Business Plan and Franchises Quiz

What is a business plan?

• A written description of a business’s aims, strategies, target markets and financial forecasts.

• A verbal agreement between business partners.

• A list of employees and their roles.

• A financial statement of the business.

What is the purpose of a business plan?

• Establish whether the business is likely to succeed.

• Help the business raise the finance it needs.

• Set targets to be achieved.

• All of the above.

What should be included in the background of the business section of a business plan?

• The name and address of the business.

• The aims and objectives of the business.

• What products/services it will provide.

• All of the above.

What is a SWOT analysis?

• A method to identify the current strengths and weaknesses of a business as well as the opportunities and threats facing it.

• A financial analysis of a business.

• A marketing strategy.

• A production process.

What is a franchise?

• When one firm sells the right to use its products and its brand name to another business in return for a fee and a share of the profits.

• A type of partnership.

• A sole proprietorship.

• A government-owned business.

What are the advantages of franchises?

• The idea already exists, so the entrepreneur can look at the track record of the existing business.

• The brand name may be well established.

• The franchisor provides support and training.

• All of the above.

What are the disadvantages of franchises?

• A negative response to one franchisee might affect them all.

• Franchisees must follow strict rules when operating the business.

• There is a loss of control.

• All of the above.

Which of the following is typically provided by a franchisor to a franchisee?

• Personal loans

• Government grants

• Training and ongoing support

• Shares in the company

Why might an entrepreneur choose to buy a franchise rather than start a new business from scratch?

• To operate without any rules or guidelines

• To have complete freedom over all business decisions

• To avoid paying any fees

• To benefit from an established brand and proven business model

Which section of a business plan would most likely include information about competitors and market trends?

• Organizational structure

• Background of the business

• Financial forecasts

• Market analysis