Question 1

Megan's business sells souvenirs and craft items to tourists in Myrtle Beach, South Carolina. This is an example of a ____ business.

Accepted Answer

A)   service
B)   communication
C)   production
D)   distribution
E)   wholesalingF) B) and E)
G) B) and D)

Question 2

A license to operate an individually owned business as though it were part of a chain is a franchise.

Accepted Answer

A) True 
 B)False

Question 3

Kevin has considered selling franchises of his very successful hardware store. However, he is concerned that the franchises will destroy the reputation of the company and end up hurting his business. What advice would you give Kevin?

Accepted Answer

A)   He should not sell franchises because he will have no control over how the franchisees operate their businesses.
B)   He should instead raise the capital to build and operate the new stores himself because this is a cheaper way to expand.
C)   He should hire the managers of the new franchises so that he has control over their operations.
D)   Through the franchise agreement, he can ensure that the new stores are operated according to his own standards.
E)   Although he will have a little control over how the franchises operate, he will not be able to influence their advertising or level of service.F) B) and E)
G) None of the above

Question 4

A guaranteed SBA loan may be as large as

Accepted Answer

A)   $5 million.
B)   $3.5 million.
C)   $2.0 million.
D)   $1.5 million.
E)   $750,000.F) D) and E)
G) A) and B)

Question 5

What is the most popular course offered by the SBA?

Accepted Answer

A)   A How to Get Rich Quick course
B)   A course about accounting for a small business
C)   A course that surveys eight to ten areas of business management
D)   A course on motivating and encouraging your employees
E)   A course on how to obtain more financing for your businessF) All of the above
G) A) and C)

Exam 5: Small Business, Entrepreneurship, and Franchises

Kevin has considered selling franchises of his very successful hardware store. However, he is concerned that the franchises will destroy the reputation of the company and end up hurting his business. What advice would you give Kevin?

Correct Answer
verified

Megan's business sells souvenirs and craft items to tourists in Myrtle Beach, South Carolina. This is an example of a ____ business.

Correct Answer
verified

A license to operate an individually owned business as though it were part of a chain is a franchise.

Correct Answer
verified

What is the most popular course offered by the SBA?

Correct Answer
verified

A guaranteed SBA loan may be as large as

Correct Answer
verified

Exam 5: Small Business, Entrepreneurship, and Franchises

Kevin has considered selling franchises of his very successful hardware store. However, he is concerned that the franchises will destroy the reputation of the company and end up hurting his business. What advice would you give Kevin?

Correct AnswerverifiedShow Answer

Megan's business sells souvenirs and craft items to tourists in Myrtle Beach, South Carolina. This is an example of a ____ business.

Correct AnswerverifiedShow Answer

A license to operate an individually owned business as though it were part of a chain is a franchise.

Correct AnswerverifiedShow Answer

What is the most popular course offered by the SBA?

Correct AnswerverifiedShow Answer

A guaranteed SBA loan may be as large as

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified