Entrepreneurship (Mg3410113Sp)

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Question 1
3 out of 3 points

If you are a franchisor and you charge a royalty of 5% on revenue and you have franchisees that have revenues of $1 million, $2 million, $1.5 million, and $2.5 million, how much would you earn in royalties? Answer

Selected Answer:
$350,000
Correct Answer:
$350,000
Question 2
3 out of 3 points

If you buy a McDonald's franchise and agree to pay a royalty fee of 12.5% annually, how much money will you owe McDonald's at the end of a year in which you sell $98,000 of product? Answer
Selected Answer:
$12,250
Correct Answer:
$12,250
Question 3
3 out of 3 points

One way to grow your business is to use diversification, which is the addition of offerings beyond your core product or service. Answer
Selected Answer: True
Correct Answer: True
Question 4
3 out of 3 points

If you want to buy a business that is growing rapidly, what is the best valuation method to use to determine a fair price for it? Answer
Selected Answer:
future earnings method
Correct Answer:
future earnings method
Question 5
3 out of 3 points

Ways to value a business include comparison to other firms, benchmarking, or looking at a multiple of net earnings. Any of these methods is an attempt to arrive at a ________. Answer
Selected Answer:
fair market value
Correct Answer:
fair market value
Question 6
3 out of 3 points

When one is merging or being acquired, ________.
Answer
Selected Answer:
it is typically a quick and emotionless process
Correct Answer:
it is typically a quick and emotionless process
Question 7
3 out of 3 points

In valuing a business, the methods that buyers and sellers can use include ________. Answer
Selected Answer:
market-based value
Correct Answer:
market-based value
Question 8
3 out of 3 points

One way to value a business is to look at __________. In general, the business should sell for 3 to 5 times its annual net earnings. Answer
Selected Answer:
a multiple of its net earnings
Correct Answer:
a multiple of its net earnings
Question 9
3 out of 3 points

A brand is a combination of name, logo, and design that ________. Answer
Selected Answer:
becomes associated in the minds of consumers with the products or services of a company Correct Answer:
becomes associated in the minds of consumers with the products or services of a company Question 10
3 out of 3 points

To take a business public means to sell its stock on the stock market. The first offering of a business' stock is called a(n) ________. Answer
Selected Answer:
IPO
Correct Answer:
IPO
Question 11
3 out of 3 points

The harvest or exit strategies set out in a business's plan are important not only to the entrepreneur but also to ________. Answer
Selected Answer:
investors
Correct Answer:
investors
Question 12
3 out of 3 points

Which of the following is a harvest strategy, not an exit strategy? Answer
Selected Answer:
franchising
Correct Answer:
franchising
Question 13
3 out of 3 points

William Petty's article on harvesting quotes Steven Covey, who says ________. Answer
Selected Answer:
the key to being effective in life is "beginning with the end in mind" Correct Answer:
the key to being effective in life is "beginning with the end in mind" Question 14
3 out of 3 points

One of the advantages of an Employee Stock Ownership Plan is that ________. Answer
Selected Answer:
ESOPs offer tax breaks to the company
Correct Answer:
ESOPs offer tax breaks to the company
Question 15
0 out of 3 points

A ________ represents the company's promise to consistently deliver a specific set of benefits to customers. Answer
Selected Answer:
brand
Correct Answer:
product line extension program
Question 16
3 out of 3 points

________, or spreading out the brand among many products and product lines, can increase market share, but it can also ________ the...
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