Question 1

The two principal parties in a franchising agreement are the _____.

Accepted Answer

A) manager and worker 
B) franchiser and partners 
C) franchisor and franchisee 
D) venture capitalist and SBA 
A) manager and worker 
B) franchiser and partners 
C) franchisor and franchisee 
D) venture capitalist and SBA

Question 2

Which of these is a drawback of franchising?

Accepted Answer

A) It necessitates the development of new business models for every franchise. 
B) It provides no opportunities for expansion. 
C) It restricts the business to a single geographical location. 
D) It deprives the franchisor of absolute control over his or her business. 
A) It necessitates the development of new business models for every franchise. 
B) It provides no opportunities for expansion. 
C) It restricts the business to a single geographical location. 
D) It deprives the franchisor of absolute control over his or her business.

Question 3

Unfortunately,more than half of all small businesses fail within the first year.

Accepted Answer

A) True 
 B)False

Question 4

Alternatives to private ownership include _____.

Accepted Answer

A) public ownership and collective ownership 
B) employee ownership and foreign corporations 
C) foreign corporations and public ownership 
D) employee ownership and collective ownership 
A) public ownership and collective ownership 
B) employee ownership and foreign corporations 
C) foreign corporations and public ownership 
D) employee ownership and collective ownership

Question 5

Who are the largest lenders to small businesses?

Accepted Answer

A) Commercial banks 
B) Retail chains 
C) Venture capitalists 
D) Investors 
A) Commercial banks 
B) Retail chains 
C) Venture capitalists 
D) Investors

Question 6

Successful franchises often minimize the amount of expansion opportunities.

Accepted Answer

A) True 
 B)False

Question 7

Over 50% of new jobs are generated by small businesses.

Accepted Answer

A) True 
 B)False

Question 8

One of the most important tasks for an entrepreneur is to create a business plan.

Accepted Answer

A) True 
 B)False

Question 9

The board of directors usually includes some individuals who are not employed by the corporation.These people are referred to as _____.

Accepted Answer

A) priority directors 
B) outside directors 
C) stockholders 
D) members of top management 
A) priority directors 
B) outside directors 
C) stockholders 
D) members of top management

Question 10

The franchisor provides all of the following services EXCEPT _____.

Accepted Answer

A) business training 
B) marketing programs 
C) name recognition 
D) on-site management 
A) business training 
B) marketing programs 
C) name recognition 
D) on-site management

Question 11

A major problem for most small businesses is securing adequate financing.

Accepted Answer

A) True 
 B)False

Question 12

The joining of two computer manufacturing companies will be an example of a _____.

Accepted Answer

A) conglomerate company 
B) horizontal merger 
C) vertical merger 
D) joint venture 
A) conglomerate company 
B) horizontal merger 
C) vertical merger 
D) joint venture

Question 13

Small businesses comprise ______% of all firms.

Accepted Answer

A) 50.5 
B) 99.9 
C) 75.8 
D) 66.7 
A) 50.5 
B) 99.9 
C) 75.8 
D) 66.7

Question 14

Which of the following is a benefit of franchising?

Accepted Answer

A) The failure of one franchise does not affect the brand. 
B) It offers several opportunities for the expansion of a business. 
C) It does not require any start-up cost. 
D) The founder of the business has absolute control over every franchise. 
A) The failure of one franchise does not affect the brand. 
B) It offers several opportunities for the expansion of a business. 
C) It does not require any start-up cost. 
D) The founder of the business has absolute control over every franchise.

Question 15

A business plan for a small business typically contains all of the following EXCEPT _____.

Accepted Answer

A) a statement of the company's goals 
B) an executive summary 
C) separate financial and marketing sections 
D) a time frame for selling stock to investors 
A) a statement of the company's goals 
B) an executive summary 
C) separate financial and marketing sections 
D) a time frame for selling stock to investors

Question 16

Although _____ are the most common type of business ownership,the greatest revenues come from _____.

Accepted Answer

A) sole proprietorships; partnerships 
B) sole proprietorships; corporations 
C) corporations; partnerships 
D) partnerships; corporations 
A) sole proprietorships; partnerships 
B) sole proprietorships; corporations 
C) corporations; partnerships 
D) partnerships; corporations

Question 17

Roshni owns Express FoodMart,the franchisee of a local retail shop.Which of the following will be one of Roshni's chief concerns regarding owning the franchise?

Accepted Answer

A) The franchisor does not provide her with the required supplies. 
B) The franchising agreement is too restrictive. 
C) The franchise has the benefit of name recognition. 
D) The franchisor can negotiate better deals on ingredients,supplies,and real estate,because of its financial strength. 
A) The franchisor does not provide her with the required supplies. 
B) The franchising agreement is too restrictive. 
C) The franchise has the benefit of name recognition. 
D) The franchisor can negotiate better deals on ingredients,supplies,and real estate,because of its financial strength.

Question 18

Luciana is a chief financial officer in a large corporation.She has the full financial authority to make appropriations and authorize expenditures.Luciana is likely to be a member of _____ management.

Accepted Answer

A) Middle 
B) advisory 
C) supervisory 
D) Top 
A) Middle 
B) advisory 
C) supervisory 
D) Top

Question 19

20th century innovations developed by small businesses include the personal computer and the zipper.

Accepted Answer

A) True 
 B)False

Question 20

One of the disadvantages of partnerships is that:

Accepted Answer

A) the partners are not covered by life insurance. 
B) all partners should have expertise in every area. 
C) the partners are exposed to unlimited financial liability. 
D) they are difficult to form and dissolve. 
A) the partners are not covered by life insurance. 
B) all partners should have expertise in every area. 
C) the partners are exposed to unlimited financial liability. 
D) they are difficult to form and dissolve.

The two principal parties in a franchising agreement are the _____.

Which of these is a drawback of franchising?

Unfortunately,more than half of all small businesses fail within the first year.

Alternatives to private ownership include _____.

Who are the largest lenders to small businesses?

Successful franchises often minimize the amount of expansion opportunities.

Over 50% of new jobs are generated by small businesses.

One of the most important tasks for an entrepreneur is to create a business plan.

The board of directors usually includes some individuals who are not employed by the corporation.These people are referred to as _____.

The franchisor provides all of the following services EXCEPT _____.

A major problem for most small businesses is securing adequate financing.

The joining of two computer manufacturing companies will be an example of a _____.

Small businesses comprise ______% of all firms.

Which of the following is a benefit of franchising?

A business plan for a small business typically contains all of the following EXCEPT _____.

Although _ are the most common type of business ownership,the greatest revenues come from _.

Roshni owns Express FoodMart,the franchisee of a local retail shop.Which of the following will be one of Roshni's chief concerns regarding owning the franchise?

Luciana is a chief financial officer in a large corporation.She has the full financial authority to make appropriations and authorize expenditures.Luciana is likely to be a member of _____ management.

20th century innovations developed by small businesses include the personal computer and the zipper.

One of the disadvantages of partnerships is that:

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Business Today

Competing in World Markets

Starting Your Own Business: the Entrepreneurship Alternative

Management,leadership,and the Internal Organization

Human Resource Management: From Recruitment to Labor Relations

Top Performance Through Empowerment,teamwork,and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

Understanding Accounting and Financial Statements

The Financial System

Financial Management

Trends in E-Commerce

Filters

Exam 5: Forms of Business Ownership and Organization

The two principal parties in a franchising agreement are the _____.

Which of these is a drawback of franchising?

Unfortunately,more than half of all small businesses fail within the first year.

Alternatives to private ownership include _____.

Who are the largest lenders to small businesses?

Successful franchises often minimize the amount of expansion opportunities.

Over 50% of new jobs are generated by small businesses.

One of the most important tasks for an entrepreneur is to create a business plan.

The board of directors usually includes some individuals who are not employed by the corporation.These people are referred to as _____.

The franchisor provides all of the following services EXCEPT _____.

A major problem for most small businesses is securing adequate financing.

The joining of two computer manufacturing companies will be an example of a _____.

Small businesses comprise ______% of all firms.

Which of the following is a benefit of franchising?

A business plan for a small business typically contains all of the following EXCEPT _____.

Although _____ are the most common type of business ownership,the greatest revenues come from _____.

Roshni owns Express FoodMart,the franchisee of a local retail shop.Which of the following will be one of Roshni's chief concerns regarding owning the franchise?

Luciana is a chief financial officer in a large corporation.She has the full financial authority to make appropriations and authorize expenditures.Luciana is likely to be a member of _____ management.

20th century innovations developed by small businesses include the personal computer and the zipper.

One of the disadvantages of partnerships is that:

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Business Today

Competing in World Markets

Starting Your Own Business: the Entrepreneurship Alternative

Management,leadership,and the Internal Organization

Human Resource Management: From Recruitment to Labor Relations

Top Performance Through Empowerment,teamwork,and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

Understanding Accounting and Financial Statements

The Financial System

Financial Management

Trends in E-Commerce

Filters

Although _ are the most common type of business ownership,the greatest revenues come from _.