Tag: recent trends of business

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Questions Related to recent trends of business

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

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

  1. Reprivatisation

  2. Franchising

  3. Contracting

  4. Divestiture
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Franchising is a common form of privatization in utility and transport services, where a private entity is granted the right to operate a service for a specific period.

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

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

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

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

Franchiser helps the franchisee on setting up business or not?

  1. Yes

  2. No

  3. Partly yes

  4. Can't say
Reveal answer Fill a bubble to check yourself
A Correct answer
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.

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

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

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

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

  1. dealership

  2. marketing

  3. agency

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

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

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

  1. Neither 1 nor 2

  2. 2 only

  3. Both 1 and 2

  4. 1 only
Reveal answer Fill a bubble to check yourself
C Correct answer
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.

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