Question

answer the following multiple - choice questions. circle the best answer.

1. which of the following is the main advantage of buying an existing business compared to starting a new one?

a) it requires no upfront investment
b) it already has a customer base and established systems
c) it offers unlimited creativity without restrictions
d) it guarantees long - term success

1. a student is interested in opening a subway restaurant in their town. which business path are they pursuing?

a) starting a new business
b) buying an existing business
c) purchasing a franchise
d) entering into a partnership

1. which of the following is a drawback of purchasing a franchise?

a) difficulty attracting customers
b) high risk of business failure
c) less independence in decision - making
d) no training or support provided

1. if an entrepreneur wants total creative control over branding, menu, and prices, which option best fits their goal?

a) start a new business
b) buy an existing business
c) purchase a franchise
d) none of the above

1. which business model typically has the lowest risk of failure?

a) new startup
b) existing business purchase
c) franchise
d) partnership with a friend

1. which of the following is the biggest challenge when starting a new business?

a) limited creativity
b) attracting an initial customer base
c) following franchisor rules
d) inheriting financial problems

1. which option is best for an entrepreneur who wants immediate brand recognition and training?

a) start a new business
b) buy an existing business
c) purchase a franchise
d) work as a manager in a company

1. which of the following is the best example of seasonal demand?

a) students buy takis every day at lunch

Explanation:

1. Buying an existing business has an established customer - base and systems, which is a major advantage over starting new. Starting new requires building these from scratch.
2. Subway is a well - known franchise brand, so opening a Subway restaurant means purchasing a franchise.
3. Franchisees have to follow the franchisor's rules and guidelines, which limits their independence in decision - making.
4. Starting a new business allows an entrepreneur to have full creative control over branding, menu, and prices as they are building the business from the ground up.
5. Franchises typically have a lower risk of failure because they are part of an established brand with a proven business model, training, and support.
6. Attracting an initial customer base is a significant challenge when starting a new business as there is no pre - existing customer following.
7. Franchises offer immediate brand recognition as they are part of a well - known brand, and franchisors usually provide training to franchisees.
8. No options for question 8 are provided, so it cannot be answered.

Answer:

1. b) It already has a customer base and established systems
2. c) Purchasing a franchise
3. c) Less independence in decision - making
4. a) Start a new business
5. c) Franchise
6. b) Attracting an initial customer base
7. c) Purchase a franchise
8. No answer (options not given)