Question 1

It is always important that you weigh advantages against disadvantages in purchasing a franchise.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A)  The owner may be in trouble with suppliers. 
B)  Changes in leasehold conditions. 
C)  Changes in the product supply chain. 
D)  Changes in zoning which affect the business. 
A)  The owner may be in trouble with suppliers. 
B)  Changes in leasehold conditions. 
C)  Changes in the product supply chain. 
D)  Changes in zoning which affect the business.

Question 3

When one designs a unique good or service, the individual is said to have used a(n) ____approach to starting the business.

Accepted Answer

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

Question 4

The term risk versus loss refers to the amount of return for funds invested.

Accepted Answer

A) True 
 B)False

Question 5

When one discusses upside gain and downside loss, one is talking about

Accepted Answer

A)  inventory turnover. 
B)  risk versus reward. 
C)  asset pricing. 
D)  liquidation pricing 
A)  inventory turnover. 
B)  risk versus reward. 
C)  asset pricing. 
D)  liquidation pricing

Question 6

The individual who buys the franchise is the

Accepted Answer

A)  franchisee. 
B)  franchisor. 
C)  franchisette. 
D)  franchatter. 
A)  franchisee. 
B)  franchisor. 
C)  franchisette. 
D)  franchatter.

Question 7

The _____ approach indicates the importance of people's awareness of their daily lives for developing new business ideas.

Accepted Answer

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

Question 8

An additional consideration to keep in mind when negotiating to purchase an existing business includes requesting that the seller retain __________ in the firm.

Accepted Answer

A)  a minority interest 
B)  a majority interest 
C)  either a minority or majority interest 
D)  none of the above 
A)  a minority interest 
B)  a majority interest 
C)  either a minority or majority interest 
D)  none of the above

Question 9

Why did the Federal Trade Commission enact the Franchise Rule?

Accepted Answer

The Franchise Rule attempts to codify th

Question 10

Sales records are of very little value to a buyer in evaluating a company's worth.

Accepted Answer

A) True 
 B)False

Question 11

Franchisees have the option of using the logo and symbols of the franchisor.

Accepted Answer

A) True 
 B)False

Question 12

The final decision to purchase a franchise should be up to

Accepted Answer

A)  your lawyer. 
B)  your financial backer. 
C)  you. 
D)  your accountant. 
A)  your lawyer. 
B)  your financial backer. 
C)  you. 
D)  your accountant.

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

The prospective investor should get as much information as possible on the franchisor.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A)  invest money in the operation. 
B)  maintain a specified quality of performance. 
C)  pay a fee. 
D)  design a logo for the unit. 
A)  invest money in the operation. 
B)  maintain a specified quality of performance. 
C)  pay a fee. 
D)  design a logo for the unit.

Question 16

Which of the following is not currently cited as a trend creating business opportunities?

Accepted Answer

A)  green products 
B)  breakfast cereals 
C)  health care 
D)  concierge services 
A)  green products 
B)  breakfast cereals 
C)  health care 
D)  concierge services

Question 17

Which of the following costs add to the cost of franchising?

Accepted Answer

A)  insurance 
B)  payroll 
C)  legal and professional fees 
D)  all of the above 
A)  insurance 
B)  payroll 
C)  legal and professional fees 
D)  all of the above

Question 18

Business-related reasons for selling may include all except:

Accepted Answer

A)  trouble with suppliers. 
B)  changes in leasehold conditions. 
C)  changes in zoning that affect the business. 
D)  all of the above 
A)  trouble with suppliers. 
B)  changes in leasehold conditions. 
C)  changes in zoning that affect the business. 
D)  all of the above

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

It is always important that you weigh advantages against disadvantages in purchasing a franchise.

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

When one designs a unique good or service, the individual is said to have used a(n) ____approach to starting the business.

The term risk versus loss refers to the amount of return for funds invested.

When one discusses upside gain and downside loss, one is talking about

The individual who buys the franchise is the

The _____ approach indicates the importance of people's awareness of their daily lives for developing new business ideas.

An additional consideration to keep in mind when negotiating to purchase an existing business includes requesting that the seller retain __________ in the firm.

Why did the Federal Trade Commission enact the Franchise Rule?

Sales records are of very little value to a buyer in evaluating a company's worth.

Franchisees have the option of using the logo and symbols of the franchisor.

The final decision to purchase a franchise should be up to

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

The prospective investor should get as much information as possible on the franchisor.

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

Which of the following is not currently cited as a trend creating business opportunities?

Which of the following costs add to the cost of franchising?

Business-related reasons for selling may include all except:

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

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

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

It is always important that you weigh advantages against disadvantages in purchasing a franchise.

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

When one designs a unique good or service, the individual is said to have used a(n) ____approach to starting the business.

The term risk versus loss refers to the amount of return for funds invested.

When one discusses upside gain and downside loss, one is talking about

The individual who buys the franchise is the

The _____ approach indicates the importance of people's awareness of their daily lives for developing new business ideas.

An additional consideration to keep in mind when negotiating to purchase an existing business includes requesting that the seller retain __________ in the firm.

Why did the Federal Trade Commission enact the Franchise Rule?

Sales records are of very little value to a buyer in evaluating a company's worth.

Franchisees have the option of using the logo and symbols of the franchisor.

The final decision to purchase a franchise should be up to

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

The prospective investor should get as much information as possible on the franchisor.

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

Which of the following is not currently cited as a trend creating business opportunities?

Which of the following costs add to the cost of franchising?

Business-related reasons for selling may include all except:

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

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

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