Charging for company-specific training courses and materials. Web4-family background. a. 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. d. Brenda has a small grocery store in a residential neighborhood where she primarily sells staples to the people who live in the area. For Jerry's Automobile Parts Fabricating business to qualify as a small business, it can employ no more than ___ people. a. c. Entitle the franchisee to use the franchise's name. c. new competition may reduce market share. new-new a. A wholesaler purchases products in quantity from _____ and then resells them to retailers. What are the four main areas of taxation one must consider when reporting about a franchise's activity? reduced concern over future operations. b. d. A lawyer Jennifer and Raleigh are considering starting a small business and are weighing the pros and cons of doing so. It is most likely that, it may take several years for this business to begin to show a profit, Barrack opens a bagel shop and at the end of each day has five dozen bagels left over that he cannot sell the next day due to health code restrictions. your lawyer. c. The ___________ is a contract linking all franchisees to the franchisor. new-old. d. new-new, new-old "Pro forma" accounting statements as used in business financial planning means: a statement of anticipated costs and revenues or change in assets, liabilities and equity based upon prior (operating) financial performance. Prior job D) Federal Disclosure Document They have heard that the disadvantages of small businesses include all of the following except. The person who gets the franchise is usually required to do all of the following except: What is the primary purpose of information systems in a mid-size franchise? b. Match the situations involved in the negotiation process between a franchisor and a franchisee with their likely outcome: The franchisor might negotiate a complete different deal with the granchisee in order to get started with a self-sufficient operator. a, b, and c only. Samantha would like to get a small business loan from the SBA. T/F, A franchise is typically attractive because it offers training, financial assistance, and operating benefits. c. NOT: asset utilization for the business 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 3 reasons for buying an existing business. d. b. Any cost saving resulting from franchisee purchasing power helps to offset other costs, such as franchise ________. pay a fee. Which is the most important and why? a. In this scenario, John is a _____. How many personnel are going to remain? Which one below is not one of these tried-and-true approaches for growth? the health problems he faced as a teenager. sales taxes, business taxes, property taxes, employee taxes. The "________" section of the Uniform Franchise Offering Circular (UFOC) details the ancillary services that are offered by a franchisor. Though a location manual or policy may be developed to assist in determining optimal sites, for franchised businesses that require a store-front location the final determination often rests with: Which two concepts receive primary consideration when determining store layout? A leading apparel manufacturing firm in the United States invites applications to establish franchises in Texas. E) Local publicity campaigns. a. 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. c. The accounting records of a company are kept separate from its owners. The business franchise model is always an appropriate model to ensure a high degree of control, regardless of the industry. d. A. instead of liquidation value. The International Franchise Association is ________. a. NOT: it sometimes develops an imprecise picture of the franchise. b. A) Self-reflection E. Quality control standards. What is the name of that program? b. A) Provide a significant advantage for your business start-up Darrel is considering expanding the business by franchising. b. A primary consideration for a potential franchisee is that the capital required to become a franchisee will likely be: about the same or potential more for starting a franchise business compared to starting an independent business in the same field. b. Changes in the product supply chain. What exactly is to be done in each segment? payroll E. The desired degree of control of franchisees by franchisors is not relevant to the decision by franchisors to use the franchise channel model. Terry's Tires made just under $750,000 last year, according to the Small Business Administration. Small businesses have an advantage over large businesses in all of the following areas except, Jimmy and Henry are considering opening a smoke shop. health care As it pertains to the scope and importance of franchising, which of the following statements is most accurate? one time franchise fee and monthly royalties based on sales. Entitles the franchisee to business operational advice. 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 E. All of the above statements are true. A) Fees and costs Which is not a key question to ask when buying a business? C) Never provide help for start-up A(n) ___________ is the firm that originates the idea for the business and develops the operations methods. c. After doing routine background checks, the firm permits John to open a branch of the firm in a given area, use the firm's name, and operate a business within the guidelines of an agreement. There are several ways to protect a trademark, as indicated below. Franchisees may pay a fee that is separate from the royalty fee, often called a ________, to contribute to a shared advertising fund. Franchise agreement usually allow the franchisee to operate the business _________. The term "risk vs. loss" refers to the amount of return for funds invested. Jeremy has written a business plan for the business he would like to open. Mary's Models is a successful model airplane store. B) Advertising and promotion a trade restriction clause. Obtain needed training from franchisees The difference between single-unit and multi-unit franchises is: What is your conclusion using the p-value approach? Which of the following would not be a good reason to start a small business? Which of the following best describes the industry she operates in? On-site management In exchange for an ownership share, small businesses receive financing from a group of investors known as C) Years of experience 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. if employees are leaving, will enough remain to operate the business. These are questions directly associated with which phase of marketing strategy for a franchise system? What changes will be made? c. d. Freddie's Fenders is seeking a loan from the SBA. B. One downside for franchisors participating in franchise channels is: Uniqueness in a product or service can be demonstrated through a new-new approach or 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. This is an example o. Craig has $60,000 to invest in a new small business. Independence and a desire to determine one's own destiny are some of the entrepreneurs' personal factors in small-business success, others include: Jennifer would like to open her own business. An existing business has the benefit of having an established set of processes. Negotiating a deal to acquire exactly what is required from the operation. d. d. d. Franchises include the business name and a general plan for business operations. b. McDonalds is the only franchise available for ownership internationally. Which franchisor manual provided by the franchisor to new franchisees is referred to as "the bible?". True. should I have right of first-refusal on site selection? E) All of the above, The formula provided by the franchise does which of the following? c. A. Automotive This is higher than _____, the amount the Census Bureau and Federal Reserve say 50 percent of all new businesses begin with.. A(n) ____ is a carefully constructed plan for an individual starting a business. Which of the following is an advantage to the franchisee? B) Business-format franchising C) Franchisor Disclosure Document success will cause another outlet to be opened nearby. Which of the following types of financial ratios measures how well a franchise meets its short-term debts or financial obligations? A realistic estimate for the cost of legal requirements to begin a franchising system could be: How many phases are included in the Franchise PERT Chart? 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? T/F, Because the offering and sale of a franchise are more intensely regulated by state and federal laws than is the establishment of a new business, individuals and/ or firms involved in negotiating a franchise arrangement have limited need for legal counsel. journal, general ledger, financial statements. Debt Service old-new Which of the following activities at the franchised unit should be the center of attention? E) Very few franchisors do inspections. TRY: data analyses. A well-established business model \end{aligned} accounts receivable C) Popularity A) Required goodwill guidance from the franchisor Terry's Tires made just under $750,000 last year, according to the Small In business format franchises the franchisor provides the complete system for operating the business. Business situations that are appropriate to consider when looking for growth through franchising include all but which one of the following? What's the difference between the sales package and sales playbook? A) The franchisor Franchises are governed by ________ laws and regulations. D) Doing Internet research maintain a specified quality of performance. Buildings Which one of the following is not one of the levels for development? When one designs a unique good or service, the individual is said to have used a(n) ____approach to starting the business. Which one of the following is NOT an advantage of franchising for the franchisee? 23 After all of your investigation into a franchise, the final decision should be up to the competition in the area. franchisor. Which of the following statements are relevant to the definition of, "franchise"? prepaid expenses The Federal Trade Commission regulates franchise. A ____ is a system of distribution that enables a supplier to arrange for a dealer to handle a specific product or service under certain mutually agreed upon condtions. Why is the business being sold? Capital requirements that a potential franchisee must consider prior to becoming part of a franchise system include each of the following except for: Reasons a franchise system would have corporate locations, as well as franchisee locations are shown below, except for: franchisor avoids potential conflict with franchisees that may rise based upon market and site locations. C) Uniformity Uniform Franchise Offering Circular (UFOC) b. A) Guarantees brand recognition What type of competition exists? the owner's reason for selling. The Consumer Product Safety Act of 1972 sets safety standards for products other than food and drugs. Decide whether the following statement makes sense or not Explain your reason. a. Sylvia has an SBA-guaranteed business loan for the average life of such loans. c. c. Which is not a start-up expense? opportunitites. old-old. a. new-old b. b. D. Single-unit franchises enjoy a favorable image among consumers. NOT: marketing and advertising to customers c. c. D) Promotional support Which of the following is something that would not be included in the plan? A) Franchisor agreement Is the building heated with gas or electric? Depreciation. a. c. In the franchise industry, the person or business providing the rights to an individual for the local distribution and/or sales of a specified product or service is called the: Probably the earliest example of franchising in the United States is most likely to be: A major reason for success of franchising is that the franchisor can use all of the following from the franchisee EXCEPT for the franchisee's: Which of the following industries provides the earliest and lasting example of franchising in the U.S. economy? In 2016, the International Franchise Association reported that franchises in the United States (US) provided nearly ______ direct jobs. d. legal and professional fees C. Lodging. Sales records are of very little value to a buyer in evaluating a company's worth. C) Geography When Reno purchases the McDonald's she will be expected to supply, labor and capital and will own and operate the outlet. d. D) Optimism The potential value of any How old is the business? a. alternative energy Which of the following is true regarding inspections conducted by franchisors? What amount is generally considered adequate? Education courses A. a. A. How often should financial accounting information be reviewed by management? D) Both A and B How does Auntie Anne's ensure that new franchisees understand the company's operational approach? The franchisee and franchisor are linked by a bond of voluntary cooperation rather binding contracts. D) Initial inventory buying a new business An advantage associated with franchising is Hobby D. Usage tax. Selling supplies to the franchisee 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. Richard orders some Harley-Davidson Trikes for his inventory. In the United States, ___ account(s) for 97.5 percent of all identified exporters and produce(s) 31 percent of export value. B. This includes all of the following except: False T or F? d. liquidation pricing, "Piggybacking" one's way into business involves using a ____approach. E) Employees, A franchisor's record of success can ________. The motivation of franchise channel members has less to do with cooperation and partnerships than in conventional channels. None of the above, An analysis of the competition should look for ______. all of the above. a waiver of competition clause. The Clayton Act makes it illegal for competitors to get together and set prices on the products or services they sell. C. Franchise fee. competition may be spending more money on advertising than you. none of the above. new-new, old-old Business format franchises are prevalent in which of the following businesses? It is not uncommon for a buyer to be faced with a franchise fee of 250,000 to 1,000,000. Approximately what percentage of food franchises are co-branded units? She is concerned she may not be given a loan and researches the subject, discovering that in 2013, the SBA data showed that women-owned businesses are. a. A significant amount of up-front cash is required to begin operations. Reno is a. A franchisee generally receives which of the following when purchasing a business? b. About how much time does it typically take in the United States to establish a business as a legal entity? Business Brokers help entrepreneurs locate the funds necessary to start a business. c. 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? Sarah has opened her own cosmetology business in a small shopping center with a lot of foot traffic. What is the largest guaranteed loan she could be granted? All of the following are a new type of franchising opportunity except ________. age of the competition's owners. b. Franchising and franchise channels continue to grow dramatically. E) Not be counted on, A) Provide a significant advantage for your business start-up, All of the following are advantages of franchising except ________. Degree of control and importance of channel members Is usually a one-time flat fee paid by franchisees to franchisors. Not coincidentally, these issues have become more prevalent and evident with the advent of A) Fully understanding the FDD of the franchise company What is the primary disadvantage of owning a franchise experienced by a franchisee? Changes in zoning which affect the business. have the ability to quickly adapt to change. goodwill. How is buying an existing business not like purchasing a franchise? d. Can you become a millionare by buying this business? price competition may affect profits. provide continuing aid and a guidance to the person buying the franchise. Which descriptive statement is NOT one of the legal ways of protecting a trademark? B. Royalty agreement In franchising, the _____ is the firm that originates the idea for a business and develops the operational methods. d. NOT: inventory management and recovery. c. What factor generally determines which co-branding method is chosen by a franchisor? a. If a franchise system is struggling, not achieving long-term success. Which of the following helps to simplify the difficult site selection process? 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. Real estate. b. d. Which of the following is NOT a component of a properly developed franchisor plan? Godfrey has just graduated from business school and is seeking employment. d. According to the text, the most important reason why franchisors adopt franchise channels is: netball pivoting and footwork drills, saucony peregrine gore tex,
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