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Question
The most important issues to consider in financial feasibility analysis are: financial performance of similar businesses, total cash needed, and:
A) the projected internal rate of return of the proposed venture
B) the projected years to an IPO or an acquisition for the proposed venture
C) management prowess
D) overall attractiveness of the proposed venture
E) the projected borrowing power of the proposed business
Answer
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Related questions
Q:
The royalty fees a franchisee pays are usually around 10 percent of gross income.
Q:
An individual who is team oriented is typically a good candidate to be a franchisee.
Q:
Business format franchises typically allow franchisees substantial flexibility in how they run their individual franchise units.
Q:
In a business format franchise, the franchisor provides a formula for doing business to the franchisee along with training, advertising, and other forms of assistance.
Q:
The business format franchise is a more popular approach to franchising than the product and trademark franchise.
Q:
While franchise agreements vary, each agreement typically contains two sections:
A) the statutory agreement and the purchase agreement
B) the franchise agreement and the buy agreement
C) the buy agreement and the membership agreement
D) the procurement agreement and the statutory agreement
E) the purchase agreement and the franchise agreement
Q:
Which of the following is not a disadvantage of buying a franchise?
A) cost of the franchise
B) duration and nature of the commitment
C) restrictions on creativity
D) availability of financing
E) potential for failure
Q:
Which of the following is not an advantage of buying a franchise?
A) a proven product or service within an established system
B) franchisor ongoing support
C) availability of financing
D) potential for business growth
E) duration and nature of the commitment
Q:
According to the textbook, the main disadvantage of buying a franchise is:
A) franchise organizations typically grow slower than non-franchise organizations in the same industry
B) franchisors typically provide poor levels of support
C) the cost involved
D) the service sector of the U.S. economy is waning in importance
E) franchising is waning in its popularity
Q:
According to the textbook, which of the following is not a cost that is typically associated with buying a franchise?
A) intellectual capital fees
B) capital requirements
C) continuing royalty payment
D) advertising fees
E) initial franchise fee
Q:
The Savvy Entrepreneurial Firm feature in Chapter 15 focuses on Wahoo's Fish Taco, a franchise organization that offers Mexican food mixed with Brazilian and Asian flavors. According to the feature, one of things the founders of Wahoo did that has contributed to its success is:A) elect to make Wahoo's a relatively slow growth system, focusing on branding and service quality rather than rapid growthB) elect to make Wahoo's a nationwide system, operating in all 50 statesC) elect to make Wahoo's an extremely affordable system to buy into, with a $9,000 original franchise fee and an ongoing royalty of only 2 1/2 percent.D) elect to make Wahoo's a niche franchise that is only available in theme parks and food courts of mallsE) elect to make Wahoo's a fast growth system to establish a clear first-mover advantage in its niche
Q:
A master franchisee, in addition to having the right to open and operate a specific number of locations in a particular area, also has the right to:
A) stop making royalty payments if its sales decline
B) sell products made by companies other than the franchisor
C) offer and sell the franchise to other people in its area
D) use its own operating manuals to run its franchise outlets
E) stop making royalty payments if it is losing money
Q:
A(n) ________ involves the sale of a single franchise for a specific location.
A) individual franchise agreement
B) one-of-a-kind franchise agreement
C) pinpoint franchise agreement
D) specific franchise agreement
E) precise franchise agreement
Q:
According to the textbook, one of the first companies in the United States to utilize franchising was:
A) McDonald's
B) Singer Sewing Machine
C) H&R Block
D) Coca-Cola
E) Gold's Gym
Q:
Franchising is a form of business ownership in which a firm that already has a successful product or service licenses its trademark and method of doing business to another business in exchange for:
A) an initial franchise fee and an ongoing royalty
B) a one-time franchise fee
C) an equity position in the new business
D) an ongoing royalty
E) an initial franchise fee and an equity position in the new business
Q:
________ is a form of business ownership in which a firm that already has a successful product or service licenses its trademark and method of doing business to other business in exchange for an initial franchise fee and an ongoing royalty.
A) Licensing
B) Joint Venturing
C) Contracting
D) Subcontracting
E) Franchising
Q:
The Google AdWords program allows advertisers to buy ads that will be shown on other Web sites instead of Google's Home Page.
Q:
Michael Jones owns a Web design firm. The way Michael prices his products is to determine what consumers are willing to pay, and then he backs off a bit to provide a cushion. The method that Michael used to determine his prices is called:
A) predatory pricing
B) technical pricing
C) cost-based pricing
D) competitive-based pricing
E) value-based pricing
Q:
In ________, the list price is determined by estimating what consumers are willing to pay for a product and then backing off a bit to provide a cushion.
A) value-based pricing
B) tactical pricing
C) strategic pricing
D) cost-based pricing
E) economic-based pricing
Q:
In ________, the list price of an item is determined by adding a markup percentage to a product's cost.
A) cost-based pricing
B) compliance-based pricing
C) value-based pricing
D) competitive-based pricing
E) economic-based pricing
Q:
A(n) ________ is an early user of a firm's product who is willing to give a testimonial regarding his or her experience with the product.
A) tribute account
B) reference account
C) approval report
D) appreciation account
E) acknowledgment report
Q:
InstyMed's phrase "We make patients better quicker" is an example of a(n):
A) tagline
B) grabline
C) notice-line
D) catchline
E) attention-line
Q:
Nike's familiar phrase "Just do it" is an example of a(n):
A) attention-line
B) tagline
C) notice-line
D) catchline
E) grabline
Q:
A(n) ________ is the set of attributespositive or negativethat people associate with a company.
A) emblem
B) logo
C) symbol
D) brand
E) trade name
Q:
Research in Motion (RIM) is a handheld computer company that focuses specifically on business users that need dependable access to e-mail and the Internet while away from their office. For RIM, this specific type of user within the large business market segment is referred to as its:
A) gap market
B) task market
C) position market
D) hole market
E) niche market
Q:
What is an elevator speech? How did it get its name?
Q:
Why do most firms need funding? Provide a brief explanation of each reason.
Q:
The percentage of the profits the venture capitalist gets is called the "carry."
Q:
The number of angel investors in the United States has decreased dramatically over the past decade.
Q:
Venture capitalists are individuals who invest their personal capital directly in startups.