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- 1. Multiple Choice
The SBA has defined a small business as one independently owned, operated for profit, and not dominant in its field.
True
False
- 2. Multiple Choice
An individual or organization granting a license to operate an individually owned business as though it were part of a chain of outlets or stores is a(n)
franchise
franchisor
franchisee.
venture capitalist.
entrepreneur.
- 3. Multiple Choice
Volunteers for SCORE are
mostly university business professors
active executives from large corporations
generally either lawyers or accountants.
graduate business students working on projects
retired and active business people from different industries.
- 4. Multiple Choice
Shonta started a graphic design firm a year ago. The business has done well, but it needs a lot more equipment, computers, and employees to continue expanding. Shonta thinks she can get all the money she will need from her bank. What advice might you give to her?
She is right—the bank is likely to lend her as much as she needs because banks primarily focus on supporting small businesses.
She is crazy—banks do not lend money to small businesses but only to well-known, well-established organizations.
She should sell her business immediately before it fails because most small businesses fail during the first five years.
She should not accept any new clients so that she can end the need to add additional equipment and employees.
She should consider alternative sources of financing because banks provide only a portion of the total capital to small businesses.
- 5. Multiple Choice
What is a common mistake that small-business owners make when their businesses begin growing?
They sell more goods and services.
They put too much money in advertising.
They move beyond their local area.
They over-expand without proper planning.
They invest too much of their own money.
- 6. Multiple Choice
An individual’s desire to create a new business is referred to as
the entrepreneurial spirit.
the desire for ownership.
self-determination.
self-evaluation.
the laissez-faire spirit.
- 7. Multiple Choice
Businesses such as flower shops, restaurants, bed and breakfasts, and automobile repair are good candidates for entrepreneurs because they
do not require any skills.
are the most likely to succeed
can obtain financing easily.
require no special equipment.
have a relatively low initial investment.
- 8. Multiple Choice
A carefully constructed guide for the person starting a business.
small business
business plan
strategic alliance
SBA
- 9. Multiple Choice
A government agency that assists, counsels, and protects the interests of small businesses in the United States.
SCORE
Small-Business Institutes (SBIs)
venture capital
SBA
- 10. Multiple Choice
A business that is independently owned and operated for profit and is not dominant in its field.
SBA
franchise
small business
franchisor
- 11. Multiple Choice
A small-business investment company (SBIC) is a government agency that provides venture capital to small enterprises.
True
False
- 12. Multiple Choice
The purchaser of a franchise is called the franchisor.
True
False
- 13. Multiple Choice
International trade will become more important to small-business owners in the new century.
True
False
- 14. Multiple Choice
The various types of businesses attracting small business are generally grouped into service industries, distribution industries, and financial industries.
True
False
- 15. Multiple Choice
An agreement between two franchisors in which the two franchisors offer their products together is called double franchising.
True
False
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