Question 1

Franchisees usually contribute _____ of sales to an advertising pool.

Accepted Answer

A) None,each franchisee pays for their own advertising 
B) 1-2% 
C) 4-5% 
D) 8-10% 
A) None,each franchisee pays for their own advertising 
B) 1-2% 
C) 4-5% 
D) 8-10%

Question 2

Popular reasons to merge include protection,diversification and survival.

Accepted Answer

A) True 
 B)False

Question 3

A potential franchisee should seek answers to all of the following questions while assessing the financial stability of the franchisor,except:

Accepted Answer

A) How many franchises are in the organization? 
B) Are most of the profits of the franchise a function of fees from the sale of franchises or from royalties based on profits of franchisees? 
C) What are the chances of further expansion of the company? 
D) Does the franchisor have management expertise in production,finance,and marketing? 
A) How many franchises are in the organization? 
B) Are most of the profits of the franchise a function of fees from the sale of franchises or from royalties based on profits of franchisees? 
C) What are the chances of further expansion of the company? 
D) Does the franchisor have management expertise in production,finance,and marketing?

Question 4

Some acquisitions are motivated more by the CEO's ego than by the return on investment.

Accepted Answer

A) True 
 B)False

Question 5

The disclosure document provided by the franchisor:

Accepted Answer

A) is required by the FTC. 
B) will state a guaranteed yearly return for the franchisee. 
C) is done on a voluntary basis. 
D) has information that is certified by a CPA and the FTC so it is always a reliable source of data. 
A) is required by the FTC. 
B) will state a guaranteed yearly return for the franchisee. 
C) is done on a voluntary basis. 
D) has information that is certified by a CPA and the FTC so it is always a reliable source of data.

Question 6

If a franchise looks good as an investment,the entrepreneur may request a franchise package from the franchisor at no cost,which usually contains a draft franchise agreement or contract.

Accepted Answer

A) True 
 B)False

Question 7

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 8

The person offering the franchise is known as the:

Accepted Answer

A) franchisor. 
B) endower. 
C) franchisee. 
D) franchise. 
A) franchisor. 
B) endower. 
C) franchisee. 
D) franchise.

Question 9

The debt to capital ratio for most _____ usually exceeds the equity by a factor of 5:1.

Accepted Answer

A) mergers 
B) leveraged buyouts 
C) hostile takeovers 
D) franchises 
A) mergers 
B) leveraged buyouts 
C) hostile takeovers 
D) franchises

Question 10

In a leveraged buyout,the entrepreneur uses equity funds to purchase an existing venture for cash.

Accepted Answer

A) True 
 B)False

Question 11

When negotiating,the entrepreneur should make only one offer and stick to it.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following are not factors in the success of joint ventures according to the text?

Accepted Answer

A) Chemistry and symmetry. 
B) Symmetry and reasonable expectations. 
C) Finance and education. 
D) Timing and chemistry. 
A) Chemistry and symmetry. 
B) Symmetry and reasonable expectations. 
C) Finance and education. 
D) Timing and chemistry.

Question 13

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 14

Synergy is when the whole is the aggregate of all of its parts.

Accepted Answer

A) True 
 B)False

Franchisees usually contribute _____ of sales to an advertising pool.

Popular reasons to merge include protection,diversification and survival.

A potential franchisee should seek answers to all of the following questions while assessing the financial stability of the franchisor,except:

Some acquisitions are motivated more by the CEO's ego than by the return on investment.

The disclosure document provided by the franchisor:

If a franchise looks good as an investment,the entrepreneur may request a franchise package from the franchisor at no cost,which usually contains a draft franchise agreement or contract.

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

The person offering the franchise is known as the:

The debt to capital ratio for most _____ usually exceeds the equity by a factor of 5:1.

In a leveraged buyout,the entrepreneur uses equity funds to purchase an existing venture for cash.

When negotiating,the entrepreneur should make only one offer and stick to it.

Which of the following are not factors in the success of joint ventures according to the text?

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

Synergy is when the whole is the aggregate of all of its parts.

Entrepreneurship and the Entrepreneurial Mind-Set

Entrepreneurial Intentions and Corporate Entrepreneurship

Entrepreneurial Strategy: Generating and Exploiting New Entries

Creativity and the Business Idea

Identifying and Analyzing Domestic and International Opportunities

Intellectual Property 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

Franchisees usually contribute _____ of sales to an advertising pool.

Popular reasons to merge include protection,diversification and survival.

A potential franchisee should seek answers to all of the following questions while assessing the financial stability of the franchisor,except:

Some acquisitions are motivated more by the CEO's ego than by the return on investment.

The disclosure document provided by the franchisor:

If a franchise looks good as an investment,the entrepreneur may request a franchise package from the franchisor at no cost,which usually contains a draft franchise agreement or contract.

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

The person offering the franchise is known as the:

The debt to capital ratio for most _____ usually exceeds the equity by a factor of 5:1.

In a leveraged buyout,the entrepreneur uses equity funds to purchase an existing venture for cash.

When negotiating,the entrepreneur should make only one offer and stick to it.

Which of the following are not factors in the success of joint ventures according to the text?

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

Synergy is when the whole is the aggregate of all of its parts.

Entrepreneurship and the Entrepreneurial Mind-Set

Entrepreneurial Intentions and Corporate Entrepreneurship

Entrepreneurial Strategy: Generating and Exploiting New Entries

Creativity and the Business Idea

Identifying and Analyzing Domestic and International Opportunities

Intellectual Property 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