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BUS 362 Week 2 Quiz

Advantages to buying an existing business that you do not have with a startup include:
Probably the most important reason to have a partnership agreement is that:
Before purchasing an existing business, an entrepreneur should analyze both its existing and its potential customers.
Most franchisers provide extensive financial help such as loans and low-rate financing for their franchises.
The most critical disadvantage of the sole proprietorship is:
A ________________________ is a relatively new form of partnership whose shares are traded on stock exchanges, just like a corporation’s shares.
Capital requirements, estimate earnings, and return on investment are three aspects of the financial feasibility analysis.
The most common reasons that owners of small businesses give for selling are the intensity of competition and an inability to raise sufficient cash to continue to grow.
A franchise is a system of distribution in which semi-independent business owners pay ____________ and ____________ to a parent company in return for the right to become identified with its trademark, to sell its product or services, and often to use its business format and system.
Porter’s five forces model assess industry attractiveness by surveying these five factors:

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