Question 1

The sources of new business ideas among men and women are identical in type and proportion.

Accepted Answer

A) True 
 B)False  False

Question 2

Much franchise litigation has arisen over termination of owners.

Accepted Answer

A) True 
 B)False  False

Question 3

An agreement not to compete is also known as

Accepted Answer

A)  a trade restriction clause. 
B)  a legal restraint of trade. 
C)  a waiver of competition clause. 
D)  a deferential sale of business clause. 
A)  a trade restriction clause. 
B)  a legal restraint of trade. 
C)  a waiver of competition clause. 
D)  a deferential sale of business clause. B

Question 4

Which is not a key question to ask when buying a business?

Accepted Answer

A)  Why is the business being sold? 
B)  Is the building heated with gas or electricity? 
C)  What is the condition of the inventory? 
D)  How many of the employees will remain? 
A)  Why is the business being sold? 
B)  Is the building heated with gas or electricity? 
C)  What is the condition of the inventory? 
D)  How many of the employees will remain?

Question 5

Which of the following is an intangible asset?

Accepted Answer

A)  goodwill 
B)  inventory 
C)  plant 
D)  machinery 
A)  goodwill 
B)  inventory 
C)  plant 
D)  machinery

Question 6

The actual cost of "opening the doors" of a franchise establishment can be more than $200,000.

Accepted Answer

A) True 
 B)False

Question 7

Starting a business by adapting something already on the market is called __________.

Accepted Answer

A)  a franchising approach 
B)  a buying approach 
C)  a new-new approach 
D)  a new-old approach 
A)  a franchising approach 
B)  a buying approach 
C)  a new-new approach 
D)  a new-old approach

Question 8

What is an often overlooked asset when acquiring a new business?

Accepted Answer

A)  Records 
B)  Buildings 
C)  Equipment 
D)  None of the above 
A)  Records 
B)  Buildings 
C)  Equipment 
D)  None of the above

Question 9

Evaluating franchise opportunities include finding out more about which of the following?

Accepted Answer

A)  the franchisor 
B)  the franchise 
C)  the franchisee 
D)  all of the above 
A)  the franchisor 
B)  the franchise 
C)  the franchisee 
D)  all of the above

Question 10

Competitor factors in a buying decision do not include

Accepted Answer

A)  quality of the competition. 
B)  location of the competition. 
C)  age of the competition's owners. 
D)  number of competitors. 
A)  quality of the competition. 
B)  location of the competition. 
C)  age of the competition's owners. 
D)  number of competitors.

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A)  the owner's reason for selling. 
B)  the competition in the area. 
C)  the financial picture of the business. 
D)  the owner's family stability and relationships. 
A)  the owner's reason for selling. 
B)  the competition in the area. 
C)  the financial picture of the business. 
D)  the owner's family stability and relationships.

Question 13

The extra value a business can command in a sale is known as

Accepted Answer

A)  goodwill. 
B)  saleable value. 
C)  market value. 
D)  asset value. 
A)  goodwill. 
B)  saleable value. 
C)  market value. 
D)  asset value.

Question 14

Who must negotiate a final deal to purchase a business?

Accepted Answer

A)  A lawyer 
B)  A CPA 
C)  The potential buyer 
D)  All of the above 
A)  A lawyer 
B)  A CPA 
C)  The potential buyer 
D)  All of the above

Question 15

A key question to ask when buying an on-going small business is which of the following?

Accepted Answer

A)  How old is the business? 
B)  Where should you retire someday? 
C)  Can you become a millionaire by buying this business? 
D)  How many personnel are going to remain? 
A)  How old is the business? 
B)  Where should you retire someday? 
C)  Can you become a millionaire by buying this business? 
D)  How many personnel are going to remain?

Question 16

The inventory should be examined for which of the following?

Accepted Answer

A)  salability 
B)  correspondence between the physical count and the book count 
C)  up-to-datedness 
D)  All of the above. 
A)  salability 
B)  correspondence between the physical count and the book count 
C)  up-to-datedness 
D)  All of the above.

Question 17

The franchisee's responsibilities include:

Accepted Answer

A)  a financial investment. 
B)  payment of a fee. 
C)  engaging in a continuous business relationship. 
D)  all of the above. 
A)  a financial investment. 
B)  payment of a fee. 
C)  engaging in a continuous business relationship. 
D)  all of the above.

Question 18

Coming up with a unique good or service is a _____ approach, while adapting something that is currently on the market or extending the offering to an area where it is not presently available is a(n) _____ approach.

Accepted Answer

A)  new-new, old-old 
B)  new-old, old-old 
C)  new-new, new-old 
D)  new-old, old-new 
A)  new-new, old-old 
B)  new-old, old-old 
C)  new-new, new-old 
D)  new-old, old-new

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

The franchisor's responsibilities include providing

Accepted Answer

A)  company name. 
B)  symbols and logos. 
C)  management and training. 
D)  all of the above 
A)  company name. 
B)  symbols and logos. 
C)  management and training. 
D)  all of the above

The sources of new business ideas among men and women are identical in type and proportion.

Much franchise litigation has arisen over termination of owners.

An agreement not to compete is also known as

Which is not a key question to ask when buying a business?

Which of the following is an intangible asset?

The actual cost of "opening the doors" of a franchise establishment can be more than $200,000.

Starting a business by adapting something already on the market is called __________.

What is an often overlooked asset when acquiring a new business?

Evaluating franchise opportunities include finding out more about which of the following?

Competitor factors in a buying decision do not include

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

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

The extra value a business can command in a sale is known as

Who must negotiate a final deal to purchase a business?

A key question to ask when buying an on-going small business is which of the following?

The inventory should be examined for which of the following?

The franchisee's responsibilities include:

Coming up with a unique good or service is a _ approach, while adapting something that is currently on the market or extending the offering to an area where it is not presently available is a(n) _ approach.

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

The franchisor's responsibilities include providing

Entrepreneurship: Evolutionary Development-Revolutionary Impact

The Entrepreneurial Mind-Set in Individuals: Cognition and Ethics

The Entrepreneurial Mind-Set in Organizations: Corporate Entrepreneurship

Social Entrepreneurship and the Global Environment for Entrepreneurship

Innovation: The Creative Pursuit of Ideas

Assessment of Entrepreneurial Opportunities

Sources of Capital for Entrepreneurs

Legal Challenges of Entrepreneurial Ventures

Marketing Challenges for Entrepreneurial Ventures

Financial Preparation for Entrepreneurial Ventures

Developing an Effective Business Plan

Strategic Entrepreneurial Growth

Valuation of Entrepreneurial Ventures

Harvesting the Entrepreneurial Venture

Filters

Exam 7: Pathways to Entrepreneurial Ventures

The sources of new business ideas among men and women are identical in type and proportion.

Much franchise litigation has arisen over termination of owners.

An agreement not to compete is also known as

Which is not a key question to ask when buying a business?

Which of the following is an intangible asset?

The actual cost of "opening the doors" of a franchise establishment can be more than $200,000.

Starting a business by adapting something already on the market is called __________.

What is an often overlooked asset when acquiring a new business?

Evaluating franchise opportunities include finding out more about which of the following?

Competitor factors in a buying decision do not include

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

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

The extra value a business can command in a sale is known as

Who must negotiate a final deal to purchase a business?

A key question to ask when buying an on-going small business is which of the following?

The inventory should be examined for which of the following?

The franchisee's responsibilities include:

Coming up with a unique good or service is a _____ approach, while adapting something that is currently on the market or extending the offering to an area where it is not presently available is a(n) _____ approach.

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

The franchisor's responsibilities include providing

Entrepreneurship: Evolutionary Development-Revolutionary Impact

The Entrepreneurial Mind-Set in Individuals: Cognition and Ethics

The Entrepreneurial Mind-Set in Organizations: Corporate Entrepreneurship

Social Entrepreneurship and the Global Environment for Entrepreneurship

Innovation: The Creative Pursuit of Ideas

Assessment of Entrepreneurial Opportunities

Sources of Capital for Entrepreneurs

Legal Challenges of Entrepreneurial Ventures

Marketing Challenges for Entrepreneurial Ventures

Financial Preparation for Entrepreneurial Ventures

Developing an Effective Business Plan

Strategic Entrepreneurial Growth

Valuation of Entrepreneurial Ventures

Harvesting the Entrepreneurial Venture

Filters

Coming up with a unique good or service is a _ approach, while adapting something that is currently on the market or extending the offering to an area where it is not presently available is a(n) _ approach.