Question 1

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

Accepted Answer

A)   small-business administration.
B)   small-business development centres.
C)   small-business institute.
D)   special task force.
E)   none of the above.

Question 2

A company generally needs more than ____ employees in order to be considered large.

Accepted Answer

A)   50
B)   100
C)   300
D)   500
E)   1,000

Question 3

Franchising experienced tremendous growth during the early 1430s.

Accepted Answer

A) True 
 B)False

Question 4

Professors at most universities are highly encouraged to participate in community service.What organisation that provides low-cost courses and workshops would welcome management professors with an interest in small companies?

Accepted Answer

A)   SBDC
B)   SBIC
C)   SBA
D)   SCORE
E)   SBI

Question 5

Which form of franchising is the most common today?

Accepted Answer

A)   Franchising has become a very unpopular option and is used infrequently today.
B)   A manufacturer authorises a number of retail stores to sell a certain brand- name item.
C)   A producer licences distributors to sell a given product to retailers.
D)   A distributor authorises a producer to make and sell a given product to the ultimate consumer.
E)   A franchisor supplies brand names, techniques, or other services instead of a complete product.

Question 6

Which of the following would most likely be classified as a distribution industry?

Accepted Answer

A)   Subassembly plant
B)   TV repair shop
C)   Insurance agency
D)   Grocery store
E)   Medical office

Question 7

Franchising is limited only to fast foods.

Accepted Answer

A) True 
 B)False

Question 8

The SBA has defined a small business as one independently owned, operated for profit, and not dominant in its field.

Accepted Answer

A) True 
 B)False

Question 9

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.

Question 10

According to the Census surveys, about 50 percent of all new businesses begin with less than ____ in total capital.

Accepted Answer

A)   €1,000
B)   €25,000
C)   €30,000
D)   €50,000
E)   €100,000

Question 11

What organisation created by Congress in 1953 assists, counsels, and protects the interests of small businesses?

Accepted Answer

A)   SCORE
B)   FTC
C)   SBIC
D)   SBA
E)   SBDC

Question 12

What is the primary reason that so many new businesses fail?

Accepted Answer

A)   Owner does not work hard enough
B)   Mismanagement resulting from lack of business know-how
C)   Low employee quality for new businesses
D)   Lack of brand-name recognition
E)   Inability to compete with well-established brand names

Question 13

Your friend has just been awarded a franchise in a particular industry.He explains that his franchisor has licensed him to sell and distribute a product to retailers.Knowing that this type of franchise arrangement is most common in one particular industry, you suspect that your friend has obtained a franchise in the ____ industry.

Accepted Answer

A)   gasoline
B)   automobile sales
C)   soft-drink
D)   fast-food
E)   furniture

Question 14

Mike's small company produces specialised hardware pieces.His industrial clients prefer to purchase these parts from Mike because

Accepted Answer

A)   large companies do not manufacture small parts.
B)   they cannot produce such high-quality parts.
C)   it is cheaper to buy from Mike than to make the parts themselves.
D)   large companies prefer to have less control over their operations.
E)   buying from Mike will help increase their expenses for tax purposes.

Question 15

The purchaser of a franchise is called the franchisee.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Ronald is the director of a university-based group that provides individual counseling, specialised 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 centre.
D)   small-business improvement coalition.
E)   centre for small businesses.

Question 18

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 19

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

Accepted Answer

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

Question 20

Large firms generally buy parts and assemblies from smaller firms because

Accepted Answer

A)   doing so creates goodwill.
B)   they are required to do so by government regulations.
C)   they can control small businesses this way.
D)   it is less expensive than making their own.
E)   large firms want to keep small firms in business.

Exam 5: Small Business, Entrepreneurship, and Franchises

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

Which form of franchising is the most common today?

Correct Answer
verified

Franchising experienced tremendous growth during the early 1430s.

Correct Answer
verified

The purchaser of a franchise is called the franchisee.

Correct Answer
verified

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

Correct Answer
verified

What is the primary reason that so many new businesses fail?

Correct Answer
verified

What organisation created by Congress in 1953 assists, counsels, and protects the interests of small businesses?

Correct Answer
verified

Professors at most universities are highly encouraged to participate in community service.What organisation that provides low-cost courses and workshops would welcome management professors with an interest in small companies?

Correct Answer
verified

Mike's small company produces specialised hardware pieces.His industrial clients prefer to purchase these parts from Mike because

Correct Answer
verified

The SBA has defined a small business as one independently owned, operated for profit, and not dominant in its field.

Correct Answer
verified

Franchising is limited only to fast foods.

Correct Answer
verified

Large firms generally buy parts and assemblies from smaller firms because

Correct Answer
verified

Which of the following would most likely be classified as a distribution industry?

Correct Answer
verified

According to the Census surveys, about 50 percent of all new businesses begin with less than ____ in total capital.

Correct Answer
verified

A company generally needs more than ____ employees in order to be considered large.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Exam 5: Small Business, Entrepreneurship, and Franchises

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

Which form of franchising is the most common today?

Correct AnswerverifiedShow Answer

Franchising experienced tremendous growth during the early 1430s.

Correct AnswerverifiedShow Answer

The purchaser of a franchise is called the franchisee.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What is the primary reason that so many new businesses fail?

Correct AnswerverifiedShow Answer

What organisation created by Congress in 1953 assists, counsels, and protects the interests of small businesses?

Correct AnswerverifiedShow Answer

Professors at most universities are highly encouraged to participate in community service.What organisation that provides low-cost courses and workshops would welcome management professors with an interest in small companies?

Correct AnswerverifiedShow Answer

Mike's small company produces specialised hardware pieces.His industrial clients prefer to purchase these parts from Mike because

Correct AnswerverifiedShow Answer

The SBA has defined a small business as one independently owned, operated for profit, and not dominant in its field.

Correct AnswerverifiedShow Answer

Franchising is limited only to fast foods.

Correct AnswerverifiedShow Answer

Large firms generally buy parts and assemblies from smaller firms because

Correct AnswerverifiedShow Answer

Which of the following would most likely be classified as a distribution industry?

Correct AnswerverifiedShow Answer

According to the Census surveys, about 50 percent of all new businesses begin with less than ____ in total capital.

Correct AnswerverifiedShow Answer

A company generally needs more than ____ employees in order to be considered large.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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
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

Correct Answer
verified