Chapter 2- Generating And Protecting Business Ideas

Question 0

What is a franchising?

Answer 0

Franchising is when the owner of a business grants a licence to another person or business to use their business idea.

Question 1

Name a source of business ideas?

Answer 1

• Spotting trends
• Identifying a niche market
• Copying other countries
• Taking a scientific approach

Question 2

What are the advantages of franchising?

Answer 2

+Franchises offer the least amount of risk for a start-up
+Franchise business usually have established brand names
+Relationship with suppliers already established by franchisor

Question 3

What are the disadvantages of franchising?

Answer 3

• The franchisor may not have researched the area of establishment.
• Costs may be higher than expected
• Other franchisees may give the brand a bad reputation
• Agreement restrictions on how business should be run

Question 4

What is a copyright?

Answer 4

This is a legal protection against copying for authors, artists and composers

Question 5

What is a patent?

Answer 5

This is an official document granting the holder the right to be the only user or producer of a newly invented product or process for a specified period.

Question 6

What is a trademark?

Answer 6

A trademark is a sign, logo, symbol or words displayed on a company’s product or on its advertising, including sounds or music, which distinguishes it’s brands from those of its competitors.