Entrepreneurship Chapter 7

Question 1

If buying an existing business you should ask for important info in written form from the owner

Accepted Answer

True

Question 2

Which of the following is NOT an advantage to buying an existing business

Accepted Answer

Capital is not required for a new business since it exist

Question 3

The Federal Bureau agency monitors false or misleading advertising and price setting

Accepted Answer

False

Question 4

All of the following info is included in a Franchise Disclosure Document EXCEPT

Accepted Answer

Name , address , and phone number of all current franchise

Question 5

When buying an existing business ask the owner to provide you with financial accounting for

Accepted Answer

Past three years

Question 6

Franchisors often help buyers with marketing , merchandising and site selection

Accepted Answer

True

Question 7

Entrepreneurs should be able to handle minor legal matters themselves

Accepted Answer

True

Question 8

A legally binding agreement between two or more persons or parties is called a license

Accepted Answer

False

Question 9

Federal Trade Commission requires franchise 14 days to give buyers detailed disclosure document

Accepted Answer

True

Question 10

The copyright on a book remains in effect until the author dies

Accepted Answer

False

Question 11

90% of all business including small and medium-sized companies are owned by families

Accepted Answer

True

Question 12

Initial franchise fees are usually refundable if the franchise owner goes into another business

Accepted Answer

Fasle

Question 13

Its easier to start a new business than to take over an existing business or purchase franchise

Accepted Answer

False

Questions 13