Question 1

Small businesses typically are not vulnerable to turbulence and change in the marketplace.

Accepted Answer

Although small businesses are crucial to the economy,they can be more vulnerable to turbulence and change in the marketplace than large businesses.

Question 2

Which segment of the population is one of the wealthiest in the U.S.?

Accepted Answer

America's Baby Boom generation,one of the wealthiest segments in the U.S. ,began in 1946 and ended in 1964.

Question 3

Echo boomers are sometimes called millennials or Generation Y and are an important market for small businesses.

Accepted Answer

Echo boomers,born between 1977 and 1994,are also known as millennials or Generation Y.

Question 4

Small retailers who specialize in ethnic products and small service providers who have bi- or multilingual employees will be able to tap the business potential of which of the following demographic segments?

Accepted Answer

Immigrants,who now represent 16 percent of the U.S.population,represent an underserved market for small businesses.

Question 5

A mortgage is an example of

Accepted Answer

Debt financing is obtaining capital through borrowing money from an external source,such as a bank.

Question 6

The most important source of funds for any new business is

Accepted Answer

Usually the small business owner has to put up a significant percentage of the necessary capital or funds.

Question 7

Which of the following is not a source of equity financing?

Accepted Answer

A loan-from a family member or a financial institution-is a form of debt financing.

Question 8

Technological advances have resulted in fewer opportunities for small businesses abroad.

Accepted Answer

Advances in technology have opened up many new markets to small businesses.

Question 9

What is a business plan and why is it important?

Accepted Answer

The answer of What is a business plan and why...

Question 10

A precise statement of the rationale for a business and a step-by-step explanation of how it will achieve its goals is a

Accepted Answer

The business plan is a key component of a business's success that is a detailed explanation of how it will achieve its goals.

Question 11

Millennials number around 75 million and represent a huge business opportunity in the US.Who are they?

Accepted Answer

Echo boomers,born between 1977 and 1994,are also known as millennials or Generation Y and represent a large market for businesses.

Question 12

Recently,_________ have (has)spawned many small businesses.

Accepted Answer

Deregulation of the energy market and interest in alternative fuels and in fuel conservation have spawned many small businesses.

Question 13

Advances in _____ have opened many new markets for small businesses,allowing them to more effectively expand their businesses and marketing efforts into new markets.

Accepted Answer

Advances in technology have opened new markets for small businesses.

Question 14

What demographic trends will have the most impact on small business in the future?

Accepted Answer

The answer of What demographic trends will have the most...

Question 15

All of the following have helped to create new opportunities abroad for small businesses except

Accepted Answer

Deregulation is country-specific and therefore only creates new opportunities domestically.

Question 16

Persons or organizations that agree to provide some funds for a new business in exchange for ownership interest or stock are called

Accepted Answer

Venture capitalists are persons or organizations that agree to provide some funds for a new business in exchange for an ownership interest or stock.

Question 17

A license to sell another's products or to use another's name in business is called a

Accepted Answer

A franchise is a license to sell another's products or to use another's name in business such as Dunkin' Donuts,McDonald's and Jiffy Lube.

Question 18

Which industries will likely continue to grow as baby boomers age?

Accepted Answer

Due to the retirement age of the Baby Boomer generation,which represents 27 percent of the American population,the travel,financial planning,and health care industries will continue to grow.

Question 19

The future for small business looks bleak.

Accepted Answer

The future for small business remains promising because the opportunities to apply creativity and entrepreneurship to serve customers are unlimited.

Question 20

Since Eva Chang has decided to use her capital to purchase the rights to own and operate a McDonald's fast-food restaurant rather than start her own operation from scratch,she is probably a(n)

Accepted Answer

A franchisee is a purchaser of a franchise (McDonald's,Subway,Curves,etc).

Quiz 5: Small Business, entrepreneurship, and Franchising