Chapter 6- Avenues Of Acquiring A Business Flashcards
What is the meaning of Franchising?
An agreement between a franchisee and a franchisor according to which the franchisee obtains the right from the franchisor to use the name of the franchisor to sell products
Which documents are important for a franchisee and franchisor?
SDO
Secrecy undertaking
Disclosure document
Operations and procedures manual
What is the meaning of Outsourcing?
When a business pays another business to perform an activity the the business could perform in house
What are the advantages of Outsourcing?
Outsourcing company can focus on it’s core business activity
Outsourcing has the potential to save money
Outsourcing business has fewer expenses
Name the disadvantages of outsourcing
BPM
Business can become dependent on the Outsourcer
Managing provider can be more difficult to deal with
Provider can get access to information
What is the meaning of leasing?
Leasing is an agreement entered into by a lessor and a lessee to which the lessee acquires the right to use goods provided by the lessor for a specific time and promise to return
