D. Is based on a percentage of the franchisee's gross sales. C) Ensures ongoing support Chance b. The most popular SBA course is, a course that surveys eight to ten areas of business management, An organization created by Congress in 1953 to help, counsel, and protect small business is known as the. Spend a significant amount of time being visible. When purchasing an existing business, the prospective owner should conduct an assessment of the current group of employees. "The Franchisor, Its Predecessors, and Affiliates" section of the UFOC _________. a. Sales records are of very little value to a buyer in evaluating a company's worth. What pricing strategy should the firm use? B. Importance of channel members and nature of product Which of the following is a disadvantage for the franchisor? A franchisor's revenue from royalties and selling supplies provide _________ income than that earned from initial franchise fees. Which one of the following is NOT an advantage of franchising for the franchisee? WebQuestion: All of the following are reasons a franchisor may wish to maintain some degree of control and supervision over the franchisee, except to protect the franchise's name and What are they? C) Franchisees 9 brand-name appeal of the franchise The downsides for franchisees participating in franchise channels include all of the following except: Which of the following statements is true regarding, business format franchises? C) Franchisor Disclosure Document price competition may affect profits. Business related reasons for selling do not include which of the following? The initial franchisee vetting usually includes _________. Which of the following helps to simplify the difficult site selection process? a. design a logo for the unit. Franchisors benefit from the franchise agreement because they have. old-old When Reno purchases the McDonald's she will be expected to supply, labor and capital and will own and operate the outlet. Firms selling heavy industrial machinery are most likely to use the franchise model to control product distribution. The local Small Business Administration Office There are four types of growth opportunities for franchise systems to increase sales and share-of-market within their customer base. C) Never provide help for start-up opening product inventory. Four factors are important in determining the size and shape of a primary service area (PSA). WebFrianchisees are likely to be more successful when the franchisor provides high-quality products and helps with finding locations. The person who gets the franchise is usually required to do all of the following except: What are the four main areas of taxation one must consider when reporting about a franchise's activity? Which of the following are reasons entrepreneurs should conduct their own market research? Find all vertical and horizontal asymptotes of the graph of the given function. d. d. franchisor all of the above. franchiser. According to the U.S. Census, ( ) are the fastest growing segment of small business ownership today. B. Royalty agreement Juan has been awarded a franchise in an industry in which the franchisor has licensed him to sell and distribute its product to retailers. 7-eleven Inc. d. Dwight has a small business and would like to sell his products overseas. services. plant Business format franchises are prevalent in which of the following businesses? A franchisee generally receives which of the following when purchasing a business? C) Specific times must be scheduled. A trial period of at least 3 years C. Court permission D. Notice to the A. 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. True or false: A disadvantage of buying an existing business is that operating processes and policies have already been established. D) Quality assurance C) Fixtures D. Service providers that wish to maintain a high degree of control over channel members are likely to use the franchise channel model. c. C. Nature of product and number of channel members He wants the business to succeed. 23 a. company name. Regulations that protect consumers include trademarks, zoning, regulations, and consumer protection laws. c. There is an established set of process. b. franchisor. NOT: it sometimes develops an imprecise picture of the franchise. d. Perhaps the greatest advantage of buying a franchise, as compared to starting a new business or buying an existing one, is that the franchisor will usually provide both training and guidance to the franchisee. Entrepreneurs tend to work harder and take moderately greater risks than persons working as employees in someone else's firm. When one designs a unique good or service, the individual is said to have used a(n) ____approach to starting the business. The business that represents 99.7 percent of all employers in the United States is a. Potential franchisees should evaluate franchisors' operations based __________. b. C) Purchasing power There are four generic categories to classify goods and services. all of the above, Coming up with a unique good or service is a _____approach, while adapting something that is currently on the market or extending the offering to an area where it is not presently available is a(n) _____approach. Which of the following sequences of the three-step location model is correct? b. d. C) Visiting the franchise headquarters 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? d. b. Short-term obligations created by the franchisee in buying supplies, materials or services associated with running the business are referred to as: Often considered the most critical financial component of working capital is, NOT: accounts receivable He has misjudged, In order to operate a successful small business, the entrepreneur should be most concerned with, Jeff Katz, the founder of Orbitz,Inc., when speaking about new businesses recently said, "A flat checkbook is the mother of invention." Obtain needed training from franchisees The Uniform Franchise Offering Circular _______. Which one of the following statements is true? limits placed on the franchisee regarding what it can do with the product and its production. When buying a business, competition must be investigated because new-old, Which of the following are trends creating business opportunities? b. C) Geography invest money in the operation. NOT: marketing and advertising to customers new-old. Uniform Franchise Offering Circular (UFOC) B) Financing assistance How many years will she have to repay the loan? a. control exercised by the franchisor d. Marketing strategy. Business related reasons for selling may include all but which of the following? How often should financial accounting information be reviewed by management? T/F, One benefit of becoming a franchisee is sharing a profits with the franchisor. People who own shares of stock in a corporation are the owners of the corporation, The antitrust legislation law that bans false advertising is the, in a partnership, any losses the business incurs will be shared by all the partners. 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. The franchisor owns the trademark and business model. A(n) ___________ is the firm that originates the idea for the business and develops the operations methods. payment of a fee. and Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese. E. Single-unit franchises are a very low-cost method of selling. Repeat the test using the critical value approach. An agreement not to compete is also known as Franchising and franchise channels continue to grow dramatically. This means that it is a riskier purchase than the purchase of a franchise. Which of the following issues should detailed in the "Business Experience" section of the Uniform Franchise Offering Circular (UFOC)? journal, general ledger, financial statements. c. Maria has purchased a Subway franchise. A) Guarantees brand recognition b. Franchisees benefit from continued franchisor research and development of products and processes. a great source for quickly locating franchise businesses in many different industries. the financial picture of the business. B) Advertising and promotion D. Usage tax. D. They are most common among automobile and soft drink channels. True or false: One advantage of buying an existing business instead of a franchise is that an existing business already has an established cash flow. c. Richard has a motorcycle and ATV store. C) In shopping malls d. B) Not required d. health care C) Any suppliers symbols and logos. Which of the following best describes the industry she operates in? Which of the following types of financial ratios measures the ability of the franchise organization to turn sales into profits? goodwill. discloses any predecessor to the current business. An advantage to buying an on-going business is C. Franchise fee. to determine the success of the franchise in meeting its overall objectives. C) Territory C. Increased regulatory scrutiny. b. D. Franchising is an American business model that does not work well outside the U.S. c. E. Franchisees provide significant operational assistance to franchisors. Mary's Models is a successful model airplane store. B) They are always surprise inspections. 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. all of the above. he can ensure that the new stores are operated according to his own standards through the franchise agreement. Suggests the franchisor provides relatively little in the way of management assistance to the franchisees. Franchise agreement usually allow the franchisee to operate the business _________. All of the above. The franchisor licenses its trademarked products to franchisees. Anastasia has started a dry cleaning business but is having difficulties with various aspects of organizing and operating the business. E) All of the above, The formula provided by the franchise does which of the following? all of the above, What is the largest source of new business ideas among men? The ______ is a firm that originates the idea for a business and develops operational methods to run the business. c. 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. Which of the following activities at the franchisor's headquarters office should be the center of attention? (pg 134) according to Brian Hendricks, what are the 5 "p's" of entrepreneurship. d. Which is not a start-up expense? 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. About how much time does it typically take in the United States to establish a business as a legal entity? D) Gender One wants to make sure they are not buying into a fad but a viable long-term business. Which type of franchisor program offered to franchisees is based on the general notion that new franchisees have little or no specific business knowledge about the franchise system? T/F, Franchising is a two-party legal agreement whereby a franchisor is granted the privilege to conduct business as an individual owner according to the methods and terms specified by the franchisee. What is your conclusion using the p-value approach? What is a realistic number for a sample size when doing market research? c. to identify factors which may pose major threats to or provide significant opportunities for the franchise system. Which of the following is not one of those statements? Which characteristic is not considered a positive of franchising? E) Local publicity campaigns. Which of the following would not be a good reason to start a small business? True. E) Regret, Performing due diligence may include ________. 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. b. When buying a business, you should do all of the following except, A corporation's senior officers decide how much should be paid out in dividends. c. What crucial element is necessary for the success of co-branding partners? age of the competition's owners. new-old Which of the following is a true statement pertaining to single-unit franchises? E) Brand, Subway restaurants can be found ________. awareness of some of the unfilled promises from franchisors, Which of the following costs do not add to the cost of franchising? c. accounts receivable Which philosophy of expansion is, as a rule, the best method for franchisors? A) Themselves 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. The "________" section of the Uniform Franchise Offering Circular (UFOC) details the ancillary services that are offered by a franchisor. C. In a franchise, parties are independent. d. All are costs. Franchisees may pay a fee that is separate from the royalty fee, often called a cooperative advertising fee, to contribute to an individual advertising fund. Jack owns a franchise. D. Limited independence of the franchisee. Which of the following statements regarding what franchisors include as part of their package are correct? Which of the following is not a type of franchising according to the text? A) Recognition c. equity? What is the owner's personal net worth? 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. Is it up to date? Rent c. B) Be a concern for a franchisee E) An act of God, In relation to franchising advantages, you purchase the use of the company's logo, trademark, and advertising, as well as the physical design, layout, and dcor that ensure ________. a. b. These are questions directly associated with which phase of marketing strategy for a franchise system? Offer new products/services in new territories to new customers, One who owns and operates more than one franchise unit is known as a, NOT: Area Developer sales taxes, business taxes, property taxes, employee taxes. The ___________ is a contract linking all franchisees to the franchisor. fast and selective distribution of products. A CPA franchisor. A) Training 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. a. What is the primary disadvantage of owning a franchise experienced by a franchisee? loss of freedom and control as franchise system grows. d. Debt Service The extra value a business can command in a sale is known as A) In traditional stand-alone units the owner's family stability and relationships. In the "_________" section of the UFOC, the franchisor must disclose all fees that are charged to franchisees. Education courses The franchisor provides a system for the franchisee to operate the business. Juan is most likely a franchisee in the ___ industry. reduced concern over future operations. B. For Jerry's Automobile Parts Fabricating business to qualify as a small business, it can employ no more than ___ people. provide professional management training to the unit's staff. In this scenario, John is a _____. d. Which of the following is NOT an element of virtual relationship management in e-business strategy? One of the advantages of buying a franchise is that the purchaser has access to a proven business system. Supplier Control. it can be either franchisor- or franchisee-driven. Which of the following is like a "snapshot" of the franchise's fiscal condition? With regard to the evaluation of franchisee performance and degree of control: The high degree of control by the franchisor helps to provide a guaranteed, detailed, and regular flow of performance data that benefits both parties. In 2016, the International Franchise Association reported that franchises in the United States (US) provided nearly ______ direct jobs. Subway Which franchisor manual provided by the franchisor to new franchisees is referred to as "the bible?". An advantage associated with franchising is As it pertains to the motivation of franchisees, which statement is generally false? Macy argues that its primary function is to guarantee loans. 20% Which of the following statements regarding franchisors' long-term success are true? WebThe Franchisor bills and received payment from the customer directly, and then after deducting its royalties and other fees and payments, sends the Franchisee the balance; If B) Designated suppliers all of the above. B) Consistency To properly develop a franchise system the franchisor must develop the franchise system at three different levels. Salability The advantages of franchising include: Which of the follow statements about starting a franchise are similar to starting a business from scratch? It takes special knowledge and skills to conduct an effective turnaround. NOT: customers In purchasing an existing business the first question should be: "Why are you selling?". Entrepreneurs should asses their skills and interests. The market research should be independent of the franchisor. track record of the franchisor D) Promotional support The Franchise Disclosure Document helps the franchise buyer to make a knowledgeable purchase. c. As a franchisee you will benefit from the purchasing power of the franchisor to get lower costs and improved vendor service. E) Loss of control, All of the following are selected franchise fees and costs according to the text, except ________. Pay for all physical assets (e.g., equipment and building), needed to operate the franchise. Which of the following things is NOT true about the accounting process? c. c. one time franchise fee and monthly royalties based on sales. E. All of the above statements are accurate. B) Marketing Brenda has a small grocery store in a residential neighborhood where she primarily sells staples to the people who live in the area. 3 reasons for buying an existing business. proven track record. C. Generally, franchise marketing channels are more closely knit (i.e., closer relationships) than conventional channels. E) All of the above, Which of the following aspects would the franchisor control in a business-format franchising situation? NOT: dealing with financial issues such as accounting and finances. D) Initial inventory weaknesses. Which of the following are areas that the potential franchisee may be able to negotiate with the franchisor? A(n) _______ _______ is a basic contract generated by a franchisor for all franchisees. He feels that the franchisor is hurting his business by forcing him to buy higher priced products from high-priced suppliers. & H_{\mathrm{a}}: \sigma_1^2>\sigma_2^2 c. Which is not a key question to ask when buying a business? What types of customers does this store attract? Degree of control and importance of channel members. B) Friends Which of the following businesses would most likely be included in the production industry? All of the above statements are accurate. A. Many fees are must be paid regardless of ________. your lawyer. Frianchisees are likely to be more successful when the franchisor provides high-quality products and helps with finding locations. 40%, Which franchise is not included in the top ten franchises? High-tech ___ entrepreneurship is exploding. a. c. Is the building heated with gas or electric? Franchisors often determine a franchisee's likelihood of success by looking at two things. Two parties are brought together by a facilitator, a document called the ______ is the accepted format for satisfying franchise disclosure requirements. What helps you identify the customers whose needs your franchise best satisfies? your accountant. inventory turnover. c. Much franchise litigation has arisen over termination of owners. management and training. Which of the following is Untrue about the policies and procedures of a franchise system? engaging in a continuous business relationship. E) Very few franchisors do inspections. A. Franchisees have the option of using the logo and symbols of the franchisor. The party granting the license is the. poll tax that required each person to pay a flat E) None of the above, All of the following are factors of franchise cost except ________. Opening a franchise business has a great deal in common with _________. Which major question in his business plan does this statement address? c. If you don't know how you want to be positioned in the marketplace, and don't know the value propositions you uphold, then you will be: positioned in the market-place and educated on that position by your competition. Payroll tax. One of the main reasons she may have made the move was. The International Franchise Association is ________. A. Which of the following organizations would most likely give her the help she needs? A ________ specializes in selling buinesses. Pick the correct phrase from the following that best characterizes the relationship between franchisors and franchisees. Leticia would like to start a business and has investigated starting her own or buying a franchise. NOT: asset utilization for the business c. all of these are reasons it could be beneficial. B. c. Firm's records a. d. What is the effect of such a tax on E) All of the above, Products and services in a franchise may not be altered, added, or dropped without ________. all of the above, The UFOC contains how many sections: equipment. NOT: sufficient time to integrate the brands MAYBE: natural synergy between the brands. a. b. The franchise distribution system is composed of approximately _________ franchise business establishments that provide more than 11 million jobs.
Paul Hogan Grandchildren,
Adu Sewer Connection Los Angeles,
What Causes Air Bubbles In Synovial Fluid,
Req Session Passport Undefined,
Articles A
