Exam 7: Pathways to Entrepreneurial Ventures

A franchise system can be used for handling

A business has to increase its sales annually to net as much as it did in the previous year when

Business-related reasons for selling do not include which of the following?

Perhaps the greatest advantage of buying a franchise, as compared to starting a new business or buying an existing one, is that the franchisor will usually provide both training and guidance to the franchisee.

The terms upside gain and downside loss refer to the profits the business can make and the losses it can suffer.

The elimination of time and effort associated with starting a company is an advantage of acquiring an ongoing venture.

Generally, the larger and more successful the franchisor, the greater the franchise fee that is charged.

Why did the Federal Trade Commission enact the Franchise Disclosure Rule?

Business brokers specialize in business opportunities and can provide leads and assistance in finding a venture for sale.

After the prospective entrepreneur has gathered all of the necessary information, it is up to the _____ to make the final decision on the matter.

When buying a small business, you need to know all of the following items except the

The most important area to examine prior to purchasing a business is company profitability.

Which of the following individuals must negotiate a final deal to purchase a business?

An analysis of the competition should look for

It is not uncommon for a buyer to be faced with a franchise fee of $250,000 to $1,000,000.

The person who purchases the franchise is usually required to do all of the following except

Which of the following is not a key question a prospective buyer needs to ask in buying a business?

Which of the following costs do not add to the cost of franchising?

The Federal Trade Commission does not provide information on franchise success.

In negotiating a deal to purchase an existing business, it is possible to request that the seller retain a minority interest in the firm.