Chapter 7 Preassessment Vocabulary

What is a business broker primarily responsible for?

• Manufacturing products

• Facilitating the buying and selling of businesses

• Designing marketing strategies

• Managing employee relations

Which term refers to a legal contract that prevents the sharing of confidential information?

• Royalty fee

• Nondisclosure agreement

• Franchise

• Trade show

What is a franchisee?

• A person who sells franchises

• A person who buys and operates a franchise

• A person who designs franchise logos

• A person who audits franchise accounts

What is the role of a franchisor?

• To purchase franchises

• To provide the business model and brand to franchisees

• To manage day-to-day operations of a franchise

• To invest in franchisee businesses

What is a royalty fee in the context of franchising?

• A one-time payment for purchasing a franchise

• A regular payment made by the franchisee to the franchisor

• A fee for attending trade shows

• A tax on franchise profits

What is a prototype in business terms?

• A final product ready for market

• An initial model or version of a product

• A marketing strategy

• A financial report

What is a trade show?

• A television program about business

• An event where businesses display and promote their products

• A type of business meeting

• A financial market for trading stocks

What does the term "pivot" mean in a business context?

• To maintain the current business strategy

• To change the direction or strategy of a business

• To increase product prices

• To hire new employees

What is meant by "window of opportunity" in business?

• A period when a business is closed

• A time frame in which an opportunity must be acted upon

• A type of business loan

• A marketing strategy

What is a business opportunity?

• A chance to invest in stocks

• A chance to start or buy a business

• A chance to attend a trade show

• A chance to hire new employees