MGMT 325 – Test1 – Flashcards
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The nation is rapidly moving from:
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industrial to knowledge-based.
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Which of the following corporate trends have contributed to the growth of entrepreneurship?
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The idea that "small is beautiful" in large companies, resulting in less hierarchy and layers of management
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The following is true regarding entrepreneurial education:
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All of the above
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Entrepreneurs seem to be characterized by:
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a high energy level.
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Juan is able to work well in a constantly changing atmosphere and has little concern for what tomorrow will bring. Juan demonstrates which of the following characteristics of a typical entrepreneur?
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A tolerance for ambiguity
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Entrepreneurs start businesses for a number of reasons including:
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an opportunity to make a difference.
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The growth of entrepreneurship is being fed by:
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technological advancements.
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The international market:
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has proven to be a tremendous opportunity for small business.
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Successful copreneurs are marked by which of the following characteristics?
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Mutual respect for each other's talents
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A major threat that family businesses face is:
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management succession.
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More businesses fail because of ________ than for any other reason.
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incompetent management
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U.S. economic structure is moving:
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away from an industrial economy to a knowledge-based one.
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A knowledge-based business economy favors small business because:
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A) the cost of managing and transmitting knowledge is very low. B) small businesses are more successful. C) information technology is driving the cost of managing and transmitting knowledge lower. D) BOTH A AND C
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Money driven and wild risk takers are both:
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common misconceptions of entrepreneurs.
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To avoid business failure, an entrepreneur should:
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A) know the business in depth. B) develop a solid business plan. C) take entrepreneurship courses. D) BOTH A AND B
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________ are the various groups and individuals who affect and are affected by a business.
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Stakeholders
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________ involves the moral values and behavioral standards that businesspeople draw on as they make decisions and solve problems.
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Business ethics
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The concept of social responsibility has evolved from that of a nebulous "do-gooder" to one of:
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"social steward."
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The various groups who affect and are affected by the decisions and actions of a small business are called:
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stakeholders.
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Over the past few decades, business leaders have, in general, become more proactive in terms of implementing the organizational characteristics of:
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moral management.
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________ dilemmas lurk in even the most mundane decisions that entrepreneurs make every day.
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Ethical
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Ethical lapses happen for a number of reasons. Joan made an unethical decision. When confronted with it by her boss, she couldn't understand why he was upset because "Everyone does it." This is an example of an ethical lapse due to:
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(None of the above or moral blindness)
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Ethical lapses caused by a chance to "get ahead" by taking some unethical action come about because of:
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opportunity pressures.
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There are a number of "tests" of ethical behavior in business. The one that prioritizes choosing the option that results in the greatest good for the greatest number of people is known as:
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the utilitarian principle.
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The entrepreneur can implement and maintain ethical standards by:
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doing all of these.
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This term denotes the awareness of a company's management of the social, environmental, political, human, and financial consequences that its actions produce.
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Company policies and procedures
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What is an EAP?
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It is a program to help employees with substance abuse and other types of personal and family problems.
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________ is any unwelcome sexual advance, request for sexual favors, and other verbal or physical sexual conduct made explicitly or implicitly as a condition of employment.
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Sexual harassment
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When dealing with AIDS in the workplace, small business owners should:
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treat AIDS-positive employees as they would any other employees with life threatening illnesses.
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A company's AIDS policy should include:
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a continuation of employee benefits as any other employee would have.
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Barker Industries makes an annual donation of $100,000 to local charities, and allows its top managers leaves of absence to serve charities involved in community service. What area of social responsibility is Barker demonstrating?
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Community
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________ is the ability to develop new ideas and to discover new ways of looking at problems and opportunities.
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Creativity
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________ is the ability to apply creative solutions to problems and opportunities to enhance or to enrich people's lives.
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Innovation
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According to Ted Levitt, creativity is ________ new things.
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thinking
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Some small businesses create innovations ________ in response to customer feedback or changing market conditions.
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reactively
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Some small businesses create innovations ________ by spotting opportunities on which to capitalize.
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proactively
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Innovation is ________ when it creates market-changing, disruptive breakthroughs that are the result of generating something from nothing.
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revolutionary
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More often, innovations are ________.
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evolutionary
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The iPod is an example of a ________ innovation.
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evolutionary
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Which brain takes care of the body's emotional, intuitive, and spatial functions?
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Right
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Which one of the following is a barrier to creativity?
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All of the above
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According to research, creativity among both children and adults in the United States has declined markedly since:
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1990.
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________ is (are) a valuable part of the creative process, especially when evaluating ideas and implementing them.
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Logic
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Focusing too much effort on being logical also discourages the use of one of the mind's most powerful creations: ________.
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intuition
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The ________ environment in which people work has an impact on their level of creativity.
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physical
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________ are entrepreneurs who operate within the framework of an existing business.
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Intrapreneurs
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While working for iRobot, Jim Lynch came up with a new product while cleaning the gutters on his house. Lynch is an example of a(n) ________.
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intrapreneur
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________ is (are) the fuel that drive(s) creativity.
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Imagination
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________ is finding something while looking for something else.
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Serendipity
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"________ points" are missing products or services or flaws in existing products or services.
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Pain
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Often, ideas require a ________ period.
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gestation
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The goal of the ________ stage in the creative process is to subject the innovative idea to the test of cold, hard reality.
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verification
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The strategic management process:
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helps a small business develop the game plan that guides it in creating its mission, vision, goals, and objectives.
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The primary output of the strategic management process should be:
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a matching of its strengths and weaknesses to the opportunities and threats in the environment.
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A small business's "aggregation of factors that sets it apart from its competitors" is its:
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competitive advantage.
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Answering the question "What business am I in?" defines the company's:
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mission.
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Which of the following best expresses the relationship of a company vision to its mission?
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The mission statement is the written expression of the company vision.
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A mission statement should answer which of the following questions?
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What are the needs and wants of the target customers?
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Once the vision and mission are established, the entrepreneur needs to:
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assess the firm's strengths and weaknesses.
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A small firm's ability to identify and manipulate the ________ in its business determines its ability to compete effectively.
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key success factors
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________ are relationships between a controllable variable—plant size, quality, packaging—and a critical factor influencing the firm's ability to compete in the marketplace.
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Key success factors
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________ are specific measurable targets to be accomplished in a defined time period.
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Objectives
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The small firm's "master plan" is its:
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strategy.
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The focal point of a firm's strategy is:
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the firm's key success factors.
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The principle behind a ________ strategy is to select one or more market segments, identify customers' special needs, and approach them with a good or service designed to excel in meeting these needs.
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focus
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An effective strategic plan does which of the following?
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Identifies a complete set of success factors—financial, operating, and marketing, that yield a competitive advantage for the company
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The most successful strategic plans make the ________ focal.
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customer
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The ________ is (are) a set of measures unique to the company that gives managers a quick and comprehensive view of how the business is doing and includes both financial and operational factors.
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balanced scorecard
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It is important for the small business owner to remember that the strategic planning process is:
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an ongoing process that must be repeated.
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A company may have a powerful competitive advantage, but it is wasted unless:
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All of the above
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________ is not a primary goal of a competitive intelligence program.
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All these are primary goals of a competitive intelligence program.
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The key to choosing the "right" form of ownership is:
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understanding how each form affects both business and personal circumstances.
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When choosing a form of ownership, the entrepreneur should realize that:
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the expense of changing forms of ownership makes it prohibitively expensive to change.
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The most popular form of business ownership is the:
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sole proprietorship.
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In her partnership, Ana has unlimited liability for the partnership's debts. She would be the ________ partner.
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general
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Partnerships have a number of advantages over other forms of ownership, such as:
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a larger pool of capital and little government regulation.
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A partnership is:
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not subject to the double taxation of some other forms of business.
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In a partnership, each partner acts as a(n) ________ for the business.
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agent
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A limited partnership is a modification of a(n) ________ form of ownership.
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general partnership
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Acme Corporation is chartered in Delaware, but its primary area of operation is in South Carolina. In South Carolina, Acme would be considered a(n) ________ corporation.
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foreign
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Which of the following generally is not required by a Certificate of Incorporation?
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A statement of how stock proceeds will be used
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This form of ownership is the same as a corporation in terms of legal characteristics even though Congress is considering legislation that would further simplify its formation and running. Its distinction from a corporation is made for federal income tax purposes only.
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S-corporation
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Jeff is forming a company. If he chooses a(n) ________ form of ownership, he can have no more than 100 stockholders and must have only one class of stock.
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S-corporation
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One major advantage of the ________ is that once the owner has paid all of the company's expenses, he/she can keep the remaining profits (less taxes, of course).
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sole proprietorship
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The ________ is a document that states in writing all of the terms of operating the partnership for the protection of each partner involved.
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Partnership Agreement
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________ partners are not active in a business but generally are known to be members of the partnership.
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Silent
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In franchising, a ________ pays fees and royalties to a ________ in return for the right to sell its products or services under the franchiser's trade name and often to use its business format and system.
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franchisee; franchiser
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Franchising is currently dominated by:
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retail outlets.
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________ franchising exists when a franchisee is licensed to sell specific products under the franchiser's brand name through a selective distribution system.
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Product distribution
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McDonald's is an example of a ________ franchise.
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pure
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The success of franchising is largely due to:
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the mutual benefits it provides to the franchiser and franchisee.
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Based on the principle of ________, the idea is to put a franchise's products or services directly in the paths of potential customers, wherever that may be.
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intercept marketing
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Another term for cobranding franchising is:
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piggybacking.
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When franchise contracts are renewed:
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a new contract must be drawn up by the two parties.
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The franchiser has the right to cancel a contract if a franchisee:
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All of the above
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The fastest growth rate in franchises is among:
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traditional areas of franchising, where costs are from $2,500 to $250,000.
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What franchisee turnover rate is probably sound?
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Less than 5 percent
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The ________ requires all franchisers to disclose detailed information on their operations at the first personal meeting or at least fourteen days before a franchise contract is signed or any money is paid.
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FDD
