Form of Business & Business Environment

Franchising is a relationship between ....

• Franchisor and Franchisee

• Supplier and Buyer

• Creditor and Debtor

Franchising involving an activity of giving business ..... to the franchisee.

• license

• profits

• ideas

Franchising types include the followings format except:

• Business

• Product

• Manufacturing

• Service

Business format franchising has a characteristics of cloning, uniform, strict regulations, payment of fees or royalties

• True

• False

Product Franchise involve an activity of distribution of manufacturer's product without the uniformity of building and format.

• True

• False

Manufacturing franchise allow the franchisor to produce and sell goods belong to the franchisee.

• True

• False

Which of the followings is not form of business?

• Partnership

• Corporation

• Sole Proprietorship

• Franchisee

What are the advantages of running a sole proprietorship?

• Low capital

• Easy to set up

• Profits ownership

• Lack of continuity

McDonald and KFC are examples of ____ franchise.

• manufacturing

• business

• product

• service

Limited liability gives rights to the creditors to take legal action against the shareholder of a company.

• TRUE

• FALSE