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Starting Versus Buying a Business

Total questions: 10

Worksheet time: 6mins

Name
Class
Date
1.

Beliefs and principles you choose to live by:

a)

Priorities

b)

Rewards

c)

Values

d)

Objectives

2.

Goals that you are trying to achieve:

a)

Values

b)

Goodwill

c)

Challenges

d)

Objectives

3.

The greatest advantage of a family business is the _________ and togetherness that family members share.

a)

Arguments

b)

Trust

c)

Aggravation

d)

Frustration

4.

Starting a new business requires more time and effort than opening a franchise.

a)

True

b)

False

5.

Instead of starting a new business, you could enter a ______________ or buy an existing business.

a)

Franchise

b)

Family Business

c)

Corporate Venture

d)

Strategic Alliance

6.

How can you avoid conflict when entering a family business?

a)

Establish clear lines of responsibility

b)

Have a good relationship with shareholders members

c)

Keep decisions unaffected by personal emotions

d)

Respect individual family members’ needs

7.

What you need to think about before starting your own business?

a)

Motivation

b)

Risk level

c)

Desired Profit & income

d)

Required Capital

8.

What are advantages of a franchise?

a)

Employees are hired

b)

The Franchisee gets on going quality support

c)

High risk

d)

Benefits from marketing and national advertising effort

9.

What are things you need to keep in mind before buying an existing business?

a)

The business has bad reputation

b)

The business has high debt & financial liability

c)

Does the business have on going quality support

d)

Shareholders status

10.

All of the following are advantages of buying a business except:

a)

Procedures are already established

b)

The company already has customers

c)

The equipment are already in place

d)

Profit is guaranteed