Foundations, Chapter 5
Quiz by Cristina Nader
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7 questions
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- Q1Which areas of business generally attract the smallest businesses?transport, agriculture, financepublishing, advertising, salesreal estate, hospitality, and constructionhealth, technology, health care30sEditDelete
- Q2What are the major causes exclusive to small-business failure?all of the abovenone of the abovelack of experience, lack of money, the wrong locationmismanagement of inventory, poor credit-granting practices, poorly planned expansion30sEditDelete
- Q3What is NOT a contribution of small business to the American economy?employ approximately one-half of all nongovernment workersprovide technical innovationincreased amount of charity workprovide competition30sEditDelete
- Q4What is component number seven (of twelve) of a business plan?manufacturing and operations plancompany and industrycritical risks and assumptionslabor force30sEditDelete
- Q5What is the only form of SBA assistance NOT limited to small businesses?Small-business investment companies (SBICs) provide venture capital to small firms that have the potential to become very successful.SBA disaster loans are the primary form of federal assistance for the repair and rebuilding of non-farm, private-sector disaster losses.The SBA grants regular business loans.30sEditDelete
- Q6What is one general category of franchising arrangements?can combine the pass-through taxation.required to have 100 shareholders or less.a producer licenses distributors to sell a given product to retailers.30sEditDelete
- Q7What is one major benefit of franchising for the franchisee?Fast and selective distribution of its products.Separate legal identity.The opportunity to start a business with limited capital.30sEditDelete