Exam 7: Pathways to Entrepreneurial Ventures

The FDD contains how many sections?

When purchasing an existing business, the prospective owner should conduct an assessment of the business's current group of employees.

The "right questions" that a prospective owner should ask about a franchise deal with

Which is not a start-up expense?

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

What is the largest source for new business ideas among men?

When this asset is purchased, the buyer should be sure to deduct those that they are deemed uncollectible.

When does a business have to increase its sales annually to net as much as it did in the previous year?

Business brokers help entrepreneurs locate the funds necessary to start a business.

The Franchise Disclosure Document (FDD) is a legally required disclosure document that must be presented to potential franchisees during presale discussions.

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.

Uniqueness in a product or service can be demonstrated through a new-new approach or a new-old approach.

The advantages of franchising include:

In purchasing an existing business the first question should be: "Why are you selling?"

When should a potential franchisee receive the FDD (Franchise Disclosure Document)?

"Piggybacking" one's way into a new business involves using a ____approach.

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

Business-related reasons for selling may include all but which of the following?

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

When is the buyer likely to have power over the seller in the negotiation to purchase a business?