UGRD-BAMM6002 Franchising PDF

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A franchisor should determine whether the kind of investment the franchise system requires shall be fulfilled by the potential franchiseeSelect one:TrueFalseQuestion 2Correct Mark 1 out of 1.Flag questionQuestion text Which of the following is true in the context of fees charged by franchisors to it...

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A franchisor should determine whether the kind of investment the franchise system requires shall be fulfilled by the potential franchisee Select one: True False Question 2 Correct Mark 1.00 out of 1.00

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Question text Which of the following is true in the context of fees charged by franchisors to its franchisees? Select one: a. All of the above b. If the fees are set too low, the franchisors may not remain in a position to fulfill the promises given to the franchisees c. Setting low fees can never be competitive advantage d. If the fees are set too high, the franchise may not remain marketable against competition

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Question text

A franchise should have a long-term Answer term profit orientation

grow th orientation

rather than a short-

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Question text It is essential to design a prototype of the ,business that is to be franchised because Select one: a. it is the first step to franchise the business b. it provides the replica of real business and its intricacies c. none of the above d. it is required by law

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Question text Franchisees prefer a franchise system that

Select one: a. is more complex and takes longer to learn through the transfer the knowledge

b. involves extensive training of manpower c. is more complex because it is more profitable d. is simpler and takes little time to learn

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Question text Which of the following is true in the context of standardization of a franchise? Select one: a. It inhibits the growth of the business in international and multi-cultural context b. It allows the franchisees to tailor the offerings to meet the local requirements c. Its rigidity allows franchisors to implement the system with more consistency d. The firm must have a set of procedure and well defined way of carrying out its business.

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Question text The firms willing to expand and grow through franchising must ensure that Select one: a. The business being offered is for franchising is a proven business model

b. All the conditions show as (A), (B), and (C) above are fulfilled c. The business is profitable at unit level d. The business is not in a concept stage

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Question text A franchisor should anticipate probable source of conflicts between the franchisor and the franchisees and devise strategies to resolve them Select one: True False Question

9

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Question text A franchisee has nobody to supervise in day-to-day running of business. One should be able to cope with such isolation and be able to perform better Answer:

Ability to perform w ithout supervision

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Question text A franchisor should be aware of the competition both at the franchise level and also at the consumer level. Select one: True False Question 11 Correct Mark 1.00 out of 1.00

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Question text The management of the firm willing to grow through franchising should develop distinct management competence, Select one: a. Because they should know more legal aspects of business than commercial aspects

b. Because it is difficult to manage inorganic growth than an organic growth c. Because managing a franchise is different from managing a retail business d. Because it requires identification of the right entrepreneurial talents at various places, converting them as franchisees and maintaining a relationship to run a franchise successfully

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Question text Franchisor should develop a list of criteria to evaluate the potential franchisees. This should include Select one: a. All of the above b. Generally favorable attitude and a flair for becoming successful c. Ability to work as a team member and partner in a collaborative manner d. Strong financial background to meet the requirements of a franchise

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Question text While setting appropriate fees to be charged from the franchisees, a franchisor should Select one: a. Set the fee quite low in order to attract more franchisees to enter the franchise system b. Ensure that franchisees generate adequate revenues to be profitable at unit level c. Ensure that the financial goals of the self (franchisor) as well as that of the franchisees are fulfilled simultaneously d. Set all the fees on higher side to keep the franchise system financially healthy

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Question text Recently, Sankalp – a chain of restaurant serving South Indian dishes is planning to grow through franchising. It has more chances of being a successful franchisor because Select one: a. It is easy for a chain of stores to be a successful franchise system b.

it has a strong brand reputation c. South Indian dishes are very popular in India d. it has a proven business model since it is operating a chain of restaurants for more than two decades

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Question text Business is a very complex system and clarity may not prevail at all the aspects of business Select one: True False Question 16 Correct Mark 1.00 out of 1.00

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Question text A franchisor should not have a well-defined marketing strategy that includes market segmentation approach, targeting strategies, positioning approach, qualifications of a franchisee, franchisee profile, franchisee selection criteria, franchisee relation management approach, sales procedures, etc Select one: True False

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Question text A franchisor should not consider the impact of investments, cash flows and profits will have on the franchisor and the franchisees Select one: True False Question 18 Correct Mark 1.00 out of 1.00

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Question text A franchisee should have an internal locus of control Select one: True False Question 19 Correct Mark 1.00 out of 1.00

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Question text The franchise should have better prospects for future expansion in order to make it offer more attractive and marketable. In order to do so, the franchisor should Select one:

a. Work out a schedule of entering different geographic locations b. Clearly identify the market potential c. Do all the above as shown in (A), (B), and (C) above d. Identify core locations and peripheral locations in order to set the priority of market entry

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Question text A franchisor should ensure whether the existing management has adequate capabilities and staff to manage the growth of the franchise system. Growth of franchise system depends largely on the synergistic performance of the franchisees that are appointed to become the integral part of the franchise system Select one: True False...