This test is run by .
Note that your final mark will not be saved in the system.
Note that your final mark will not be saved in the system.
1.4.1 The options for start-up and small businesses MatchUp
Target Level
4-5
Running Total
0
0%
Attempt
1 of 3
Click on a top box, then click on its match below. Or, drag a top box and drop it onto the correct match. Match all pairs before clicking ‘Check’.
The franchisee will not get to make decisions about products sold or prices as they will have to follow instructions from the franchisor.
Royalties will have to be paid to the franchisor on a regular basis and this will reduce the profits of the business as this will be a variable cost.
The entrepreneur runs the risk of losing their personal possessions as the business and the entrepreneur are one legal entity and so can both be sued.
The franchisor continues to provide help and support for the lifetime of the business.
The franchisor can help with finding the right location for the franchise.
Royalty
Franchisor
The entrepreneur has less risk of having to sell their own home and car if they are sued or the business goes bust as they are separate legal entities. They would lose only the value of their investment in the business.
A franchisee
State the term: A payment made to the franchisor by the franchisee based on the sales revenue of the franchise.
State the term: A person who is buying the franchise business.
State the term: The business that is offering the franchise for sale
Identify one financial disadvantage of running a franchise.
Identify one benefit for a franchisee of having a franchise.
Identify one disadvantage for an entrepreneur of starting a franchise business.
Identify one way that a franchisor can help the franchisee with setting up their business.
Identify one benefit for an entrepreneur of starting a limited liability business, e.g. a limited company.
Identify one disadvantage to an entrepreneur of starting a unlimited liability business e.g. sole trader