Help with prime number program

[KingGhidorah]

Beginner here, just want to clarify something.

In an int/boolean function, regardless of where the first return value originates (e.g. from a loop), does the first value returned terminate the function (and the loop it is in, if it is in a loop) immediately?

So an example, a program which tells you if a number is a prime number.

/* FUNCTION TO EVALUATE IF THE ARGUMENT IS A PRIME BETWEEN 1 AND 1000 */
enum Logical {False, True};

Logical small_prime(int integer)
{  for (int factor = 2; factor<integer; factor++)
    {   
        if ( (integer % factor) == 0)
        return False;
    }

   return True;
}

Originally I was confused as I thought this function would return True no matter what happened in the for loop. The return true statement comes after it so I assumed after the loop finished it would read that (change false to true) and act accordingly. Now I realise this function only makes sense if the above deduction is true.

Thanks
KingG