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Chapter 5 Small Business, Entrepreneurship, and Franchises Flashcards | StudBud
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Chapter 5 Small Business, Entrepreneurship, and Franchises
Chapter 5 Small Business, Entrepreneurship, and Franchises
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1
Patty knows the customers of her hat store by name and each of their preferences. What small business advantage is this?
Simplified record keeping
Independence
Ability to adapt to change
Personal relationships with customers
2
Lisa decides to use ____ as a source of financing. She created a post and invited people to contribute to her business.
franchising
venture capital
crowdfuning
a small business investment company
3
What advice would you have for someone wanting to start a business.
Starting a small business requires much more than optimism and a good idea.
Most small businesses generate a profit in their first year of operation
Entrepreneurs should always adopt a "fast growth" mindset.
Small busineses inherently posses the ability to expand.
4
Some business owners work when they want. They are likely influenced by __ when starting their own business.
age
money
independence
family background
5
A bike store owner orders some trikes after the customers ask about trikes. This is possible because small businesses__.
have the ability to quickly adapt to change
have personal relationships with customers
have simplified record keeping
can keep all profits
6
What program utilizes senior and graduate business administration students to provide business management counseling?
The Small Business Administration (SBA) local office
The Service Corps of Retired Executives (SCORE)
A small-business development center (SBDC)
A small-business institute (SBIs)
7
Small businesses are important to the U.S. economy for all of the following reasons except ___.
pay 40 percent of the total U.S. private payroll
they employ about half of all pricate sector jobs
they have generated 50 percent of net new jobs over the past 20 years
that they represent 99.9 percent of all employer firms
8
Trevon wants to open his own manufacturing company and sell his products globally. He will be successful because __.
1% of small businesses in the U.S. currently engage in deliberate exporting
technology only allows large corporations to reach global markets.
the national economies are becoming more self-reliant
real-time communications are shrinking business opportunities
9
Giovanni can't find enough money to start his business. This is an example of which disadvantage of small business?
limited potential
Limited ability to raise capital
Risk of failure
Inability to adapt to change
10
The organization chart for a business would appear in which section of the business plan?
Labor Force
Appendix
Executive Summary
Management Team
11
A private individual who invests money in a small business in exchange for ownership is called a(n) ______.
bank loan
venture capital firm
small business investment company
angel investor
12
In Bhavika's business plan what section should she include current competition, pricing, and promotions in?
Company and Industry
Benefits to the Community
Marketing Plan
Introduction
13
Which of the following businesses would not be considered a small business?
A manufacturing firm with $17 million in revenue and 95 employees
A wholesale trade company with $1 million in profit and 300 employees
A real estate company with $100 million in revenue and 54 employees
A car repair shop with over $250,000 in revenue and eight employees
14
UPS charges a $30K initial franchise fee. UPS is considered ____ and benefits from the arrangement ____.
franchisee; by ensuring that outlets are maintained and meet standards
franchisor; by having more capital to expand operations and advertising
franchisee; by starting a business with limited capital
franchisor; by making use of the business experience of others
15
What part of a business plan addresses the weaknesses of the business and how to deal with the weaknesses?
Company and Industry
Critical Risks and Asumptions
Financial Plan
Executive Summary
16
How does a gas station franchise work?
A producer licenses distributors to see a given product to retailers.
A franchisor supplies brand names rather than a complete product.
A Dual-branded franchise is one in which franchisors sell products together
A manufacturer authorizes a number of retail stores to sell a certain item.
17
What benefit do you get from a franchise?
The well-controlled distribution of products.
A franchise fee
More start-up funding.
The use of the brand image and design of the business.
18
What university-based group provides individual counseling and practical training to owners of small businesses?
A small busines institue
The Service Corps of Retired Executives
A small business development center
The small business Administration local office
19
____ entrepreneurs own 42 percent of all businesses.
Teen
Women
Black
Immigrant
20
What business assistance program utilizes retired businesspeople who volunteer to help small business owners.
A Small Busines Institute (SBI)
The Small Busines Administration (SBA)
The Service Corps of Retired Executives (SCORE)
The Small Business Development Center (SBDC)
