Strategic Management Exam Practice
Tests
Course Introduction
Strategic Management is a comprehensive course that examines the formulation, implementation, and evaluation of cross-functional decisions that enable an organization to achieve its long-term objectives. The course covers essential concepts such as industry analysis, competitive advantage, business-level and corporate-level strategies, and strategic leadership. Through case studies and real-world examples, students learn how to assess internal and external environments, make informed strategic choices, and execute strategies effectively in dynamic and complex environments, preparing them for leadership roles in business decision-making.
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
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Sample Questions
Q1) Probably the earliest example of franchising in the United States is most likely to be:
A)Kentucky Fried Chicken
B)McDonald's
C)Western Auto
D)McCormick Harvesting Machine Company
Answer: D
Q2) 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
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Chapter 2: Recognizing Franchising Opportunities
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10 Verified Questions
10 Flashcards
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Sample Questions
Q1) Which one of the following is NOT an advantage of franchising for the franchisee?
A)established product or service
B)technical and managerial assistance
C)quality control standards
D)expansion
Answer: D
Q2) Capital requirements that a potential franchisee must consider prior to becoming part of a franchise system include each of the following except for:
A)franchising fee
B)startup expanses and inventory
C)personal entertainment expenses
D)working capital
Answer: C
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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Chapter 3: The Franchisor Business Plan
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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) The two main reasons for failure in business are:
A)lack of capital and poorly chosen location
B)poorly chosen location and inadequate business plan
C)poor management and lack of capital
D)inadequate business plan and poor management
Answer: C
Q3) How many phases are included in the Franchise PERT Chart?
D)8
Answer: C
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5
Chapter 4:
Franchisor Management, Organization and Administrative 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) Considering the processes of management for a the franchise system,overall planning of the firm for today's operations and the future of the system itself is the primary responsibility of
A)the owner/management.
B)franchisees
C)franchisor field staff
D)prospective franchises being recruited into the system
Q3) Which one of the following statements is true?
A)Eighty percent of all new products introduced into the marketplace are not accepted and withdrawn.
B)About 75% of U.S.adults are unhappy with their work.
C)About fifteen percent of all marriages in North America fail.
D)A new business is started about every minute in North America
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Chapter 5: The Franchise Marketing Process
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11 Verified Questions
11 Flashcards
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Sample Questions
Q1) Which one of the following is Not one of the "Four P's" in marketing?
A)product
B)process
C)price
D)promotion
Q2) Identifying one or more target markets and creating a marketing mix that has focus upon a customer grouping's needs is the definition of
A)marketing
B)marketing mix
C)marketing strategy
D)the businesses image
Q3) usually provides the starting-point of data collection when conducting marketing research.This category of information offers the distinct advantages low cost and quick availability.
A)internal market information
B)external market information
C)secondary data
D)none of the above
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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) What is the key to convincing someone to purchase your franchise,product,or service?
A)features
B)personality
C)experience
D)benefits
Q3) Franchisors often determine a franchisee's likelihood of success by looking at two things.What are they?
A)personality and experience
B)personality and financial net worth
C)experience and knowledge of the franchise
D)knowledge of the franchise and financial net worth
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Chapter 7: Co-Branding
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5 Verified Questions
5 Flashcards
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Sample Questions
Q1) 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.
Q2) Approximately what percentage of food franchises are co-branded units?
A)5 %
B)20%
C)50%
D)75%
Q3) Which of the following is true about co-branding?
A)it is primarily franchisor-driven.
B)it is primarily customer-driven.
C)it is primarily franchisee-driven.
D)it can be either franchisor- or franchisee-driven.
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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) Though a location manual or policy may be developed to assist in determining optimal sites,for franchised businesses that require a store-front location the final determination often rests with:
A)the bank that loans the funds for construction of the store
B)the franchisee
C)the franchisor
D)the city's zoning commission
Q2) The general purpose of a promotions package by the franchisor to potential franchisees is to:
A)solicit and sign franchisees
B)inform potential franchisees about the business in general terms only
C)learn as much about potential franchisees while sharing limited brochure materials about the franchise system,
D)none of the above
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Chapter 9: Location and Site Selection
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10 Flashcards
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Sample Questions
Q1) Adequate frontage is a necessity for most retail businesses.What amount is generally considered adequate?
A)50-100 feet
B)100-200 feet
C)200-400 feet
D)400 feet or more
Q2) 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.
Q3) Four factors are important in determining the size and shape of a primary service area (PSA).These include all of the following EXCEPT:
A)BPI
B)alternative shopping choices
C)intuition
D)drive-time analysis
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11
Chapter 10: Accounting and Financial Statements:
Presentation and Uses
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Sample Questions
Q1) How often should financial accounting information be reviewed by management?
A)monthly
B)every fiscal quarter
C)every six months
D)annually
Q2) 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
Q3) Which of the following things is NOT true about the accounting process?
A)it sometimes develops an imprecise picture of the franchise.
B)it can measure the exact worth of a franchise.
C)it consists of the measurement and record of money,assets,and resources and their flow through the franchise.
D)its records are not exact.
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12
Chapter 11: Financial Management and Fiscal Planning
Tools and Techniques
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Sample Questions
Q1) 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
Q2) "Pro forma" accounting statements as used in business financial planning means:
A)actual accounting of income and expenses
B)actual accounting of assets and liabilities
C)a statement of anticipated costs and revenues or change in assets,liabilities and equity based upon prior (operating)financial performance.
D)none of the above
Q3) To fund a franchise business,most franchisee use:
A)a single source of funding
B)multiple sources of funding
C)already have sufficient liquidity to fund the startup and need no additional funding
D)none of the above
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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) The information contained in the daily business intelligence reports becomes the foundation upon which a franchise system builds what?
A)experience
B)working knowledge profiles
C)reliability
D)target markets
Q2) What is the primary purpose of information systems in a mid-size franchise?
A)to improve operations at franchisor's headquarters
B)to leverage working knowledge
C)to generate data which can be used to accumulate working knowledge
D)to increase profits
Q3) Which of the following is NOT an element of virtual relationship management in e-business strategy?
A)collaboration with suppliers through Internet
B)collaboration with suppliers through Extranet
C)collaboration with consumers through Internet
D)intra-enterprise collaboration through Intranet
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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) 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.
Q3) 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
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Source URL: https://quizplus.com/quiz/26394
Sample Questions
Q1) 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
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 protectable property right granted by the government that protects an invention,new device,or innovation?
A)patent
B)copyright
C)trade secret
D)trademark
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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) There are three central finance questions a prospective franchise must answer.Identify the question below is not a central finance question for a prospective franchisee.
A)Do I have enough cash to pay the fees and cover somewhere between 20-to-100 percent of the total amount required by the franchise system prior to opening?
B)Can I find some one (or more)who will finance the amount that I can't cover?
C)Additional sources of capital are likely to be needed.Can I get agreed upon sources of additional funds as needed to assure that sufficient working capital is available to me?
D)Can I qualify for state,federal or local grants to assist in the acquisition of the franchise?
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Page 17
Chapter 16: Financing Your Franchised Business
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Sample Questions
Q1) Typically,franchise fees
A)remain the same and do not vary,depending on the number of franchised units planned for in the initial agreement between franchisor and franchisee
B)may differ within the same franchise system,depending on the number of franchised units to be opened
C)are set very high to discourage most and only attract the most financially capable D)most often the greatest financial commitment required of a potential franchisee
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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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) 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.
Q3) A market can be defined by four of the following means.Which one below is not considered as a primary means to define a market?
A)type of product/service offered
B)robot-analyzed menu choices based upon on-site traffic
C)customer characteristics
D)geography
E)specific location
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Chapter 18: Managing the Franchisee Business Stage Six:
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Sample Questions
Q1) 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
Q2) 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
Q3) 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
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Chapter 19: The Franchising Relationship
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Sample Questions
Q1) What can a franchisor do to enhance awareness in the franchisor-franchisee relationship?
A)encourage the formation of local or regional clubs for franchisees
B)offer awards or performance incentives to successful franchisees
C)take periodic surveys to monitor franchisees' feelings and concerns
D)all of the above
Q2) What is the key to the Maturity stage in the franchisor-franchisee relationship?
A)Expansion
B)Profitability
C)Communication
D)Balance of power
Q3) The franchisor-franchisee relationship usually goes through the following cycle:
A)growth,maturity,decline/development
B)introduction,growth,maturity,decline/development
C)introduction,growth,decline/development,maturity
D)growth,decline/development,maturity
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21
Chapter 20: Franchiser Support Services Stage Seven:
Current Issues in Franchising
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Sample Questions
Q1) 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!
Q2) 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
Q3) What is required of the person in charge of a franchisee training program?
A)experience as a franchisor
B)understanding of the needs of the particular franchised business
C)knowledge about the training process
D)both b and c
Q4) What period of franchisee training is generally the most intensive?
A)grand opening training
B)pre-opening training
C)continuing training
D)field representative training
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Chapter 21: Social Responsibility and Business Ethics
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11 Verified Questions
11 Flashcards
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Sample Questions
Q1) Which of the following illustrates the highest level of social responsibility?
A)safe working conditions for employees
B)support for social and cultural activities
C)fair pricing of their products and services
D)providing employees opportunity for growth and development of skills
Q2) Which of the following is not an appropriate question to identify ethical factors in a decision-making situation?
A)is the action being considered illegal?
B)have all points of view been considered?
C)what are the short-term and long-term consequences of the decision and action?
D)how will I feel if a story about this action appears on the front page of the local newspaper available to the general public?
Q3) 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
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Chapter 22: International Franchising
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10 Verified Questions
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Sample Questions
Q1) 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
Q2) The most common restrictions levied by a government in international trade are?
A)quotas
B)tariffs
C)embargo
D)exchange controls
Q3) Probably the main hindrance with expanding into foreign markets is:
A)high costs
B)government red tape
C)labor supply
D)lack of master franchisees
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