MGMT 3850 CHAPTER 6 HOMEWORK QUESTION AND ANSWERS

MGMT 3850 MGMT 3850 MGMT 3850 CHAPTER 6 HOMEWORK CHAPTER 6 HOMEWORK QUESTION AND ANSWERS QUESTION AND ANSWERS QUESTION AND ANSWERS QUESTION AND ANSWERS QUESTION AND ANSWERS Essentials of Entrepreneurship & Small Business Mgmt., 7e (Scarborough) Chapter 6 Franchising and the Entrepreneur 1) A franchise is a system of distribution in which semi-independent business owners pay ________ and ________ to a parent company in return for the right to become identified with its trademark, to sell its product or services, and often to use its business format and system. A) a percentage of sales; royalties B) upfront costs; incremental costs C) royalties; monthly consulting charges D) fees; royalties Answer: D Diff: 2 Page Ref: 195 AACSB: Analytic Skills Learning Obj.: 1 2) Franchises total annual sales represent nearly ________ percent of total annual sales and employ nearly one in ________ workers in the Unities Sates in more than 300 industries. A) 8: 17 B) 12: 8 C) 17; 8 D) 2: 21 Answer: C Diff: 3