Question 1

Which of the following is the most likely example of a production industry?

Accepted Answer

A)   Telephone company
B)   Movie theaters
C)   Financial enterprise
D)   Subassembly plant
E)   Transportation company

Question 2

​In the United States,it typically takes ____ and about $600 to establish a business as a legal entity.

Accepted Answer

A)   ​less than a week
B)   ​about a month
C)   ​a month and a day
D)   ​two weeks

Question 3

Small businesses are expected to remain the dominant form of organization in this country.

Accepted Answer

A) True 
 B)False

Question 4

Small businesses operate only in the service industry,not in manufacturing.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)   Opportunity to start a business with limited capital
B)   Access to local advertising materials
C)   Fast and selective distribution of products
D)   Chance to participate in national advertising
E)   Chance to minimize costs through cooperative buying

Question 6

Kerry owns a fast food business that he operates for a profit.While working in the business one afternoon,an individual entered and identified himself as an inspector and asked permission to inspect the premises to ensure that they were in good,clean,and sanitary conditions.Kerry permitted him to inspect.The individual was not from any government agency.What is the most likely explanation for Kerry's actions?

Accepted Answer

A)   Kerry has hired a private inspector to ensure that the business is in compliance with government regulations.
B)   The business is being sold and the buyer has sent an inspector to ensure the business is operated properly.
C)   This is a franchise and the franchisor has sent its inspector to ensure the business is operated according to the franchise license.
D)   The inspector is the father of an employee who is a minor and he wants to ensure that child labor laws will not be violated.

Question 7

Josue owns a McDonald's franchise that is having some troubles.Where is Josuemost likely to go for advice and guidance?

Accepted Answer

A)   The franchisor
B)   The SBA
C)   SCORE
D)   Restaurant consultants
E)   Chamber of Commerce

Question 8

How does the SBA define a small business? Approximately what percentage of all businesses in the United States are considered "small"?

Accepted Answer

The Small Business Administration (SBA)d...

Question 9

The acronym SCORE stands for

Accepted Answer

A)   Standard Card Options for Retirees.
B)   Sam's Cooperatives Operating in Reno.
C)   Service Corps of Retired Employees.
D)   Service Corps of Retired Executives.
E)   Sonoma City Options for Retired Employees.

Question 10

Which of the following statements is not true about small businesses?

Accepted Answer

A)   Small businesses provide technical innovation.
B)   Small businesses create cyclical unemployment.
C)   Small businesses provide employment.
D)   Small businesses provide competition.
E)   Small businesses fill the needs of society and other businesses.

Question 11

Martha would like to open a small business that is categorized as a being in the distribution industry.To do this she could open a ______ establishment.

Accepted Answer

A)   retail,wholesale,transportation,or communications
B)   distribution or manufacturing
C)   production,service,or manufacturing
D)   retail,wholesale,or manufacturing

Question 12

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.

Question 13

Price Waterhouse,a large accounting firm,would be most properly classified in the ____ industry,whereas a grocery store such as Kroger would be included in the ____ industry.

Accepted Answer

A)   distribution;production
B)   service;distribution
C)   production;service
D)   service;production
E)   distribution;service

Question 14

Women were 51 percent of the U.S.population,and,according to the SBA,they owned at least ___ percent of all small businesses in 2017.

Accepted Answer

A)   36 percent
B)   25 percent
C)   52percent
D)   74 percent

Question 15

Very Big Corporation provides tire sales,tire and rim services,auto maintenance,and sells auto parts and accessories.It is the most diverse vehicle parts and repair business in Denver,Colorado.The company has twenty-five employees at its Denver location.T and R Business only sells,installs,and repairs tires and rims-it has four employees.AM Business services vehicles and has three employees.APA Business sells auto parts and accessories-it has twelve employees.What is the likelihood that these small businesses are capable of competing against Very Big Corporation?

Accepted Answer

A)   A number of small firms,each competing in its own particular area and its own particular way,together have the desired competitive effect to challenge large firms.
B)   Small firms cannot compete with larger firms.
C)   Large businesses that provide a one-stop approach to goods and services make it impossible for small firms to compete.
D)   Small firms challenge larger established firm causing them to cut costs.

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.

Question 17

Small businesses are generally managed by professional managers.

Accepted Answer

A) True 
 B)False

Question 18

A new business is built around the entrepreneur.

Accepted Answer

A) True 
 B)False

Question 19

Belle and Diamond are spending the day together.First,they have breakfast at McDonalds,then have a quick work-out at Curves followed by a massage at Massage Envy,and getting their nails done a Red Persimmon.They finish their day with getting their hair done at Fantastic Sams followed by ice cream at Ben & Jerry's.What do these businesses have in common?

Accepted Answer

A)   They are franchises.
B)   They do not require expertise to start as training is provided by the seller.
C)   They have few employees who are all experts in their particular field.
D)   They all provide services rapidly and permit walk-ins.

Question 20

An agreement between two franchisors in which the two franchisors offer their products together is called double franchising.

Accepted Answer

A) True 
 B)False

Exam 5: Small Business,Entrepreneurship,and Franchises

An agreement between two franchisors in which the two franchisors offer their products together is called double franchising.

Correct Answer
verified

How does the SBA define a small business? Approximately what percentage of all businesses in the United States are considered "small"?

Correct Answer
verified
The Small Business Administration (SBA)d...
View Answer

Which of the following is the most likely example of a production industry?

Correct Answer
verified

Correct Answer
verified

Which of the following statements is correct?

Correct Answer
verified

Small businesses operate only in the service industry,not in manufacturing.

Correct Answer
verified

Josue owns a McDonald's franchise that is having some troubles.Where is Josuemost likely to go for advice and guidance?

Correct Answer
verified

Which of the following statements is not true about small businesses?

Correct Answer
verified

Small businesses are generally managed by professional managers.

Correct Answer
verified

A new business is built around the entrepreneur.

Correct Answer
verified

Which statement best describes the general success rate for franchises?

Correct Answer
verified

Martha would like to open a small business that is categorized as a being in the distribution industry.To do this she could open a ______ establishment.

Correct Answer
verified

In the United States,it typically takes ____ and about $600 to establish a business as a legal entity.

Correct Answer
verified

The acronym SCORE stands for

Correct Answer
verified

Women were 51 percent of the U.S.population,and,according to the SBA,they owned at least ___ percent of all small businesses in 2017.

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Small businesses are expected to remain the dominant form of organization in this country.

Correct Answer
verified

Correct Answer
verified

Price Waterhouse,a large accounting firm,would be most properly classified in the industry,whereas a grocery store such as Kroger would be included in the industry.

Correct Answer
verified

Exam 5: Small Business,Entrepreneurship,and Franchises

An agreement between two franchisors in which the two franchisors offer their products together is called double franchising.

Correct AnswerverifiedShow Answer

How does the SBA define a small business? Approximately what percentage of all businesses in the United States are considered "small"?

Correct AnswerverifiedThe Small Business Administration (SBA)d...View AnswerShow Answer

Which of the following is the most likely example of a production industry?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Small businesses operate only in the service industry,not in manufacturing.

Correct AnswerverifiedShow Answer

Josue owns a McDonald's franchise that is having some troubles.Where is Josuemost likely to go for advice and guidance?

Correct AnswerverifiedShow Answer

Which of the following statements is not true about small businesses?

Correct AnswerverifiedShow Answer

Small businesses are generally managed by professional managers.

Correct AnswerverifiedShow Answer

A new business is built around the entrepreneur.

Correct AnswerverifiedShow Answer

Which statement best describes the general success rate for franchises?

Correct AnswerverifiedShow Answer

Martha would like to open a small business that is categorized as a being in the distribution industry.To do this she could open a ______ establishment.

Correct AnswerverifiedShow Answer

​In the United States,it typically takes ____ and about $600 to establish a business as a legal entity.

Correct AnswerverifiedShow Answer

The acronym SCORE stands for

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 2017.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Small businesses are expected to remain the dominant form of organization in this country.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Price Waterhouse,a large accounting firm,would be most properly classified in the ____ industry,whereas a grocery store such as Kroger would be included in the ____ industry.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
The Small Business Administration (SBA)d...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

In the United States,it typically takes ____ and about $600 to establish a business as a legal entity.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Price Waterhouse,a large accounting firm,would be most properly classified in the industry,whereas a grocery store such as Kroger would be included in the industry.

Correct Answer
verified