Which of the following is a disadvantage of buying a franchise?
A. It is more expensive than starting a new business.
B. You give up control of marketing and operations.
C. You compete with the franchise company itself.
D. You receive no training and management support.
Answer: B
Learn More :
Entrepreneurship Chapter 6
- Which of the following would avoid intra family strife when the family business is passed down to the next generation?
- Which of the following statements about family businesses succession is true?
- In many franchises the franchiser oversees (or even manages) the selection of location, the construction of facilities, the acquisition and installation of necessary equipment, and the initial inventory with which to open business. Which of the following terms best represents this type of franchising?
- _____ provides an organization through which independent businesses may combine resources.
- Which of the following holds true for product distribution franchising?
- Which of the following is an agreement that provides only the rights to use the franchisor's trade name and/or trademarks?
- The value of a franchise is determined by:
- Which of the following is one important advantage of key resource allocation?
- _____ are the only way a sole proprietorship may be purchased.
- The primary advantage to a buyout is its:
- Seizing of control of a business by purchasing its stock to be able to select the board of directors refers to a(n):
- The price at which a buyer is indifferent about buying or not buying the business is called:
- Which of the following refers to income capitalization?
- _____ are rules of thumb that are commonly used to estimate firm value in relation to some easily observable characteristic of the business.
- The ratio of the value of a firm to its annual earnings is called:
- Which of the following is commonly used to estimate the value of a business?
- The amount for which an asset would sell, less the costs of selling the asset is called:
- The difference between original acquisition cost and the amount of accumulated depreciation is called the:
- ____ analysis is based on the concept that the longer you have to wait to receive money, the less valuable it is right now.
- ____ are the cash flows that have been reduced in value because they are to be received in the future.
- Patents and trade secrets are examples of:
- Which of the following is a financial statement that will be checked during due diligence when buying an existing business?
- Which of the following is the primary goal for performing due diligence?
- Which of the following terms means "let the buyer beware"?