Question 1

Which type of franchising system grants the franchisee the right to market the product and trademark and use a complete operating system?

Accepted Answer

A)  Product format franchising 
B)  Business format franchising 
C)  Trademark franchising 
D)  International franchising 
A)  Product format franchising 
B)  Business format franchising 
C)  Trademark franchising 
D)  International franchising

Question 2

The website of the Federal SBA has a self-help program called the _____ to help prospective entrepreneurs focus on some of the factors they need to consider.

Accepted Answer

A)  Market Research Questionnaire 
B)  Directory of Entrepreneurship 
C)  Small Business Startup Kit 
D)  Test Marketing Tool 
A)  Market Research Questionnaire 
B)  Directory of Entrepreneurship 
C)  Small Business Startup Kit 
D)  Test Marketing Tool

Question 3

Which of the following is true of combination franchising?

Accepted Answer

A)  It is opposed to the concept of synergy. 
B)  Cultural clashes can lead to the breakup of this arrangement. 
C)  The firms in this arrangement should be competing against each other. 
D)  This type of merger weakens the participating firms. 
A)  It is opposed to the concept of synergy. 
B)  Cultural clashes can lead to the breakup of this arrangement. 
C)  The firms in this arrangement should be competing against each other. 
D)  This type of merger weakens the participating firms.

Question 4

The Small Business Administration is a group of retired managers who help people develop their business ideas.

Accepted Answer

A) True 
 B)False

Question 5

Due diligence is the concept that two or more people, working together in a coordinated way, can accomplish more than the sum of their independent efforts.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following refers to a group of retired managers from all walks of life who help people develop their business ideas?

Accepted Answer

A)  Service Corps of Retired Executives 
B)  Federal Small Business Administration 
C)  State Economic Development Agency 
D)  Small Business Development Center 
A)  Service Corps of Retired Executives 
B)  Federal Small Business Administration 
C)  State Economic Development Agency 
D)  Small Business Development Center

Question 7

A way to help avoid franchise scams is to carefully review the franchiser's disclosure document.

Accepted Answer

A) True 
 B)False

Question 8

What is due diligence?

Accepted Answer

A)  The research and analysis of the company that is done before a business transaction 
B)  The efforts of managers from all walks of life to help people develop their business ideas 
C)  The process of producing a custom-made product for that market 
D)  The agreement whereby a businessperson is given exclusive rights to sell a product 
A)  The research and analysis of the company that is done before a business transaction 
B)  The efforts of managers from all walks of life to help people develop their business ideas 
C)  The process of producing a custom-made product for that market 
D)  The agreement whereby a businessperson is given exclusive rights to sell a product

Question 9

Which of the following is a good source of information to prospective business owners?

Accepted Answer

A)  Business Committee for the Arts 
B)  State Economic Development Agencies 
C)  Federal Trade Commission 
D)  Business Council for International Understanding 
A)  Business Committee for the Arts 
B)  State Economic Development Agencies 
C)  Federal Trade Commission 
D)  Business Council for International Understanding

Question 10

Small businesses usually select one product niche because they do not have sufficient resources to cover the whole market.

Accepted Answer

A) True 
 B)False

Question 11

What is a disclosure statement?

Accepted Answer

The Federal Trade Commission requires th

Question 12

Lack of an established product line does not typically stop a person from starting a new business.

Accepted Answer

A) True 
 B)False

Question 13

Niche marketing is the systematic gathering, recording, and analyzing of data related to the marketing of goods and services.

Accepted Answer

A) True 
 B)False

Question 14

In franchising, which of the following is a benefit to the franchisee?

Accepted Answer

A)  Share in local or national promotion 
B)  Lower operating costs 
C)  Faster expansion 
D)  Increase in royalty fees 
A)  Share in local or national promotion 
B)  Lower operating costs 
C)  Faster expansion 
D)  Increase in royalty fees

Question 15

In a given market area, the fact that a high number of similar firms have gone out of business usually signals market weakness.

Accepted Answer

A) True 
 B)False

Question 16

One should buy an existing business even if the financial condition of the firm is poor.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is a drawback of buying a franchise?

Accepted Answer

A)  The franchiser does not provide any guidance to the franchisee. 
B)  Franchises are available in a very limited range of endeavors. 
C)  Franchisers have to identify their market niche and conduct their own sales activities. 
D)  The initial investment is quite high for the franchisee. 
A)  The franchiser does not provide any guidance to the franchisee. 
B)  Franchises are available in a very limited range of endeavors. 
C)  Franchisers have to identify their market niche and conduct their own sales activities. 
D)  The initial investment is quite high for the franchisee.

Question 18

What is franchising?

Accepted Answer

Franchising is a marketing system whereb

Question 19

A franchisee owns the franchise's name and distinctive elements and licenses others to sell its products.

Accepted Answer

A) True 
 B)False

Question 20

What are franchisee fees and royalty fees?

Accepted Answer

A franchise fee is one-time fee paid by

Which type of franchising system grants the franchisee the right to market the product and trademark and use a complete operating system?

The website of the Federal SBA has a self-help program called the _____ to help prospective entrepreneurs focus on some of the factors they need to consider.

Which of the following is true of combination franchising?

The Small Business Administration is a group of retired managers who help people develop their business ideas.

Due diligence is the concept that two or more people, working together in a coordinated way, can accomplish more than the sum of their independent efforts.

Which of the following refers to a group of retired managers from all walks of life who help people develop their business ideas?

A way to help avoid franchise scams is to carefully review the franchiser's disclosure document.

What is due diligence?

Which of the following is a good source of information to prospective business owners?

Small businesses usually select one product niche because they do not have sufficient resources to cover the whole market.

What is a disclosure statement?

Lack of an established product line does not typically stop a person from starting a new business.

Niche marketing is the systematic gathering, recording, and analyzing of data related to the marketing of goods and services.

In franchising, which of the following is a benefit to the franchisee?

In a given market area, the fact that a high number of similar firms have gone out of business usually signals market weakness.

One should buy an existing business even if the financial condition of the firm is poor.

Which of the following is a drawback of buying a franchise?

What is franchising?

A franchisee owns the franchise's name and distinctive elements and licenses others to sell its products.

What are franchisee fees and royalty fees?

Starting Your Small Business

Family-Owned Businesses

Forms of Ownership of Small Businesses

Maintaining Good Government Relations and Business Ethics

Planning, Organizing, and Managing a Small Business

How to Obtain the Right Financing for Your Business

Developing Marketing Strategies

Promoting and Distributing

How to Obtain and Manage Human Resources and Diversity in Small Companies

How to Maintain Relationships With Your Employees and Their Representatives

Obtaining and Laying Out Operating Facilities

Purchasing, Inventory, and Quality Control

Basic Financial Planning

Budgeting and Controlling Operations and Taxes

Using Computer Technology in Small Businesses

Risk Management, Insurance, and Crime Prevention

Filters

Exam 5: Becoming the Owner of a Small Business

Which type of franchising system grants the franchisee the right to market the product and trademark and use a complete operating system?

The website of the Federal SBA has a self-help program called the _____ to help prospective entrepreneurs focus on some of the factors they need to consider.

Which of the following is true of combination franchising?

The Small Business Administration is a group of retired managers who help people develop their business ideas.

Due diligence is the concept that two or more people, working together in a coordinated way, can accomplish more than the sum of their independent efforts.

Which of the following refers to a group of retired managers from all walks of life who help people develop their business ideas?

A way to help avoid franchise scams is to carefully review the franchiser's disclosure document.

What is due diligence?

Which of the following is a good source of information to prospective business owners?

Small businesses usually select one product niche because they do not have sufficient resources to cover the whole market.

What is a disclosure statement?

Lack of an established product line does not typically stop a person from starting a new business.

Niche marketing is the systematic gathering, recording, and analyzing of data related to the marketing of goods and services.

In franchising, which of the following is a benefit to the franchisee?

In a given market area, the fact that a high number of similar firms have gone out of business usually signals market weakness.

One should buy an existing business even if the financial condition of the firm is poor.

Which of the following is a drawback of buying a franchise?

What is franchising?

A franchisee owns the franchise's name and distinctive elements and licenses others to sell its products.

What are franchisee fees and royalty fees?

Starting Your Small Business

Family-Owned Businesses

Forms of Ownership of Small Businesses

Maintaining Good Government Relations and Business Ethics

Planning, Organizing, and Managing a Small Business

How to Obtain the Right Financing for Your Business

Developing Marketing Strategies

Promoting and Distributing

How to Obtain and Manage Human Resources and Diversity in Small Companies

How to Maintain Relationships With Your Employees and Their Representatives

Obtaining and Laying Out Operating Facilities

Purchasing, Inventory, and Quality Control

Basic Financial Planning

Budgeting and Controlling Operations and Taxes

Using Computer Technology in Small Businesses

Risk Management, Insurance, and Crime Prevention

Filters