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