An advantage of buying an existing business is that policies and procedures are already established.

• True

• False

An advantage of buying an existing business is that a large amount of capital is not required.

• True

• False

An advantage of buying an existing business is that it is guaranteed to be financially stable.

• True

• False

When buying a business, you should have an accountant write up the sales contract.

• True

• False

When buying a business, you should have a lawyer write up the sales contract.

• True

• False

Entrepreneurs who work for their family business...

• must be prepared to compromise

• cannot make all decisions themselves

• must enjoy working with relatives

• all are correct

A disadvantage of owning a franchise is some profits are returned to the franchisor as royalty fees.

• True

• False

A disadvantage of owning a franchise is only certain products or services may be offered.

• True

• False

A disadvantage of owning a franchise is a large amount of initial capital is usually needed.

• True

• False

Who pays the operating costs for a single franchise?

• Franchisee

• Franchisor