1. Although she hates the work, Jessica has spent most weekends and the last three summers as a short-order cook; she has an associates degree in paralegal studies; she loves to ride and spends every spare minute helping her uncle with his three horses. Now that she's planning to start a business, her best choice would probably be a
A. fast-food franchise.
B. legal research service.
C. restaurant.
D. riding stable.
2. Now that you've chosen your business and found your niche, you're in need of some advice on the practical aspects of setting up the business. A reliable resource for business information is
A. the Small Business Administration.
B. Web sites offering free legal advice.
C. a friend who has a business.
D. online business chat rooms.
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. research the best location for your shop.
D. write your business plan.
4. 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. keeping their day jobs.
C. a profit margin of 15-20 percent.
D. high ratings by national organizations.
5. 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. less paperwork.
B. greater individual authority.
C. shared resources.
D. less personal financial liability.
6. 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. the owner's personality.
.B. a general upswing in the retail book business.
C. shared resources
D. more advertising.
7. The servers at Gerry Frasier's busy ice cream shop decided that putting more ice cream in the sundaes and cones would bring back more customers. After three months, Gerry was surprised to discover that his profit had
A. increased by more than 10 percent.
B. literally been "eaten up."
C. increased, although sales had dropped.
D. dropped, along with his costs.
8. Your beachside inn will be ready to open next spring. To get in on the summer tourist trade, it will be necessary to
A. advertise heavily in local newspapers.
B. give it an unforgettable name.
C. establish a strong Web presence.
D. offer bargain rates at first.
9. The best way to find out if a particular business is a good fit for you is to
A. "shadow" an owner for several days to see what's really involved.
B. talk to customers to see what they expect in a service.
C. try the business for two years, then sell it if it's not right for you.
D. take a personality test and go with its recommendation.
10. With their flooring business now eight months old, Jesse and Ed readily admit that ____ has been both a pro and a con in their partnership.
A. raising capital
B. accurate record keeping C. shared decision making
D. legal liability
11. Ricardo is 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. Fuzzy's Tavern
B. Subway
C. Old MacDonald's Bed and Breakfast
D. Ricardo's Cafe
12. Suzanne, who started a new restaurant, set up her business as a ____ in order to keep her personal and business finances legally separate.
A. close corporation
B. partnership
C. sole proprietorship ; D. company
13. Ultimately, to be successful, a business must
A. make you happy.
B. fulfill a commercial need.
C. make a profit. D; provide a service.
14. Which of the following business entities would allow you the most personal control?
A. A landscaping business, of which you're the sole proprietor
B. A restaurant with your brother as a full partner
C. A realty office with a partner, organized as a close corporation
D. A manufacturing corporation
15. Jim is beginning his research on franchise businesses in order to find one that meets his needs. A quick, easy way to get general information is to
A. check the Yellow Pages. franchise owner.
B. look up Internet sites.
C. ask a local ; ; D. call the corporate headquarters.
16. At Dana's new business, he's running into problems with employees who don't want to change procedures or do things his way. This can be one of the drawbacks of
A. being the boss.
B. buying an established business.
C. not having adequate experience.
D. investing in a franchise.
17. Gary and Wilma Johnson plan to open a bus tour business, taking people from their small city to historic sites along the East Coast. Tours will include bus fare, hotel accommodations, breakfast, and admission to the sites. What aspect of their research might they want to pay special attention to?
A. Profit margin
B. Inventory
C. Computer software D. Past trends
18. Liz planned on opening a handmade quilt business in her hometown. However, after completing a/an ____, she decided to start with an online business.
A. course in design
B. market survey
C. registration
D. advertising campaign
19. Rob, Dave, and Kelly understand the financial risks involved in starting their own brewery; that's why they've established their business as a
A. company. .
B.partnership. C. proprietorship
D. close corporation.
20. Maria, a bookkeeper, would like to work at home in order to be with her young children. But before setting up her home-based bookkeeping service, she should
A. buy the latest computer software.
B. find a partner to help finance the business. C. form a close corporation.
D investigate the market.
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