Quizzes (5-7)

One of the major reasons people want to own and operate their own business is to:

Be their own boss

A license to sell another's products or to use another's name in business, or both, is called a _____.

Franchise

Nathan started the first outlet of Dynamix Gym in New York City in 1995. The business expanded over time, and he became the owner of a chain of gyms in New York State. Though the business had potential to expand outside New York, Nathan did not want to take the risk or responsibility. Hence, he decided to sell the license to own and operate gyms under the brand name Dynamix Gym to independent owners. In return, he charged them an initial fee and a small share in the monthly profits. In this scenario, Nathan is a(n) _____.

Franchiser

Andrew, a pharmacist, realized that he should stock extra supplies of a particular medicine to respond to an outbreak of a particular infection in the city. Lacking sufficient capital to purchase the extra inventory, he borrowed a predetermined sum of money from his bank. Which of the following sources of funding does this scenario best illustrate?

Initial public offering

Which of the following statements best describes bartering?

It is the practice of small businesses trading their own products for the goods and services offered by other businesses

Which of the following is a reason behind the failure of small businesses?

Managerial experience

A _____ is best described as any independently owned and operated business that is not dominant in its competitive area and does not employ more than 500 people.

Small Business

Which of the following is a disadvantage of small businesses?

They have a high rate of failure.

Which of the following is one of the difficulties faced by small business owners?

Worries about employee problems or competition

A loan is taken by a small business is referred to as a mortgage:

when the small-business owner has to provide personal property as collateral

The Small Business Administration is a(n):

independent agency of the federal government that offers managerial and financial assistance to small businesses.

_____ is the process of creating and managing a business to achieve desired objectives.

innovating

Many service providers are considered retailers because they:

provide their services directly to ultimate consumers