Question 1

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. 
A)  relatives. 
B)  professional managers. 
C)  friends. 
D)  the people who start and own them. 
E)  a board of directors. D

Question 2

Entrepreneurial spirit is the desire to create a new business.

Accepted Answer

A) True 
 B)False  True

Question 3

Which of the following was established to arbitrate disputes between franchisors and franchisees?

Accepted Answer

A)  Court system 
B)  Federal Trade Commission 
C)  National Franchise Mediation Program 
D)  Partnership for Franchisees' Rights 
E)  Association for Franchise Arbitration 
A)  Court system 
B)  Federal Trade Commission 
C)  National Franchise Mediation Program 
D)  Partnership for Franchisees' Rights 
E)  Association for Franchise Arbitration C

Question 4

Businesses such as flower shops,restaurants,bed and breakfasts,and automobile repair are good candidates for entrepreneurs because they

Accepted Answer

A)  do not require any skills. 
B)  are the most likely to succeed. 
C)  can obtain financing easily. 
D)  require no special equipment. 
E)  have a relatively low initial investment. 
A)  do not require any skills. 
B)  are the most likely to succeed. 
C)  can obtain financing easily. 
D)  require no special equipment. 
E)  have a relatively low initial investment.

Question 5

According to a government source,more than half of this century's technological innovations came from small companies.

Accepted Answer

A) True 
 B)False

Question 6

In the early days of computers,programmers and designers started businesses in their parents' garages and worked there until they were able to sell enough of their products to move into a location of their own.Anahi and Joelle started a small software and computer hardware.They have filed for a patent on their latest invention and are working on two others.Which of the following statements is correct regarding small business and technical innovation?

Accepted Answer

A)  Small firms produce two-and-a-half times as many innovations as large firms relative to the number of persons employed. 
B)  Small firms employ a smaller percentage of high-tech workers as scientists,engineers,and computer specialists than medium- and large-sized firms. 
C)  Large firms produce 16 to 17 times more patents per employee than small patenting firms. 
D)  Studies show that the incidence of innovation among small-business workers is significantly lower than among workers in large businesses. 
A)  Small firms produce two-and-a-half times as many innovations as large firms relative to the number of persons employed. 
B)  Small firms employ a smaller percentage of high-tech workers as scientists,engineers,and computer specialists than medium- and large-sized firms. 
C)  Large firms produce 16 to 17 times more patents per employee than small patenting firms. 
D)  Studies show that the incidence of innovation among small-business workers is significantly lower than among workers in large businesses.

Question 7

Small businesses are prone to failure.

Accepted Answer

A) True 
 B)False

Question 8

Mc-Queen Chicken
​Lenny decided to open a local franchise of the well-known Mc-Queen 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-Queen Chicken.Which of the following would be an advantage for Lenny?

Accepted Answer

A)  Guidance from the franchisor 
B)  Franchise holders paying for their security 
C)  Disagreements increasing 
D)  Contract disputes 
E)  The franchisor maintaining a great deal of control 
A)  Guidance from the franchisor 
B)  Franchise holders paying for their security 
C)  Disagreements increasing 
D)  Contract disputes 
E)  The franchisor maintaining a great deal of control

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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 11

The industry concerned with the movement of goods from producer to consumer is

Accepted Answer

A)  service. 
B)  distribution. 
C)  production. 
D)  agriculture. 
E)  wholesaling. 
A)  service. 
B)  distribution. 
C)  production. 
D)  agriculture. 
E)  wholesaling.

Question 12

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 these answer choices. 
A)  small-business administration. 
B)  small-business development center. 
C)  small-business institute. 
D)  special task force. 
E)  none of these answer choices.

Question 13

A carefully constructed guide for the person starting a business is a(n)

Accepted Answer

A)  business plan. 
B)  marketing plan. 
C)  organizational plan. 
D)  articles of business. 
E)  business budget. 
A)  business plan. 
B)  marketing plan. 
C)  organizational plan. 
D)  articles of business. 
E)  business budget.

Question 14

Approximately what percentage of the jobs in the United States do small businesses provide?

Accepted Answer

A)  5 percent 
B)  10 percent 
C)  30 percent 
D)  over 50 percent 
E)  nearly 90 percent 
A)  5 percent 
B)  10 percent 
C)  30 percent 
D)  over 50 percent 
E)  nearly 90 percent

Question 15

What is a small-business development center (SBDC)?

Accepted Answer

Small-business development centers (SBDC

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Before seeking financial backing for his new business,Charlie puts together a concise document explaining the nature,mission,and goals of his new business and its expected costs and potential.Charlie 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 18

Because of small-business competition,large companies must become more efficient and responsive to consumers' needs.

Accepted Answer

A) True 
 B)False

Question 19

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. 
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.

Question 20

John Wells,an African-American small business owner,might be eligible for a grant from the Minority Business Development Agency.

Accepted Answer

A) True 
 B)False

Small businesses are typically managed by

Entrepreneurial spirit is the desire to create a new business.

Which of the following was established to arbitrate disputes between franchisors and franchisees?

Businesses such as flower shops,restaurants,bed and breakfasts,and automobile repair are good candidates for entrepreneurs because they

According to a government source,more than half of this century's technological innovations came from small companies.

Small businesses are prone to failure.

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

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?

The industry concerned with the movement of goods from producer to consumer is

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

A carefully constructed guide for the person starting a business is a(n)

Approximately what percentage of the jobs in the United States do small businesses provide?

What is a small-business development center (SBDC)?

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

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

Because of small-business competition,large companies must become more efficient and responsive to consumers' needs.

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

John Wells,an African-American small business owner,might be eligible for a grant from the Minority Business Development Agency.

Exploring the World of Business and Economics

Ethics and Social Responsibility in Business

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

Building Customer Relationships Through Effective Marketing

Creating and Pricing Products That Satisfy Customers

Distributing and Promoting Products

Exploring Social Media and E-Business

Using Management and Accounting Information

Mastering Financial Management

Understanding Personal Finances and Investments

Enhancing Union-Management Relations

Risk Management and Insurance

Business Law regulation and Taxation

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Exam 5: Small Business,Entrepreneurship,and Franchises

Small businesses are typically managed by

Entrepreneurial spirit is the desire to create a new business.

Which of the following was established to arbitrate disputes between franchisors and franchisees?

Businesses such as flower shops,restaurants,bed and breakfasts,and automobile repair are good candidates for entrepreneurs because they

According to a government source,more than half of this century's technological innovations came from small companies.

Small businesses are prone to failure.

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

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?

The industry concerned with the movement of goods from producer to consumer is

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

A carefully constructed guide for the person starting a business is a(n)

Approximately what percentage of the jobs in the United States do small businesses provide?

What is a small-business development center (SBDC)?

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

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

Because of small-business competition,large companies must become more efficient and responsive to consumers' needs.

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

John Wells,an African-American small business owner,might be eligible for a grant from the Minority Business Development Agency.

Exploring the World of Business and Economics

Ethics and Social Responsibility in Business

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

Building Customer Relationships Through Effective Marketing

Creating and Pricing Products That Satisfy Customers

Distributing and Promoting Products

Exploring Social Media and E-Business

Using Management and Accounting Information

Mastering Financial Management

Understanding Personal Finances and Investments

Enhancing Union-Management Relations

Risk Management and Insurance

Business Law regulation and Taxation

Filters