QUESTION Which of the following, if true, strengthens the case for Sam and Nina owning the business in a partnership? A) Sam and Nina have very different personalities. B) Sam and Nina have the same skill sets. C) Sam and Nina are both motivated and energetic. D) Nina has good leadership qualities. E) Sam has […]
Date: September 3rd, 2020
QUESTION Which of the following, if true, weakens the case for Sam and Nina owning the business in a partnership? A) Sam and Nina have different personalities. B) Sam and Nina have known each other for many years. C) Sam and Nina have conflicting ideas about what would make a dry-cleaning business succeed. D) Nina […]
Date: September 3rd, 2020
QUESTION Which of the following, if true about the owners’ plan for the new business, strengthens the case that it should be registered as a limited liability corporation (LLC)? A) They want the company to be able to issue stock and offer stock benefits to employees. B) They want to form the company quickly and […]
Date: September 3rd, 2020
QUESTION Which of the following, if true, strengthens the argument for operating company-owned outlets in China? A) Traditionally, Chinese consumers have favored home-cooked meals. B) In China, credit cards are becoming a more generally accepted form of payment. C) Chinese consumers tend to be more price conscious than their American counterparts. D) Many regions in […]
Date: September 3rd, 2020
QUESTION Some of the company’s sales executives think that the company should stick to exporting its products internationally instead of using FDI, which is much more costly. The CEO, however, is insisting that FDI is worthwhile due to its potentially high rate of return over time. Which of the following, if true, strengthens the CEO’s […]
Date: September 3rd, 2020
QUESTION Which of the following, if true, weakens the argument for operating company-owned outlets? A) Under the franchise model, the franchisee bears significant financial burdens that otherwise would be paid by the larger organization. B) The Hungry Cow uses the corporate chain model in its domestic business. C) Chinese consumers are brand conscious and, in […]
Date: September 3rd, 2020
QUESTION Cyclane’s chief financial officer thinks that the company should consider engaging in FDI by constructing new facilities in another country. She argues that government incentives may be available to offset the additional cost in this endeavor. Which of the following, if true, strengthens the CFO’s argument? A) Government incentives are usually available only to […]
Date: September 3rd, 2020
QUESTION As a franchise owner, why would you want to try to maintain a good relationship with your franchisor? What will be an ideal response? ANSWER Answer: The better your relationship is with your franchisor, the more it is apt to help you with support in marketing and management and perhaps financial support as […]
Date: September 3rd, 2020
QUESTION When you buy a franchise, you, of course, pay the franchisor for the business. How else does the franchisor make money off you, the franchisee? What will be an ideal response? ANSWER Answer: The franchisor charges the franchisee royalties, a percentage of the franchisee’s sales. Explanation: One of the drawbacks of being a […]
Date: September 3rd, 2020
QUESTION Briefly describe two ways to resist a hostile takeover. What will be an ideal response? ANSWER Answer: A company can try to resist a hostile takeover in two ways: by finding a white knight or by launching a poison pill. Finding a white knight means locating an alternative buyer who is more acceptable […]
Date: September 3rd, 2020
