Entrepreneurship Exam Bank
Course Introduction
Entrepreneurship is a dynamic course designed to introduce students to the fundamental principles and practices involved in creating, managing, and growing new business ventures. The course explores key topics such as opportunity recognition, business model development, market research, securing funding, managing risk, and scaling a business. Through case studies, interactive discussions, and practical projects, students learn how to think innovatively, develop viable business plans, and navigate the challenges faced by entrepreneurs. By the end of the course, students gain a comprehensive understanding of the entrepreneurial process and the skills needed to transform ideas into successful enterprises.
Recommended Textbook
Franchising 4th Edition by Richard
J. Judd
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22 Chapters
209 Verified Questions
209 Flashcards
Source URL: https://quizplus.com/study-set/1324
Page 2
Chapter 1: Franchising: History and Overview
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10 Verified Questions
10 Flashcards
Source URL: https://quizplus.com/quiz/26381
Sample Questions
Q1) A dealer who distributes product from a product line supplied by a franchisor is considered to be engaged in:
A)product- and trade-name franchising
B)business format franchising
C)an independent business venture
D)none of the above
Answer: A
Q2) 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:
A)financial equity
B)personal drive and motivation
C)community goodwill
D)proven methods of operation
Answer: D
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3
Chapter 2: Recognizing Franchising Opportunities
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10 Verified Questions
10 Flashcards
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Sample Questions
Q1) All of the following are disadvantages of franchising for the franchisee,except for:
A)service costs imposed by the franchisor
B)franchisor failure to meet support expectations of the franchisee
C)typically operate as a non-unionize business establishment
D)restrictions on freedom of ownership
Answer: C
Q2) There are several ways to protect a trademark,as indicated below.Which descriptive statement is NOT one of the legal ways of protecting a trademark?
A)coined trademark
B)descriptive trademark
C)suggestive trademark
D)trouble-free trademark
Answer: D
Q3) Which of the following is a disadvantage for the franchisor?
A)franchisee motivation
B)bulk purchasing
C)loss of freedom and control as franchise system grows
D)use of capital for reasons other than expansion
Answer: C
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Page 4
Chapter 3: The Franchisor Business Plan
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10 Verified Questions
10 Flashcards
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Sample Questions
Q1) Which of the following is NOT a component of a properly developed franchisor plan?
A)franchisor's business plan
B)franchisee recruitment package
C)franchise feasibility study
D)franchisee operations manual and success package
Answer: C
Q2) A realistic estimate for the cost of legal requirements to begin a franchising system could be:
A)$5,000
B)$10,000
C)$20,000
D)$50,000
Answer: C
Q3) Which of the following is often referred to as the franchisee's "bible"?
A)the franchisor's business plan
B)the franchising agreement or contract
C)the PERT chart
D)the operations manual
Answer: D
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Page 5
Chapter 4: Franchisor Management, Organization
Policy
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Sample Questions
Q1) Often,strategic initiatives fail because:
A)They are seen as extra work to be accomplished in addition to existing work.
B)They are not announced at a party at the home office.
C)Being strategic,they are developed only the owner/franchisor
D)Competition finds out about them,and beats the firm "to the punch."
Q2) To properly develop a franchise system the franchisor must develop the franchise system at three different levels.Which one of the following is not one of the levels for development?
A)Operations/operational
B)Administrative
C)Home office interior design
D)Strategic
Q3) One who owns and operates more than one franchise unit is known as a
A)Area Developer
B)Master Franchisee
C)Multi-unit Franchisee
D)Franchise Broker
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Page 6
Chapter 5: The Franchise Marketing Process
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11 Verified Questions
11 Flashcards
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Sample Questions
Q1) According to the U.S.Census,( )are the fastest growing segment of small business ownership today.
A)immigrant entrepreneurs
B)Mompreneurs
C)Gen-Yers
D)Baby Boomers
Q2) What exactly is to be done in each segment? When will the activities be started and completed? Who is responsible for these activities and outcomes? And,how much will it cost to implement? These are questions directly associated with which phase of marketing strategy for a franchise system?
A)product mix decisions
B)plans of action
C)target markets
D)threats and opportunities
Q3) Which one of the following is Not one of the "Four P's" in marketing?
A)product
B)process
C)price
D)promotion
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Page 7
Chapter 6: Selling Franchises and Marketing Research
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10 Verified Questions
10 Flashcards
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Sample Questions
Q1) Why do most franchisees choose to go into business with a franchised company?
A)a successful franchising operation would satisfy some of their wants and desires.
B)they have finally decided to try something "on my own."
C)they are seeking a change in their life.
D)all of the above.
Q2) How much of successful selling consists in simply listening to the prospective buyer?
A)5%
B)25%
C)50%
D)80%
Q3) Which of the following is true about the serious prospective franchisee?
A)he/she is not looking to start the franchise as soon as possible.
B)he/she is very straightforward about his/her interest,availability,and financial resources.
C)he/she is cautious about disclosing his/her intentions.
D)his/her time frame generally increases as his/her interest level increases.
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Chapter 7: Co-Branding
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5 Verified Questions
5 Flashcards
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Sample Questions
Q1) Approximately what percentage of food franchises are co-branded units?
A)5 %
B)20%
C)50%
D)75%
Q2) What factor generally determines which co-branding method is chosen by a franchisor?
A)expertise
B)personal preference
C)profit potential
D)none of these is a determining factor.
Q3) Why might co-branding be beneficial for a mature market?
A)mature markets provide little opportunity for sales and profit growth through traditional outlets.
B)co-branding represents a new approach that can revitalize mature markets.
C)a new and improved,co-branded unit has the potential to bring in extra cash flow that can result in greater overall new profits for the franchise system.
D)all of these are reasons it could be beneficial.
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9
Chapter 8: Managing the Franchisors Operations Process
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10 Verified Questions
10 Flashcards
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Sample Questions
Q1) The primary administrative costs of administering a franchise program typically include those of:
A)clarifying and disseminating costs of operation about the prototype unit
B)hiring and training salespeople to recruit or solicit prospective franchisees
C)running background checks on the director of franchising and the initial salespeople hired to sell franchises
D)developing an estimate of the number of franchisees to be recruited and signed in the first year of franchising
Q2) From a broad perspective,( )means effective communication and promotion of the franchised product or service to the targeted audience.
A)market research
B)public relations\
C)advertising
D)marketing philosophy
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Chapter 9: Location and Site Selection
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10 Verified Questions
10 Flashcards
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Sample Questions
Q1) Which crucial factor would most likely mean the difference between success and failure for a potential franchise unit?
A)management practices
B)owner's knowledge and skill level
C)location
D)all of the above are equally important to the success or failure of the franchise.
Q2) Two primary points must be considered when a franchisor develops expansion plans for a franchise.What are they?
A)distribution and number of existing franchises
B)overhead and distribution
C)overhead and franchisor's previous experience with expansion
D)number of existing franchises and franchisor's previous experience with expansion
Q3) Which philosophy of expansion is,as a rule,the best method for franchisors?
A)the shotgun approach
B)the rifle shot approach
C)seeding
D)whichever method the franchisor deems appropriate for a their particular business
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11
Chapter 10: Accounting and Financial Statements:
Presentation and Uses
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Sample Questions
Q1) Which of the following types of financial ratios measures the ability of the franchise organization to turn sales into profits?
A)activity
B)market
C)profitability
D)coverage/leverage
Q2) Which of the following processes involves interpreting a relationship between two financial figures?
A)accounting
B)ratio analysis
C)ledgering
D)cash flow
Q3) What is the purpose of ratio analyses of financial statements?
A)to gauge the franchise's profit potential
B)to asses the franchisor or franchisee's management skills
C)to determine the success of the franchise in meeting its overall objectives
D)to measure the exact worth of a franchise
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Page 12
Chapter 11: Financial Management and Fiscal Planning
Tools and Techniques
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Sample Questions
Q1) All of the current assets of the firm,or more specifically,current assets minus current liabilities equals:
A)cash discounts
B)marketable securities
C)inventory management
D)working capital
Q2) 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:
A)percentage-of-sales method
B)simple
C)add-on
D)discount
Q3) The income statement is used to plan:
A)liquidity for the firm
B)profitability for the firm
C)anticipated costs of operation
D)asset utilization for the business
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Page 13
Chapter 12: Information Systems in Franchising
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10 Verified Questions
10 Flashcards
Source URL: https://quizplus.com/quiz/26392
Sample Questions
Q1) Which of the following activities at the franchisor's headquarters office should be the center of attention?
A)marketing and advertising to prospective franchisees for franchise development
B)managing people who perform franchise support and franchise development
C)helping and supporting business units
D)dealing with financial issues such as accounting and finances
Q2) What is the primary purpose of information systems in a large franchise?
A)to increase profits
B)to generate data which can be used to accumulate working knowledge
C)to leverage working knowledge
D)both a and c
Q3) Why might it be a good idea for a franchisor to investigate several ASP vendors before choosing one?
A)some ASP vendors are riskier than others.
B)the franchisor is looking for the ASP with the highest value and the lowest cost.
C)the franchisor must be sure the data of the franchise is well-protected.
D)all of the above.
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14
Chapter 13: Franchise Legal Documents
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5 Verified Questions
5 Flashcards
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Sample Questions
Q1) Which of the following is NOT true about the Franchise Agreement?
A)most of its components are the subject of specific disclosure under the FTC rule.
B)it is generally a static,unchanging document.
C)it is useful for a broad spectrum of businesses.
D)it has evolved as a result of the way franchising has come to be regulated by state and federal laws.
Q2) What sort of disclosure document is required by the FTC Rule?
A)the format prescribed by the FTC
B)the UFOC,or uniform franchise offering circular
C)both of the above formats
D)one of the above formats
Q3) Why do most franchisors use the UFOC format for disclosure?
A)not all states accept the FTC rule format.
B)the UFOC covers more ground than the FTC rule format.
C)the FTC rule format covers more ground and is more complicated to use.
D)the UFOC is accepted in more registration states than the FTC rule format.
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Source URL: https://quizplus.com/quiz/26394
Sample Questions
Q1) Which of these qualities makes for the strongest kind of trademark or service mark?
A)availability
B)descriptiveness
C)originality
D)distinctiveness
Q2) Which of the following qualities is NOT one of the requirements for an invention to be eligible for a Utility Patent?
A)new
B)distinctive
C)useful
D)non-obvious
Q3) Which of the following is a word,name,phrase,symbol,or design that is used by a manufacturer or merchant to identify and distinguish its goods from those sold by others?
A)copyright
B)trademark
C)service mark
D)patent
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Chapter 15: Investigating Franchise Opportunities
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10 Verified Questions
10 Flashcards
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Sample Questions
Q1) Popular franchise directories,which may be the primary first step in information collection for prospective franchisees include all but one of the following.Which should not be included?
A)the Franchise Handbook
B)the New York Times
C)the Executive Guide to Franchise Opportunities
D)the Franchise Opportunities Guide
Q2) The Disclosure Document in franchising means the same as:
A)Uniform Franchise Offering Circular
B)"Rule 245" of the Sherman Anti-Trust Act
C)the Walsh-Healy Act of 1970
D)the commitment to no "tying" agreements between franchise systems.
Q3) For a new franchisee joining a solid franchise system
A)much of the guesswork of running a business is removed.
B)most of the mistakes made by an independent entrepreneur will be experienced
C)the new franchisee is yet to learn and resolve all the "kinks" of running a business
D)all of the above are true
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Chapter 16: Financing Your Franchised Business
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10 Verified Questions
10 Flashcards
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Sample Questions
Q1) In 1953 Congress passed the Small Business Act to help small firms (including franchisees)obtain loans for startups and other business needs.The SBA helps franchisees obtain capital through several ways indicated below.Which one option below is not offered by the SBA to small businesses?
A)the SBA loan guarantee program
B)Small Business Investment companies (SBICs)
C)direct SBA (direct federal tax monies)provided to the business for startup funding
D)the Federal Registry,which has as a part called the Franchise Registry specific for assisting in creating loan possibilities into the franchise industry
Q2) Debt financing by a franchisee is typically found in two forms
A)selling part of the ownership to partners and funds granted from family and friends
B)selling part of the ownership to partners and bank financing for working capital
C)funds granted to franchisee from family and friends and bank financing for working capital
D)borrowing money for working capital and for financing capital expenditures.
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18
Chapter 17: Marketing the Franchisee Business
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8 Verified Questions
8 Flashcards
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Sample Questions
Q1) Development of an integrated marketing strategy requires four of the five following items.Which one of the following is typically not part of the marketing strategy process?
A)market analysis
B)franchisee personnel policies
C)market planning
D)marketing mix
E)budgets,evaluation and control functions
Q2) Over time,most franchisors have developed a system for providing marketing services to franchisees.These services usually include three of the following.Which service is generally not included?
A)stock-option purchase into the franchise system itself
B)a franchisee's grand opening package
C)continuing advertising support
D)other marketing and promotional items
Q3) Marketing research in franchising is done primarily by
A)the franchisor
B)the independent franchisees
C)both franchisor and franchisee collaboratively
D)contracted outside survey research firms.
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Page 19
Chapter 18: Managing the Franchisee Business Stage Six:
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Sample Questions
Q1) Horizontal territorial restrictions
A)are legal and appropriate agreements for franchisees
B)enhance competition among firms
C)involves competitors selling similar products grouping together and excluding a third part
D)involves a relationship between the franchisor and franchisee
Q2) Which of the following does not shape the management philosophy of top management in a franchise system according to the text?
A)the level of profits of the franchise system
B)the values and experiences of the owners
C)economic influences
D)technological influences
Q3) Which of the following is not typically a franchisee "right" granted in the written franchising agreement?
A)right to transfer or sell the business
B)right to relocate within a designated sales area
C)right to develop and sell new products or services
D)fair and equitable performance standards
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Chapter 19: The Franchising Relationship
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Sample Questions
Q1) How should a FAC be developed?
A)independently by the franchisor
B)independently by the franchisee
C)by the franchisor in cooperation with all the franchisees and corporate headquarters
D)by the franchisor and franchisees only
Q2) How should meetings between the franchisor and franchisee evolve?
A)initial meetings concentrate on specifics and eventually focus on the broader aspects of the franchise.
B) initial meetings as well as follow-up meetings should all cover both general and specific information about the franchise operation.
C)initial meetings hammer out the basics of the franchise operation and tackle specifics later.
D)meetings should evolve according to the tastes of the individual franchisor.
Q3) The most common group within a Franchise Advisory Council is:
A)advertising
B)operations
C)finance
D)research and development
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Chapter 20: Franchiser Support Services Stage Seven: Current Issues in Franchising
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Sample Questions
Q1) Which of the following telecommunication networks allows franchisees private access to confidential information provided by the franchisor?
A)intranet
B)internet
C)extranet
D)externet
Q2) Which of the following is NOT one of the building blocks of customer service?
A)improvise!
B)be willing to change!
C)listen to customers!
D)provide friendly services!
Q3) What is the field representative's primary task?
A)to conduct surveys of franchisees
B)to observe franchisees' interaction with customers
C)to gauge profitability
D)to help maintain a good franchisor-franchisee relationship
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22
Chapter 21: Social Responsibility and Business Ethics
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Sample Questions
Q1) Business ethics
A)only involves moral values
B)only involves establishing behavioral standards
C)ultimately is about decision-making
D)only involves determination of right and wrong
Q2) Which of the following are factors in identifying and transmitting values to future generations?
A)family
B)laws
C)education
D)all of the above.
Q3) Which of the following is NOT an argument for businesses to be socially responsible:
A)to create a positive public image for the business
B)to discourage further government regulations
C)social responsibility is a core business purpose
D)to enhance stock price of the firm in the long run
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Chapter 22: International Franchising
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10 Verified Questions
10 Flashcards
Source URL: https://quizplus.com/quiz/26402
Sample Questions
Q1) The least favorite method of entering foreign markets is by investing in company-owned stores in foreign countries and this is called?
A)licensing
B)joint venture
C)direct investment
D)master franchising
Q2) One of the very few companies that has been successful in using the exact same product world-wide is:
A)Coca-Cola
B)McDonald's
C)Dairy Queen
D)Marriott Hotels
Q3) The future for international franchising is:
A)bright and promising
B)promising,but uncertain
C)difficult,but rewarding
D)yet to be determined
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