Exam 5: Becoming the Owner of a Small Business

An advantage of buying a franchise is that it already has many of the requirements for success.

Which of the following is a reason for starting a new business?

Describe the two types of franchising systems.

Catherine, who loves dogs, wants to offer dog walking services to her neighbors, many of whom have dogs. Her research leads her to a small professional pet care store operating in the area, and she decides to buy it. Which of the following is a good reason for Catherine to buy the pet care store?

Describe some industries in the U.S. where franchising is expected to grow.

The Small Business Administration in the United States is a particularly effective source of local information for prospective business owners because it is familiar with an area's needs.

How would a potential entrepreneur use market research in order to obtain information about the market?

If an established business is in a desirable location, it is a good idea to buy it.

What does a franchiser do?

Combination franchising is the ideal arrangement for big-name franchise operations to avoid cultural clashes.