1. Viola wants to be a business owner, and is contemplating
whether to start her own business or open a franchise. Which of the following,
if true, would be a compelling reason for Viola to open a franchise rather than
start a new business?
A. The franchiser
requires $3,000 in start-up costs and a 5 percent monthly royalty fee.
B. The franchiser
tightly controls and monitors the service protocol.
C. The franchisee is
responsible for developing all marketing materials.
D. The company has
only recently become a franchise.
2. Which of the following is federally licensed to borrow
money from the Small Business Administration to invest in or lend to small
businesses?
A. SCORE
B. SBICs
C. SBDC
D. FDIC
3. Many governments require that products sold in their
particular country be at least partly made there. This policy involves what
type of laws?
A. quota laws
B. local content
laws
C. business practice
laws
D. free trade laws
4. Which of the following denotes a government order
forbidding exportation and/or importation of a particular product from a
particular country?
A. tariff
B. embargo
C. subsidy
D. local content law
5. Why is it difficult to compare relative job growth for different-sized
businesses?
A. Sourcing
up-to-date employment figures is difficult.
B. Many small
businesses experience rapid unreported growth.
C. Spheres of
influence overlap between the small and big business sectors.
D. It is hard to
determine the cutoff point at which a small business becomes a large business.
6. Shirley is opening a flower shop and has decided to
operate as a sole proprietorship. Which of the following is NOT an advantage
Shirley will have in operating her business?
A. freedom
B. simplicity of
operation
C. limited liability
D. low start-up
costs
7. Which of the following is the most significant
disadvantage of starting a business from scratch?
A. having few
employees
B. inability to
franchise
C. having
competition
D. the risk of
failure
8. Which of the following helps entrepreneurs gain skills
that are essential for running a business?
A. ESOP
B. SBICs
C. SEC
D. SBA
9. Which of the following refers to tariffs that are imposed
strictly to raise money for the government?
A. revenue tariffs
B. protectionist
tariffs
C. quota tariffs
D. subsidy tariffs
10. Which type of business is legally considered a separate
entity from its owners and is liable for its own debts?
A. sole
proprietorship
B. corporation
C. limited
partnership
D. cooperative
11. Who are the owners of a corporation?
A. board of
directors
B. financial
officers
C. stockholders
D. top managers
12. The U.S. government forbids the importation of cigars
from Cuba. What is this practice called?
A. embargo
B. tariff
C. subsidy
D. business practice
law
13.Which of the following types of tariff is meant to
discourage the import of particular products?
A. revenue tariff
B. quota tariff
C. labor tariff
D. protectionist
tariff
14. In which business sector are cooperatives still
important?
A. manufacturing
B. automotive
C. public utilities
D. agriculture
15. Olivia has found a viable business, a small furniture
store, she is interested in purchasing. She has learned that the store is
supplied by reliable vendors and has a steady stream of local and online
buyers. What should be Olivia’s next step at this point?
A. Analyze the
furniture store’s past financial statements.
B. Start negotiating
a purchase price with the current owner.
C. Approach a
banking institution about financing her purchase.
D. Consult a
marketing agency about ways to reach more customers.
16.Who constitutes the membership of SCORE?
A. retired
executives
B. venture
capitalists
C. company officers
D. commercial
lenders
17. Which of the following denotes the practice of
protecting domestic business at the expense of free market competition?
A. fair trade
B. balanced trade
C. free trade
D. protectionism
18.Which form of business ownership generates the most sales
in the United States?
A. sole
proprietorship
B. general
partnership
C. cooperative
D. corporation
19. What is the most effective way for an entrepreneur to
become a competent manager?
A. working alone
B. relying on luck
C. getting a college
degree
D. working for a
successful company first
20. Which entity is defined as independent and has little influence
on its market?
A. corporation
B. joint venture
C. small business
D. partnership
