Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

To qualify as a small business, a manufacturing plant can employ no more than ____ people.

Accepted Answer

A)   500
B)   1,000
C)   2,000
D)   3,000
E)   3,500F) C) and D)
G) C) and E)

Question 3

How does the SBA define a small business?

Accepted Answer

The Small Business Administration (SBA) ...

Question 4

International trade will become more important to small-business owners in the new century.

Accepted Answer

A) True 
 B)False  True

Question 5

Franchising experienced tremendous growth during the early 1430s.

Accepted Answer

A) True 
 B)False

Question 6

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.F) A) and D)
G) C) and E)

Question 7

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.F) B) and D)
G) A) and B)

Question 8

What is the Service Corps of Retired Executives (SCORE)? How does it assist small-business owners?

Accepted Answer

The Service Corps of Retired Executives ...

Question 9

There are three general types of franchising arrangements. In one approach, the franchisor authorizes retailers to sell a particular brand-name item. This type of arrangement is common in all of the following areas except

Accepted Answer

A)   the soft-drink industry.
B)   truck and car sales.
C)   shoe sales.
D)   the gasoline industry.
E)   paint sales.F) B) and E)
G) B) and D)

Question 10

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

Accepted Answer

A)   The government
B)   Private lenders
C)   Venture capitalists
D)   The Small Business Administration
E)   Other small businessesF) A) and C)
G) C) and D)

Question 11

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

Accepted Answer

A)   Wholesale outlet
B)   Retail outlet
C)   Financial enterprise
D)   Subassembly plant
E)   Transportation companyF) B) and C)
G) A) and E)

Question 12

You stop at a SUBWAY to get a sandwich for lunch and you notice that they now have TCBY yogurt. This is an example of a

Accepted Answer

A)   co-branded establishment.
B)   franchise.
C)   small business.
D)   dual-sponsored business.
E)   dual-branded franchise.F) D) and E)
G) A) and E)

Question 13

The incidence of innovation among small-business workers is significantly higher than that among workers in large businesses.

Accepted Answer

A) True 
 B)False

Question 14

The purchaser of a franchise is called the franchisor.

Accepted Answer

A) True 
 B)False

Question 15

Money invested in small firms with the potential to become very successful is known as venture capital.

Accepted Answer

A) True 
 B)False

Question 16

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 the above.F) C) and D)
G) All of the above

Question 17

Victor owns his own motorcycle and ATV store. He notices that many of his customers talk about golf while in his store. He quickly adds golf carts and golf clubs to his merchandise selection. Rapidly adjusting to the needs of his customers is possible because small businesses

Accepted Answer

A)   have personal relationships with their customers.
B)   have the ability to quickly adapt to change.
C)   are independent.
D)   have simplified record keeping.
E)   run the risk of failure.F) All of the above
G) None of the above

Question 18

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.F) A) and C)
G) C) and D) C

Question 19

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.F) B) and E)
G) D) and E) A

Question 20

In the early days of franchise agreements, franchising was used primarily for automobile dealerships and

Accepted Answer

A)   auto-parts stores.
B)   dry cleaners.
C)   fast-food outlets.
D)   larger restaurants.
E)   service stations.F) B) and C)
G) All of the above

Exam 5: Small Business, Entrepreneurship, and Franchises

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

Correct AnswerverifiedShow Answer

To qualify as a small business, a manufacturing plant can employ no more than ____ people.

Correct AnswerverifiedShow Answer

How does the SBA define a small business?

Correct AnswerAnswered by ExamLex AIThe Small Business Administration (SBA) ...View AnswerShow Answer

International trade will become more important to small-business owners in the new century.

Correct AnswerverifiedTrue

Franchising experienced tremendous growth during the early 1430s.

Correct AnswerverifiedShow Answer

Which statement best describes the general success rate for franchises?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What is the Service Corps of Retired Executives (SCORE)? How does it assist small-business owners?

Correct AnswerAnswered by ExamLex AIThe Service Corps of Retired Executives ...View AnswerShow Answer

There are three general types of franchising arrangements. In one approach, the franchisor authorizes retailers to sell a particular brand-name item. This type of arrangement is common in all of the following areas except

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

You stop at a SUBWAY to get a sandwich for lunch and you notice that they now have TCBY yogurt. This is an example of a

Correct AnswerverifiedShow Answer

The incidence of innovation among small-business workers is significantly higher than that among workers in large businesses.

Correct AnswerverifiedShow Answer

The purchaser of a franchise is called the franchisor.

Correct AnswerverifiedShow Answer

Money invested in small firms with the potential to become very successful is known as venture capital.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Victor owns his own motorcycle and ATV store. He notices that many of his customers talk about golf while in his store. He quickly adds golf carts and golf clubs to his merchandise selection. Rapidly adjusting to the needs of his customers is possible because small businesses

Correct AnswerverifiedShow Answer

Privately owned firms providing venture capital would be identified as

Correct AnswerverifiedC

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

Correct AnswerverifiedA

In the early days of franchise agreements, franchising was used primarily for automobile dealerships and

Correct AnswerverifiedShow Answer

Correct Answer
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Answered by ExamLex AI
The Small Business Administration (SBA) ...
View Answer

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True

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Correct Answer
Answered by ExamLex AI
The Service Corps of Retired Executives ...
View Answer

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C

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A

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