Entrepreneurship Chapter 4 Quiz

You can find businesses for sale through all of the following resources EXCEPT:

• Landlords and leasing agents

• Lawyers and Bankers

• Business Brokers

• Financial Advisors

When a business builds up goodwill and name recognition, that is also called what?

• Bankruptcy

• Customer loyalty

• Leasing

• Royalties

Advantages of buying an existing business are all of the following except

• They already have customers

• The seller may train a new owner

• Financial arrangements can be harder than other businesses

• There are prior records of revenues, expenses, and profits

Disadvantages of buying an existing business are all of the following EXCEPT

• They have lots of customers

• They may not be making a profit

• Capital is required

• Serious problems may be inherited

Buying a business is a complicated process that requires a lot of thought.

• True

• False

When thinking about buying a business, you should never ask the owner for the past history, the reason for selling, and its financial performance.

• True

• False

An expert on determining the value of a business is called

• Business Expert

• Valuator

• Lawyer

• Franchisor

Advantages for working for a family business include all of the following EXCEPT

• Pride and sense of mission

• Working with relatives

• Your efforts benefit people you care about

• Family Politics

A legal agreement that gives an individual the right to market a company's products or services in a particular area is called a

• Franchisee

• Franchise

• Franchisor

• None of these

Franchise opportunities are limited and only available in certain fields

• True

• False