Y11 GBME Revision Quiz

What is a franchise?

• 
  A business run and owned by an individual

• 
  A business arrangement where the business model is licenced in return for ongoing fees or royalties

• 
  A business not operating for the profit or gain of its individual members

• 
  A company formed without the ability to raise money from the public

The owner of a franchise concept is called a

• Franchisor

• Franchisee

What is the maximum number of partners that can be in a partnership?

(a)  

Franchisee income profits are​ (a)   . The franchisor pays​ (b)   tax.

• taxed
• corporate
• personal
• divided

Sort the Franchise advantages and disadvantages below:

Groups:

(a) Advantages

,

(b) Disadvantages

• Ongoing cost of payments to the franchisor

• There may be restrictions on selling the business

• Less autonomy in business decisions and operational freedom

• Established operating procedures, manuals and management systems

• Obtaining finance may be easier

• well-established brand and product/service

• Franchisor offers management training and assistance

A person wishing to start a business would choose a franchise over a sole trader for what reason?

• 
  Full control of the business

• 
  Established brand recognition and proven business model

• Cheaper taxation

• 
  Unlimited liability

A fee paid from franchisee to franchisor based on percentage of sales is called a:

• Royalty fee

• Franchise fee

• Advertising fee

• Licence fee

What is a not for profit organisation?

• A business not operating for the profit or gain of its individual members

• A company formed without the ability to raise money from the public.

• a business arrangement where the business model is licenced in return for ongoing fees or royalties

• 
  A business run and owned by an individual

What are the taxation requirements for a not for profit organization?

• Owner pays income tax

• Corporate tax is paid on the profits

• Tax exempt when approved through the ATO

Sort the below into advantages and disadvantages of not for profit organisations.

Groups:

(a) Advantages

,

(b) Disadvantages

• Not closely monitored so no operational guidelines

• Positive social impact

• May be eligible for tax benefits

• Reliant on donations, grants and funding

• Inexpensive to incorporate