Business Organization Quiz

Which of the following is a way to organize a business?

• Sole Proprietorship

• Partnership

• Franchise

• Corporation

What is one of the ways to organize a business that focuses on mutual benefit and shared ownership?

• Franchise

• Cooperative

• Non-Profit Organization

• Sole Proprietorship

What is a franchise?

• A. A type of investment

• B. A contractual agreement to use the name & sell the products/services of a company in a designated area

• C. A form of government

• D. A type of insurance

Which of the following can a franchise be owned as?

• A. Sole proprietorship

• B. Partnership

• C. Corporation

• D. All of the above

Who is a franchisee?

• A person or group who buys the rights to use a well-known name and product

• A parent company who grants the rights to use the name and product

• A person who sells products directly to consumers

• A company that manufactures goods

Who is a franchisor?

• A person or group who buys the rights to use a well-known name and product

• A parent company who grants the rights to use the name and product

• A person who sells products directly to consumers

• A company that manufactures goods

What is a Franchise Fee?

• A fee paid by the franchisor to the franchisee to open the franchise.

• A fee paid by the franchisee to the franchisor in order to open the franchise.

• A fee paid by the franchisee to the franchisor for marketing purposes.

• A fee paid by the franchisor to the franchisee for using the brand name.

What is typically included in the Franchise Fee?

• A one-time fee for the life of the contract to use products, name, etc.

• A monthly fee for using the franchise's brand.

• A fee for administrative and support functions.

• A fee for marketing and advertising.

What is a Royalty Fee?

• A fee that a business franchise owner must pay to the franchisor.

• A fee that a franchisor must pay to the franchisee.

• A fee for using the franchise's products.

• A fee for marketing and advertising.

How is the Royalty Fee usually calculated?

• As a fixed monthly fee.

• As a percentage of sales.

• As a one-time fee.

• As a fee for each product sold.