Chapter 5

Small-business investment companies

Are profit making organizations

which statement best characterizes the relationship between franchisor and franchisee in recent years?

Disagreements between the two parties have increased, a contract disputes are the cause of many lawsuits.

Jessie's business sells souvenirs and craft items to tourists in Myrtle Beach, South Carolina. This is an example of a _____ business.

Distribution

many small firms seek to establish a particular niche in the marker, realizing that they cannot afford to operate on a large scale without exposing themselves to considerable risk of retaliation from larger companies. When a number of small businesses are operating in this manner, they are forcing the larger businesses to recognize and account for their influence on the market. In this way, small businesses are primarily.

Fostering competition

The disadvantages of small businesses include of the following except

No opportunity to support your family

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

Offering long-term loans to U.S. business owners

What is the main advantage of small business that helps retain effective employees who could earn more at a larger firm?

Personal relationships with employees

Fatima's cleaning business has several customers but is not dominant in its field. This is an example of a(n) ____ business.

Small

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

retailing

Maria owns and operates a catering business. This is an example of

service business

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

small-business institute

Which of the following is not a reason for starting a small business?

Desire for a guaranteed financial return

Stephanie 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 Within the first year she discovers that computer technology becomes outdated very quickly, and she has not been able to sell her products for as much as she though due to the passage of time. Stephanie has mismanaged

Inventory

The SBA places special emphasis on aid to

Minority-owned businesses

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

Private lenders

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

SBA

Talia is about to purchase a Baskin-Robbins franchise because she loves ice cream. How much work should Talia except to have to do to make the franchise successful?

She should except to work very hard, putting in long hours about six days a week.

In the early days of computers, programmers and designers started a businesses in their parent's 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 of their latest invention and are working on two others. Which of the following statements is correct regarding small business and technical innovations?

Small firms produce two-and-a-half times as many innovations as large firms relative to the number of persons employed

Personal Wellness Jackie has been working for a local small business called Personal Wellness for the last three years. It is a retail business that sells sporting goods equipment. When she started to work there, she noticed several things that were possibly the cause of the business not doing as well as it hoped. Jackie has been thinking of starting her own small business because she feels she has learned much through working for Personal Wellness. Jackie's manager asked her to create a business plan for Personal Wellness. The manager hoped that this plan would put things into perspective to help the company do better. After creating the plan, Jackie suggested that Personal Wellness contact a group of senior and graduate students to provide management counseling for the company. Jackie wants to make sure that her leaving does not become the cause of the company going under. 11. Refer to Personal Wellness. When Jackie suggested that the company contact a group, what type of group was she referring to

Small-business institute

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 at 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?

They are franchises