Question 1

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 2

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

Question 3

Small businesses are prone to failure.

Accepted Answer

A) True 
 B)False

Question 4

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

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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

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) A) and C)
G) B) and E)

Question 8

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

Question 9

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 percentF) None of the above
G) B) and D)

Question 10

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

Question 11

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

Accepted Answer

Small-business development centers (SBDC...

Question 12

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

Question 13

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

Question 14

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 C)
G) A) and D)

Question 15

Entrepreneurial spirit is the desire to create a new business.

Accepted Answer

A) True 
 B)False  True

Question 16

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 changeF) None of the above
G) All of the above

Question 17

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 18

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

Question 19

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 controlF) A) and C)
G) D) and E)

Question 20

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 ArbitrationF) B) and C)
G) A) and B) C

Exam 5: Small Business,Entrepreneurship,and Franchises

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

Correct Answer
verified

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

Correct Answer
verified

Small businesses are prone to failure.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Small businesses are typically managed by

Correct Answer
verified
D

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

Correct Answer
verified
Small-business development centers (SBDC...
View Answer

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Entrepreneurial spirit is the desire to create a new business.

Correct Answer
verified
True

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?

Correct Answer
verified

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

Correct Answer
verified

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)

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified
C

Exam 5: Small Business,Entrepreneurship,and Franchises

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

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

Small businesses are prone to failure.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Small businesses are typically managed by

Correct AnswerverifiedD

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

Correct AnswerverifiedSmall-business development centers (SBDC...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Entrepreneurial spirit is the desire to create a new business.

Correct AnswerverifiedTrue

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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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)

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedC

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
D

Correct Answer
verified
Small-business development centers (SBDC...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
True

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
C