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

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

In line with a franchising agreement, a franchisee may use____________.

  1. geographic region exclusively

  2. patents, designs, trade secrets and business know-how

  3. trade marks copyright and trade secrets

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

Because A Franchise Agreement is a legal, binding contract between a franchisor and franchisee. In the United States franchise agreements are enforced at the State level. Prior to a franchisee signing a contract, the US Federal Trade Commission regulates information disclosures under the authority of The Franchise Rule.

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

Advantages to a franchisor in a franchise are _____________________.

  1. capital injection

  2. market penetration

  3. risk sharing

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

Advantages to a franchisor in a franchise 
  1. capital injection is an investment of capital into a company or institution, generally in the form of cash, equity, and debt
  2. Market penetration refers to the successful selling of a product or service in a specific market.
  3. Risk Sharing is an entirely different concept. It involves sharing (dividing) common risk among two or more persons

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

___________ is the corner stone of international franchising 

  1. Concentration

  2. Adaptation

  3. Standardization

  4. Focus
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Franchising is an organizational form based on a legal agreement between an International franchisor to give standardization that is the process of implementing and developing technical standards based on the consensus of different parties that include firms, users, interest groups.

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

The franchisee pays to the franchiser a sum off money called _______ for 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

A royalty is a payment made by one party, the licensee or franchisee to another that owns a particular asset, the licensor or franchisor for the right to ongoing use of that asset.