Business Esentials, Student Value Edition Plus 2017 MyLab Intro to Business with Pearson eText -- Access Card Package (11th Edition)
11th Edition
ISBN: 9780134796741
Author: Ronald J. Ebert, Ricky W. Griffin
Publisher: PEARSON
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Question
Chapter 3, Problem 3.26C
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 advantages of buying the Company C as opposed to starting a business.
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Students have asked these similar questions
The benefits and drawbacks of being a franchisee are as follows: Is a franchise a viable option for someone who wants to start their own company for the first time? Discuss.
1. 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?
Why might someone with strong entrepreneurial spirit be dissatisfied with franchise ownership?
Chapter 3 Solutions
Business Esentials, Student Value Edition Plus 2017 MyLab Intro to Business with Pearson eText -- Access Card Package (11th Edition)
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
Knowledge Booster
Similar questions
- 1. Can someone be an entrepreneur without owning their own business? 2. Can a person be an entrepreneur because of the nature of the work that they do within a large corporation?arrow_forwardThe chances of success of a franchise in a short time are very high. If you understand this statement then explain the reasons behind it.arrow_forwardYou may consider franchising your business at some point. 1 - Discuss with justification, the type and model of franchise that your business will enter into? 2 - Discuss some of the ethical dilemmas that your business might be faced with.arrow_forward
- How the success of a franchisee can cause problems?arrow_forwardWhy Buying a Franchise is in general good business, Some sources estimate that a franchise has a 90% or better chance of success. Some of the reasons ?arrow_forwardLimited funds and limited growth potential are the disadvantages of which form of business? A- Partnership B- Limited Liability Company C- Sole proprietorship D- Corporationarrow_forward
- What are the key differences in the three avenues (founder, franchisee, and family owned) into the entrepreneur field? Which would you consider the best way to enter the field, and why do you feel this way?arrow_forwardIn evaluating whether or not to buy a franchise operation, the potential investor should as a series of questions. What questions should the potential investor ask about the franchisor, the franchise, the market, and the potential investor (him or herself)?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_forward
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