In franchising ______ pay fees and royalties to a _______ in return for the right to sell its product or services und the franchiser's trad name and often use its business format system.

franchisee, franchiser

Franchising is currently dominated by:

Retail Outlets

_____________ franchising exists when a frachisee is licensed to sell specific products under the franchiser's brand name throught a selective distribution system.

Product Distribution

In _______ franchising, a franchisee purchases only the right to become identified with the franchiser's trade name.

Trade Name

_____________ franchising involves providing the franchisee with a complete busines system-- the established name, the building layout and design, accounting systems, etc.

Pure

Most gasoline products are sold throught the _______ system of franchising.

product distribution

McDonald's is and example of a ______ franchise.

Pure

The success of franchising is largely due to:

the neutral benefits it provides to the franchiser and the franchisee.

McDonald's worldwide success as a franchise can be attributed to a few simple strategies,

ability to obtain prime locations in hight trafic areas.

A significant advantage a franchisee has over the independent small business owner is participation in the franchiser's ________.

centralized and large-volume buying power.

In view of the cause of most new business failures, probably the most valuable service provided franchisees by the franchiser is:

Management Training and Experience.

The franchising boom spearheaded by ____ in the late 1950s brought with it many prime investment opportunities.

McDonalds

In franchising, the reputation of the franchiser is dependent on:

The quality of the goods and services provided.

When buying and existing business, the potential buyer should remember that:

It is a long process and the buyer should be patient.

One advantage of buying an existing business is:

Equipment is installed and production capacity is known.

When it comes to buying an existing business, it is not uncommon to find it:

bargain priced.

When buying an existing business, one should remember that:

The real reason for selling is seldom stated honestly.

The inventory in an existing busines:

needs to be checked for age and salability.

Accounts receivalve in an existing business:

are rarely worth thier face value.

The first step and entrepeneur should take when acquiring an existing business is to:

analyze his/her skills, abilities, and interests in an honest self audit.

Once an entrepreneur has evaluated him/herself the next step in the acquisition process would be to:

prepare a list of potential candidates and investigate them.

When conduction a self evaluation it is important to consider:

What kind of business you want to have and want to advoid.

The biggest source for the best companies to buy is:

the hidden market.

The process of gathering information about the company, valuing the company, and performing a detailed review of all records, agreements, and compliance is called:

due diligence.

When negotiating the deal, the most important thing to remember is:

terms are more important than price paid.

Perhaps the ideal source of financing the purchase of an existing business is:

The seller

Which of the following statements concerning the financing of a business purchase is true?

The buyer should be able to make the payments on the loans out of the company's cash flow.

For entrepreneurs, a business plan is:

All the above

A business plan performs a number of functions including:

Attracting capital for the start-up

The _____ becomes the document that summarizes the analysis that has been done to justify a new business.

business plan

A business plan:

forces and entrepreneur to think a business idea through, considering both its positive and its negative aspects.

A well-developed business plan provides the entrepreneur with a number of benefits, such as:

Determining the principle risks confronting the business.

The primary purpose of building a business plan is to:

provide direction, to create a "target" to shoot for.

A business plan for the small business owner:

Contains both a marketin plan and a financial plan.

_____ is the process of creating and delivering desired goods and services to customers, and involves all of the activities associated with winning and retaining loyal customers.

Marketing

Small businesses can compete with larger rivals with bigger budgets by employing unconventional, low-cost creative techniques known as:

guerilla marketing techniques

The focus of the small company's marketing plan is:

The customer.

The marketing plan builds a strategy for success:

from the customer's point of view.

The marketing plan should include certain key objectives, such as:

pinpointing  the specific target markets a small business will serve.

Shifting patterns in the age, income, education, race, and other characteristicsof the population are the subject of ______ and exert a potent force on a company's marketing plan.

demographics

A demographic trend is like a train for the small business owner in that:

he/she needs to discover where it is going early and decide whether or not to get on board.

Market Research:

Provides the information that is foundational to the marketing plan.

Market research answers what important question for the small business onwer?

Who are my customers and what are they looking for?

The primary goal of marketing research is to:

Reduce risks associated with business decisions

THe first, and most critical, step in conduction market research is to:

Define the research problem clearly.

John wants to answer the question, "What drives my customers' buying behavior?"  The best information to adress this question comes from:

Psychographics Data

When it comes to gathering market research on customers, most small companies tend to be:

data rich, lots of facts, but information poor, little in useful form.

One-to-one marketing is a marketing strategy that:

gathers data on individual customers and then tailors an appeal to their needs and tastes.

For the results of market research to provide a solution to a small business onwner's problem:

the owner must attach meaning to it.

Effective one-to-one marketing involves:

all of these

______ is a process in which computer software that uses statistical analysis, database technology, and artificial intelligence find hidden patterns, trends, and connections in data so that business owners can make better marketing decisions and predictions about customer's behavior.

Data Mining

Most marketing experts contend that the greatest marketing mistake small businesses make is:

failing to identify the target market.

When it comes to the target market, most succesful businesses:

have well-defined "portraits" of the customers they want to attract.

The key to marketing success is:

understanding customers' unique needs, wants, and preferences.

ACT!, Clementine, DataScope Pro, GoldMine, MineSet, Nuggets are what type of software packages:

Data Mining

A company's competitive edge is:

based on customers' perceptions of it products and services.

A "natural" advantage small businesses have over large business, which can be a significant competitive advantage, is:

relationship marketing.

______ puts the customer at the center of a company's thinking, planning, and action and shifts the focus from a product or service to customers and their needs and wants.

Customer Relationship Management (CRM)

______is the notion of drawing customers into a store by creating a kaleidscope of sights, sounds, smells, and activities, all designed to entertain-and, of course, sell.

Entertaining

The majority of customers who stop patronizing a particular store do so because:

an indifferent employee treated them poorly.

In reality, advertising:

is an investment in the future; without steady advertising the customer base will dry up.

Tami is developing an advertising strategy fo her small business.  The first step in this process is to:

Identify her target audience.

Effective ads are built on:

A unique selling proposition

The most meaningful unique selling proposition:

describes the primary benefit of the product.

The choice of advertising medium is primarily determined by:

The target audience and the message

There are a number of tips a small business owner can follow to build effective advertising including:

limit the content of each ad.

_____ is any commercial news covered by the media that boosts sales but for which the small business does not pay.

Publicity

The Last Hole, a small golf shop, sponsors a hole-in-one contest in a golf tournament to raise money for charity.  Anyone scoring a hole-in-one on #16 wins a complete set of clubs; the golfer closest to the pin on #16 wins a golf wardrobe.  The Last Hole is the subject of several reports and stories in the local media.  This is an example of:

Sales Promotion

When Chapters, a small book store, brings in a famous author for a special autogtraph session promoting her latest book and gets her on the local radio station, Chapters is using;

Sales Promotion

A recent study of top salespeople found that they:

Work from the customer's perspective and use past "success stories."

________ is any sales presentation that is nonpersonal in nature and is paid for by an identified sponsor

Advertising

The _______ cost of an advertising medium compares the actual dollar cost of an ad with the number of potential customers it reaches.

relative

When selecting the advertising vehicle the small business owner should ask him/herself:

Who are my target customers?