Intro to Business Ch 5

Which of the following is NOT an advantage of smallness in business?

a. Ability to adapt to change b. Personal relationships with customers and employees c. Independence ----d. Easy to raise capital e. Simplified record keeping

_____ are business clinics, usually located on college campuses that provide free counseling and training for owners of small businesses.

a. Small-business development centers (SBDCs)

John had a good idea for a candy manufacturing business. He decided that he wanted to take the risk, become an entrepreneur, and start his own business. Now, ten years later, John's candy company has 20 locations all over the United States and employs nearly 1,000 people. This example illustrates:

a. how small business fuels job creation and innovation.

All of the following are factors that encourage certain people to start new businesses, except:

a. independence. b. a willingness to find and accept a challenge. c. a family member(s) who has had been in business. ----d. a reclusive nature. e. a desire to determine one's own destiny.

A franchisee acquires rights to all of the following, except:

a. methods of operation of the business. b. a logo. c. a name. d. national advertising by the franchise. -----e. other franchisee's employees and management.

What are the three key ingredients in small business survival as well as failure?

b. Capital, management, and planning

____________ is a new alternative to traditional financing that uses online sites to invite people to contribute.

b. Crowdfunding

Which of the following is the most likely reason that a small-business owner may become frustrated as a franchisee?

b. Excessive restrictions resulting in less freedom

Which of the following is a way in which the Small Business Administration provides financial assistance to small businesses?

b. Small-business investment companies (SBICs)

A person who buys a franchise is known as the:

b. franchisee.

________ franchises occur when two franchisors offer their products together; this is becoming a new small-business trend.

d. Dual-branded

Basic rights and obligations are delineated in a franchise agreement. Which of the following is a franchising obligation?

c. Requirement to purchase goods or products from the franchisor

According to the U.S. Office of Management and Budget, __________ of the major technological advances of the 20th century originated with individual inventors and small companies.

c. more than half

Franchises offer people starting a business the advantage of a recognized name, management assistance, and

d. a greater chance for success.

Which of the following is considered a shortcoming of owning a franchise?

e. Possible market saturation

The government agency that advises and assists small businesses by providing management and financial assistance including counseling on improving operations and assisting with obtaining debt financing is known as the _____.

e. Small Business Administration (SBA)

Franchising allows a _____ the opportunity to set up a small business relatively quickly, and because of its association with an established brand, a _____ outlet often reaches the break-even point faster than an independent business would.

e. franchisee; franchise