Entrep Prefinal Quiz

It is a corporation organized under Subchapter of the Internal Revenue Code.

Franchise fees can be costly and cut down on profits.

• True

• False

A business that is owned exclusively by one person.

The purpose of the partnership agreement is to set down in writing the rights and responsibilities of each of the owners.

• True

• False

Owners sell their businesses for having a big income

• True

• False

These are paid to the franchise company to support television, magazine, or other advertising of the franchise as a whole.

• Advertising Fee

• Royalty Fee

• Initial Franchise Fee

• Start Up Cost

The Franchise Disclosure Document (FDD), regulates franchises and has established certain guidelines to assist those interested in buying a franchise.

• True

• False

These payments usually are a percentage of your franchise's income.

• Start Up Cost

• Advertising Fee

• Initial Franchise Fee

• Royalty Fee

In purchasing an existing business, you don't need to visit the store, just ask the owner about their background and make a contract.

• True

• False

Buying a franchise doesn't mean, it allows entrepreneurs to compete with large, well-known companies. It's not an edge.

• True

• False