Question 1

Most ventures that are available for sale:

Accepted Answer

A)  are undervalued. 
B)  lack established location. 
C)  have a marginal or unprofitable track record. 
D)  are listed on the stock market. 
A)  are undervalued. 
B)  lack established location. 
C)  have a marginal or unprofitable track record. 
D)  are listed on the stock market.

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

The reservation price is the price at which the entrepreneur is ready to accept the agreement.

Accepted Answer

A) True 
 B)False

Question 4

In negotiations,the ________ task involves how the benefits of the relationship will be allocated between the parties.

Accepted Answer

A)  distributive 
B)  assessment 
C)  integrative 
D)  reservation 
A)  distributive 
B)  assessment 
C)  integrative 
D)  reservation

Question 5

An acquisition is the purchase of a company,or part of a company,in which the acquired company ceases to exist independently.

Accepted Answer

A) True 
 B)False

Question 6

The Federal Trade Commission requires franchisors to make full presale disclosure of about 20 separate aspects of a franchise offering.

Accepted Answer

A) True 
 B)False

Question 7

Lack of synergy is one of the most frequent causes of an acquisition's failure to meet its objectives.

Accepted Answer

A) True 
 B)False

Question 8

Which of 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 9

What are the main benefits (to the franchisee)of franchising

Accepted Answer

Product Acceptance: The franchisee does

Question 10

Brokers for acquisitions represent the buyer,not the seller.

Accepted Answer

A) True 
 B)False

Question 11

In the ________ task,the mutual benefits from the relationship are explored,making the "size of the pie" larger.

Accepted Answer

A)  distributive 
B)  assessment 
C)  integrative 
D)  reservation 
A)  distributive 
B)  assessment 
C)  integrative 
D)  reservation

Question 12

The best negotiated outcomes likely arise from ________,where the parties find mutually beneficial trade-offs.

Accepted Answer

A)  distribution 
B)  conflict resolution 
C)  integration 
D)  assessment 
A)  distribution 
B)  conflict resolution 
C)  integration 
D)  assessment

Question 13

Which of the following is the most significant advantage of an acquisition according to the text

Accepted Answer

A)  Established image and track record 
B)  Location 
C)  Cost 
D)  Existing employees 
A)  Established image and track record 
B)  Location 
C)  Cost 
D)  Existing employees

Question 14

Which statement about capital requirements in franchising is not true

Accepted Answer

A)  Franchisees pool monies to lower the costs for advertising and sales promotion. 
B)  Most franchisors will offer managerial assistance on the basis of need upon the start of the franchisee. 
C)  Newsletters and other publications reflecting new ideas and developments are continuously sent to franchisees. 
D)  The franchisee has to spend resources to establish the credibility of the business. 
A)  Franchisees pool monies to lower the costs for advertising and sales promotion. 
B)  Most franchisors will offer managerial assistance on the basis of need upon the start of the franchisee. 
C)  Newsletters and other publications reflecting new ideas and developments are continuously sent to franchisees. 
D)  The franchisee has to spend resources to establish the credibility of the business.

Question 15

A key concern in any merger or acquisition is the legality of the purchase.

Accepted Answer

A) True 
 B)False

Question 16

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 17

A ________ is an arrangement whereby the manufacturer or sole distributor of a trademarked product or service gives exclusive rights of local distribution to independent retailers in return for their payment of royalties and conformance to standardized operating procedures.

Accepted Answer

A)  joint venture 
B)  franchise 
C)  merger 
D)  leveraged buyout 
A)  joint venture 
B)  franchise 
C)  merger 
D)  leveraged buyout

Question 18

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

Accepted Answer

The business objectives of the joint ven

Question 19

What are the four major factors in joint venture success

Accepted Answer

1.The accurate assessment of the parties

Question 20

Cultural differences between international joint venture partners can create management difficulties.

Accepted Answer

A) True 
 B)False

Most ventures that are available for sale:

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

The reservation price is the price at which the entrepreneur is ready to accept the agreement.

In negotiations,the ________ task involves how the benefits of the relationship will be allocated between the parties.

An acquisition is the purchase of a company,or part of a company,in which the acquired company ceases to exist independently.

The Federal Trade Commission requires franchisors to make full presale disclosure of about 20 separate aspects of a franchise offering.

Lack of synergy is one of the most frequent causes of an acquisition's failure to meet its objectives.

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

What are the main benefits (to the franchisee)of franchising

Brokers for acquisitions represent the buyer,not the seller.

In the ________ task,the mutual benefits from the relationship are explored,making the "size of the pie" larger.

The best negotiated outcomes likely arise from ________,where the parties find mutually beneficial trade-offs.

Which of the following is the most significant advantage of an acquisition according to the text

Which statement about capital requirements in franchising is not true

A key concern in any merger or acquisition is the legality of the purchase.

The most common type of joint venture is:

A ________ is an arrangement whereby the manufacturer or sole distributor of a trademarked product or service gives exclusive rights of local distribution to independent retailers in return for their payment of royalties and conformance to standardized operating procedures.

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

What are the four major factors in joint venture success

Cultural differences between international joint venture partners can create management difficulties.

The Entrepreneurial Mind-Set

Corporate Entrepreneurship

Generating and Exploiting New Entries

Creativity and the Business Idea

Identifying and Analyzing Domestic and International Opportunities

Protecting the Idea 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

Most ventures that are available for sale:

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

The reservation price is the price at which the entrepreneur is ready to accept the agreement.

In negotiations,the ________ task involves how the benefits of the relationship will be allocated between the parties.

An acquisition is the purchase of a company,or part of a company,in which the acquired company ceases to exist independently.

The Federal Trade Commission requires franchisors to make full presale disclosure of about 20 separate aspects of a franchise offering.

Lack of synergy is one of the most frequent causes of an acquisition's failure to meet its objectives.

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

What are the main benefits (to the franchisee)of franchising

Brokers for acquisitions represent the buyer,not the seller.

In the ________ task,the mutual benefits from the relationship are explored,making the "size of the pie" larger.

The best negotiated outcomes likely arise from ________,where the parties find mutually beneficial trade-offs.

Which of the following is the most significant advantage of an acquisition according to the text

Which statement about capital requirements in franchising is not true

A key concern in any merger or acquisition is the legality of the purchase.

The most common type of joint venture is:

A ________ is an arrangement whereby the manufacturer or sole distributor of a trademarked product or service gives exclusive rights of local distribution to independent retailers in return for their payment of royalties and conformance to standardized operating procedures.

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

What are the four major factors in joint venture success

Cultural differences between international joint venture partners can create management difficulties.

The Entrepreneurial Mind-Set

Corporate Entrepreneurship

Generating and Exploiting New Entries

Creativity and the Business Idea

Identifying and Analyzing Domestic and International Opportunities

Protecting the Idea 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