Question 1

Which if the following was not a recommended method of evaluating the potential market for a new franchise in the text?

Accepted Answer

A) Evaluate traffic flow in the area 
B) Hire a marketing firm to survey foot traffic near the proposed location 
C) Locate competitors and their proximity to the proposed franchise location 
D) Evaluate demographics in the area 
A) Evaluate traffic flow in the area 
B) Hire a marketing firm to survey foot traffic near the proposed location 
C) Locate competitors and their proximity to the proposed franchise location 
D) Evaluate demographics in the area

Question 2

Which franchise below is an example of the most popular type of franchise?

Accepted Answer

A) KFC 
B) An automobile dealership 
C) H&R Block 
D) Real estate franchises 
A) KFC 
B) An automobile dealership 
C) H&R Block 
D) Real estate franchises

Question 3

Negotiating parties will often focus on the distribution task and ignore the integration task.

Accepted Answer

A) True 
 B)False

Question 4

The most common type of joint venture is:

Accepted Answer

A) international joint ventures. 
B) created for cooperative research. 
C) an industry-university agreement. 
D) between two or more private sector companies. 
A) international joint ventures. 
B) created for cooperative research. 
C) an industry-university agreement. 
D) between two or more private sector companies.

Question 5

A common procedure to determine the value of a merger candidate is to estimate the present value of discounted cash flows and the expected after-tax earnings attributable to the merger.This can be done on all of the following levels except:

Accepted Answer

A) Optimistic. 
B) Pessimistic. 
C) Probable scenarios. 
D) Logical scenarios. 
A) Optimistic. 
B) Pessimistic. 
C) Probable scenarios. 
D) Logical scenarios.

Question 6

Which is not a strategy that is used to elicit information about the other party in a negotiation?

Accepted Answer

A) Take up a new negotiation at the end of the first. 
B) Ask lots of questions. 
C) Make multiple offers simultaneously. 
D) Build trust and share information. 
A) Take up a new negotiation at the end of the first. 
B) Ask lots of questions. 
C) Make multiple offers simultaneously. 
D) Build trust and share information.

Question 7

Which of the following is not a qualitative technique an entrepreneur can use to evaluate the asking price of an LBO?

Accepted Answer

A) The competitive position of the firm 
B) The uniqueness of the firm's offerings 
C) Price-earnings ratio 
D) The abilities of management and other key personnel 
A) The competitive position of the firm 
B) The uniqueness of the firm's offerings 
C) Price-earnings ratio 
D) The abilities of management and other key personnel

Question 8

Explain the potential issues that could occur in establishing an international joint venture.

Accepted Answer

The business objectives of the joint ven

Question 9

Which of the following would be an advantage of an acquisition?

Accepted Answer

A) Established customer base 
B) Customer familiarity with location 
C) Existing employees 
D) Period of acquisition deal 
A) Established customer base 
B) Customer familiarity with location 
C) Existing employees 
D) Period of acquisition deal

Question 10

Terminating a franchise results in more lawsuits than any other issue in franchising.

Accepted Answer

A) True 
 B)False

Question 11

Franchising opportunities have often evolved from changes in the environment as well as important social trends.This is not one of the factors responsible:

Accepted Answer

A) good health. 
B) environmental consciousness. 
C) acceptance of different cultures. 
D) the second baby boom. 
A) good health. 
B) environmental consciousness. 
C) acceptance of different cultures. 
D) the second baby boom.

Question 12

Discuss the main advantages of an acquisition.

Accepted Answer

1.Established business.The most signific

Question 13

In order to further investigate a franchise opportunity an entrepreneur can request a franchise package from the franchisor which:

Accepted Answer

A) is usually free. 
B) costs between $400-$600 and is usually refundable. 
C) costs between $800-$1000 and is usually not refundable. 
D) contains guarantees about expected sales revenues in years 1 and 2. 
A) is usually free. 
B) costs between $400-$600 and is usually refundable. 
C) costs between $800-$1000 and is usually not refundable. 
D) contains guarantees about expected sales revenues in years 1 and 2.

Question 14

Which of the following is (are)not an advantage of an international joint venture?

Accepted Answer

A) Complimenting governmental policies. 
B) The ease of developing common business objectives. 
C) Ready access to international markets. 
D) Cultural synergy. 
A) Complimenting governmental policies. 
B) The ease of developing common business objectives. 
C) Ready access to international markets. 
D) Cultural synergy.

Question 15

Franchising involves payment of royalties in exchange for exclusive distribution rights.

Accepted Answer

A) True 
 B)False

Question 16

Growing a venture through franchising allows the venture to expand quickly using little capital.

Accepted Answer

A) True 
 B)False

Question 17

For the franchisor,the capital required to expand a venture quickly is more than it would be without franchising.

Accepted Answer

A) True 
 B)False

Question 18

The most common type of joint venture is between two or more public sector companies.

Accepted Answer

A) True 
 B)False

Question 19

A potential franchisee should seek answers to all of the following questions while assessing the financial stability of the franchisor,except:

Accepted Answer

A) How many franchises are in the organization? 
B) Are most of the profits of the franchise a function of fees from the sale of franchises or from royalties based on profits of franchisees? 
C) What are the chances of further expansion of the company? 
D) Does the franchisor have management expertise in production,finance,and marketing? 
A) How many franchises are in the organization? 
B) Are most of the profits of the franchise a function of fees from the sale of franchises or from royalties based on profits of franchisees? 
C) What are the chances of further expansion of the company? 
D) Does the franchisor have management expertise in production,finance,and marketing?

Question 20

Joint ventures can involve a wide variety which include:

Accepted Answer

A) universities. 
B) not-for-profit organizations. 
C) traditional businesses. 
D) all of the above. 
A) universities. 
B) not-for-profit organizations. 
C) traditional businesses. 
D) all of the above.

Which if the following was not a recommended method of evaluating the potential market for a new franchise in the text?

Which franchise below is an example of the most popular type of franchise?

Negotiating parties will often focus on the distribution task and ignore the integration task.

The most common type of joint venture is:

A common procedure to determine the value of a merger candidate is to estimate the present value of discounted cash flows and the expected after-tax earnings attributable to the merger.This can be done on all of the following levels except:

Which is not a strategy that is used to elicit information about the other party in a negotiation?

Which of the following is not a qualitative technique an entrepreneur can use to evaluate the asking price of an LBO?

Explain the potential issues that could occur in establishing an international joint venture.

Which of the following would be an advantage of an acquisition?

Terminating a franchise results in more lawsuits than any other issue in franchising.

Franchising opportunities have often evolved from changes in the environment as well as important social trends.This is not one of the factors responsible:

Discuss the main advantages of an acquisition.

In order to further investigate a franchise opportunity an entrepreneur can request a franchise package from the franchisor which:

Which of the following is (are)not an advantage of an international joint venture?

Franchising involves payment of royalties in exchange for exclusive distribution rights.

Growing a venture through franchising allows the venture to expand quickly using little capital.

For the franchisor,the capital required to expand a venture quickly is more than it would be without franchising.

The most common type of joint venture is between two or more public sector companies.

A potential franchisee should seek answers to all of the following questions while assessing the financial stability of the franchisor,except:

Joint ventures can involve a wide variety which include:

Entrepreneurship and the Entrepreneurial Mind-Set

Entrepreneurial Intentions and Corporate Entrepreneurship

Entrepreneurial Strategy: Generating and Exploiting New Entries

Creativity and the Business Idea

Identifying and Analyzing Domestic and International Opportunities

Intellectual Property and Other Legal Issues for the Entrepreneur

The Business Plan: Creating and Starting the Venture

The Marketing Plan

The Organizational Plan

The Financial Plan

Sources of Capital

Informal Risk Capital, venture Capital, and Going Public

Strategies for Growth and Managing the Implication of Growth

Succession Planning and Strategies for Harvesting and Ending the Venture

Filters

Exam 14: Accessing Resources for Growth From External Sources

Which if the following was not a recommended method of evaluating the potential market for a new franchise in the text?

Which franchise below is an example of the most popular type of franchise?

Negotiating parties will often focus on the distribution task and ignore the integration task.

The most common type of joint venture is:

A common procedure to determine the value of a merger candidate is to estimate the present value of discounted cash flows and the expected after-tax earnings attributable to the merger.This can be done on all of the following levels except:

Which is not a strategy that is used to elicit information about the other party in a negotiation?

Which of the following is not a qualitative technique an entrepreneur can use to evaluate the asking price of an LBO?

Explain the potential issues that could occur in establishing an international joint venture.

Which of the following would be an advantage of an acquisition?

Terminating a franchise results in more lawsuits than any other issue in franchising.

Franchising opportunities have often evolved from changes in the environment as well as important social trends.This is not one of the factors responsible:

Discuss the main advantages of an acquisition.

In order to further investigate a franchise opportunity an entrepreneur can request a franchise package from the franchisor which:

Which of the following is (are)not an advantage of an international joint venture?

Franchising involves payment of royalties in exchange for exclusive distribution rights.

Growing a venture through franchising allows the venture to expand quickly using little capital.

For the franchisor,the capital required to expand a venture quickly is more than it would be without franchising.

The most common type of joint venture is between two or more public sector companies.

A potential franchisee should seek answers to all of the following questions while assessing the financial stability of the franchisor,except:

Joint ventures can involve a wide variety which include:

Entrepreneurship and the Entrepreneurial Mind-Set

Entrepreneurial Intentions and Corporate Entrepreneurship

Entrepreneurial Strategy: Generating and Exploiting New Entries

Creativity and the Business Idea

Identifying and Analyzing Domestic and International Opportunities

Intellectual Property and Other Legal Issues for the Entrepreneur

The Business Plan: Creating and Starting the Venture

The Marketing Plan

The Organizational Plan

The Financial Plan

Sources of Capital

Informal Risk Capital, venture Capital, and Going Public

Strategies for Growth and Managing the Implication of Growth

Succession Planning and Strategies for Harvesting and Ending the Venture

Filters