cheeseman_buslaw7_tif_40

cheeseman_buslaw7_tif_40 - 40 OFBUSINESS 1 One advantage of...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
1) One advantage of franchising is that the different franchise outlets can have similar quality goods. Answer: TRUE Diff: 1 Topic: Franchises 2) Typically a franchisee is a subsidiary of the franchisor. Answer: FALSE Diff: 2 Topic: Franchises 3) A franchisee is also a licensee. Answer: TRUE Diff: 1 Topic: Franchises 4) An automobile dealership is an example of a distributor franchise. Answer: TRUE Diff: 1 Topic: Types of Franchises 5) Most fast-food franchises are chain-style franchises. Answer: TRUE Diff: 1 Topic: Types of Franchises 6) A company that has a franchise to manufacture and distribute Coca-Cola has a processing plant franchise. Answer: TRUE Diff: 1 Topic: Types of Franchises 108 FRANCHISES AND SPECIAL FORMS  OF BUSINESS 40
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
7) State franchise administrators developed a uniform disclosure document called the Uniform Franchise Offering Circular. Answer: TRUE Diff: 1 Topic: State Disclosure Laws 8) The FTC mandates that franchisors make full presale disclosure nationwide to prospective franchisees. Answer: TRUE Diff: 2 Topic: FTC's Franchise Rule 9) A franchisor who violates FTC disclosure rules is subject to an injunction and civil fines. Answer: TRUE Diff: 1 Topic: FTC's Franchise Rule 10) Franchisors are not permitted to make sales projections to hypothetical franchisees. Answer: FALSE Diff: 1 Topic: FTC's Franchise Rule 11) The Lanham Trademark Act allows franchisors as well as others to register their trademarks and service marks with the Patent and Trademark Office in Washington, D.C. Answer: TRUE Diff: 1 Topic: Trademark Law and Trade Secrets 12) Franchisors are never the owners of product formulas. Answer: FALSE Diff: 2 Topic: Trademark Law and Trade Secrets 13) Franchise agreements frequently include training requirements for franchisees and their employees. Answer: TRUE Diff: 1 Topic: The Franchise Agreement 109
Background image of page 2
14) A franchisee is usually free to set its own cleanliness and quality standards. Answer: FALSE Diff: 1 Topic: The Franchise Agreement 15) A franchise agreement will normally contain capital requirements for the franchisee. Answer: TRUE Diff: 1 Topic: The Franchise Agreement 16) The cost of supplies purchased from the franchisor is usually not a franchise fee payable to the franchisor. Answer: FALSE Diff: 2 Topic: Franchise Fees 17) An assessment fee is a fee for the continued use of the franchisor's trade name, property, and assistance. Answer: FALSE Diff: 2 Topic: Franchise Fees 18) Licensing occurs when the owner of intellectual property contracts to permit another party to use intellectual property. Answer: TRUE Diff: 2 Topic: Licensing 19) Joint ventures are usually formed to pursue ongoing business operations rather than to focus on a single project or transaction. Answer:
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 13

cheeseman_buslaw7_tif_40 - 40 OFBUSINESS 1 One advantage of...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online