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Small Business

This document appears to be a series of multiple choice questions about entrepreneurship, franchising, and buying/starting a business. The questions cover topics such as the impact of job losses, entrepreneurship trends, determining business value, advantages and disadvantages of buying an existing business vs starting a new one, evaluating franchise opportunities, and types of franchising. The document tests knowledge across various aspects of entrepreneurship and business ownership models.

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doannamphuoc
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© Attribution Non-Commercial (BY-NC)
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Download as DOCX, PDF, TXT or read online on Scribd
112 views7 pages

Small Business

This document appears to be a series of multiple choice questions about entrepreneurship, franchising, and buying/starting a business. The questions cover topics such as the impact of job losses, entrepreneurship trends, determining business value, advantages and disadvantages of buying an existing business vs starting a new one, evaluating franchise opportunities, and types of franchising. The document tests knowledge across various aspects of entrepreneurship and business ownership models.

Uploaded by

doannamphuoc
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Question 1

2 out of 2 points

The impact on the individual of the widespread loss of corporate jobs has been
Answer Selected Answer:

all of the above

Question 2
0 out of 2 points

The attitude toward entrepreneurship among decision makers at the World Bank seems to be
Answer Selected Answer:

it doesnt offer much in dealing with problems of the size faced in many areas around the world.
0 out of 2 points

Question 3

One of the transformations of business in the new world order is steady growth in
Answer Selected Answer:

service industries.

Question 4
2 out of 2 points

Some writers claim that we may see fewer and fewer jobs in our economy in the future because
Answer Selected Answer:

modern technology makes it possible to eliminate many jobs.

Question 5
2 out of 2 points

About entrepreneurship during the 1980s and 1990s, it can be said


Answer Selected Answer:

it is a major source of vitality in today's world economy.

Question 6
2 out of 2 points

The vitality of entrepreneurship versus that of big business during recent years has been
Answer Selected Answer:

greater.

Question 7
2 out of 2 points

The creation of new ventures


Answer Selected Answer:

has been the chief source of economic vigor for the last several years in the US.
0 out of 2 points

Question 8

The independence of spirit and action so characteristic of many entrepreneurs


Answer Selected Answer:

is quite useful when it comes time to sell the business.

Question 9
2 out of 2 points

The I know what it cost me approach to the determination of the selling price of a business
Answer Selected Answer:

all of the above

Question 10
0 out of 2 points

Which of the following is an approach to determining the value of a firms assets?


Answer Selected Answer:

all of the above

Question 11
2 out of 2 points

If a business being considered for purchase is experiencing slumping sales,


Answer Selected Answer:

all of the above

Question 12
0 out of 2 points

One-man shows are firms closely linked to the current owner; these businesses
Answer Selected Answer:

provide excellent prospects for purchase.

Question 13
2 out of 2 points

The two basic considerations that should be included in determining the price of a business include
Answer Selected Answer:

the value of the business assets and its future earnings.

Question 14
2 out of 2 points

In negotiating with an owner for the purchase of her business, you should
Answer Selected Answer:

listen to what the owner says but verify the information later and dig deeper.

Question 15
2 out of 2 points

The value of a business


Answer Selected Answer:

is determined when the buyer and seller agree on a price.

Question 16
2 out of 2 points

Which of the following is not included when someone buys a business?


Answer Selected Answer:

none of the above

Question 17
0 out of 2 points

Some businesses that are on the market suffer a limitation due to


Answer Selected Answer:

departure of the current owner.

Question 18
0 out of 2 points

Part of the risk associated with the start-up of a new business is that
Answer Selected Answer:

none of the above

Question 19
0 out of 2 points

Less time and effort are required to take over an existing business than to start a new one because
Answer Selected Answer:

new businesses usually require intensive efforts to build a customer base.

Question 20
2 out of 2 points

When someone buys a business, he or she gets


Answer Selected Answer:

all of the above

Question 21
0 out of 2 points

Buying a business from its founder


Answer Selected Answer:

none of the above

Question 22
2 out of 2 points

Among the advantages of buying an existing business, over the option of starting one, are the following:
Answer Selected Answer:

all of the above

Question 23
0 out of 2 points

In retailing, the influence of franchising is reflected in the fact that


Answer Selected Answer:

none of the above

Question 24
2 out of 2 points

With regard to a statement of projected income made by the franchiser to help you evaluate a franchise,
Answer Selected Answer:

any statement is required by law to be backed by substantiation and therefore you are not likely to get one.
2 out of 2 points

Question 25

Because of the requirements of the job, or role, of the franchisee, the best combination might be that of a blend of
Answer Selected Answer:

entrepreneur and corporate manager.

Question 26
0 out of 2 points

The restrictions provided by the franchiser


Answer

Selected Answer:

are likely to be disagreeable to the individual with a creative urge.

Question 27
0 out of 2 points

Business-format franchising
Answer Selected Answer:

all of the above

Question 28
2 out of 2 points

In evaluating the franchise option, the interested individual


Answer Selected Answer:

must consider her interests, personality, and background.

Question 29
0 out of 2 points

The type of franchising with the broadest range of services provided to the franchisee by the company is
Answer Selected Answer:

manufacturing.

Question 30
0 out of 2 points

The findings of the Australian study comparing the personalities of franchisees with those of conventional entrepreneurs shows
Answer Selected Answer:

there is no difference between the two.

Question 31
2 out of 2 points

Here in the U.S., ________ franchising accounts for nearly 75 percent of all franchised outlets.
Answer Selected Answer:

business-format

Question 32
2 out of 2 points

Among the types of service frequently provided by the franchiser to aid in start-up is
Answer Selected Answer:

all of the above

Question 33

2 out of 2 points

A comparison of survival rate of franchised outlets, over a four-year period, with those of independent businesses showed
Answer Selected Answer:

independent businesses have a better record than franchised outlets.

Question 34
2 out of 2 points

Product franchising is an arrangement in which


Answer Selected Answer:

dealers are given the right to distribute goods for a manufacturer.

Question 35
2 out of 2 points

The most important single element for the prospective franchisee to investigate is
Answer Selected Answer:

the franchiser.

Question 36
2 out of 2 points

Among the disadvantages faced by a franchisee are


Answer Selected Answer:

the costs associated with owning a franchise.

Question 37
0 out of 2 points

The advertising efforts of companies with large numbers of franchisees


Answer Selected Answer:

all of the above

Question 38
2 out of 2 points

The operations of franchised outlets


Answer Selected Answer:

all of the above

Question 39
2 out of 2 points

The advantages for the franchisee include


Answer Selected Answer:

all of the above

Question 40
2 out of 2 points

The information given in the Franchise Opportunities Handbook includes


Answer Selected Answer:

all of the above

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