Small Business Management Scenarios

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What term best describes Jessie seeking advice from other small-business owners on dealing with employees, government regulation, improving processes, and problem-solving?

Relating

Incubating

Consulting

Networking (correct)

By choosing to purchase the rights to operate a Tim Horton's fast-food restaurant, Rachel Hollings is likely acting as a:

Trade creditor

Franchisee (correct)

Industrialist

Venture capitalist

Which process ensures that the plans and strategies set by management are properly executed?

Directing

Planning

Controlling (correct)

Organizing

In strategic planning, which part focuses on evaluating the internal strengths and weaknesses of a company?

Performing a SWOT analysis Signup and view all the answers

Which model is commonly used to analyze the competitive environment for a strategic business unit?

Porter's model Signup and view all the answers

After completing a SWOT analysis, what should a company do next?

Set objectives and form tactical and operational plans Signup and view all the answers

What is one advantage of buying a franchise?

Brand recognition and an existing customer base Signup and view all the answers

Why is marketing assistance considered beneficial when buying a franchise?

To help promote the franchise to potential customers Signup and view all the answers

Which of the following is a disadvantage of buying a franchise?

Payment of ongoing royalties Signup and view all the answers

How does group buying power benefit franchisees?

By offering discounted prices for supplies and products Signup and view all the answers

What is a potential risk associated with buying a franchise?

Higher chances of business failure Signup and view all the answers

How do established systems benefit franchisees?

By providing training and support on business operations Signup and view all the answers

What is a common disadvantage of buying a franchise?

High initial investment Signup and view all the answers

Which factor can make it challenging to maximize profits when owning a franchise?

Limited creative freedom Signup and view all the answers

What should individuals do before deciding to buy a franchise?

Thoroughly research the franchise opportunity Signup and view all the answers

Why can disagreements and misunderstandings between a franchisee and franchisor be damaging?

They can lead to legal disputes and harm the business's reputation Signup and view all the answers

In what way can strict oversight from franchisors impact franchisees?

It can lead to increased stress and pressure Signup and view all the answers

Why might building a franchise from scratch be challenging for franchisees?

Franchisees are required to follow the franchisor's business model and growth strategy Signup and view all the answers