Chapter 4: Small Business, New Ventures, and Franchises
Multiple Choice

1.  

Which of the following is NOT a role of small business in the economy?
providing jobs
providing specialized goods and services
supplying the needs of large corporations
none of the above

2.  

Which of the following is NOT a contributing factor to the rising number of small businesses?
Availability of funding.
Downsizing and outsourcing
Increasing numbers of women and minority entrepreneurs
Technology and the Internet

3.  

Which of the following does NOT characteristic of entrepreneurs?
intuitive
eager learners
possess good people skills
resist risk taking

4.  

A winning business plan will include:
company mission and objectives.
market and competition.
an exit strategy.
all of the above.

5.  

Small business ownership options include:
new venture start-ups.
franchises.
purchasing an existing business.
all of the above.

6.  

Information on facilities, equipment and labor needed for a business is called....
a business plan.
a design and development plan.
financial projections and requirements.
an operations plan.

7.  

Which of the following is NOT a type of franchise?
A business-format
An entrepreneurial format
A product franchise
A manufacturing franchise

8.  

According to a recent study, what do 1/3 of businesses with 19 or fewer employees use to finance their new business ventures?
credit cards
cash
bank loans
borrowing money from friends/relatives

9.  

Which of the following is NOT a resource for small-businesses?
Incubators
The Internet
SCORE
A prospectus

10.  

Growth management involves all of the following except:
preparing to change roles.
modifying systems.
getting help from those who are experienced in running expanded businesses.
shifting focus from the original product or service.

11.  

Which of the following is NOT a private financing source?
Angel investors
Credit cards
Sale of stock
Venture capitalists

12.  

SBA loans involve...
an SBA guarantee to repay up to 80 percent of a bank loan if you fail to do so.
longer repayment terms than conventional bank loans.
IPOs.
both "a" and "b."

13.  

Which of the following is NOT among the reasons experts cite for the don-com shakeout?
Fighting the law of supply and demand
Miserly spending
Poor management
Unrealistic goals

14.  

John Schnatter's success came by...
accidental good luck.
intuition and knowledge of the business.
failure of his competitors.
all of the above.

15.  

On the myPHLIP Web site, students can...
earn money for asking questions.
select a text chapter for further study.
access current events related to chapter topics.
all of the above.


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