Exam 7: Pathways to Entrepreneurial Ventures

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

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

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

The advantages of franchising include:

Who must negotiate a final deal to purchase a business?

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

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

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

Which of the following is an intangible asset?

Briefly explain the new-old approach to creating new ventures.

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

An agreement not to compete is also known as

Why did the Federal Trade Commission enact the Franchise Rule?

The individual who buys the franchise is the

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

The inventory should be examined for which of the following?

What is the role of business brokers in acquiring an established entrepreneurial venture?

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

A ____ is a system of distribution that enables a supplier to arrange for a dealer to handle a specific product or service under certain mutually agreed upon conditions.