1. Jim is beginning his research on franchise businesses in order to find one that meets his needsA quick, easy way get general
information is to
A. call the corporate headquarters
B. ask a local franchise owner
C.look up Internet sites
D. check the Yellow Pages
2.Your beachside inn will be ready to open next spring. To get in on the summer tourist trade, it will be necessary to
A. establish a strong Web presence.
B. give it an unforgettable name.
C. advertise heavily in local newspapers. D. offer bargain rates at first.
3. 3. Once you've chosen your business and focused on your niche, the next step is to
A. establish a Web presence .
B. research the amount of capital you'll need.
C. write your business plan
D. research the best location for your shop
4.A company owned by the shareholders and based on a charter is a
A. partnership.
B. small business.
C. corporation.
D. service organization.
To find out as much as you can about the market for your potential business, be sure to talk to
A. potential customers.
B. anyone who may compete with you locally.
C. potential employees.
D. the local bookstore owner
6. An Internet search for Information about franchise businesses will not help you find out
A. the variety of franchise businesses available.
B. support you'll receive from the parent corporation
C. the number of hours you'll have to put in
D. start- up costs.
7. One of the disadvantages of a sole proprietorship is
A. lack of control for you
B. danger to your personal assets.
C. high start-up costs .
D. large claims on profits.
8. Ultimately , to be successful , a business must
A. make you happy .
B. fulfill a commercial need .
C. make a profit
D. provide a service .
9. Ricardo sure he has what it takes to succeed in the food business, but because he lacks management experience, he wants one that will provide the most training and support. Which of these possibilities would be his best choice?
A. Subway
B. Old MacDonald's Bed and Breakfast
C. Ricardo's Café
D. Fuzzy's Tavem
10. The overwhelming majority of existing businesses are
A. sole proprietorships .
B. partnerships
C. corporations
D. close corporations .
11. All of the following phrases describe a partnership except
A. shared responsibility for decisions .
B. the involvement of up to 20 partners.
C. low start-up costs.
D. high protection for your personal assets.
12. Amy, Jan, and Beth have decided to combine their talents in a business partnership. One of the benefits they'll have over a sole ownership is
A. shared resources
B. less paperwork
C. greater individual authority
D. less personal financial liability
13. With their flooring business now eight months old, Jesse and Ed readily admit that con in their partnership
A. accurate record keeping
B. legal liability
C. raising capital
D. shared decision making
14. Gary and Wilma Johnson plan to open a bus tour business, taking people from their sites along the East Coast. Tours will include bus fare, hotel accommodations, breakfast, and admission to the sitesWhat aspect of their research might they want to pay special attention to
A. Pasi trends
B. margin
C. Inventory
D. Computer software
15. The servers at Gerry Frasier's busy cream shop decided that putting more cream in the sundaes and cones would bring back more customers. After three months, Gerry was surprised to discover that his profit had
A. literally been "eaten up"
B. dropped , along with his costs.
C. Increased by more than 10 percent
D. increased , although sales dropped
16.Which one of the following may be the least valuable source of advice when you're researching the market for your new business?
A. Other business owners with similar businesses
B. Online attorneys who offer Web site service
C. Local attomeys who specialize in business law.
D. Small Business Administration
17. Ben and Alison have decided to turn their large farmhouse into a bed -and- breakfast business. One of the benefits they're likely to enjoy is
A. relaxing days at home
B. high ratings by national organizations. C. keeping their day jobs
D. a profit margin of 15-20 percent
18. Steve Burton recently sold the bookstore he inherited from his mother because his income had fallen three years in a row. The new owner installed a coffee machine, redecorated the children's corner, chats with her customers, and remembers their preferences. She reports a 43 percent increase in sales over Steve's last year. The change is most likely due to
A. a general upswing in the retail book business
B. more advertising
C. the owner's personality
D. beginner's luck
19. Which one of the following types of businesses has the least amount of personal liability?
A. Partnership
B. Close corporation
C. Sole proprietorship
D. Corporation
20.Liz planned on opening a handmade quilt business in her hometown. However after completing alan decided to start with an online business.
A. registration
B. market survey
C. advertising campaign
D. course in design
