The real benefit to a business owner engaging in barter is the ability to “pay” for goods
and services at her wholesale cost and to get credit for the retail price.
The majority of first-generation family businesses do not survive into the second
generation.
One of the key factors in choosing a location for a convenience store is finding a
location with high traffic volume and easy accessibility.
When a franchisee buys a franchise, she/he is purchasing the expertise and the business
of the franchisor.
Most small businesses getting started in conducting global business do not need the
services of trade intermediaries because “going global” has become so easy that even
the smallest businesses can do it alone.
Not all family-owned businesses are small; in fact, approximately one-third of the
Fortune 500 companies are family businesses.
A company that is experiencing rapid expansion has similar capital requirements as
those of a fledgling business.
Increased entrepreneurial activity is a phenomenon unique to the U.S.
Corporate venture capital accounts for approximately 17 percent of all venture capital.
In a ________ , a franchisee has the right to create a semi-independent organization in a
particular territory to recruit, sell, and support other franchisees.
A) multiple-unit franchise
B) master franchise
C) conversion franchise
D) cobranding franchise
Refer to the following break-even chart to answer the question(s) below:
The area labeled ________ is the “profit area.”
A) W
B) X
C) Y
D) Z
Which of the following techniques does marketing consultant Faith Popcorn
recommend to small business owners interested in tracking market trends?
A) Hire a top-10 market research firm to track trends for you.
B) Watch what the large corporations in your industry are doing.
C) Read as many current publications as possible.
D) Talk with two to three people at random each week to hear what they are buying and
why.
A technique in which a company uses the revenues from the sale of those products that
were once considered as waste to be more competitive in pricing their main product is
________ pricing.
A) by-product
B) optional-product
C) bundling
D) captive-product
The ________ ratio shows the portion of each sales dollar remaining after deducting all
expenses.
A) net profit on sales
B) net profit to equity
C) net sales to total assets
D) net sales to working capital
Entrepreneurial couples who work together as co-owners of their business are referred
to as ________.
A) dual entrepreneurs
B) corporate dropouts
C) corporate cast-offs
D) copreneurs
One of the biggest barriers to small business exports is lack of ________.
A) access to adequate financing
B) attractive countries that are not already saturated by franchising efforts
C) effective distribution strategies
D) information to make informed decisions about franchising
A recent study reports that the success rate of franchisees increases when a franchise
system ________.
A) requires franchisees to have prior industry experience
B) requires franchisees to actively manage their operations
C) has built a strong brand name with training programs to improve knowledge and
skills
D) All of the above increase the rate of success.
The final step in creating a sound export strategy is to ________.
A) find your customer
B) ship your goods
C) collect your money
D) find financing
The key to finding a suitable location is identifying the characteristics that can give a
company a competitive edge and then searching out potential sites that meet those
criteria.