Tag: employment opportunities in commerce

Quizzes (5) Questions (99)

Questions Related to employment opportunities in commerce

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

Franchising is___________.

  1. purchasing all parts of the company

  2. allowing another party to use product or service under owner's name

  3. joining two or more companies

  4. a company acquiring another company at its will
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Franchising is based on a marketing concept which can be adopted by an organization as a strategy for business expansion. Where implemented, a franchiser licenses its know-how, procedures, intellectual property, use of its business model, brand and rights to sell its branded products and services to a franchise. for example Mc Donald, KFC etc.

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

The salient feature(s) of franchising is/are____________.

  1. the franchiser allows the franchisee to use his trade mark under a license.

  2. the franchise agreement do not requires the franchisee to follow franchiser's policies regarding mode of operation of business as they are free to conduct business in any way they like.

  3. the franchiser do not provide training of personnel working in the franchisee organization or any other type of help.

  4. all of above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Salient features of franchising are  

  1. Well established business.
  2. Needs limited investment. 
  3. Easy entry in new markets.
  4. Business has large establishments.
  5. Helps in diverting business risks.
  6. Results in a large turnover.
  7. Separates labor and specialization.
  8. Allows use of brand name and trademark.

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

The individual or firm which grants right is called _________ (X). Whereas the individual or firm to whom the right is granted is called _________.(Y).
Select the correct answer from the options given below.

  1. (X) = Franchisee; (Y)=Franchiser

  2. (X) = Franchiser; (Y)=Franchisee

  3. (X) = Consignor; (Y)=Consignee

  4. (X) = Consignee; (Y)=Consignor
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Franchising is basically a specialised form of licensing in which the franchiser not only sells intangible property (normally a trademark) to the franchisee, but also insists that the franchisee agrees to abide by strict rules as to how it does business.

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

Where a firm allows another firm in a foreign market to use its technical know-how and trade mark, it is known as _________.

  1. franchising

  2. network marketing

  3. indirect marketing

  4. all of above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
  • Franchising is a term used in connection with the provision of services. McDonalds, for instance, operates fast food restaurants the world over through its franchising system.
  • Franchising is a “form of licensing in which a parent company (the franchiser) 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
Multiple choice commerce emerging service business in india franchising outsourcing and franchising recent trends of business employment opportunities in commerce

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

  1. unlimited

  2. limited

  3. only for 5 years

  4. none of above
Reveal answer Fill a bubble to check yourself
B Correct answer
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.

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

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

  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
Reveal answer Fill a bubble to check yourself
D Correct answer
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.

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

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

  1. trade balance

  2. royalty

  3. sales dues

  4. account balance
Reveal answer Fill a bubble to check yourself
B Correct answer
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. 
Multiple choice commerce emerging service business in india franchising outsourcing and franchising recent trends of business employment opportunities in commerce

The word franchise is a ___________ word.

  1. Anglo British

  2. Anglo Indian

  3. Anglo French

  4. Anglo Greek
Reveal answer Fill a bubble to check yourself
C Correct answer
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.

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

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

  1. franchising

  2. BPOs

  3. network marketing

  4. none of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
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.

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

The term royalty is closely associated with ________________.

  1. licensing

  2. direct exporting

  3. contract manufacturing

  4. piggybacking
Reveal answer Fill a bubble to check yourself
A Correct answer
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.