Entrepreneurship Chapter 7

Before you buy a business, you should request a written list of all suppliers

• True

• False

Even though entering a family business can give entrepreneurs a sense of pride and satisfaction, they usually do not enjoy working with relatives.

• True

• False

A disadvantage of buying an existing business is that banks are less likely to lend to a new owner.

• True

• False

In most family-owned businesses, the family members are able to keep business problems from affecting their private lives.

• True

• False

Many entrepreneurs do not have enough money to purchase an existing business.

• True

• False

The initial franchise fee, start-up costs, and royalty fees have to be paid only the first year of operation.

• True

• False

The start-up costs for a franchise include renting a facility and purchasing inventory.

• True

• False

Equipment and supplies for a franchise can be purchased at a discount from the franchisor because franchises are parts of large chains.

• True

• False

Franchises must offer only certain products or services and must charge prices set by the franchisor.

• True

• False

More than 700,000 people in the United States own franchises, and the number is growing.

• True

• False