Business Development Exam Review
Course Introduction
Business Development focuses on the strategies and activities involved in creating growth opportunities within and between organizations. This course explores the processes of identifying new business prospects, forging strategic partnerships, developing client relationships, and expanding markets. Students will learn about market analysis, sales management, value proposition design, negotiation tactics, and the implementation of business expansion plans. Through real-world case studies and practical exercises, the course equips learners with the skills necessary to drive organizational growth, assess risks, and generate sustainable competitive advantages in dynamic business environments.
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 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
Q2) The number of franchised business establishments has continued to growth in the U.S.Today there are approximately ( )franchise businesses in operation.
A)150,000
B)less than 1,000
C)approximately 800,000
D)Over 2,500,000
Answer: C
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3
Chapter 2: Recognizing Franchising Opportunities
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10 Verified Questions
10 Flashcards
Source URL: https://quizplus.com/quiz/26382
Sample Questions
Q1) A number of major questions should be addressed by a potential franchisor before choosing to expand through franchising.Which one of the following is not a major question at the onset?
A)do I have a prototype store or unit that can be replicated?
B)can my product/service meet the test of distance?
C)should I have right of first-refusal on site selection?
D)what skills will be needed by a franchisee to run my business successfully?
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
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4
Chapter 3: The Franchisor Business Plan
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10 Verified Questions
10 Flashcards
Source URL: https://quizplus.com/quiz/26383
Sample Questions
Q1) The most important section of the business plan is:
A)The Management Segment
B)The Executive Summary
C)The Marketing Segment
D)The Legal Requirements
Answer: B
Q2) 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
Q3) What is the first step to good site selection?
A)examining a number of sites in terms of their "need" and forecasting demand
B)determining markets in a geographical area with suitable customer demographics
C)selecting the market area with the best combination of demographics in the area
D)determining the appropriate building size and layout
Answer: B
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Chapter
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Sample Questions
Q1) There are four types of growth opportunities for franchise systems to increase sales and share-of-market within their customer base.Which one below is not one of these tried-and-true approaches for growth?
A)Retain existing customers.
B)Stimulate more purchase within your existing customer base.
C)Offer new products/services in new territories to new customers
D)Cross-sell complementary products/services that meet new or a different combination of existing customer needs.
Q2) Entrepreneurs tend to work harder and take moderately greater risks than persons working as employees in someone else's firm.Traits that entrepreneurs tend to have include all but which one of the following?
A)High motivation to achieve
B)Apathy about life
C)Self-confidence
D)Being adventurous
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Chapter 5: The Franchise Marketing Process
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11 Verified Questions
11 Flashcards
Source URL: https://quizplus.com/quiz/26385
Sample Questions
Q1) There are four generic categories to classify goods and services.Which one below fits the description of----goods or services that are frequently purchased,usually are low-to- competitively priced,and staples,emergency or impulse buys.
A)convenience goods or services
B)homogeneous shopping goods or services
C)heterogeneous shopping goods or services
D)specialty products or services.
Q2) Why would a franchise system monitor its external environment?
A)to identify factors which may pose major threats to or provide significant opportunities for the franchise system.
B)to develop a set of objectives to fit the mission and overall goals of the franchise system.
C)to concentrate resources outside of the firm more than inside of the firm.
D)to second-guess what its suppliers intend to do next.
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
Source URL: https://quizplus.com/quiz/26386
Sample Questions
Q1) What's the difference between the sales package and sales playbook?
A)the sales playbook consists of three parts,and the sales package consists of five parts.
B)the sales brochure and ufoc are part of the sales playbook but not the sales package.
C)the mission statement and opening benefits are part of the sales package but not the sales playbook.
D)the sales package is used by the franchisor to give a prospective franchisee a good sales presentation;the sales playbook helps the salesperson sell to customers.
Q2) What helps you identify the customers whose needs your franchise best satisfies?
A)target marketing
B)marketing research
C)inquiries
D)a professional approach to sales
Q3) How might you describe the professional approach to sales?
A)talks 70%,listens 30%
B)pushy
C)customer oriented
D)faster
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8
Chapter 7: Co-Branding
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5 Verified Questions
5 Flashcards
Source URL: https://quizplus.com/quiz/26387
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) 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) Approximately what percentage of food franchises are co-branded units?
A)5 %
B)20%
C)50%
D)75%
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9
Chapter 8: Managing the Franchisors Operations Process
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10 Verified Questions
10 Flashcards
Source URL: https://quizplus.com/quiz/26388
Sample Questions
Q1) Which type of franchisor program offered to franchisees is based on the general notion that new franchisees have little or no specific business knowledge about the franchise system?
A)marketing manual
B)reporting manual (including appropriate financial forms)
C)training manual
D)operating (or operations)manual
Q2) Which franchisor manual provided by the franchisor to new franchisees is referred to as "the bible?"
A)training manual
B)site inspection manual
C)quality control manual
D)operating manual
Q3) The written information provided in the franchise package to a prospective franchisee contains
A)promotions package only
B)operations materials only
C)training and financial information only
D)promotions package and operations materials
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Page 10
Chapter 9: Location and Site Selection
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10 Verified Questions
10 Flashcards
Source URL: https://quizplus.com/quiz/26389
Sample Questions
Q1) Which two concepts receive primary consideration when determining store layout?
A)customer traffic and employee traffic
B)attractive décor and effective lighting
C)customer traffic and attractive décor
D)effective lighting and overall attractive atmosphere
Q2) Which of the following sequences of the three-step location model is correct?
A)BPI,DMAs,Individual Site Analysis
B)DMAs,Individual Site Analysis,BPI
C)DMAs,BPI,Individual Site Analysis
D)Individual Site Analysis,DMAs,BPI
Q3) Which of the following types of businesses benefit from being located near competitors?
A)unique business
B)comparative business
C)competitive business
D)none of these types benefits from being located near competitors.
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11
Chapter 10: Accounting and Financial Statements:
Presentation and Uses
Source URL: https://quizplus.com/quiz/26390
Sample Questions
Q1) Franchisors capitalizing or financing their businesses are generally required to disclose three key financial statements.Which of the following is not one of those statements?
A)income statement or operating statement
B)balance sheet or statement of financial position
C)net profit statement or bottom line
D)cash flow or cash budget statement
Q2) 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
Q3) What do financial ratios analyze?
A)the "bottom line"
B)the return to the franchised business owner
C)the "net" profit
D)all of the above
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Chapter 11: Financial Management and Fiscal Planning
Tools and Techniques
Source URL: https://quizplus.com/quiz/26391
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) Estimation of sales and other income for a period and cash disbursements to be paid in the same period identifies the components of the:
A)balance sheet
B)income statement
C)cash flow statement
D)none of the above.
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Chapter 12: Information Systems in Franchising
Source URL: https://quizplus.com/quiz/26392
Sample Questions
Q1) What is the primary purpose of information systems in a start-up franchise?
A)to improve operations at franchised units
B)to improve operations at franchisor's headquarters
C)to generate data which can be used to accumulate working knowledge
D)to leverage working knowledge and increase profits
Q2) Which of the following activities at the franchised unit should be the center of attention?
A)making sales to customers
B)managing people who make sales to customers
C)dealing with financial issues such as accounting and finances
D)marketing and advertising to customers
Q3) Which of the following helps to simplify the difficult site selection process?
A)value-cost-risk procedures
B)working knowledge profiles
C)data analyses
D)all of the above
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14
Chapter 13: Franchise Legal Documents
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5 Verified Questions
5 Flashcards
Source URL: https://quizplus.com/quiz/26393
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) When does a trade secret become enforceable?
A)when it is developed
B)when it is filed with a federal agency
C)when a Confidentiality Agreement is signed
D)when it is shared with a certain percentage of the firm's employees
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 documents outlines how the intellectual property of the franchise is to be used by the franchisee?
A)the Confidentiality Agreement
B)the Intellectual Property Contract
C)the Franchise Agreement
D)the Operations Manual
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Page 16
Chapter 15: Investigating Franchise Opportunities
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10 Verified Questions
10 Flashcards
Source URL: https://quizplus.com/quiz/26395
Sample Questions
Q1) It is crucial for a potential franchise to answer the following question prior to signing a franchise agreement.
A)by buying and running this franchise is likely to make me happy
B)buying this franchise will some all my future financial problems
C)buying this franchise will make my parents and in-laws respect me
D)none of the above
Q2) 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
Q3) The four "P's" of franchise include all of the following except:
A)product
B)profitability
C)promise
D)people
E)process
EASY
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Chapter 16: Financing Your Franchised Business
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10 Verified Questions
10 Flashcards
Source URL: https://quizplus.com/quiz/26396
Sample Questions
Q1) The franchisee's major financial obligation is to:
A)the Internal Revenue Service
B)one's State Department of Revenue
C)City or County health department
D)the franchisor
Q2) Most franchisors
A)provide up to 90 % in the financing of new franchisees
B)will not become involved with the financing of new franchisees,although a few may provide a limited amount of help
C)arrange for financing of franchisees through their own financial acceptance corporations
D)provide up to 25 %,but rarely any more,of the financing of new franchisees
Q3) The primary goal of any franchise company is to:
A)make a Profit
B)have ever-increasing sales
C)expand internationally
D)lobby Congress for exceptions to Rule 436.1.
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Chapter 17: Marketing the Franchisee Business
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8 Verified Questions
8 Flashcards
Source URL: https://quizplus.com/quiz/26397
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) Casual dining places have,generally,targeted which group as their primary customer group?
A)children between ages 2-10
B)senior citizens with disabilities
C)college freshmen
D)adults of all ages
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19
Chapter 18: Managing the Franchisee Business Stage Six:
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Sample Questions
Q1) All of the following are characteristics of franchisees without legal problems except:
A)they are involved in their first business undertaking
B)they have legal counsel review the franchising agreement
C)they have conducted an independent market survey before purchasing a franchise
D)they request appropriate modifications to standard agreements
Q2) Which of the following is one of the four principles of coordination that promote effective work groups?
A)coordination is best accomplished through electronic means such as e-mail,electronic calendars,etc.
B)coordination must address all factors within any phase of any endeavor
C)coordination should occur at most once a week
D)coordination is only necessary in the beginning and at the end of a project
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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9 Verified Questions
9 Flashcards
Source URL: https://quizplus.com/quiz/26399
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) 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 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 is NOT one of the ways that field representatives deliver con?tinuing training to franchisees?
A)they give on-the-spot management and operational suggestions.
B)they often work indirectly with the franchisee from the franchisor's headquarters.
C)they provide instructional audio or video materials to the franchisee.
D)they serve as a conduit for new ideas.
Q2) Which of the following is the most compelling reason for someone to seek a franchise opportunity?
A)the chance to be self-employed
B)profitability
C)the opportunity to enjoy growth in the franchise
D)pressure from the franchisor
Q3) 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
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Chapter 21: Social Responsibility and Business Ethics
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11 Verified Questions
11 Flashcards
Source URL: https://quizplus.com/quiz/26401
Sample Questions
Q1) Franchise Advisory Councils:
A)constitute a crucial step along the patch toward growth and development of a franchise system
B)are legally required for franchise systems in some states
C)are always independently developed by franchisees themselves
D)are used in franchise systems primarily to pressure franchisees to behave ethically
Q2) Utilitarianism:
A)focuses on the decision maker achieving maximum personal benefits
B)attempts to remove emotion and self-interests from decision-making
C)is concerned with providing the greatest good for the greatest number of people
D)both b and c above
Q3) Business social responsibility
A)obligations are easily defined
B)is a matter of complying local,state and federal laws and regulations
C)is supported by a broad public mandate
D)consists of the obligations a business has to society
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23
Chapter 22: International Franchising
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10 Verified Questions
10 Flashcards
Source URL: https://quizplus.com/quiz/26402
Sample Questions
Q1) A product strategy which involves changing the product to meet local conditions and consumer demands is called:
A)product conversion
B)product adaptation
C)straight product utilization
D)product invention
Q2) 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
Q3) The most common and best way of starting a franchise in a foreign country is through?
A)licensing
B)joint venture
C)direct investment
D)master franchisee
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