Question 1

A main disadvantage of a small business is that employees and customers usually develop too close of a relationship.

Accepted Answer

A) True 
 B)False  False

Question 2

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. 
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. E

Question 3

All of the following are franchise establishments except

Accepted Answer

A)  McDonald's. 
B)  Kmart. 
C)  Curves for Women. 
D)  H&R Block. 
E)  Sonic Drive-In Restaurants. 
A)  McDonald's. 
B)  Kmart. 
C)  Curves for Women. 
D)  H&R Block. 
E)  Sonic Drive-In Restaurants. B

Question 4

Natalie owns a highly successful bakery and coffee shop, Mocha & Muffins.Others have expressed interest in starting nearly identical shops at various locations.Natalie decides to sell franchises of Mocha & Muffins.Why is this option a less expensive way to increase the distribution of her treats?

Accepted Answer

A)  She will only have to build as many shops as there are available franchisees. 
B)  The franchisees will be highly motivated to succeed. 
C)  She will not incur the high costs of constructing and operating more shops. 
D)  She will be able to obtain low-interest loans for the new locations. 
E)  She will be able to offer the franchisees free advice about their shops. 
A)  She will only have to build as many shops as there are available franchisees. 
B)  The franchisees will be highly motivated to succeed. 
C)  She will not incur the high costs of constructing and operating more shops. 
D)  She will be able to obtain low-interest loans for the new locations. 
E)  She will be able to offer the franchisees free advice about their shops.

Question 5

The SBA is a private organization rather than a government agency.

Accepted Answer

A) True 
 B)False

Question 6

Before seeking financial backing for his new business, Tyler puts together a concise document explaining the nature, mission, and goals of his new business and its expected costs and potential.Tyler has constructed a(n) _____.

Accepted Answer

A)  marketing plan 
B)  organizational mission statement 
C)  business policy 
D)  business plan 
E)  organizational guide 
A)  marketing plan 
B)  organizational mission statement 
C)  business policy 
D)  business plan 
E)  organizational guide

Question 7

What is the primary reason that so many new businesses fail?

Accepted Answer

A)  owner does not work hard enough 
B)  mismanagement resulting from lack of business know-how 
C)  low employee quality for new businesses 
D)  lack of brand-name recognition 
E)  inability to compete with well-established brand names 
A)  owner does not work hard enough 
B)  mismanagement resulting from lack of business know-how 
C)  low employee quality for new businesses 
D)  lack of brand-name recognition 
E)  inability to compete with well-established brand names

Question 8

Which of the following statements is correct?

Accepted Answer

A)  The risk of failure for women-owned businesses is lower than average. 
B)  Women are starting businesses at about the same rate as men. 
C)  Women are almost always sure to succeed. 
D)  Women own 7.7 million businesses in the United States. 
E)  Minority business owners pay lower federal tax on profits than men do. 
A)  The risk of failure for women-owned businesses is lower than average. 
B)  Women are starting businesses at about the same rate as men. 
C)  Women are almost always sure to succeed. 
D)  Women own 7.7 million businesses in the United States. 
E)  Minority business owners pay lower federal tax on profits than men do.

Question 9

Of the small businesses in the distribution industry, nearly three-quarters of them are involved in _____.

Accepted Answer

A)  wholesaling 
B)  purchasing 
C)  service 
D)  retailing 
E)  communications 
A)  wholesaling 
B)  purchasing 
C)  service 
D)  retailing 
E)  communications

Question 10

Personal Wellness
Angela has been working for a local small business called Personal Wellness for the last three years.It is a retail business that sells sporting goods equipment.When she started to work there, she noticed several things that were possibly the cause of the business not doing as well as it hoped it would.Angela has been thinking of starting her own small business because she feels she has learned much working for Personal Wellness.
Angela's manager asked her to create a business plan for Personal Wellness.The manager hoped that this plan would put things into perspective to help the company do better.After creating the plan, Angela suggested that Personal Wellness contact a group of senior and graduate students to provide management counseling for the company.Angela wants to make sure that her leaving does not become the cause of the company going under.
-Refer to Personal Wellness.What is not one of the key reasons Personal Wellness would possibly fail?

Accepted Answer

A)  capital 
B)  employees 
C)  management 
D)  money 
E)  planning 
A)  capital 
B)  employees 
C)  management 
D)  money 
E)  planning

Question 11

Privately owned firms providing venture capital would be identified as

Accepted Answer

A)  the Small Business Administration. 
B)  small-business development centers. 
C)  small-business investment companies. 
D)  small-business institutes. 
E)  the Active Corps of Executives. 
A)  the Small Business Administration. 
B)  small-business development centers. 
C)  small-business investment companies. 
D)  small-business institutes. 
E)  the Active Corps of Executives.

Question 12

Franchising is a win-win combination; both franchisees and franchisors are guaranteed success.

Accepted Answer

A) True 
 B)False

Question 13

The following statement answers which major question that a business plan should address? "This business will serve over 200 customers by the end of the year and employ seven full-time employees."

Accepted Answer

A)  How much will the new business cost? 
B)  Why is this new business a good idea? 
C)  What are the goals for the business? 
D)  What is the nature and mission of the business? 
E)  How often will the business advertise? 
A)  How much will the new business cost? 
B)  Why is this new business a good idea? 
C)  What are the goals for the business? 
D)  What is the nature and mission of the business? 
E)  How often will the business advertise?

Question 14

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

Accepted Answer

A)  a lot of inventory in the warehouse on opening day. 
B)  a really good lawyer and an even better accountant. 
C)  the best Madison Avenue ad agency money can buy. 
D)  a good source of capital and good management skills. 
E)  a top-notch marketing consultant and a lot of inventory in the warehouse. 
A)  a lot of inventory in the warehouse on opening day. 
B)  a really good lawyer and an even better accountant. 
C)  the best Madison Avenue ad agency money can buy. 
D)  a good source of capital and good management skills. 
E)  a top-notch marketing consultant and a lot of inventory in the warehouse.

Question 15

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. 
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.

Question 16

Janis starts a small quilting and embroidery business.She purchases a technologically advanced quilting machine and an embroidery machine for a combined $25,000.Her monthly payments on the equipment are $500, but she has only one client at this time.Janis is facing a potential

Accepted Answer

A)  inventory flow problem. 
B)  cash-flow problem. 
C)  competitive advantage. 
D)  overexpansion problem. 
E)  advertising issue. 
A)  inventory flow problem. 
B)  cash-flow problem. 
C)  competitive advantage. 
D)  overexpansion problem. 
E)  advertising issue.

Question 17

Distribution industries account for approximately what percentage of all small businesses?

Accepted Answer

A)  20 
B)  25 
C)  33 
D)  55 
E)  70 
A)  20 
B)  25 
C)  33 
D)  55 
E)  70

Question 18

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 change 
A)  limited potential 
B)  personal relationships with customers 
C)  independence 
D)  personal relationships with employees 
E)  ability to adapt to change

Question 19

A company generally needs more than ____ employees in order to be considered large.

Accepted Answer

A)  50 
B)  100 
C)  300 
D)  500 
E)  1,000 
A)  50 
B)  100 
C)  300 
D)  500 
E)  1,000

Question 20

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)  retailing 
A)  financial 
B)  manufacturing 
C)  distribution 
D)  transportation 
E)  retailing

A main disadvantage of a small business is that employees and customers usually develop too close of a relationship.

Volunteers for SCORE are

All of the following are franchise establishments except

Natalie owns a highly successful bakery and coffee shop, Mocha & Muffins.Others have expressed interest in starting nearly identical shops at various locations.Natalie decides to sell franchises of Mocha & Muffins.Why is this option a less expensive way to increase the distribution of her treats?

The SBA is a private organization rather than a government agency.

Before seeking financial backing for his new business, Tyler puts together a concise document explaining the nature, mission, and goals of his new business and its expected costs and potential.Tyler has constructed a(n) _____.

What is the primary reason that so many new businesses fail?

Which of the following statements is correct?

Of the small businesses in the distribution industry, nearly three-quarters of them are involved in _____.

Privately owned firms providing venture capital would be identified as

Franchising is a win-win combination; both franchisees and franchisors are guaranteed success.

The following statement answers which major question that a business plan should address? "This business will serve over 200 customers by the end of the year and employ seven full-time employees."

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

The franchisee supplies

Janis starts a small quilting and embroidery business.She purchases a technologically advanced quilting machine and an embroidery machine for a combined $25,000.Her monthly payments on the equipment are $500, but she has only one client at this time.Janis is facing a potential

Distribution industries account for approximately what percentage of all small businesses?

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?

A company generally needs more than ____ employees in order to be considered large.

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

Exploring the World of Business and Economics

Being Ethical and Socially Responsible

Exploring Global Business

Choosing a Form of Business Ownership

Understanding the Management Process

Creating a Flexible Organization

Producing Quality Goods and Services

Attracting and Retaining the Best Employees

Motivating and Satisfying Employees and Teams

Building Customer Relationships Through Effective Marketing

Creating and Pricing Products That Satisfy Customers

Distributing and Promoting Products

Understanding Information and E-Business

Using Accounting Information

Mastering Financial Management

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Exam 5: Small Business, Entrepreneurship, and Franchises

A main disadvantage of a small business is that employees and customers usually develop too close of a relationship.

Volunteers for SCORE are

All of the following are franchise establishments except

Natalie owns a highly successful bakery and coffee shop, Mocha & Muffins.Others have expressed interest in starting nearly identical shops at various locations.Natalie decides to sell franchises of Mocha & Muffins.Why is this option a less expensive way to increase the distribution of her treats?

The SBA is a private organization rather than a government agency.

Before seeking financial backing for his new business, Tyler puts together a concise document explaining the nature, mission, and goals of his new business and its expected costs and potential.Tyler has constructed a(n) _____.

What is the primary reason that so many new businesses fail?

Which of the following statements is correct?

Of the small businesses in the distribution industry, nearly three-quarters of them are involved in _____.

Privately owned firms providing venture capital would be identified as

Franchising is a win-win combination; both franchisees and franchisors are guaranteed success.

The following statement answers which major question that a business plan should address? "This business will serve over 200 customers by the end of the year and employ seven full-time employees."

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

The franchisee supplies

Janis starts a small quilting and embroidery business.She purchases a technologically advanced quilting machine and an embroidery machine for a combined $25,000.Her monthly payments on the equipment are $500, but she has only one client at this time.Janis is facing a potential

Distribution industries account for approximately what percentage of all small businesses?

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?

A company generally needs more than ____ employees in order to be considered large.

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

Exploring the World of Business and Economics

Being Ethical and Socially Responsible

Exploring Global Business

Choosing a Form of Business Ownership

Understanding the Management Process

Creating a Flexible Organization

Producing Quality Goods and Services

Attracting and Retaining the Best Employees

Motivating and Satisfying Employees and Teams

Building Customer Relationships Through Effective Marketing

Creating and Pricing Products That Satisfy Customers

Distributing and Promoting Products

Understanding Information and E-Business

Using Accounting Information

Mastering Financial Management

Filters