Chapter 5 Review

Billie Tucker operates Tucker Farms in Illinois. Last year, his reciepts were just under $500,000. According to the Small Business Association (SBA), Tucker Farms is a

• franchise.

• large business.

• joint venture.

• medium-sized business.

• small business.

A small business is all of the following except

• difficult to manage

• dominate in its field

• demanding of the owner's time and attention

• operated for profit

• independently owned

To qualify as a small business, a manufacturing plant can employ no more that _____ people.

• 3,000

• 2,000

• 3,500

• 1,000

• 500

To qualify as a small business, a retailing establishment may not exceed annual sales of

• $7.5 million

• $3 million to $6 million

• $12.5 million

• $2.6 million to $5 million

• $1.2 million to $4 million

Approximately how many businesses are there in the U.S.?

• 1 Billion

• 28.8 Million

• 4 Billion

• 11.5 Million

• 900,000

What is the primary reason new businesses fail?

• Lack of brand-name recognition.

• Low employee quality for new businesses.

• Inability to compete with well-established brand-names.

• Mismanagement resulting from the lack of business know how.

• Owner does not work hard enough.

Approximately what percentage of jobs in the United States do small businesses provide?

• about 50%

• 30%

• nearly 90%

• 10%

• 5%

Which of the following is not considered a catagory in the distribution industries?

• Transportation

• Retailing

• Communications

• Wholesaling

• Manufacturing

Which of the following would be least likely to be started as a small business?

• Landscaping Business

• Electricity Company

• Furniture Repair Store

• Restaurant

• Flower Shop

Service industries account for approxamently what percentage of all small businesses?

• 72

• 48

• 84

• 27

• 35