MGT 351 Chapter 14 Quiz

Franchising opportunities have often evolved from changes in the environment as well as important social trends. This is not one of the factors responsible:

Acceptance of different cultures

The ____________ frequently issues guidelines for mergers

Department of Justice

_________ is an arrangement whereby the manufacturer or sole distributor of a trademarked product or service gives exclusive rights of local distribution to independent retailers in return for their payment of royalties and conformance to standardized operating procedures

Franchising

Which of the following was NOT a recommended method of evaluating the potential market for a new franchise in the text?

Hire a marketing firm to survey foot traffic near the proposed location

Which is NOT a strategy that is used to elicit information about the other party in a negotiation

Take up a new negotiation at the end of the first

Which of the terms in a franchise agreement is the most likely cause of a lawsuit

Termination

Joint ventures can involve a wide variety which includes:

universities, not-for-profit organizations, traditional businesses

The person who purchases the franchise is the:

franchisee

A ____________ is a separate entity that involves a partnership between two or more active participants

joint venture

A __________ occurs when an entrepreneur or an employee group uses borrowed funds to purchase an existing venture for cash

leveraged buyout

Which franchise below is an example of the most popular type of franchise

KFC

Product innovation, diversification, protection against market encroachment are some of the reasons why a company would opt out of this:

Merger

A potential franchisee should seek answers to all of the following questions while assessing the financial stability of the franchisor except:

What are the chances of further expansion of the company

The ______________ is the range of outcomes between the entrepreneur's reservation price of the other party

bargaining zone

In negotiations the _____________ task involves how the benefits of the relationship will be allocated between the parties

distributive