Tutorial 12 (Week 7)
Tutorial 12 (week 7)
Topic 5: Franchising
MCQ
1. | According to our textbook, which of the following is not a quality to look for in prospective franchisees? | | a. | individual, rather than team-oriented | | b. | ability to follow instructions | | c. | experience in the industry in which the franchisee operates | | d. | ability to operate with minimal supervision | | e. | adequate financial resources and a good credit history |
Answer: A
2. | According to a concept called ________ theory, it is more effective for the units of a growing chain to be run by franchises than by managers, because managers are usually paid a salary, and may not be as committed to the success of their individual units as franchisees, who are in effect the owners of the units they manage. | | a. | agency | d. | leadership | | b. | stimulus | e. | motivation | | c. | control | | |
Answer: A
3. | According to the textbook, from the franchisor 's point of view, the primary disadvantage of franchising is that: | | a. | it is not legal in 11 states | | b. | an organization allows others to profit from its trademark and business method | | c. | franchise organizations consistently makes less money than alternative forms of business ownership | | d. | it typically takes longer to grow an organization via franchising than company-owned stores | | e. | the franchisees, rather than the franchisor, typically makes most of money |
Answer: B
4. | Because franchisees put their personal capital at risk, they are highly motivated to make their franchise outlets successful. According to the textbook, this advantage of franchising a business is referred to as: | | a. | franchisee owner-incentive | d. | institutional theory | | b. | franchisee impulse | e. | franchisee motivation | | c. | agency theory | | |
Answer: E
5. | Which of the following was not identified in the
Topic 5: Franchising
MCQ
1. | According to our textbook, which of the following is not a quality to look for in prospective franchisees? | | a. | individual, rather than team-oriented | | b. | ability to follow instructions | | c. | experience in the industry in which the franchisee operates | | d. | ability to operate with minimal supervision | | e. | adequate financial resources and a good credit history |
Answer: A
2. | According to a concept called ________ theory, it is more effective for the units of a growing chain to be run by franchises than by managers, because managers are usually paid a salary, and may not be as committed to the success of their individual units as franchisees, who are in effect the owners of the units they manage. | | a. | agency | d. | leadership | | b. | stimulus | e. | motivation | | c. | control | | |
Answer: A
3. | According to the textbook, from the franchisor 's point of view, the primary disadvantage of franchising is that: | | a. | it is not legal in 11 states | | b. | an organization allows others to profit from its trademark and business method | | c. | franchise organizations consistently makes less money than alternative forms of business ownership | | d. | it typically takes longer to grow an organization via franchising than company-owned stores | | e. | the franchisees, rather than the franchisor, typically makes most of money |
Answer: B
4. | Because franchisees put their personal capital at risk, they are highly motivated to make their franchise outlets successful. According to the textbook, this advantage of franchising a business is referred to as: | | a. | franchisee owner-incentive | d. | institutional theory | | b. | franchisee impulse | e. | franchisee motivation | | c. | agency theory | | |
Answer: E
5. | Which of the following was not identified in the