Quiz 4

The franchisor develops the business model, brand, products and/or services, operating systems and quality control standards.

• True

• False

The franchisee will pay the franchisor ongoing royalty payments, a specified percentage of revenue, during the entirety of the franchisee's operations.

• True

• False

A franchisee has the ability to make changes to aspects of the business model, such as changes to the product or service, without permission from the franchisor.

• TRUE

• FALSE

Which three items are types of business compensation? (Choose 3.)

• Stock Options

• Bonuses

• Net Profits

• Subscription Fees

• Commissions

Design thinking is a process. In which order should you complete this process?

Move all the actions to the answer area and place them in the correct order.
(HINT: Every Day I Play Tennis)

Which two characteristics represent a business opportunity? (Choose 2.)

• Market saturation

• Scarce resources

• Scalability

• Identified target market

Answer explanation

C. Scalability – A good business opportunity has the potential for growth and expansion.

D. Identified target market – A clear target market ensures there is demand for the product or service.

A. Market saturation and B. Scarce resources are challenges rather than indicators of a strong business opportunity.

Which set of characteristics represent the maturity stage of the business life cycle?

• Low sales, high costs, little profits

• Increasing sales, reduced costs, some profits

• Consistent sales, reduced costs, increasing profits

• Reducing sales, constant costs, reducing profits

What is the main reason for a startup company to create a business plan?

• Get funding from an investor or lender

• Determine if the business solves a problem

• Determine the management of the company

• Create an executive summary

What is the purpose of the executive summary in a business plan?

• Discuss what you expect your business to accomplish

• Focus on the amount of money that you need to set up your business

• Show that you understand the industry and the specific market you plan to enter

• Describe how you intend to get your products and services in front of your target customers

Answer explanation

In simpler terms, the executive summary tells the reader what the business is all about and why it's a worthwhile investment.

In which stage of the design thinking stage would you generate solutions that could potentially solve the problem?

• Define

• Ideate

• Empaathize

• Prototype