Question 1

Assets against which there are no liens are referred to as .

Accepted Answer

unencumbered

Question 2

The most popular franchise arrangement is:

Accepted Answer

A)  single-unit. 
B)  multi-unit. 
C)  multi-brand. 
D)  master franchise. 
A)  single-unit. 
B)  multi-unit. 
C)  multi-brand. 
D)  master franchise. A

Question 3

The ability to innovate is an important characteristic for a franchisee.

Accepted Answer

A) True 
 B)False  False

Question 4

The owner of a territory franchise has the right to sell franchises to others.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following would be an example of a Business Format franchise?

Accepted Answer

A)  Petro Canada. 
B)  Tim Horton's. 
C)  Toyota. 
D)  Popsicle. 
A)  Petro Canada. 
B)  Tim Horton's. 
C)  Toyota. 
D)  Popsicle.

Question 6

The cost of a franchise may include:

Accepted Answer

A)  royalty payments. 
B)  advertising expenditures. 
C)  the franchise fee. 
D)  all of the above. 
A)  royalty payments. 
B)  advertising expenditures. 
C)  the franchise fee. 
D)  all of the above.

Question 7

Pyramid Selling is an illegal form of Multi-level Marketing.

Accepted Answer

A) True 
 B)False

Question 8

The Franchisor is the buyer of a complete method of doing business.

Accepted Answer

A) True 
 B)False

Question 9

When the same franchisee owns two different franchise brands at the same site, this is called franchising.

Accepted Answer

The answer of When the same franchisee owns two different...

Question 10

The biggest advantage of owning a franchise over an independent firm is likely:

Accepted Answer

A)  training provided by the franchisor. 
B)  brand recognition. 
C)  advertising. 
D)  marketing research. 
A)  training provided by the franchisor. 
B)  brand recognition. 
C)  advertising. 
D)  marketing research.

Question 11

The code of the Canadian Franchise Association gives franchisees:

Accepted Answer

A)  freedom to form and join associations. 
B)  the right to see the financial statements of the franchisor. 
C)  the right to a full refund if dissatisfied. 
D)  all of the above. 
A)  freedom to form and join associations. 
B)  the right to see the financial statements of the franchisor. 
C)  the right to a full refund if dissatisfied. 
D)  all of the above.

Question 12

Briefly explain the major advantages of buying a franchise over other start-up methods.

Accepted Answer

For full marks, at least three

Question 13

Changing an independent small business into a franchise outlet is referred to as franchising.

Accepted Answer

The answer of Changing an independent small business into a...

Question 14

The law that restricts national price setting is known as the federal Act.

Accepted Answer

The answer of The law that restricts national price setting...

Question 15

Most of the magazines and other publications about franchising:

Accepted Answer

A)  are critical of the industry. 
B)  forbid advertising of specific franchises. 
C)  are published by franchisor associations. 
D)  are published by franchisee associations. 
A)  are critical of the industry. 
B)  forbid advertising of specific franchises. 
C)  are published by franchisor associations. 
D)  are published by franchisee associations.

Question 16

With "floor plan" financing, title to the product in the franchisee's inventory is:

Accepted Answer

A)  held by the franchisee. 
B)  held by a third party. 
C)  held by the franchisor. 
D)  there is no title to the product. 
A)  held by the franchisee. 
B)  held by a third party. 
C)  held by the franchisor. 
D)  there is no title to the product.

Question 17

Canada tends to have stricter franchising regulations than most of the US.

Accepted Answer

A) True 
 B)False

Question 18

The right to produce and sell the franchisor's product is called:

Accepted Answer

A)  licensing. 
B)  dealership. 
C)  conversion franchising. 
D)  none of the above. 
A)  licensing. 
B)  dealership. 
C)  conversion franchising. 
D)  none of the above.

Question 19

Multi-level marketers usually:

Accepted Answer

A)  work from their homes. 
B)  sell to consumers. 
C)  receive commissions from the sales of their recruits. 
D)  all of the above. 
A)  work from their homes. 
B)  sell to consumers. 
C)  receive commissions from the sales of their recruits. 
D)  all of the above.

Question 20

Major franchisors tend to be highly negotiable over contract details.

Accepted Answer

A) True 
 B)False

Assets against which there are no liens are referred to as .

The most popular franchise arrangement is:

The ability to innovate is an important characteristic for a franchisee.

The owner of a territory franchise has the right to sell franchises to others.

Which of the following would be an example of a Business Format franchise?

The cost of a franchise may include:

Pyramid Selling is an illegal form of Multi-level Marketing.

The Franchisor is the buyer of a complete method of doing business.

When the same franchisee owns two different franchise brands at the same site, this is called franchising.

The biggest advantage of owning a franchise over an independent firm is likely:

The code of the Canadian Franchise Association gives franchisees:

Briefly explain the major advantages of buying a franchise over other start-up methods.

Changing an independent small business into a franchise outlet is referred to as franchising.

The law that restricts national price setting is known as the federal Act.

Most of the magazines and other publications about franchising:

With "floor plan" financing, title to the product in the franchisee's inventory is:

Canada tends to have stricter franchising regulations than most of the US.

The right to produce and sell the franchisor's product is called:

Multi-level marketers usually:

Major franchisors tend to be highly negotiable over contract details.

The Concept: What Business Will I Be in

Feasibility: How Do I Know It Will Work

Marketing: How Will I Get Customers

Operations: How Will I Organize the Work

Finances: How Will I Manage the Money

The Business Plans: How Are They Important

The Franchise Alternative: How Do I Buy a Franchise

The Family Firm Alternative: How Do I Take Over My Familys Business

Managing for Growth: How Can I Expand My Business

Managing for Efficiency: How Can I Reduce My Costs and Expenses

Emerging Trends and Issues in Entrepreneurship: How Can I Prepare for the Future

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Exam 7: The Purchase Alternative: How Do I Buy or Buy Into an Existing Business

Assets against which there are no liens are referred to as .

The most popular franchise arrangement is:

The ability to innovate is an important characteristic for a franchisee.

The owner of a territory franchise has the right to sell franchises to others.

Which of the following would be an example of a Business Format franchise?

The cost of a franchise may include:

Pyramid Selling is an illegal form of Multi-level Marketing.

The Franchisor is the buyer of a complete method of doing business.

When the same franchisee owns two different franchise brands at the same site, this is called franchising.

The biggest advantage of owning a franchise over an independent firm is likely:

The code of the Canadian Franchise Association gives franchisees:

Briefly explain the major advantages of buying a franchise over other start-up methods.

Changing an independent small business into a franchise outlet is referred to as franchising.

The law that restricts national price setting is known as the federal Act.

Most of the magazines and other publications about franchising:

With "floor plan" financing, title to the product in the franchisee's inventory is:

Canada tends to have stricter franchising regulations than most of the US.

The right to produce and sell the franchisor's product is called:

Multi-level marketers usually:

Major franchisors tend to be highly negotiable over contract details.

The Concept: What Business Will I Be in

Feasibility: How Do I Know It Will Work

Marketing: How Will I Get Customers

Operations: How Will I Organize the Work

Finances: How Will I Manage the Money

The Business Plans: How Are They Important

The Franchise Alternative: How Do I Buy a Franchise

The Family Firm Alternative: How Do I Take Over My Familys Business

Managing for Growth: How Can I Expand My Business

Managing for Efficiency: How Can I Reduce My Costs and Expenses

Emerging Trends and Issues in Entrepreneurship: How Can I Prepare for the Future

Filters