ENT300 Tutorial (Chapter 5 and 6)

Which one is not advantages of starting a business from scratch?

• Higher chances of losses due to high project implementation cost.

• Free to make his/her own decisions.

• Have the opportunities to try and practice his/her own ideas.

• Free to choose suitable business location and premise, and acquiring appropriate machine and equipment for the business.

"The entrepreneurs’ responsibilities to “investigate” the business that they want to buy as well the “background” of the existing owners." This statement refer which type of business formation?

• Franchise

• Family Business Succession

• Cyber Entrepreneurship

• Buying an Existing Business

Creating a new venture from buying an existing business required several risks, INCLUDE:

• Usually has no track record

• Requires bigger amount of capital

• Family conflict

• Limited freedom

What is the advantage of family business succession?

• Early-stage limited financial resources.

• Difficulty in getting the right successor.

• Entrepreneur already have a good exposure to business environment

• Conflicts could arise

A product and/or service distribution system which is governed by a contract known as:

• Franchise

• Franchisee

• Franchisor

• Business

Entrepreneur that decided to start a business from scratch need to make some decision, EXCEPT:

• Proper business planning

• Suitable location of the business

• Register form of business later

• Business or trade name

Which is not family business challenges

• Liquidity

• Financing

• Succession

• Freedom and flexibility in making decision

Which is advantage of Starting from scratch?

• Entrepreneur have opportunities to try and practice his/her own ideas

• High chances of loss

• Not be able to accurately estimate sales, cost and profits since there was no business history

Buying existing business means entrepreneur start a new venture by taking over an existing business either buying the whole business or partial shares in the existing business

• True

• False

The definition of Franchisor is

• a company which sells the rights to another party to operate franchise

• a product or service distribution system which is governed by a contract