Question 1

The typical time frame that a franchise agreement lasts is ________ years.

Accepted Answer

The answer of The typical time frame that a franchise...

Question 2

When buying an existing business, there is a greater premium attached to the business than if the business is started from scratch.

Accepted Answer

A) True 
 B)False

Question 3

The ________ pays a fee to obtain a franchise from the franchisor.

Accepted Answer

The answer of The ________ pays a fee to obtain...

Question 4

Identify an accurate statement about franchising.

Accepted Answer

A) A franchisor enables a rapid expansion while maximizing the funds invested in that expansion. 
B) Specific information on the profitability of individual franchises does not have to be shared with the franchisor. 
C) An entrepreneur spends more of his or her resources than if he or she had to start a new business from scratch. 
D) A franchisor continues research and development on the products and processes that a small single business cannot afford to pursue. 
A) A franchisor enables a rapid expansion while maximizing the funds invested in that expansion. 
B) Specific information on the profitability of individual franchises does not have to be shared with the franchisor. 
C) An entrepreneur spends more of his or her resources than if he or she had to start a new business from scratch. 
D) A franchisor continues research and development on the products and processes that a small single business cannot afford to pursue.

Question 5

An individual looking to buy a franchise should identify a franchisor that is the best potential match in

Accepted Answer

A) support. 
B) history. 
C) expansion plans. 
D) all of these. 
A) support. 
B) history. 
C) expansion plans. 
D) all of these.

Question 6

A business ________ specializes in selling businesses.

Accepted Answer

The answer of A business ________ specializes in selling businesses....

Question 7

Businesses that specialize in selling businesses are known as

Accepted Answer

A) business representatives. 
B) business analysts. 
C) real estate agents. 
D) business brokers. 
A) business representatives. 
B) business analysts. 
C) real estate agents. 
D) business brokers.

Question 8

Describe the ways in which a franchisor and a franchisee help each other.

Accepted Answer

A franchisor makes money when the franch

Question 9

An entrepreneur is a franchisee.

Accepted Answer

A) True 
 B)False

Question 10

Yummy Bacon Inc.manufactures and sells bacon and sausages in the country of Valkyris.To expand its business, it invites interested entrepreneurs to open its branches in a few more cities.It also assures the prospective entrepreneurs that it will provide specific training in marketing and operational methods to all staffs in the new branches.In this scenario, Yummy Bacon Inc.is a ________.

Accepted Answer

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

Question 11

One advantage of buying an existing business instead of a franchise is that an existing business already has an established cash flow.

Accepted Answer

A) True 
 B)False

Question 12

The Uniform Franchise Offering Circular has ________ specified items.

Accepted Answer

A) 15 
B) 18 
C) 23 
D) 28 
A) 15 
B) 18 
C) 23 
D) 28

Question 13

A franchisor typically provides ________ to develop performance management programs, quality control methods, forecasting, and purchasing of equipment, which are very valuable services that act as guidelines rather than mandates in deciding on a franchise.

Accepted Answer

human reso

Question 14

Why would an entrepreneur buy an existing business?

Accepted Answer

Similar to a franchise, an existing busi

Question 15

When buying a franchise, what issues should a potential franchisee examine?

Accepted Answer

A potential franchisee should carefully

Question 16

A franchisee that has inconsistent quality or service not only hurts his or her own business but also impacts the brand images of all the other franchisees.

Accepted Answer

A) True 
 B)False

Question 17

A franchisor makes money by

Accepted Answer

A) selling the franchise. 
B) collecting a percentage of sales. 
C) providing specific training. 
D) all of these. 
A) selling the franchise. 
B) collecting a percentage of sales. 
C) providing specific training. 
D) all of these.

Question 18

Which of the following is the basic contract generated by a franchisor for all franchises?

Accepted Answer

A) Franchise consent contract 
B) Master license 
C) Franchisor agreement 
D) Franchise agreement 
A) Franchise consent contract 
B) Master license 
C) Franchisor agreement 
D) Franchise agreement

Question 19

A disadvantage of buying an existing business is that operating processes and policies have already been established.This means that it is a riskier purchase than the purchase of a franchise.

Accepted Answer

A) True 
 B)False

Question 20

When you buy a franchise, you are buying

Accepted Answer

A) an established name. 
B) the opportunity to operate under that name for a period of time. 
C) a single store or the right to have multiple units. 
D) all of these. 
A) an established name. 
B) the opportunity to operate under that name for a period of time. 
C) a single store or the right to have multiple units. 
D) all of these.

The typical time frame that a franchise agreement lasts is ________ years.

When buying an existing business, there is a greater premium attached to the business than if the business is started from scratch.

The ________ pays a fee to obtain a franchise from the franchisor.

Identify an accurate statement about franchising.

An individual looking to buy a franchise should identify a franchisor that is the best potential match in

A business ________ specializes in selling businesses.

Businesses that specialize in selling businesses are known as

Describe the ways in which a franchisor and a franchisee help each other.

An entrepreneur is a franchisee.

One advantage of buying an existing business instead of a franchise is that an existing business already has an established cash flow.

The Uniform Franchise Offering Circular has ________ specified items.

A franchisor typically provides ________ to develop performance management programs, quality control methods, forecasting, and purchasing of equipment, which are very valuable services that act as guidelines rather than mandates in deciding on a franchise.

Why would an entrepreneur buy an existing business?

When buying a franchise, what issues should a potential franchisee examine?

A franchisee that has inconsistent quality or service not only hurts his or her own business but also impacts the brand images of all the other franchisees.

A franchisor makes money by

Which of the following is the basic contract generated by a franchisor for all franchises?

A disadvantage of buying an existing business is that operating processes and policies have already been established.This means that it is a riskier purchase than the purchase of a franchise.

When you buy a franchise, you are buying

The Twenty-First-Century Entrepreneur

Individual Leadership and Entrepreneurial Start-Ups

Business Idea Generation and Initial Evaluation

External Analysis

Business Mission and Strategy

Analyzing Cash Flow and Other Financial Information

Financing and Accounting

Business Financial Analysis

Legal Issues With a New Business

Human Resource Management

Marketing

Establishing Operations

Exit-Harvest-Turnaround

Filters

Exam 14: Franchising and Purchasing an Existing Business

The typical time frame that a franchise agreement lasts is ________ years.

When buying an existing business, there is a greater premium attached to the business than if the business is started from scratch.

The ________ pays a fee to obtain a franchise from the franchisor.

Identify an accurate statement about franchising.

An individual looking to buy a franchise should identify a franchisor that is the best potential match in

A business ________ specializes in selling businesses.

Businesses that specialize in selling businesses are known as

Describe the ways in which a franchisor and a franchisee help each other.

An entrepreneur is a franchisee.

One advantage of buying an existing business instead of a franchise is that an existing business already has an established cash flow.

The Uniform Franchise Offering Circular has ________ specified items.

A franchisor typically provides ________ to develop performance management programs, quality control methods, forecasting, and purchasing of equipment, which are very valuable services that act as guidelines rather than mandates in deciding on a franchise.

Why would an entrepreneur buy an existing business?

When buying a franchise, what issues should a potential franchisee examine?

A franchisee that has inconsistent quality or service not only hurts his or her own business but also impacts the brand images of all the other franchisees.

A franchisor makes money by

Which of the following is the basic contract generated by a franchisor for all franchises?

A disadvantage of buying an existing business is that operating processes and policies have already been established.This means that it is a riskier purchase than the purchase of a franchise.

When you buy a franchise, you are buying

The Twenty-First-Century Entrepreneur

Individual Leadership and Entrepreneurial Start-Ups

Business Idea Generation and Initial Evaluation

External Analysis

Business Mission and Strategy

Analyzing Cash Flow and Other Financial Information

Financing and Accounting

Business Financial Analysis

Legal Issues With a New Business

Human Resource Management

Marketing

Establishing Operations

Exit-Harvest-Turnaround

Filters