100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
MGMT 3850 CHAPTER 6 HOMEWORK QUESTION AND ANSWERS $14.00   Add to cart

Exam (elaborations)

MGMT 3850 CHAPTER 6 HOMEWORK QUESTION AND ANSWERS

 0 view  0 purchase
  • Course
  • Institution

MGMT 3850 CHAPTER 6 HOMEWORK QUESTION AND ANSWERS A franchise is a system of distribution in which semi-independent business owners pay ________ and ________ to a parent company in return for the right to become identified with its trademark, to sell its product or services, and often to use ...

[Show more]

Preview 3 out of 18  pages

  • February 1, 2022
  • 18
  • 2021/2022
  • Exam (elaborations)
  • Questions & answers
avatar-seller
MGMT 3850 CHAPTER 6 HOMEWORK
QUESTION AND ANSWERS
Essentials of Entrepreneurship & Small Business Mgmt., 7e (Scarborough)
Chapter 6 Franchising and the Entrepreneur

1) A franchise is a system of distribution in which semi-independent business owners pay
________ and ________ to a parent company in return for the right to become identified with its
trademark, to sell its product or services, and often to use its business format and system.
A) a percentage of sales; royalties
B) upfront costs; incremental costs
C) royalties; monthly consulting charges
D) fees; royalties
Answer: D
Diff: 2 Page Ref: 195
AACSB: Analytic Skills
Learning Obj.: 1

2) Franchises total annual sales represent nearly ________ percent of total annual sales and
employ nearly one in ________ workers in the Unities Sates in more than 300 industries.
A) 8: 17
B) 12: 8
C) 17; 8
D) 2: 21
Answer: C
Diff: 3 Page Ref: 195
AACSB: Analytic Skills
Learning Obj.: 1

3) ________ franchising involves providing the franchisee with a complete business system,
with an established name, the building layout and design, accounting systems, and other
elements while ________ franchising allows the franchisee to use the franchiser's trade name
without distributing the products exclusively under the franchiser's name.
A) Product distribution; trade name
B) Trade name; pure
C) Pure; trade name
D) Pure; product distribution
Answer: C
Diff: 3 Page Ref: 196-197
AACSB: Analytic Skills
Learning Obj.: 1




1

,4) McDonald's is an example of a ________ franchise.
A) conversion forms
B) trade name
C) product distribution
D) pure
Answer: D
Diff: 2 Page Ref: 196-197
AACSB: Reflective Thinking
Learning Obj.: 1

5) Benefits of involvement in a franchise experience include:
A) management training and support.
B) brand name appeal and standardization of goods and services.
C) national advertising exposure and financial assistance.
D) All of the above
Answer: D
Diff: 1 Page Ref: 198-202, 204
AACSB: Analytic Skills
Learning Obj.: 1

6) Which of the following is not a potential advantage of franchising for the franchisee?
A) Management training and assistance
B) National advertising program
C) Centralized buying power
D) Limited product line
Answer: D
Diff: 1 Page Ref: 198-202, 204
AACSB: Analytic Skills
Learning Obj.: 1

7) Franchisers generally do which of the following regarding financial assistance to franchisees?
A) Provide direct financing.
B) Assist in finding financing and occasionally provide direct assistance in a specific area.
C) Waive royalty fees for franchisees not making an adequate profit.
D) Franchisers provide no assistance because having or finding financing is a requirement for
qualifying for a franchise.
Answer: B
Diff: 2 Page Ref: 200-201
AACSB: Analytic Skills
Learning Obj.: 1




2

, 8) A significant advantage a franchisee has over an independent business is the participation in
the franchisor's ________ largely due to the ________ the franchise offers.
A) centralized buying power: buying insight
B) centralized buying power; brand protection
C) centralized buying power: economies of scale
D) economies of scale: territorial protection
Answer: C
Diff: 2 Page Ref: 202
AACSB: Analytic Skills
Learning Obj.: 1

9) Some franchisors offer ________ to give existing franchisees the right to exclusive
distribution of brand name goods or services within a particular geographic area.
A) territorial protection
B) exclusive rights
C) guaranteed protection
D) exclusivity
Answer: A
Diff: 2 Page Ref: 202
AACSB: Analytic Skills
Learning Obj.: 1

10) The failure rate for franchises is:
A) higher than the average rate for new businesses.
B) no different from the rate for new businesses.
C) lower than the average rate for new businesses.
D) indeterminable because of the Right to Privacy Act.
Answer: C
Diff: 2 Page Ref: 202, 204
AACSB: Analytic Skills
Learning Obj.: 1

11) A recent study reports that the success rate of franchisees increases when a franchise system:
A) requires franchisees to have prior industry experience.
B) requires franchisees to actively manage their operations.
C) has built a strong brand name with training programs to improve knowledge and skills.
D) All of the above increase the rate of success.
Answer: D
Diff: 1 Page Ref: 204
AACSB: Analytic Skills
Learning Obj.: 1




3

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller 10SALES. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $14.00. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

84197 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$14.00
  • (0)
  Add to cart