BUSINESS ADMINISTRATION MIDTERM EXAM QUESTIONS & ANSWERS

BUSINESS ADMINISTRATION MIDTERM EXAM
QUESTIONS & ANSWERS


/. The Small Business Administration is the government agency charged with owning
small businesses. - Answer-✅FALSE

/.Small businesses produce more patents per employee than large patenting firms. -
Answer-✅TRUE

/.Most businesses in the United States are large businesses with more than 500
employees. - Answer-✅FALSE

/.Major innovations are most likely to come from large corporations. - Answer-✅FALSE

/.Manufacturing is overwhelmingly handled by big business. - Answer-✅TRUE

/.People who assume the risk of business ownership with a primary goal of growth and
expansion are called entrepreneurs. - Answer-✅TRUE

/.Most successful entrepreneurs have a strong desire to be their own bosses - Answer-
✅TRUE

/.A business plan demonstrates how an entrepreneur's business strategy will be
implemented. - Answer-✅TRUE

/.Franchisees may be obligated to contribute a percentage of sales to parent
corporations. - Answer-✅TRUE

/.Loans are the most important sources of money for new businesses. - Answer-
✅FALSE

/.Lending institutions are more likely to help finance the purchase of an existing
business rather than the start-up of a business from scratch. - Answer-✅TRUE

/.A group of small investors who invest money in companies in return for partial
ownership is known as a small-business development company. - Answer-✅FALSE

/.Small-business investment companies (SBICs) may be sponsored by the federal
government. - Answer-✅TRUE