Chapter 5 Quiz

Match the following definition with the appropriate term: A person or organization purchasing a franchise. A. Franchisee B. Franchising C. Franchise D. Franchisor

A. Franchisee

Match the following definition with the appropriate term: A license to operate an individually owned business as though it were part of a chain of outlets or stores. A. Franchising B. Franchise C. Franchisee D. Franchisor

B. Franchise

Which of the following is an advantage of small business? A. Limited potential B. Independence C. Limited ability to raise capital D. Risk of Failure

B. Independence

Entrepreneurs get financing for their small business from a variety of sources. Where does the most capital come from? A. Friends/Relatives B. Personal Savings C. Banks D. Investors

B. Personal Savings

____________ was created by Congress in 1953 as a governmental agency that assists, counsels, and protects the interests of small businesses in the United States. A. Small-Business Development Centers (SBDCs) B. Small Business Administration (SBA) C. Service Corps of Retired Executives (SCORE) D. Small-Business Institutes (SBIs)

B. Small Business Administration (SBA)

______________ are university based groups that provide individual counseling and practical training to owners of small businesses. A. Service Corps of Retired Executives (SCORE) B. Small-Business Development Centers (SBDCs) C. Small Business Administration (SBA) D. Small-Business Institutes (SBIs)

B. Small-Business Development Centers (SBDCs)

______________ are groups of senior and graduate students in business administration who provide management counseling to small businesses. A. Small-Business Development Centers (SBDCs) B. Small-Business Institutes (SBIs) C. Service Corps of Retired Executives (SCORE) D.Small Business Administration (SBA)

B. Small-Business Institutes (SBIs)

Privately owned firms that provide venture capital to small enterprises that meet their investment standards are called _______________. A. Crowdfunding. B. Small-business investment companies (SBICs). C. Franchising. D. Venture Capital.

B. Small-business investment companies (SBICs).

Which of the following is a disadvantage of small business? A. Ability to adapt to change B. Personal relationships with customers and employees C. Risk of failure D. Independence

C. Risk of failure

A group of businesspeople who volunteer their services to small businesses through the SBA is called _________________. A. Small-Business Institutes (SBIs) B. Small Business Administration (SBA) C. Service Corps of Retired Executives (SCORE) D. Small-Business Development Centers (SBDCs)

C. Service Corps of Retired Executives (SCORE)

Which of the following are some reasons why some entrepreneurs and small businesses fail? A. Money-related problems. B. Lack of management skills. C. Overexpansion. D. All of the above are some reason why entrepreneurs and small businesses may fail.

D. All of the above are some reason why entrepreneurs and small businesses may fail.

Which of the following statements is true regarding the business plan? A. The business plan should be considered a tool with three basic purposes: communication, management, and planning. B. The business plan is a living document; it is modified as the entrepreneur gains knowledge and experience. C. The business plan shows an investor how the business plans to make a profit, shows the manager timelines and milestones for growth projections and comparisons, and helps the business person plan through various phases of business such as identifying obstacles and establishing alternatives. D. All of the above are true regarding business plans.

D. All of the above are true regarding business plans.

A carefully constructed guide for the person starting a business is called a ______________. A. SWOT Analysis B. Business Manual C. How-To Guide D. Business Plan

D. Business Plan

Match the following definition with the appropriate term: The actual granting of a franchise. A. Franchisor B. Franchisee C. Franchise D. Franchising

D. Franchising

Match the following definition with the appropriate term: An individual or organization granting a franchise. A. Franchise B. Franchisee C. Franchising D. Franchisor

D. Franchisor

A ______________ is independently owned and operated for profit and is not dominant in its field. A. Corporation B. Not-for-Profit C. Small Business Institutes (SBI's) D. Small Business

D. Small Business

______________ is money that is invested in small (and sometimes struggling) firms that have the potential to become very successful. A. Crowdfunding B. Small-business investment companies (SBICs) C. Franchising D. Venture Capital

D. Venture Capital