fm116 exam #1 chapter1,2,6,7
A franchisee disclosure document(FDD) is?
A document provided by a franchisor to the franchisee
Which of the following statement is true of a franchise your franchisee relationship?
A franchise or limits the franchisees territory from expanding into other areas
Which of the following statements is true of the formation of general partnership?
Expert legal assistance can be fired when drawing of a partnership agreement
The U.S small business Admissions (SBA) give free money to start-up business, grants interest- free loans, and fully guaranteed loans from local commercial lenders?
FALSE
The global entrepreneurship Monitor(GEM) shows that people living in high-income countries tend to be much more willing to start their own business than people living low-income countries
FALSE
a firm considers___________to increase size and market power with in the industry?
Horizontal mergers
Which of the following is a disadvantage of financing?
If I Franchise agreement usually Requires the franchisee to follow the franchisor's procedures to the letter
Real GDP measures the total value of final goods and services produced within a nation's physical boundaries over a given period of time, adjusted for?
Inflation
The owners of limited liability companies (LLCs) are called members because?
LLCs are neither corporations nor partnerships
A corporation is a separate entity from its owners where they?
Owners are not personally responsible for the obligations of the company
which of the following is an advantage of general partnership?
Partners capitalize on complementary skills
Which of the following is a disadvantage associated with sole partnerships?
Raising money for raising money to finance growth can be tough for business owners
Over the past 30 years, most economies of the world have begun moving towards the market end of a spectrum that ranges from pure planned economy at one extreme to pure market economy at the other,This has led to?
Reduced red tape in socialist governments.
In the case of C corporations, shareholders don't pay income taxes on?
Retained earnings
Which of the following is an end advantage of a C corporation?
Shareholders have a limited liability in the farm
Small business often have an advantage in foreign markets where customers want to deal directly with a company's top management?
TRUE
In the context of monetary policy, which if the following statements is true of money supply?
The M1 money supply includes all currency plus checking and traveler's checks.
One of the reasons why C corporations have an edge over so partnership is?
The permanence of the business
Which of the following is a characteristic of a limited liability companies ( LLCs)?
They are made to pay an annual franchise tax in many states
Which of the following statements is true of forming C corporations?
They required the adoption of corporate bylaws
Gross domestic product(GDP) levels tend to be somewhat understated, since they don't include any illegal activities, which can represent a significant portion of some countries production?
True
In the event that a large company has to downsize, the middle-aged workers who are laid off find it difficult to find new jobs when such workers decide to start their own business they?
are called necessity entrepreneurs
In the context of opportunities and treats,overhead costs for small business?
are often lower than big companies
In the context of the U.S economy, small business?
are often the first to contract when times are tough
In the context of planned economies, countries that adopted communism most likely developed?
cropping shortages and surpluses
Small business start ups are likely to find that getting commercial loans are?
difficult because lenders are reluctant to give loans to firms that do not have a track record
Which of the following is an issue associated with general partnerships?
difficulty faced by a partner when withdrawing from the company
The primary reason people choose to become entrepreneur is to?
earn more money
An advantage of franchising is?
easier access to funding
According to small business experts, while raising startup funds from friends are relative it is?
essential to keep the relationship as professional as possible
People with an external locus of control?
feel buffeted by focus such as random luck
Which of the following is an intimidating obstacle that small businesses face?
high health insurance cost
Which of the following pieces of information is found in the U.S small business Admission (sba) resources?
industry-specific statistics
In the context of franchising which of the following statement is true of a business format franchise?
it is an agreement in which franchisor grants the franchisee the right to both make and sell its good or service
Identify a true statement about the Federal Reserve ?
it manages the monetary policy of the United States
In the context of fundamental principles of a free market system, which of the following statement is true of demand curve?
it shows the relationship between price and quantity from a customer's standpoint
Which of the following is a negative factor that affects socialist economic systems?
lack of government ownership of key enterprises
Technological tools such as the internet and email have?
made is easy for small business owners to manage in their firms on the go
Which of the following is drawback of buying a franchise?
of the national brand suffers, so does the business
In the context of the various degrees of competition ,which of the following statements is true of oligopoly?
oligopolies typically avoid intense price competition
In the contact a limited partnership which of the following is an aspect the differentiates limited partners for the General partners?
participation in the management of a company
The Fed?
performs banking services for commercial banks in districts where it operates
In the context of monetary policy, the Fed is most likely to reduce the discount rate during?
recessions
______________________ are local offices- affiliated with the U.S small business administration- that provide comprehensive management assistant ot current and prospective small business owners.?
small business Development centers
Buying an established business is a better plan than starting your business from scratch because?
the organization structure is in place
Which of the following statements is true of necessity entrepreneurship in high income countries?
the rate of necessity entrepreneurship is low
Which of the following is an advantage of limited liability companies(LLCs)?
they can have any number of owners
there is no limit on the number of partners you can participate in a general partnership?
true
Which of the following is a powerful contribution made by small business to the U.S economy?
vitalizing inner cities
Which of the following is an advantage of starting a business from scratch?
you do not have to deal with a prior owner's bad decisions