SBM Quiz #3 Chapter 5 – Flashcards
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Which of the following is true about franchising?
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A franchise is an agreement whereby independant businessperson is given exclusive rights to sell a specified good or service.
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Which of the following is true of combination franchising?
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Cultural clashes can lead to the breakup of this arrangement
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Which of the following is true about franchise fee?
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It's a one time fee to the franchiser
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What does a franchiser do?
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Owns the company's name and licenses other to sell its products
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Burger's Inc. owns a number of fast food stored across the country, Ryan who wants to start up his own business... products according in the terms of licensing agreement in the scenario, Ryan is a:
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Franchisee
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Prospective entrepreneurs can access _____ data for information on subjects such as population, business, and housing
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Census Bureau
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In franchising, which of the following is a benefit to the franchisee?
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Share in local or national promotion
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The process of finding a small-but profitable- demand for something and producing a custom-made product for that market is known as:
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Niche marketing
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The system of gathering, recording, analyzing, and interpreting data related to merchandising of goods and services is known as
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Market research
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Which of the following is a benefit of buying a franchise?
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The franchiser brings proven method of operation to aid the franchisee
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Product and trademark franchising
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grants the franchisee the right to sell a widely recognized brand
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Which of the following is a good source of information to prospective business owners?
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State Economic Developmental Agencies
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Which of the following sources of information can help small business
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Chambers of Commerce
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Jane who wants to start her own business considers buying an internet cafe .... she discovers that internet connectivity tends to be erratic in the store since... which is most likely the reason Jane will back out of the business?
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lack of established product line**
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Which document provides information to possible new franchisees on twenty items required by the Federal Trade Commission?
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Disclosure statement
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Which of the following is a benefit of buying franchise?
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The franchiser brings proven methods of operation to aid the franchisee
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Which of the following is a drawback of buying a franchise?
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The initial investment is quite high for the franchisee
