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Mixed Quiz
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1

One important advantage of buying a franchise is that the entrepreneur incurs less risk.
A)True
B)False
2

By buying a franchise the entrepreneur increases the amount of money available for advertising.
A)True
B)False
3

An unproven franchise can be a suitable investment for an entrepreneur.
A)True
B)False
4

The benefits of international joint ventures rarely outweigh the drawbacks.
A)True
B)False
5

"The whole is greater than the sum of the parts" can be a definition of synergy.
A)True
B)False
6

The person buying the franchise is know as the:
A)franchisatory.
B)franchisor.
C)franchisee.
D)franchise.
7

Which of the following is the most common type of franchise?
A)A retail franchise
B)A service franchise
C)A technical process franchise
D)None of the above
8

Another name for joint venture is:
A)merger.
B)strategic alliance.
C)acquisition.
D)leveraged buyout.
9

Which of the following would be a disadvantage of starting a new business over acquisition?
A)Established customer base
B)Customer response to location
C)Existing employees
D)All of the above
10

The debt capital for most _____ usually exceeds the equity by a factor of 5:1.
A)mergers
B)leveraged buyouts
C)hostile takeovers
D)franchises





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