b. Negotiating a deal to acquire exactly what is required from the operation. Which one of the following tasks is not one of these six major organizational development tasks? Master franchises do not allow individuals and organizations to buy the right to subfranchise within a delineated geographic territory. Which of the following antitrust legislation laws makes it illegal for competitors to get together and set prices on the products or services they sell? d. c. a. 3- Customers already know you exist. d. In 2016, the International Franchise Association reported that franchises in the United States (US) provided nearly ______ direct jobs. Which of the following is true regarding inspections conducted by franchisors? Wherein the goal of the market-focused business strategy is to identify and supply product/service to discrete segments with promise of strong demand yet allowing for flexibility in meeting demand and where a firm can concentrate its internal resources describes characteristics of which of the following four market-focused business strategies? Which of the following would not be a good reason to start a small business? must be provided to the potential franchisee early in the process. Meeting with every member of the current staff. design a logo for the unit. The prospective investor should get as much information as possible on the franchisor. Where is Ellis most likely to go for advice and guidance about running the outlet? c. A. The implementation of marketing mix variables in franchise channels is less fluid and flexible than in conventional channels. What Should the Franchisor Control? - Franchise Law, Disputes D) Unity Do you think this was a popular tax? In the United States, ___ account(s) for 97.5 percent of all identified exporters and produce(s) 31 percent of export value. a. poll tax that required each person to pay a flat a. D) Capacity to secure franchisees The franchisor licenses its trademarked products to franchisees. Small Business Chp IV - Franchises and Buyouts Flashcards He wants the business to succeed. Four factors are important in determining the size and shape of a primary service area (PSA). One of the advantages of buying a franchise is that the purchaser has access to a proven business system. Which philosophy of expansion is, as a rule, the best method for franchisors? E) All of the above, The term "FDD" stands for which of the following? What is the effect of such a tax on What helps you identify the customers whose needs your franchise best satisfies? Henry approaches her about operating his own business under the terms above. Entrepreneurs should asses their skills and interests. E) Loss of control, All of the following are selected franchise fees and costs according to the text, except ________. Macy because the SBA's primary financial function is to guarantee loans. Reviewing personnel of the business about to be purchased is important in order to determine d. Why would a franchise system monitor its external environment? NOT: it sometimes develops an imprecise picture of the franchise. Franchisors benefit from the franchise agreement because they have. Entitle the franchisee to use the franchise's name. Why might it be a good idea for a franchisor to investigate several ASP vendors before choosing one? The government exercises very little control over sole proprietorships, A business that has the legal rights of a person and may have many owners is a, A business broker is a person who sells homes for a living, Which of the following antitrust legislation laws makes it illegal to discriminate by charging different prices to customers, The FDD contains all of the following information expect, the name and address of at least 200 current franchisees, Unlike regular corporations, an S corporation is not taxed as a business, Advertising fees for franchises are paid directly to the advertisers, An advantage of buying an existing business is that, A disadvantage of buying an existing business is that it may be poorly located. Which of the following statements best describes franchise channel structure? The product quality is within the perception of the customer and is greatly influenced by the franchise system's server. your accountant. What is the effect on economic Which of the following is true of the risk involved in buying an existing business facing bankruptcy? c. goodwill Up-front capital requirements Which of the following is not one of those statements? Identify an accurate statement about buying an existing business. B. Royalty agreement all of these are reasons it could be beneficial. Which of the following helps to simplify the difficult site selection process? B) Marketing 2. The Franchise Disclosure Document helps the franchise buyer to make a knowledgeable purchase. He has read about the success rates of franchises and the success rates of start-up businesses. you. The franchisee is bound by the terms the franchise contract. B) Franchisee Disclosure Document Can you become a millionare by buying this business? training and guidance provided by the franchisor. Ch.16 Flashcards | Quizlet Which of the following is an intangible asset? Automobile dealerships and ___ were the primary uses for franchises in the early days of franchise agreements. Sales records are of very little value to a buyer in evaluating a company's worth. C. In a franchise, parties are independent. Which one of the following is NOT an advantage of franchising for the franchisee? D. Single-unit franchises enjoy a favorable image among consumers. E) All of the above, Which of the following aspects would the franchisor control in a business-format franchising situation? This desire is referred to as. a. Which one of the following is Not a common method of borrowing funds in the short-term when considering the rate of interest to be paid: To fund a franchise business, most franchisee use: In financial planning with the franchised business, the most basic and essential variable of the financial planning tools is the: All of the current assets of the firm, or more specifically, current assets minus current liabilities equals: Estimation of sales and other income for a period and cash disbursements to be paid in the same period identifies the components of the: What is the primary purpose of information systems in a large franchise? Which of the following businesses would most likely be included in the production industry? True or false: Individual thinking they were buying franchise that gave them an opportunity for success found that they had paid for what amounted to little more than a name. Externally dedicated to the market, yet internally focused on production, seeking to produce high-volume or high-value product/service while carefully examining any new opportunities for costs/benefits in relation to known strengths of the firm, is a description of which one of the market-focused business strategies identified below. ENT 3172 Chapter 1-12 Terms Flashcards | Quizlet a. The term "risk vs. loss" refers to the amount of return for funds invested. B) Research a. Pewterschmidt Company values its inventory reported in the financial statements in terms \end{aligned} d. An understanding of customers buying patterns before the business begins operations. ( ) usually provides the starting-point of data collection when conducting marketing research. a. old-old Buildings E. The desired degree of control of franchisees by franchisors is not relevant to the decision by franchisors to use the franchise channel model. d. A. The owner may be in trouble with suppliers. What is the name of the business agreement Henry would sign? Chance Matilda would like to open an ice cream and sweet treats store but she will need a loan to do so. D. Is based on a percentage of the franchisee's gross sales. d. The accountant assigns revenues and expenses to specific years before preparing the financial statements. What is your conclusion using the p-value approach? c. What types of customers does this store attract? The franchise's time frame. brand-name appeal of the franchise What advantage of a small business does Bill enjoy? The term "upside gain and downside loss" refers to the profits the business can make and the losses it can suffer. Samantha would like to get a small business loan from the SBA. A. Foundations of Business: Chapter 5 Flashcards | Quizlet Subway Leticia has always wanted to own her own restaurant but has read that restaurants have a very high failure rate. c. B. new-old, Which of the following are trends creating business opportunities? f(t)=t2t+2. a. Pick the correct phrase from the following that best characterizes the relationship between franchisors and franchisees. This is the most common form of franchise channel structure. WebThe purchaser of a franchise is called the franchisor. The number of franchised business establishments has continued to growth in the U.S. Today there are approximately ( ) franchise businesses in operation. it can be either franchisor- or franchisee-driven. He states in the plan, "This business will serve over 400 customers by the end of the year and employ ten full-time employees." T/F, One drawback of becoming a franchisor relates to possible new restrictions as a requirement for contract renewal. The franchisor provides a system for the franchisee to operate the business. During the period a patent is in effect, no business or individual can copy or use the patented invention without the patent holder's permission. new-new, new-old Hobby Equipment c. new-old. Which of the following statements are relevant to the definition of, "franchise"? d. a. Solved Knowledge Check 01 Which of the following statement The "Trademarks" section of the UFOC details ___________. B) Brand recognition age of the competition's owners. The way to approach a new business venture is to think up a good or service that is unique. In franchising, the _____ is the firm that originates the idea for a business and develops the operational methods. To be a successful leader, Jim Peterson, franchisor and former President of the IFA, believes it is necessary for four factors to exist for a person to be a successful leader. E. Royalty fee. A. c. c. Why do most franchisees choose to go into business with a franchised company? franchise loss of freedom and control as franchise system grows. What is a realistic number for a sample size when doing market research? Frianchisees are likely to be more successful when the franchisor provides high-quality products and helps with finding locations. the owner's family stability and relationships. Operational Control. c. The _________ has the responsibility for the business location, of establishing the business, and of building the storefront. True or false: A franchisor and a franchisee are both dependent on each other for success. Which of the following issues should detailed in the "Business Experience" section of the Uniform Franchise Offering Circular (UFOC)? Which of the following is NOT a component of a properly developed franchisor plan? Which two factors are especially relevant in the scope and frequency of franchisee evaluations by franchisors? Prior job old-new A franchisor's revenue from royalties and selling supplies provide _________ income than that earned from initial franchise fees. Richard orders some Harley-Davidson Trikes for his inventory. d. if employees are leaving, will enough remain to operate the business. C) Franchisees b. b. A) Training Compared to other types of businesses, the failure rate for franchises is __________. Which of the following could he use to protect his interests?. Business related reasons for selling may include all but which of the following? d. franchatter. A. Identify the unique aspects to purchasing an existing business. On-site management In exchange for an ownership share, small businesses receive financing from a group of investors known as There are four generic categories to classify goods and services. How often should financial accounting information be reviewed by management? Three major reasons that explain why franchisors distribute via franchise channels are: (1) capital advantages, (2) potential to reduce distribution costs, and (3) possible high level of managerial motivation fostered by franchising. Automotive And, how much will it cost to implement? Stuart has $50,000 to start a new business. c. collaboration with suppliers through Internet, NOT: franchisors d. The _________ is the entrepreneur who buys the franchise from the ________. b. A major reason for success of franchising is a. B) Friends He works many hours from January through April but in May takes a month-long vacation and the rest of the year works part-time. The "Restrictions on the Sources of Products and Services" section of the UFOC describes _______, what the potential franchisee must purchase from the franchisor and what the franchisee can source independently. Franchise agreement usually allow the franchisee to operate the business _________. c. Juan is most likely a franchisee in the ___ industry. d. If you decide to purchase a franchise, you will have to pay. c. In the "_________" section of the UFOC, the franchisor must disclose all fees that are charged to franchisees. Studies have shown that the incidence of innovation among small-business workers is ___ among workers in larger businesses. It is structured between single-unit and multi-unit franchises. B) Positive relationships with their franchisees Jennifer and Raleigh are considering starting a small business and are weighing the pros and cons of doing so. the franchise quality of the competition. C) Fixtures new-old, When one discusses upside gain and downside loss, one is talking about None of the above, An analysis of the competition should look for ______. How does the motivation of franchise channel members differ from the motivation of channel members in conventional channels? There are several ways to protect a trademark, as indicated below. Is a specialized broker who handles all arrangements for closing a buyout, The purchase price of a business is determined by the negotiation between. disagreements between the two parties have increased and contract disputes are causing many lawsuits. C) Popularity b. invest money in the operation. price competition may affect profits. Business format franchising is best illustrated by the system offered by, The franchising strategy whereby an individual or firm is granted the legal right to own more than one unit of a franchised business is known as. inventory turnover. Which of the following best describes the industry she operates in? c. What is the purpose of ratio analyses of financial statements? Education courses Depreciation. E) Not be counted on, A) Provide a significant advantage for your business start-up, All of the following are advantages of franchising except ________. E. All of the above. d. What changes will be made? What is the primary purpose of information systems in a mid-size franchise? Strong franchisors have all of the following except ________. Business services. The advantages of franchising include: The franchisor might negotiate a complete different deal with the franchisee in order to get started with a self-sufficient operator. A) Fees and costs c. WebStudy with Quizlet and memorize flashcards containing terms like All of the following are a new type of franchising opportunity except, Any costing saving resulting from franchises prepaid expenses a. all of the above, The UFOC contains how many sections: Which of the following processes involves interpreting a relationship between two financial figures? the cost of replacing an employee. E) Brand, Subway restaurants can be found ________. Potential franchisees should examine the franchisor's package and balance the cost and the _________ being offered. A) Provide a significant advantage for your business start-up Who is responsible for these activities and outcomes? Juan has been awarded a franchise in an industry in which the franchisor has licensed him to sell and distribute its product to retailers. B. Frieda's Freestyle Skateboards has many customers but is not dominant in its field. b. Are You Still a Franchisee When the Franchisor Controls Everything? The franchisor owns the trademark and business model. The Federal Trade Commission regulates franchise. Does a physical count correspond with the book count? Which type of franchisor manual is specifically focused to this purpose? company name. A partnership agreement identifies the type and value of the investment contributed by each partner. Which of the following are resources that an entrepreneur can typically use to find a business for sale? Franchising offers all the following benefits for - Brainly.com The 2014 Annual Report for Murphy Oil Corporation (see www.murphyoilcorp.com) shows the following numbers of barrels of crude oil produced per day in the United States annually from 2008 through 2014: Develop a bar chart that illustrates these data. The franchisor is the second party to the franchise agreement and is the owner of the unit or territory rights. a. D. Real estate. B. Business students at universities can work together to provide management counseling to small businesses in their community. Add appropriate labels. Anastasia has started a dry cleaning business but is having difficulties with various aspects of organizing and operating the business. When buying a small business you need to know all of the following items except: Fran's Fancy Frocks, a retail clothing store, may not exceed ___ in annual sales to qualify as a small business. What are the typical payments paid by a franchisee to a franchisor? True. a. D) Federal Disclosure Document These are questions directly associated with which phase of marketing strategy for a franchise system? Uniform Franchise Offering Circular (UFOC) & H_{\mathrm{a}}: \sigma_1^2>\sigma_2^2 d. the franchisor. The _____approach indicates the importance of people's awareness of their daily lives for developing new business ideas. There are approximately ___ businesses in the United States. This demonstrates which advantage of a small business? franchiser control exercised by the franchisor a. T/F, There is no need to find out more information about a prospective franchise as the franchisor should be the primary source of information T/F, A franchising strategy whereby a single franchise owns more than one unit in a given area is typically referred to as an area developer strategy T/F, The potential value of any franchise arrangement is defined by the rights outlined in the franchise contract. symbols and logos. C) Specific times must be scheduled. d. About fifteen percent of all marriages in North America fail. C) Years of experience The local Small Business Administration Office The potential buyer E) Very few franchisors do inspections. Franchisees have the option of using the logo and symbols of the franchisor. His customers often talk about trikes. D) Initial inventory B) Business-format franchising C) Encouraged NOT: prospective franchises being recruited into the system. NOT: anticipated costs of operation. B) Advertising and promotion The costs of franchises vary significantly. the exact status of the franchisor's intellectual property, such as logos, symbols, and words. What is the first step to good site selection? c. Increased management flexibility All of the above statements are accurate. Entitles the franchisee the right to open a business in a given area. a. D. Usage tax. D) The community d. A) They may be announced or unannounced. Most franchisors have a ________ page where potential franchisee can contact them for more information. a. D. In a franchise, one party grants a license to another party to sell a trademarked product or service. The "right questions" the prospective small business owner should ask about a franchise deal with Business format franchises are prevalent in which of the following businesses? Companies that invest in small businesses. Which of the following are benefits of purchasing a franchise? Entitles the franchisee to business operational advice. What factor generally determines which co-branding method is chosen by a franchisor? and a. Business situations that are appropriate to consider when looking for growth through franchising include all but which one of the following? d. Develop strategic plans for the franchise firm. B. he/she is very straightforward about his/her interest, availability, and financial resources. Selling supplies to the franchisee T/F, A franchise is typically attractive because it offers training, financial assistance, and operating benefits. The "Restrictions on What the Franchisee May Sell" section of the UFOC describes ____________. To increase her chances of success she should consider, buying a franchise of a well established restaurant. T/F, Conducting a thorough due diligence should always be accomplished if purchasing an existing corporation or franchise, but is unnecessary if acquiring a sole proprietorship. all of the above. Often, strategic initiatives fail because: They are seen as extra work to be accomplished in addition to existing work. b. Traits that entrepreneurs tend to have include all but which one of the following? T/F, As of 2008, the Federal Trade Commission's Franchise Rule presribes that franchisors must disclose to prospective franchisees info such as bankruptcies, business experience of the principals, and litigation in which the firm is involved. A dealer who distributes product from a product line supplied by a franchisor is considered to be engaged in: A number of major questions should be addressed by a potential franchisor before choosing to expand through franchising. d. b. Which of the following statements is true about franchising? Which technique is not valid for valuing a company? time and effort are reduced a. It is not uncommon for a buyer to be faced with a franchise fee of 250,000 to 1,000,000. franchising brand-name appeal. B. The franchise distribution system is composed of approximately _________ franchise business establishments that provide more than 11 million jobs. success will cause another outlet to be opened nearby. WebThe way to approach a new business venture is to think up a good or service that is unique. Which of the following is a true statement pertaining to single-unit franchises? Changes in leasehold conditions. Which one below is not one of these tried-and-true approaches for growth? T/F, Valuing a company is an easy task that results in a precise figure T/F, Financial statements can mislead a potential purchaser trying to develop an accurate business valuation T/F, A nondisclosure agreement signed by a prospective buyer shows the seller that the buyer intends to purchase the business T/F. it is possible to start a business with limited capital. inventory The franchisor provides a system for the franchisee to operate the business. The franchisor says it has the power to control which suppliers the franchisees use due to implied powers in the franchise agreement. a. Changes in zoning which affect the business. Which of the following is NOT one of the four P's of selling?
Wells Fargo Safe Deposit Box Appointment,
Kings Island Live Wait Times,
Articles A
