Entrepreneurship, Franchises & Small Businesses Quiz

How do small businesses help the economy?

• Help keep prices down and the quality of the products and services high by providing more competition.

• Helps increase the standard of living

• Provide specialized products and services

• Provide jobs

What are the three ways to start your own business?

• Creating from scratch, purchasing an existing business, buying a franchise

• Working for a large company, investing in stocks and bonds, providing services to others

• Starting a non-profit organization, becoming a freelancer, investing in real estate

• Becoming a government employee, joining a cooperative, starting a social enterprise

Which of the following is not an example of a service business?

• education

• manufacturing

• law

• healthcare

Which type of business sells their time, skills, and expertise?

• Service provider

• Manufacturer

• Wholesaler

• Retailer

What is the Small Business Administration (SBA) responsible for?

• Providing financial, technical, and management assistance

• Enforcing business regulations and laws

• Promoting large corporations

• Supporting non-profit organizations

What is the purpose of a business plan?

• To outline the goals and projections of a business

• To secure business insurance coverage

• To register with federal, state, and local agencies

• To estimate monthly personal expenses

What is a franchise?

• A legal and commercial relationship between two parties

• A type of service business

• A government-owned business

• A non-profit organization

What is an advantage of buying a franchise?

• Access to an established product or service

• Total creative freedom in running the business

• Lower cost compared to other start-up businesses

• Ability to make dramatic changes in the business

What is a potential disadvantage of buying a franchise?

• Lack of independence in managing the business

• Higher success rate compared to other start-up businesses

• Lower initial fee and yearly revenue percentage

• No access to purchasing power and discounts

What should you consider when purchasing used equipment for your business?

• Check for liens and require a bill of sale

• Ignore any UCC filings or chattel mortgages

• Rely on the seller's word about the equipment's condition

• Purchase without any legal documentation