Question 1

Most Small Business Administration loans are actually made by

Accepted Answer

Most Small Business Administration loans are actually made by private lenders who are then guaranteed a portion of the loan by the SBA. This encourages lending to small businesses that may not otherwise qualify for traditional loans.

Question 2

SBA stands for

Accepted Answer

SBA stands for Small Business Administration, which is a United States government agency that provides support and resources to small businesses.

Question 3

The acronym SCORE stands for

Accepted Answer

The acronym SCORE stands for Service Corps of Retired Executives. It is a non-profit organization that provides free business advice and resources to entrepreneurs and small business owners.

Question 4

The SBA places special emphasis on aid to

Accepted Answer

The SBA places special emphasis on aid to minority-owned businesses as a way to promote diversity and equal access to opportunities. While the SBA does offer assistance to new businesses and those in need of guaranteed loans, there is a particular focus on minority-owned businesses.

Question 5

Money that is invested in small and sometimes struggling firms that have the potential to become very successful is called _____.

Accepted Answer

Venture capital is specifically designed for investing in startups and small businesses that have high potential for growth and success. These investments are made in exchange for equity in the company and the expectation of a significant return on investment in the future. Seed money is typically used for early stage funding, while growth funds are used for more established companies. Franchise funds and SBA-guaranteed loans are not specifically geared towards startups and growth businesses.

Question 6

The SBA makes a special effort to

Accepted Answer

The SBA has special programs and initiatives to help minority entrepreneurs start and grow their small businesses.

Question 7

Volunteers for SCORE are

Accepted Answer

SCORE (Service Corps of Retired Executives) is a nonprofit organization that provides free business mentoring and advice to small business owners. Therefore, volunteers for SCORE are typically retired businesspeople from different industries.

Question 8

A guaranteed SBA loan may be as large as _____.

Accepted Answer

The answer of A guaranteed SBA loan may be as...

Question 9

As a businessperson planning to open a new small business, you know that the business plan should not contain

Accepted Answer

The answer of As a businessperson planning to open a...

Question 10

Which organization issues management, marketing, and technical publications of interest to present and prospective small-business managers that can be obtained from the U.S.Government Printing Office?

Accepted Answer

The U.S. Small Business Administration (SBA) issues management, marketing, and technical publications of interest to present and prospective small-business managers, which can be obtained from U.S. Government Printing Office.

Question 11

What organization created by Congress in 1953 assists, counsels, and protects the interests of small businesses?

Accepted Answer

The Small Business Administration (SBA) was created by Congress in 1953 to assist, counsel, and protect the interests of small businesses.

Question 12

Jamie applies for a small-business loan from the SBA.If he is approved for the loan, where will the money actually come from?

Accepted Answer

The SBA does not provide the loan directly to the borrower. Instead, it guarantees a portion of the loan to private lenders, such as banks, who then provide the funding to the borrower. Therefore, the money will come from private lenders.

Question 13

"This business will create a caring, learning environment for elementary school children after regular school hours to meet the needs of working parents." This statement answers which of the following issues that should be addressed in a business plan?

Accepted Answer

The statement addresses the mission and nature of the business by outlining its purpose and target audience.

Question 14

Through her University, Gwen and her classmates work together to provide management counseling to small businesses in their community.This is called a

Accepted Answer

The term used to describe the situation in which Gwen and her classmates are providing management counseling to small businesses in their community is a "small-business institute." The other answer choices, including small-business administration, small-business development center, small-business investment company, and community improvement council, do not accurately describe this specific scenario.

Question 15

The average size of an SBA-guaranteed business loan is about _____.

Accepted Answer

The average size of an SBA-guaranteed business loan is about $300,000. This reflects the typical range of loans guaranteed by the Small Business Administration to support small businesses.

Question 16

Professors at most universities are highly encouraged to participate in community service.What organization that provides low-cost courses and workshops would welcome management professors with an interest in small companies?

Accepted Answer

The organization that provides low-cost courses and workshops and would welcome management professors with an interest in small companies is the Small Business Administration (SBA). The SBA offers resources and educational opportunities for entrepreneurs and small business owners, and their programs would benefit from the expertise of management professors. The other options listed (FDA, FDIC, SCORE, SBI) do not have a focus on small business education and support.

Question 17

The following statement answers which major question that a business plan should address? "This business will serve over 200 customers by the end of the year and employ seven full-time employees."

Accepted Answer

The statement provides a specific goal for the business, which is to serve over 200 customers and employ seven full-time employees by the end of the year. This addresses the major question of what the goals for the business are.

Question 18

What is the most popular course offered by the SBA?

Accepted Answer

The course that surveys eight to ten areas of business management is the most popular course offered by the SBA. It covers a wide range of important topics for small business owners.

Question 19

David Fisher, a recently retired corporate executive, is becoming restless in his new role and would like to make this transition smoother by participating in the business community in some limited manner.Since David is financially secure and primarily interested in some sort of volunteer work, he should consider becoming involved with which of the following SBA programs?

Accepted Answer

SCORE (Service Corps of Retired Executives) is a program under the SBA that aims to provide volunteer mentorship and education to small business owners. As a retired executive, David Fisher could use his skills and experience to help small business owners succeed through this program. The other options (ACE, SBIC, SBDC, and SBI) are focused on providing financing and technical assistance to small businesses, which may not align with David's interests in volunteering.

Question 20

Ronald is the director of a university-based group that provides individual counseling, specialized training, and research data to owners of small businesses.Ronald's group is called a

Accepted Answer

Ronald's group is providing individual counseling, specialized training, and research data to owners of small businesses which aligns with the services offered by a small-business development center.

Quiz 5: Small Business, Entrepreneurship, and Franchises