Tag: recent trends of business

Questions Related to recent trends of business

The right to use the business know-how and trade mark of the franchiser is for a ________period of time. 

commerce emerging service business in india franchising outsourcing and franchising recent trends of business employment opportunities in commerce

  1. unlimited

  2. limited

  3. only for 5 years

  4. none of above

Show answer
Correct Option: B
Explanation:

Franchise agreements can last for periods as short as three years and as long as 20. Franchise Association Franchise Survey 2010 reports that franchise agreements in the UK are predominately for a fixed term of five years, with rights to renew at the end of the term.

Which of the following can be treated as disadvantages of Franchising? 

commerce emerging service business in india franchising outsourcing and franchising recent trends of business employment opportunities in commerce

  1. There is a danger that the franchisee may start an identical business with slightly different brand name.

  2. The franchiser's brand name and reputation may get tarnished if the franchisee is not able to maintain standards of quality and service.

  3. There is a risk of trade secrets getting leaked out in the foreign market.

  4. All of above

Show answer
Correct Option: D
Explanation:

Disadvantages of Franchising are as follows:

  • When a franchisee becomes skilled in the manufacture and marketing of the franchised products, there is a danger that the licensee can start marketing an identical product under a slightly different brand name. This can cause severe competition to the franchiser.
  • If not maintained properly, trade secrets can get divulged to others in the foreign markets. Such lapses on the part of the franchisee can cause severe losses to the franchiser.
  • Over time, conflicts often develop between the franchiser and franchisee over issues such as maintenance of accounts, payment of royalty and non-adherence to norms relating to production of quality products.

The Licensee pays to the Licensor, a sum of money called ________or using his business know-how and trade mark.

commerce emerging service business in india franchising outsourcing and franchising recent trends of business employment opportunities in commerce

  1. trade balance

  2. royalty

  3. sales dues

  4. account balance

Show answer
Correct Option: B
Explanation:
  • Licensing is a contractual arrangement in which one firm grants access to its patents, trade secrets or technology to another firm in a foreign country for a fee called royalty.
  • The firm that grants such permission to the other firm is known as licensor and the other firm in the foreign country that acquires such rights to use technology or patents is called the licensee. 

The word franchise is a ___________ word.

commerce emerging service business in india franchising outsourcing and franchising recent trends of business employment opportunities in commerce

  1. Anglo British

  2. Anglo Indian

  3. Anglo French

  4. Anglo Greek

Show answer
Correct Option: C
Explanation:

A BRIEF HISTORY OF FRANCHISING The History and Evolution of FranchisingThe word “franchise” is derived from the Anglo-French word meaning “liberty.” In Middle French, it is “franchir” to free. In Old French, it is “franc,” signifying free. The French term “francis” means granting rights or power to a peasant or serf.

It is form of direct marketing where customers become distributors ________.

commerce emerging service business in india franchising outsourcing and franchising recent trends of business employment opportunities in commerce

  1. franchising

  2. BPOs

  3. network marketing

  4. none of the above

Show answer
Correct Option: A
Explanation:

Franchising is a form of direct marketing where the customers become distributors as a customer asks for the franchise from the franchiser to grow his business.

The term royalty is closely associated with ________________.

commerce emerging service business in india franchising outsourcing and franchising recent trends of business employment opportunities in commerce

  1. licensing

  2. direct exporting

  3. contract manufacturing

  4. piggybacking

Show answer
Correct Option: A
Explanation:
  • Licensing is the process of permitting another party in a foreign country to produce and sell goods under your trademarks, patents or copy rights in lieu of some fee is another way of entering into international business. Licensing is a contractual arrangement which comes with a fee called royalty.
  • It is under the licensing system that Pepsi and Coca Cola are produced and sold all over the world by local bottlers in foreign countries. 

In line with a franchising agreement, a franchisee may use____________.

commerce emerging service business in india franchising outsourcing and franchising recent trends of business employment opportunities in commerce

  1. geographic region exclusively

  2. patents, designs, trade secrets and business know-how

  3. trade marks copyright and trade secrets

  4. all of the above

Show answer
Correct Option: D
Explanation:

Because A Franchise Agreement is a legal, binding contract between a franchisor and franchisee. In the United States franchise agreements are enforced at the State level. Prior to a franchisee signing a contract, the US Federal Trade Commission regulates information disclosures under the authority of The Franchise Rule.

Advantages to a franchisor in a franchise are _____________________.

commerce emerging service business in india franchising outsourcing and franchising recent trends of business employment opportunities in commerce

  1. capital injection

  2. market penetration

  3. risk sharing

  4. all of the above

Show answer
Correct Option: D
Explanation:

Advantages to a franchisor in a franchise 
  1. capital injection is an investment of capital into a company or institution, generally in the form of cash, equity, and debt
  2. Market penetration refers to the successful selling of a product or service in a specific market.
  3. Risk Sharing is an entirely different concept. It involves sharing (dividing) common risk among two or more persons

___________ is the corner stone of international franchising 

commerce emerging service business in india franchising outsourcing and franchising recent trends of business employment opportunities in commerce

  1. Concentration

  2. Adaptation

  3. Standardization

  4. Focus

Show answer
Correct Option: C
Explanation:

Franchising is an organizational form based on a legal agreement between an International franchisor to give standardization that is the process of implementing and developing technical standards based on the consensus of different parties that include firms, users, interest groups.

The franchisee pays to the franchiser a sum off money called _______ for using his business know-how and trade mark.

commerce emerging service business in india franchising outsourcing and franchising recent trends of business employment opportunities in commerce

  1. Trade balance

  2. Royalty

  3. Sales dues

  4. Account balance

Show answer
Correct Option: B
Explanation:

A royalty is a payment made by one party, the licensee or franchisee to another that owns a particular asset, the licensor or franchisor for the right to ongoing use of that asset.