Business Essentials (12th Edition) (What's New in Intro to Business)
12th Edition
ISBN: 9780134728391
Author: Ronald J. Ebert, Ricky W. Griffin
Publisher: PEARSON
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Question
Chapter 3, Problem 3.28C
Summary Introduction
Case summary:
Company CS is an ice-cream shop which contains a list of ice-cream, toppings, cakes, and other confections. The net worth of the firm is $250,000 and the cash available is $125,000. The up-front fee of the franchise is $27,000 and it is good for a ten-year term. However, the start-up cost is $467,525 and it takes four to twelve months to open the location.
To determine: The source of funding.
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Students have asked these similar questions
select a franchise that interests you.
Once you have looked at the information provided, please prepare and submit a written report that covers the following:
Name of franchise you selected and a brief summary of the business opportunity.
Why you selected the franchise you did. What was it about this particular franchise that attracted you to it?
Start-up costs. Specify what the owner (“franchisee”) will have to invest, as well as any contributions toward start-up that the franchisor will make.
Potential profit or income from the business.
Support that the franchisor will provide the owner (“franchisee”), such as training, supplies, materials/equipment, location, building.
The purchaser of a franchise is called the franchisor. True or False
Why might someone with strong entrepreneurial spirit be dissatisfied with franchise ownership?
Chapter 3 Solutions
Business Essentials (12th Edition) (What's New in Intro to Business)
Ch. 3 - Prob. 3.1QRCh. 3 - Prob. 3.2QRCh. 3 - Prob. 3.3QRCh. 3 - Prob. 3.4QRCh. 3 - Prob. 3.5QACh. 3 - Prob. 3.6QACh. 3 - Prob. 3.7QACh. 3 - Prob. 3.8QACh. 3 - Prob. 3.9AECh. 3 - Prob. 3.10AE
Ch. 3 - Prob. 3.11ACh. 3 - Prob. 3.12ACh. 3 - Prob. 3.13ACh. 3 - Prob. 3.14ACh. 3 - Prob. 3.15ACh. 3 - Prob. 3.16TECh. 3 - Prob. 3.17TECh. 3 - Prob. 3.18TECh. 3 - Prob. 3.19EECh. 3 - Prob. 3.20EECh. 3 - Prob. 3.21EECh. 3 - Prob. 3.22CCh. 3 - Prob. 3.23CCh. 3 - Prob. 3.24CCh. 3 - Prob. 3.25CCh. 3 - Prob. 3.26CCh. 3 - Prob. 3.27CCh. 3 - Prob. 3.28CCh. 3 - Prob. 3.29CCh. 3 - Prob. 3.30C
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Similar questions
- Which form of business is generally most costly to set up but offers the most personal protection? a) Sole proprietorship b) Partnership c) Corporation d) Franchisearrow_forwardWhy do you think selling or owning a business that sells home appliances is not a bad idea? And why should I build a business like this?arrow_forwardWhat key factors should a company consider when deciding whether to pursue a franchise model as a part of their business strategy?arrow_forward
- Imagine considering starting your own business or owning a franchise. What kinds of products or services will you offer?arrow_forwardStarting up and managing a business requires one to act responsibly and ethically at all times. It is also imperative that one carefully considers the management team and the opportunities that franchising presents to a business to create a bigger brand name and increased market share You may consider franchising your business at some point. Discuss with justification, the type and model of franchise that your business will enter into.arrow_forwardCan a venture be considered to be entrepreneurial if it is a not-for-profit, or should only for-profit businesses be considered entrepreneurial?arrow_forward
- The needs of the businessperson starting a new business are a major consideration when deciding the best form of business ownership. The kind of business being started is also important to consider when deciding to make your new business a sole proprietorship, partnership, or corporation. Look at the list of new businesses below. , indicate the form of ownership you think would be best for each business and give the reasoning for your selection.arrow_forwardDescribe at least one advantage and one disadvantage of franchising for the franchisor, and at least one advantage and disadvantage of franchising for the franchisee.arrow_forward1. If someone buys a business but hires professional managers to run it so they don’t have to be involved in the operations, are they an entrepreneur? 2. Is someone an entrepreneur if they buy into a franchise so they can follow a well-established formula for running the operation? 3. Is someone an entrepreneur because of what they do or because of how they think?arrow_forward
- Entrepreneurial competencies refer to the characteristics of an entrepreneur. It requires certain qualities or characteristics for establishing and running a business enterprise. In your own words, explain the different qualities you need to acquire to become a successful entrepreneur.arrow_forwardDiscuss the possibility that your startup might become a franchisor in the future. If your business succeeds and begins to grow, would your goods or services be suitable for franchisees? Draft a paragraph or plan a brief (three-minute) presentation explaining why you think your startup might or might not ultimately mature into an attractive franchising operation.arrow_forwardHow the success of a franchisee can cause problems?arrow_forward
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