primary disadvantage of a small business is the

Correct AnswerverifiedShow Answer

For those who like dealing with people, small business is the place to be.

Correct AnswerverifiedShow Answer

What is a business plan? What are its components? Why is it so important?

Correct AnswerverifiedA business plan is a carefully construct...View AnswerShow Answer

Which of the following would least likely be started as a small business?

Correct AnswerverifiedShow Answer

In a franchise, the franchisee gets the opportunity to start a business with limited capital and to make use of the business experience of others.

Correct AnswerverifiedShow Answer

The franchisee supplies

Correct AnswerverifiedShow Answer

Which statement best describes the general success rate for franchises?

Correct AnswerverifiedShow Answer

About half of small businesses are in the production industries.

Correct AnswerverifiedShow Answer

Small businesses have traditionally added ____ new jobs to the economy.

Correct AnswerverifiedShow Answer

A group of senior and graduate students in business administration providing management counseling to small businesses is known as a

Correct AnswerverifiedShow Answer

Money that is invested in small and sometimes struggling firms that have the potential to become very successful is called

Correct AnswerverifiedShow Answer

A guaranteed SBA loan may be as large as

Correct AnswerverifiedShow Answer

Ben has been thinking about going into business. However, he has discounted entering automobile manufacturing because it

Correct AnswerverifiedShow Answer

Women were 51 percent of the U.S. population, and, according to the SBA, they owned at least ___ percent of all small businesses in 2012.

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified
The franchisee gets the opportunity to s...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A business plan is a carefully construct...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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