Exam 5: Small Business, Entrepreneurship, and Franchises

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. Mc-King has become quite successful domestically, and now it is exploring the possibility of opening franchises internationally.The company hired an international agency to help it learn what and what not to do.After the agency met with the managers of Mc-King a few times, the Mc-King management decided it would go ahead with its decision to expand internationally. -Refer to Mc-King Chicken.Which of the following would not be an advantage of a franchise?

Small businesses are typically managed by people who started and own them.

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

Small businesses are generally managed by professional managers.

Small firms have traditionally added more than their proportional share of new jobs to the economy.

What is a common mistake that small-business owners make when their businesses begin growing?

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?

John and Ruby Couch just opened a computer store in a small community.Before opening the store, they listened to their SBA counselor's warnings about the importance of having balanced experience-that is, marketing, finance, and personnel experience-in the computer-store business because

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

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

Small-business investment companies

Imagine that you want to open your own small business.You will probably be most concerned with having

The fact that insulin and power steering both originated with individual inventors and small companies is testimony to the power of small businesses as providers of

Which of the following is an advantage to the franchisor in a franchise agreement?

David Fisher, a recently retired corporate executive, is becoming restless in his new role and would like to make this transition smoother by participating in the business community in some limited manner.Since David is financially secure and primarily interested in some sort of volunteer work, he should consider becoming involved with which of the following SBA programmes?

All of the following are advantages to the franchisor except

To qualify as a small business, an agricultural company's maximum annual receipts must be no more than

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

Small businesses are typically managed by

An investor who is considering investing in Moriah's Burger Bar would not likely want to see her business plan.