Ptest Q 5 – Flashcards

To qualify as a small business, an agricultural company's maximum annual receipts must be no more than $1 million.. $750,000. $500,000. $800,000. $9 million.

Which of the following was established to arbitrate disputes between franchisors and franchisees? Court system Partnership for Franchisees' Rights Association for Franchise Arbitration National Franchise Mediation Program Federal Trade Commission

Franchising experienced tremendous growth during the early 1430s.

Which of the following statements is true regarding the profitability of new businesses? Most new businesses are highly profitable when they first start. If a company does not show a profit within the first year, it will fail. Most new businesses will turn a profit within the first year. Profitability is not an important issue for new businesses. It may take several years for a new business to begin showing a profit.

The various types of businesses attracting small business are generally grouped into service industries, distribution industries, and financial industries.

Sarah owns a 7-Eleven franchise. What is the primary disadvantage of owning a franchise for Sarah? The franchisor still retains a great deal of control. She has to pay royalties to the franchisor. Sarah may not find ways to improve operations. Sarah is not allowed to hire her own employees.. She cannot use her name as the restaurant name.

To qualify as a small business, a manufacturing plant can employ no more than ____ people. 2,000 1,000 500 3,000 3,500

Franchising is limited only to fast foods.

Small businesses are typically managed by people who started and own them.

Beau works for a small pest-control company that has a total of five employees. From his point of view, the primary disadvantage of a small business is the complicated management structure. risk of failure. limited ability to raise capital. personal relationship with his employer. limited potential for him to advance