UGRD-BAMM6002-2413T PRELIM QUIZ 1

PRELIM QUIZ 1
Started on Thursday, 19 September 2024, 11:11 PM
State Finished
Completed on Thursday, 19 September 2024, 11:21 PM
Time taken 10 mins 35 secs
Marks 20.00/20.00
Grade 100.00 out of 100.00

Question 1 _________________ the regular payment made by the franchisee to the franchisor, usually based on a percentage of the franchisee’s gross
Correct sales
Mark 1.00 out of
1.00 Select one:
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a. Disclosure statement

b. UFOC

c. Royalty
d. Trademark

Your answer is correct.

Question 2 ________________________under this agreement, the franchisor grants the franchisee the right to operate several or multiple franchised
Correct businesses within the geographical area.
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1.00 Select one:
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a.
Area development agreement

b. Direct franchising

c.
Master franchise agreement

d. All of the choices

Your answer is correct.

Question 3
A fully integrated vertical marketing system develops when
Correct
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1.00
Select one:
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a. None of the choices

b.
Both A and B

c. A manufacturer integrates forward and attempts to reach the consumers or retailers directly by a process

d.
A retailer integrates backward and gets access to a supply chain that improves its ability and efficiency to serve the customers
 Your answer is correct.

Question 4 A franchisor is a one

Correct

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1.00
a. Who offers exclusive distributorship to the retailers
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b. Who has been granted rights to conduct business using a franchisor's know-how, the franchsior's brand and under the system
of the franchsior

c. Who deals with retailing of a single brand

d. Who owns business concept, brand and grants the franchisee the right to do business under their trademark or trade
name.

Your answer is correct.

Question 5
Master franchising is typically employed by foreign franchisors so that a resident of the territory can expand the system in areas which
Correct
the franchisor may not be familiar with.
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1.00

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Select one:

True
False

Question 6 According to International Franchise Association, franchising defined as;

Correct
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1.00
a. A contractual agreement in which the franchisor provides a licensed privilege to do business, plus assistance in organizing,
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training in return for a consideration from the franchisee

b. Continuing relationship in which the franchisor provides a licensed privilege to do business, plus assistance in organizing,
training, merchandising and, management, in return for a consideration from the franchisee

c. None of the choices

d. Continuing relationship in which the franchisor offers a running business to the franchisee for a fee and also provides
assistance in organizing, training, merchandising and, management, if the franchisee is interested

Your answer is correct.

Question 7
UFOC stands for Uniform Franchise Offering Circular
Correct

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Question 8 Direct Franchising the franchisor grants the franchisee the right to open one franchised business at one location with a specified
Correct geographic range that will be protected from other franchised businesses of the same system
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True
False
 ________________under this arrangement, a chain of retailers organized by wholesaler unite into a voluntary chain of stores, who together
Question 9
would offer a well orchestrated programme of merchandising and retailing to achieve an efficiency.
Correct
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1.00
Select one:
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a.
Wholesaler sponsored group retailers

b. None of the choices

c.
Retailer owned cooperatives

d. Franchises

Your answer is correct.

Question 10
The franchisor’s identifying marks, brand names, and a logo that are licensed to the franchisee.
Correct
Mark 1.00 out of
1.00
Select one:
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a. None of the choices

b. Royalty

c. Trademark

d. Disclosure Statement

Your answer is correct.

Question 11
The franchisee is not completely independent. Franchisees are required to operate their businesses according to the procedures and
Correct
restrictions set forth by the franchisor in the franchise agreement.
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1.00

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Select one:

True
False

Question 12
________________________retailers come together to organize a wholesaling business also known as retailer cooperative owned and
Correct
organized by members and offer variety of services to the members (retailers) to help them compete with corporate chain of stores by
Mark 1.00 out of harnessing competitiveness through scale economies
1.00
Flag question

Select one:

a.
None of the choices

b. Franchises

c.
Wholesaler sponsored group retailers
 d.
Retailer owned cooperatives

Your answer is correct.

Question 13
Product development known as Format Development strategy adopted by the retailers as a strategy to grow involves
Correct

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1.00
Select one:
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a.
Creating another format to retail either the same or different merchandise to the same or different shoppers

b. Creating another format to retailer different merchandise to the same shoppers by extending store brand

c.
None of the choices

d. Creating another format to retailer either the same or different merchandise to the existing customers by expanding product
basket and by extending the store brand

Your answer is correct.

Question 14
Some of the modes of international franchising include
Correct

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1.00
Select one:
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a. Master franchise agreement

b.
Area development agreement

c. All of the choices

d.
Direct franchising

Your answer is correct.

Question 15 Business format franchising involves

Correct

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1.00
a. The franchisor permits the franchisee gets to use the products, services, trade name, trademark and the complete or entire
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method to operate the business itself or the, prescribed business format, including the detailed marketing plan and
operations manuals

b. All types of business where the franchisor sells the products to the franchisee who in turn, sell to the final consumer

c. Designing a format by the franchisee, which is approved later on by the franchisor

d. Product modifications to be carried out in the format of the products by the franchisees
 Your answer is correct.

Question 16
Some important changes in the business environment that cause retailers to become multi-format retailers include
Correct

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a.
Advancement in technology and competitive pressure to adopt new format

b. Changing buying habits of the shoppers and willingness to shop through an alternative channel

c.
Shoppers preference to shop for most of the things under a single roof

d. All of the choices

Your answer is correct.

Question 17
____________________ is a contractual arrangement of franchisor, a parent company and an individual, it allows the franchisee to run the
Correct
business under the firms banner.
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1.00

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Select one:

a. None of the choices

b.
Wholesaler sponsored group retailers

c. Franchises

d.
Retailer owned cooperatives

Your answer is correct.

Question 18 The legal written contract between the franchisor and franchisee which tells each party what each is supposed to do
Correct

Mark 1.00 out of Select one:

1.00
a. Business Format
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b. Royalty

c. Disclosure Statement

d. Franchise Agreement

Your answer is correct.

Question 19 A franchisee is a one

Correct
Mark 1.00 out of Select one:
1.00

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a. Who has been granted the rights to conduct business using franchisor's know-how, franchisor's brand, and under the
system of the franchisor

b. Who has exclusive rights to distribute branded products of a company

c. Who deals with retailing of a single brand

d. Who owns the business concept, brand and grants franchises to the third parties

Your answer is correct.

Question 20 Product distribution franchise, franchisee simply sells the franchisor’s products without using the franchisor’s method of conducting
Correct business.
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1.00 Select one:
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True
False