Tag: employment opportunities in commerce

Questions Related to employment opportunities in commerce

Payment of _________ on a regular basis is to be made to the franchiser.

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  1. profits

  2. royalty

  3. fees

  4. all of the above

Show answer
Correct Option: B
Explanation:

The payment of royalty is the payment made by the franchisee to the franchiser in a regular basis for him to let the franchisee run a business with his established goodwill, trademark and processes.

The franchiser allows the franchisee to use his _______under a license.

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

  1. trademark

  2. company seal

  3. company goods

  4. company management

Show answer
Correct Option: A
Explanation:

The franchiser allows the franchisee to use his trademark under a license to start a business franchise and its processes.

The franchisee does not enjoy exclusive rights in his territory.

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

  1. false

  2. partly false

  3. true

  4. partly true

Show answer
Correct Option: A
Explanation:

The franchisee has started with an established business of the franchiser an enjoys exclusive rights in his territory of business.

If not maintained properly, trade secrets can get divulged to others in the foreign markets. This is a disadvantage of ______.

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

  1. BPO

  2. KPO

  3. Franchising

  4. Joint Venture

Show answer
Correct Option: C
Explanation:

Disadvantages of franchising. Costs may be higher than you expect. As well as the initial costs of buying the franchise, you pay continuing management service fees and you may have to agree to buy products from the franchisor. The franchise agreement usually includes restrictions on how you can run the business.

Which type of Privatisation is common in utility services and transport?

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

  1. Reprivatisation

  2. Franchising

  3. Contracting

  4. Divestiture

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Correct Option: B

Compared to licensing, franchising is a more advantageous entry mode because __________.

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

  1. it generates economies of scale in marketing to international customers

  2. it is low-risk and low-cost

  3. it offers greater control

  4. all of the above

Show answer
Correct Option: D
Explanation:

Franchising is a more advantageous entry mode as it helps in expansion of business and also generates economies of scale and also offers greater control to an organisation at a low risk and at low cost.

Franchiser helps the franchisee on setting up business or not?

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

  1. Yes

  2. No

  3. Partly yes

  4. Can't say

Show answer
Correct Option: A
Explanation:

Yes, franchiser helps the franchisee on setting up a business as it provides know-how, training to the franchisee regarding its business and also give him the rights to sell its products in the market.

Which of the following statement is not correct in relation to 'Franchise'? 

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

  1. Franchising is the practice to use the another firm's successful business model.

  2. It is the business relationship between two organisations where a franchiser, who is the owner of a brand name, product or system of a business, permits a franchisee to use its brand, product or business process for a free.

  3. The franchisor provides training and continuous assistance to the franchisee.

  4. Franchiser shares all business and trade secrete with franchisee.

Show answer
Correct Option: D
Explanation:
  • Franchising is a “form of licensing in which a parent company (the franchisor) grants another independent entity (the franchisee) the right to do business in a prescribed manner. This right can take the form of selling the franchisers products, ‘using its name, production and marketing technique, or general business approach.” Donald W. Hackett
  • Franchising is the practice to use the another firm's successful business model.
  • The franchiser provides training and continuous assistance to the franchisee.
  • Franchiser need not share all business and trade secrete with franchisee.

Providing permission to use technical know how by parent organisation to another individual is known as ________.

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  1. dealership

  2. marketing

  3. agency

  4. franchising

Show answer
Correct Option: D
Explanation:

Franchising is a form of business by which the owner (franchisor) of a product, service or method obtains distribution through affiliated dealers franchisees. If buying an existing business doesn't sound right for you but starting from scratch sounds a bit intimidating, you could be suited for franchise ownership.

By expanding network Franchising enables the franchiser to increase his -- 
1. Goodwill
2. Reputation
Select the correct answer from the option given below.

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

  1. Neither 1 nor 2

  2. 2 only

  3. Both 1 and 2

  4. 1 only

Show answer
Correct Option: C
Explanation:

Franchising is a method of expansion for an established and successful business looking to grow a network. It can also help businesses to expand both nationally or internationally, strengthen the brand and reach of a company and act as a good method of securing its future but only if it's done well.