Entrepreneurship Test Questions
Course Introduction
This course introduces students to the core principles and practices of entrepreneurship, covering how to identify opportunities, assess market needs, develop innovative business ideas, and create viable business models. Through real-world case studies, interactive projects, and discussions with successful entrepreneurs, students will explore the process of launching and managing new ventures. The course also addresses topics such as start-up financing, marketing strategies, scaling businesses, and navigating the challenges and risks unique to entrepreneurial endeavors. By the end of the course, students will have a foundational understanding of how to transform ideas into actionable business plans.
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) Which of the following industries provides the earliest and lasting example of franchising in the U.S.economy?
A)beverage industry
B)retail fast-food industry
C)automotive industry
D)steel industry
Answer: C
Q2) The approach to be used by a franchisee in providing the franchisor's products or services to the customer is called:
A)business licensing
B)free-form business opportunity
C)business format franchising
D)an open business opportunity
Answer: C
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Page 3
Chapter 2: Recognizing Franchising Opportunities
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10 Verified Questions
10 Flashcards
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Sample Questions
Q1) Reasons a franchise system would have corporate locations,as well as franchisee locations are shown below,except for:
A)investors believe corporate ownership demonstrates that the franchise concept works.
B)franchisor avoids potential conflict with franchisees that may rise based upon market and site locations.
C)by having some corporate locations,the franchisor could take over,if a troubled or failing franchisee's location,if necessary.
D)by having corporate location,the franchisor remains close to the ultimate customer.
Answer: B
Q2) 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
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Chapter 3: The Franchisor Business Plan
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10 Verified Questions
10 Flashcards
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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 Untrue about the policies and procedures of a franchise system?
A)procedures are essentially "set in stone."
B)both policies and procedures can be abused.
C)policies serve as guidelines for employee actions.
D)procedures identify the steps or elements within a process that are considered appropriate for performing assigned tasks.
Answer: A
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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Chapter 4: Franchisor Management, Organization and Administrative Policy
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Sample Questions
Q1) 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
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.
Page 6
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) 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
Q2) 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.
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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) 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
Q2) What is a realistic number for a sample size when doing market research?
A)50
B)300
C)500
D)1,000
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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8
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) 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.
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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) There is one thing every franchise system knows.If you don't know how you want to be positioned in the marketplace,and don't know the value propositions you uphold,then you will be:
A)ahead of all other competitive franchise systems operating in your market area
B)positioned in the market-place and educated on that position by your competition
C)provided sufficient time to determine these factors for yourself within the first 3-5 years of business
D)grateful for the freedom provided by the franchisor for you to "do your own thing."
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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) 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
Q2) 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
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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Chapter 10: Accounting and Financial Statements:
Presentation and Uses
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Sample Questions
Q1) 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
Q2) 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
Q3) How often should financial accounting information be reviewed by management?
A)monthly
B)every fiscal quarter
C)every six months
D)annually
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Page 12
Chapter 11: Financial Management and Fiscal Planning
Tools and Techniques
Available
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Sample Questions
Q1) In financial planning with the franchised business,the most basic and essential variable of the financial planning tools is the:
A)inventory schedule
B)sales forecast
C)pro forma balance sheet
D)econometric models for forecasting liabilities
Q2) Short-term obligations created by the franchisee in buying supplies,materials or services associated with running the business are referred to as:
A)inventory management
B)accounts receivable
C)accounts payable
D)working capital
Q3) "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
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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 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
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) Where does working knowledge come from?
A)financial reports
B)customers
C)franchisors
D)data analyses
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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 allows a developer to build a num?ber of franchised businesses in a particular market area?
A)Franchise Agreement
B)Sub-Franchising Contract
C)Area Development Agreement
D)UFOC
Q2) 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.
Q3) When must the disclosure document be delivered,according to the FTC Rule?
A)at the first personal,face-to-face meeting
B)10 business days before the franchisee executes a binding legal document or makes any payment
C)whichever of these comes first
D)whenever the franchisor deems it appropriate
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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 is a property right provided by the government in an original work of author?ship that is fixed in a tangible form?
A)service mark
B)trade secret
C)copyright
D)trademark
Q3) 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
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Page 16
Chapter 15: Investigating Franchise Opportunities
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10 Verified Questions
10 Flashcards
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Sample Questions
Q1) 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
Q2) Over the counter business-oriented publications often include franchise-related information.Each of the following publications regularly provide such useful franchise information except for
A)Wall street Journal
B)U.S.A.Today
C)Women's Home Journal
D)Entrepreneur Magazine
Q3) Almost all franchising agreements are set up for a specified term,generally from
A)five to twenty years
B)one to six years
C)twenty to forty years
D)ten to thirty years
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17
Chapter 16: Financing Your Franchised Business
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Sample Questions
Q1) When its time to sell or retire,most franchisors will cooperate with the franchisee intent to exit
A)but are not usually interested in helping the franchisee find a buyer for the business
B)other franchisees are not likely to among those persons with intent or interest to purchase another franchise unit
C)and will stand aside to allow the franchisee to sell to whomever is found as a buyer of the business
D)none of the above is an accurate statement
Q2) 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
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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18
Chapter 17: Marketing the Franchisee Business
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8 Verified Questions
8 Flashcards
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Sample Questions
Q1) Which of the following questions is least important as a major critical issue for a new franchisor?
A)what is the target market for my product/service?
B)how should I price the products in my product line?
C)what guarantees,warranties or services should be provided to the customer?
D)who shall I hire as my secretary?
Q2) 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
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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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) Family-owned and/or controlled businesses
A)usually continue to exist over two and sometimes three generations
B)usually succeeds ten or more years
C)account for a clear majority of all incorporated firms in the United States
D)generate more than 80% of U.S.GDP
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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9 Flashcards
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Sample Questions
Q1) The decline of industries such as the US automotive industry and the consumer electronics industry is evidence that:
A)the abundance of competition is harmful to franchising in the US.
B)products or services of merely average quality lose customer confidence and sales.
C)customers do not like having such a wide range of products and services to choose from.
D)the loss of business is usually the fault of the franchisee,not the franchisor.
Q2) Why is the final stage of the franchisor-franchisee relationship cycle called Decline or Development?
A)the business may decline or continue to grow and prosper,and the relationship will mirror that decline or growth.
B)the relationship will go through both of these stages simultaneously.
C)the relationship will go through both of these phases quickly.
D)independent of the direction in which the business is headed,the relationship will either decline or grow during this phase.
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21
Chapter 20: Franchiser Support Services Stage Seven:
Current Issues in Franchising
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Sample Questions
Q1) 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
Q2) Why is an effective communication system so important for a franchise?
A)an effective communication system helps the franchise look organized.
B)an effective communication system helps attract more franchisees.
C)an effective communication system will affect the franchise's success and foster continued growth and development of the franchise.
D)an effective communication system will affect the franchise's success,foster continued growth and development of the franchise,and ensure effective superior-subordinate relationships.
Q3) 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
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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 of social and cultural activities
C)fair pricing of products/services
D)providing employees opportunities for growth and development of skills
Q2) 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
Q3) Which of the following is NOT a typical social responsibility issue for U.S.franchise systems?
A)immigration
B)work/life issues
C)employment of individuals with disabilities
D)payment of the minimum wage in accordance with the Fair Labor Standards Act
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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 largest U.S.franchise restaurant system in China is
A)McDonald's
B)KFC
C)Wendy's
D)Burger King
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 most common restrictions levied by a government in international trade are?
A)quotas
B)tariffs
C)embargo
D)exchange controls
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