Which statement best describes the general success rate for franchises?
A) Franchises, like other small businesses, have a very high rate of failure.
B) Franchises are slightly more successful overall than other types of businesses.
C) Franchises have about a 50 percent chance of being successful.
D) Franchises have a very high success rate compared to other small businesses.
E) Obtaining a franchise is a guarantee for a successful business.
Question 2 - Pentogreen, a company that manufactures soda, offers its latest products at very low prices. Pentogreen's strategy is based on the assumption that more customers will be willing to buy its products if they're offered at lower prices. Pentogreen has adopted this strategy to attract a larger customer base and increase its sales volume even though it will only gain a small profit on each individual sale. In this scenario, Pentogreen has implemented the _____ strategy.
A) high/low pricing
B) skimming pricing
C) penetration pricing
D) loss-leader pricing
Question 3 - You stop at a SUBWAY to get a sandwich for lunch and you notice that they now have TCBY yogurt. This is an example of a
A) co-branded establishment.
B) franchise.
C) small business.
D) dual-sponsored business.
E) dual-branded franchise.
Question 4 - Which of the following statements is true of penetration pricing?
A) Penetration pricing makes sense only in categories that have a significant group of consumers who would be willing to pay a premium.
B) Penetration pricing involves increasing product prices to target upscale consumers.
C) A company using the strategy of penetration pricing makes a huge profit from the sheer volume of sales.
D) A company using the strategy of penetration pricing gains a very high profit on each individual sale.
Question 5 - Carmen Catucci is considering going into business. She wants to offer an income tax service. To minimize her chances of failure, she might consider
A) buying a franchise.
B) starting from scratch.
C) dealing only with wealthy people.
D) trying to enter the manufacturing industry instead.
E) borrowing money from the SBA.
Question 6 - In the context of a supply chain, which of the following statements is true of the different modes of transportation?
A) Transportation by planes is the fastest but most expensive means of transport.
B) Pipelines offer the lowest on-time dependability and the lowest frequency of shipments among all the major modes of transportation.
C) Marketers usually rely on a single mode of transportation.
D) Ships offer the least flexibility in handling, but the highest on-time dependability of all major modes of transportation.
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