Describe various ways to start a business

Which of the following is NOT a characteristic of buying an existing business?

• Requires building brand awareness from scratch

• Comes with an existing customer base

• Reduces startup risks compared to a new business

• May require operational restructuring

Which of the following is a key advantage of starting a new business?

• Immediate brand recognition

• Full creative control over products and services

• Lower financial risk compared to a franchise

• Established customer base

What is a primary disadvantage of buying an existing business?

• Requires creating a business plan from scratch

• High level of uncertainty and risk

• May involve hidden liabilities or debts

• Lack of customer base

A franchisee typically pays the franchisor

• One-time licensing fees only

• Monthly royalties and other fees

• No fees at all

• A fixed annual salary

Which of the following is a major benefit of running a franchise?

• Complete independence in business operations

• Lower financial investment than starting a new business

• Established brand and operational support

• No need to follow business rules or guidelines

What is a key challenge when establishing a new business?

• Finding an existing customer base

• Dealing with franchise restrictions

• Following an existing business model

• Access to franchisor support

A franchise is best suited for individuals who:

• Prefer to build a unique brand from scratch

• Do not want to follow rules or guidelines

• Want operational support and a proven business model

• Want full control over pricing and product decisions

When purchasing an existing business, which factor should be carefully evaluated before purchase?

• The color of the office walls

• The hobbies of the previous owner

• The business’s financial records and liabilities

• The number of employees' family members

Which option provides the least financial risk for an entrepreneur?

• Starting a new business

• Buying an existing business

• Running a franchise

One of the biggest drawbacks of running a franchise is:

• Lack of an existing customer base

• High creative freedom

• Limited decision-making control

• Lack of franchisor support