Question 1

The action plan covers 3 primary areas: the owner, the finances, and other vital factors.

Accepted Answer

The action plan indeed covers three primary areas: the owner (who is responsible for executing the plan), the finances (budget, resources, and financial planning), and other vital factors (which could include market analysis, competition, risks, and opportunities).

Question 2

It is not uncommon for a buyer to be faced with a franchise fee of 250,000 to 1,000,000.

Accepted Answer

False

Question 3

An advantage associated with franchising is

Accepted Answer

Franchising offers several advantages, including training and guidance from the franchisor, the brand-name appeal which can attract customers, and the proven track record of other franchisees which can serve as evidence of the business model's success.

Question 4

Have a seller retain a _____interest in the business.

Accepted Answer

Retaining a minority interest means the seller holds less than 50% ownership, which aligns with the options provided.

Question 5

Which franchise is not included in the top ten franchises?

Accepted Answer

Jimmy John's is not typically ranked among the top ten franchises, whereas 7-eleven, Subway, and Pizza Hut are well-established and widely recognized franchises often included in such rankings.

Question 6

Which is not a cost of franchising?

Accepted Answer

All the options listed (Insurance, Debt Service, Payroll) are indeed costs associated with franchising. Insurance is necessary for liability and asset protection, debt service is the cost of repaying borrowed money, and payroll is the expense of paying employees, all of which are typical expenses in running a franchise.

Question 7

Some ways to develop a creative mind include

Accepted Answer

The answer of Some ways to develop a creative mind...

Question 8

The Small Business Innovation Development Act directs that small firms get at least a fixed minimum percentage of research and development awards made by federal agencies with sizable R&D budgets. What are the implications of this act?

Accepted Answer

The answer of The Small Business Innovation Development Act directs...

Quiz 6: Innovation and Pathways to Entrepreneurial Ventures