Question 1

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. The international agency advising Mc-King would have made which of the following recommendations?

Accepted Answer

A)   Be aware that less money is needed to fund international operations.
B)   Remember that strong local management is needed to keep an international franchise going.
C)   Plan for the local competition to be weak.
D)   Assume that customers everywhere need or want what the franchise offers.
E)   Expect hiring, training, and marketing practices to be identical in all countries.F) None of the above
G) A) and E)

Question 2

Manju Iyer asks for your advice in opening a new business. She plans to provide tax-related services to individuals and small-business owners in her community. Of course, she wants an attractive means of starting and operating her business with a reasonable hope of succeeding in it. What will be your advice?

Accepted Answer

A)   Start your own independent business.
B)   Form a partnership with a CPA.
C)   Consider purchasing a franchise.
D)   Forget about opening the business because it is too risky.
E)   First secure a loan from the Small Business Administration.F) B) and D)
G) A) and E)

Question 3

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

Question 4

Service industries make up about 48 percent of all small businesses.

Accepted Answer

A) True 
 B)False

Question 5

Give examples of how small businesses fill needs of society and other businesses.

Accepted Answer

Small businesses play a crucial role in ...

Question 6

The average length of an SBA loan is about twenty-five years.

Accepted Answer

A) True 
 B)False

Question 7

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

Question 8

Suppose that Diane plans to open a new, deluxe hamburger bar near your college. Her business plan most likely would not include

Accepted Answer

A)   the nature and mission of her new business.
B)   an explanation of why the new business is a good idea.
C)   a detailed discussion of her goals.
D)   an actual sample of the product.
E)   an analysis of costs.F) A) and C)
G) A) and B)

Question 9

Lauren starts a business that sells personal computers. Within the first year she discovers that computer technology becomes outdated very quickly, and she has not been able to sell her products for as much as she thought due to the passage of time. Lauren has mismanaged

Accepted Answer

A)   inventory.
B)   cash flow.
C)   financing arrangements.
D)   personnel.
E)   money.F) C) and E)
G) A) and D)

Question 10

The SBA is offering to help the nation's small-business owners enter world markets. SBA assistance includes all of the following except

Accepted Answer

A)   counseling on how to enter markets overseas.
B)   counseling on where to enter markets overseas.
C)   matching U.S. small-business executives with potential overseas customers.
D)   bringing small U.S. firms into direct contact with potential overseas buyers and partners.
E)   offering long-term loans to U.S. business owners.F) A) and E)
G) B) and D)

Question 11

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.F) B) and C)
G) B) and E)

Question 12

Service industries account for ___ percent of all small businesses.

Accepted Answer

A)   29
B)   29.
C)   48
D)   58.
E)   66F) D) and E)
G) All of the above

Question 13

Which of the following statements is true regarding the profitability of new businesses?

Accepted Answer

A)   It may take several years for a new business to begin showing a profit.
B)   Profitability is not an important issue for new businesses.
C)   Most new businesses will turn a profit within the first year.
D)   If a company does not show a profit within the first year, it will fail.
E)   Most new businesses are highly profitable when they first start.F) A) and B)
G) B) and C)

Question 14

The SBA makes a special effort to

Accepted Answer

A)   assist minorities wanting to start small businesses or expand existing ones.
B)   send SCORE program executives to high schools.
C)   hand-deliver their publications.
D)   raise money for small businesses.
E)   encourage teenage entrepreneurship.F) B) and E)
G) All of the above

Question 15

Ronald is the director of a university-based group that provides individual counseling, specialized training, and research data to owners of small businesses. Ronald's group is called a

Accepted Answer

A)   small-business institute.
B)   university small-business administration.
C)   small-business development center.
D)   small-business improvement coalition.
E)   center for small businesses.F) D) and E)
G) A) and D)

Question 16

Kim Nguyen is planning to open a boutique stocked with exotic imports from around the world. Most probably, this new business will be managed by

Accepted Answer

A)   Kim Nguyen.
B)   her friends.
C)   her relatives.
D)   a professional manager.
E)   her family.F) C) and D)
G) None of the above

Question 17

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; serviceF) A) and C)
G) B) and D)

Question 18

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 19

Small businesses account for all nongovernment employment.

Accepted Answer

A) True 
 B)False

Question 20

About half of small businesses are in the production industries.

Accepted Answer

A) True 
 B)False

Exam 5: Small Business, Entrepreneurship, and Franchises

Service industries account for ___ percent of all small businesses.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

About half of small businesses are in the production industries.

Correct Answer
verified

The average length of an SBA loan is about twenty-five years.

Correct Answer
verified

Lauren starts a business that sells personal computers. Within the first year she discovers that computer technology becomes outdated very quickly, and she has not been able to sell her products for as much as she thought due to the passage of time. Lauren has mismanaged

Correct Answer
verified

Correct Answer
verified

Kim Nguyen is planning to open a boutique stocked with exotic imports from around the world. Most probably, this new business will be managed by

Correct Answer
verified

The franchisee supplies

Correct Answer
verified

Service industries make up about 48 percent of all small businesses.

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

Ronald is the director of a university-based group that provides individual counseling, specialized training, and research data to owners of small businesses. Ronald's group is called a

Correct Answer
verified

The SBA is offering to help the nation's small-business owners enter world markets. SBA assistance includes all of the following except

Correct Answer
verified

The SBA makes a special effort to

Correct Answer
verified

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

Correct Answer
verified

Suppose that Diane plans to open a new, deluxe hamburger bar near your college. Her business plan most likely would not include

Correct Answer
verified

Small businesses account for all nongovernment employment.

Correct Answer
verified

Which of the following statements is true regarding the profitability of new businesses?

Correct Answer
verified

Give examples of how small businesses fill needs of society and other businesses.

Correct Answer
Answered by ExamLex AI
Small businesses play a crucial role in ...
View Answer

Correct Answer
verified

Exam 5: Small Business, Entrepreneurship, and Franchises

Service industries account for ___ percent of all small businesses.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

About half of small businesses are in the production industries.

Correct AnswerverifiedShow Answer

The average length of an SBA loan is about twenty-five years.

Correct AnswerverifiedShow Answer

Lauren starts a business that sells personal computers. Within the first year she discovers that computer technology becomes outdated very quickly, and she has not been able to sell her products for as much as she thought due to the passage of time. Lauren has mismanaged

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Kim Nguyen is planning to open a boutique stocked with exotic imports from around the world. Most probably, this new business will be managed by

Correct AnswerverifiedShow Answer

The franchisee supplies

Correct AnswerverifiedShow Answer

Service industries make up about 48 percent of all small businesses.

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

Ronald is the director of a university-based group that provides individual counseling, specialized training, and research data to owners of small businesses. Ronald's group is called a

Correct AnswerverifiedShow Answer

The SBA is offering to help the nation's small-business owners enter world markets. SBA assistance includes all of the following except

Correct AnswerverifiedShow Answer

The SBA makes a special effort to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Suppose that Diane plans to open a new, deluxe hamburger bar near your college. Her business plan most likely would not include

Correct AnswerverifiedShow Answer

Small businesses account for all nongovernment employment.

Correct AnswerverifiedShow Answer

Which of the following statements is true regarding the profitability of new businesses?

Correct AnswerverifiedShow Answer

Give examples of how small businesses fill needs of society and other businesses.

Correct AnswerAnswered by ExamLex AISmall businesses play a crucial role in ...View AnswerShow Answer

Correct AnswerverifiedShow 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

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
Small businesses play a crucial role in ...
View Answer

Correct Answer
verified