Entrepreneurship, Franchise & Small Business Quiz

What are two ways entrepreneurs and their small businesses provide a positive impact on the economy?

• Create jobs and provide specialized products

• Increase taxes and reduce competition

• Decrease demand for products and increase prices

• Limit consumer choices and reduce quality

What are two disadvantages or negatives of owning your own business?

• High failure rate and personal financial risk

• Creative freedom and low costs

• High success rate and low stress

• Easy decision-making and high profits

What is a common feature of a franchise?

• High creative freedom

• High success rate compared to other types of business

• Low upfront costs

• No adherence to franchisor's format

What is an example of a service business?

• A bookstore

• A restaurant

• A consulting firm

• A clothing retailer

What is one way a start-up differs from an existing business?

• Higher cost of buying

• More creative freedom

• Less chance of success

• More established customer base

What is one way the Small Business Administration supports entrepreneurs?

• Reducing business taxes

• Providing workshops and seminars

• Limiting business growth

• Increasing competition

What is a characteristic of a franchise?

• No need for a trademark

• High creative freedom

• Legal relationship between two parties

• Low success rate

Which of the following is a characteristic of a successful entrepreneur?

• Pessimistic

• Risk-taker

• Indecisive

• Unmotivated

What is usually required initially when starting a franchise?

• No fees

• Initial fee or deposit

• Full ownership

• Free advertising

Which of the following is a type of fee associated with franchises?

• No fees

• Royalty fees

• Free marketing

• No initial cost