ONU Small Business/Entrepreneurship test #2

SWOT analysis

- An assessment that provides a concise overview of a firm's strategic situation.

Franchise disclosure document

A detailed statement providing information about the franchisor that satisfies the franchise disclosure requirements of the FTC

Serendipity

A facility for making desirable discoveries by accident.

Strategy

A plan of action that coordinates the resources and commitments of an organization to achieve superior performance

Focus strategies

A plan of action that isolates an enterprise from competitors and other market forces by targeting a restricted market segment.

Franchising

A process for expanding a business and distributing goods and services through a licensing relationship.

Franchise rule -

A rule that requires the franchisor to disclose certain information to prospective franchisees.

When conducting due diligence on whether to purchase business, two most valuable resources are?

Accountants and lawyers

Nondisclosure agreement

An agreement in which the buyer promises the seller that he or she will not reveal confidential information or violate the seller's trust.

Matthew is an individual sales agent finding people in a specified territory what is Matthew?

Area developer

An evaluation of the general environment is?

Can benefit small and large businesses

Morris built a business, all of custom clothing charge higher prices, Morris has?

Competitive advantage

Mill auto service, small auto repair shop, doesn't charge as much as chain auto shops, steady stream of local customers, which describes his strategy?

Cost-based strategy

For the past several years, borrowing interest rates have been low, this an example of a _______ trend?

Economic

A non-disclosure agreement signed by a perspective buyer shows the seller that the buyer intends to purchase the business?

False

Business brokers specialize in the sale of business firms and business properties?

False

In a family business, the family's primary function is to ensure profitability and survival of the business?

False

In the family business, family considerations affect only members of the family?

False

Only cost based strategies should be used when focusing on a market niche?

False

Serendipity describes a new product idea resulting from deliberate search activities?

False

To control costs when purchasing a business, the buyers attorney or seller's attorney can be used as the closing agent?

False

Increased trade between US and Mexico since NAFTA is an example of?

Global trend

Susan is considering buying pots-are-us as part of process, she should do all of following except?

Hire business broker to draft a non-disclosure agreement

Opportunity recognition

Identification of potential new products or services that may lead to promising businesses

Which of following actions is best for parents to decrease...?

Make decisions based on tax considerations, not what's best for next generation

Jeffery's job is to identify potential business in his country... when contract is signed Jeffery provides training, what is Jeffery?

Master licensee

Which of following about family counsel?

Members of family counsel should be appointed by owner of

Quality Dining Inc. operates several franchises including Burger King and Chilis, this is an example of?

Multi-brand franchising

Edmond is negotiation to purchasing existing business, a provision he should write in the contract is?

Non-compete agreement

Intangible resources

Organizational resources that are invisible and difficult to assess.

Tangible resources -

Organizational resources that are visible and easy to assess

about taking over management at present, the produce farm is? John and brother jack started produce farm, thinking about retirement, cousins start talking

Owner managed business

Of all relationships in a family business, the ________ relationship has been the most troublesome?

Parent-child

Jim founder of a family business specializing in real estate, this action would?

Potentially be inconsistent with future successful operation of business

According to study by NFIV, most common source for new ideas is?

Prior work experience

In preparing for succession, the senior generation has certain responsibilities, one is?

Senior generations should hold the next generation accountable

Demographic trends include all of the following except?

Social status

New market ideas

Startup ideas centered around providing customers with an existing product or service not available in their market.

New benefit ideas

Startup ideas centered around providing customers with new or improved products and services or better ways of performing old functions

New technology ideas

Startup ideas involving new or relatively new technology, centered around providing customers with a new product or service

Todays smartphones don't resemble early cell phones, smart phone capabilities exceed those of first desktop computers, which trend does this represent?

Technological

Resources

The basic inputs that an entrepreneur can use to start and/or operate a business

General environment -

The broad environment, encompassing factors that influence most businesses in a society

Industry environment -

The environment that includes factors that directly impact a given firm and all of its competitors

Franchise contract

The legal agreement between franchisor and franchisee

Piggy back franchising

The operation of a retail franchised outlet within the physical facilities of a host store.

Franchisee

The party in a franchise contract that is granted a license to do business under a particular trademark and trade name by the franchisor

Franchisor

The party in a franchise contract that specifies the methods to be followed and the terms to be met by the other party.

Franchise

The right to sell the licensing company's goods or services in a particular area.

Paradox of attraction

The self-contradictory idea that an attractive market opportunity is likely to draw multiple competitors, thereby diminishing its attractiveness.

Pivot

To refocus or recreate a startup if the initial concept turns out to be flawed.

A company run by the great grandchildren of the founder would be considered a cousin consortium?

True

A family business involving 2 or more children may experience sibling cooperation, or sibling rivalry?

True

A franchising strategy where a single franchisee owns more than one unit of the franchise business is typically referred to as a multiple unit ownership strategy?

True

A key responsibility of a younger generation member who desires advancement is to understand that a leadership position in the company is earned and not an entitlement?

True

Coke soft drink bottlers are an example of a product and trade name franchisor?

True

Fads can lead to serious though sometimes short-lived, money-making opportunities but trends provide a much stronger foundation for businesses because they are connected to a larger change in society?

True

Husband and wife teams that own a business are popularly referred to as co-preneurs?

True

In many cases a franchisor will receive payments in the form of royalties that are based on a percentage of the franchisee's gross income?

True

One of the advantages of buying a franchise is that the purchaser has access to a business model with a proven track record?

True

Rule of entrepreneur, spouse in family conflicts can sometimes be described as a mediator and business relationships between the entrepreneur. and the children?

True

When a senior generation member is planning for succession, planning should encompass family, employees, and the owners?

True

When hiring nonfamily employees, the owner should identify positions that are reserved for family members?

True