Tag: employment opportunities in commerce
Questions Related to employment opportunities in commerce
Franchising is___________.
-
purchasing all parts of the company
-
allowing another party to use product or service under owner's name
-
joining two or more companies
-
a company acquiring another company at its will
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.
The salient feature(s) of franchising is/are____________.
-
the franchiser allows the franchisee to use his trade mark under a license.
-
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.
-
the franchiser do not provide training of personnel working in the franchisee organization or any other type of help.
-
all of above
Salient features of franchising are
- Well established business.
- Needs limited investment.
- Easy entry in new markets.
- Business has large establishments.
- Helps in diverting business risks.
- Results in a large turnover.
- Separates labor and specialization.
- Allows use of brand name and trademark.
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.
-
(X) = Franchisee; (Y)=Franchiser
-
(X) = Franchiser; (Y)=Franchisee
-
(X) = Consignor; (Y)=Consignee
-
(X) = Consignee; (Y)=Consignor
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.
Where a firm allows another firm in a foreign market to use its technical know-how and trade mark, it is known as _________.
-
franchising
-
network marketing
-
indirect marketing
-
all of above
- 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
The right to use the business know-how and trade mark of the franchiser is for a ________period of time.
-
unlimited
-
limited
-
only for 5 years
-
none of above
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?
-
There is a danger that the franchisee may start an identical business with slightly different brand name.
-
The franchiser's brand name and reputation may get tarnished if the franchisee is not able to maintain standards of quality and service.
-
There is a risk of trade secrets getting leaked out in the foreign market.
-
All of above
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.
-
trade balance
-
royalty
-
sales dues
-
account balance
- 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.
-
Anglo British
-
Anglo Indian
-
Anglo French
-
Anglo Greek
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 ________.
-
franchising
-
BPOs
-
network marketing
-
none of the above
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 ________________.
-
licensing
-
direct exporting
-
contract manufacturing
-
piggybacking
- 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.