Question 1

What is the largest source of new business ideas among women?

Accepted Answer

A)  Prior job 
B)  Hobby 
C)  Education courses 
D)  Chance

Question 2

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

Accepted Answer

A)  pay a fee. 
B)  provide professional management training to the unit's staff. 
C)  help out with financial assistance. 
D)  provide continuing aid and a guidance to the person buying the franchise.

Question 3

The way to approach a new business venture is to think up a good or service that is unique.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A)  Why is the owner selling? 
B)  What is the owner's personal net worth? 
C)  How many of the personnel will remain with the firm? 
D)  What type of competition exists?

Question 5

The individual who arranges for a dealer to handle a specific product or service under certain mutually agreed upon conditions is known as the _____.

Accepted Answer

A)  franchisee 
B)  franchisor 
C)  franchiser 
D)  franchisette

Question 6

Which of the following is a question that can be sidestepped when buying a business?

Accepted Answer

A)  Where should the business be located? 
B)  What types of customers does this store attract? 
C)  What pricing strategy should the firm use? 
D)  All can be sidestepped.

Question 7

Reviewing personnel of the business about to be purchased is important in order to determine

Accepted Answer

A)  whether employees with key skills will stay or leave. 
B)  if employees are leaving, will enough remain to operate the business. 
C)  the cost of replacing an employee. 
D)  all of the above

Question 8

Which of the following is not a disadvantage of a major franchise?

Accepted Answer

A)  franchise fees 
B)  control exercised by the franchisor 
C)  track record of the franchisor 
D)  awareness of some of the unfilled promises from franchisors

Question 9

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.

Accepted Answer

A)  franchisee 
B)  franchise 
C)  franchisor 
D)  franchiser

Question 10

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

Accepted Answer

The answer of What is the role of business brokers...

Question 11

A franchise system can be used for handling

Accepted Answer

A)  goods. 
B)  services. 
C)  both of the above. 
D)  none of the above.

Question 12

An analysis of the competition should look for ______.

Accepted Answer

A)  opportunities. 
B)  weaknesses. 
C)  unscrupulous practices. 
D)  None of the above

Question 13

An advantage to buying an on-going business is

Accepted Answer

A)  reduced concern over future operations. 
B)  time and effort are reduced 
C)  it may be purchased at a bargain price. 
D)  all of the above.

Question 14

When buying a business, competition must be investigated because

Accepted Answer

A)  price competition may affect profits. 
B)  new competition may reduce market share. 
C)  competition may be spending more money on advertising than you. 
D)  all of the above

Question 15

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

Accepted Answer

The answer of Briefly explain the new-old approach to creating...

Exam 7: Pathways to Entrepreneurial Ventures