Chapter 5

Question 0

Small business generate ___ %

Answer 0

60-80%

Question 1

Three contributions of a small business are

Answer 1

Create jobs,account for 30% of u.s. Exports,offer customize service, create new industries

Question 2

A combination of two or more firms to form one company is called_______

Answer 2

Merger

Question 3

By the 10-year mark,____ % of small businesses have closed permanently

Answer 3

82

Question 4

A unit or agency of government owns and operates an organization such as_____

Answer 4

Public ownership

Question 5

Name three forms of private ownership

Answer 5

Sale proprietorship, partnership, corporation

Question 6

A contractual business agreement between a manufacturer or another supplier and a dealer to produce and market the supplier’s good or service.

Answer 6

The franchising alternative

Question 7

procedure in which one firm purchases the property and assumes the obligations of another

Answer 7

Acquisition

Question 8

What are the four benefits of franchising ?

Answer 8

Prior Performance Record
Recognizable Company Name (Brand)
Proven Business Model
Tested Management Program
Savings through Volume Purchases

Question 9

What are the three reasons small business fail ?

Answer 9

Management Shortcomings
Inadequate Financing
Government Regulation