Not-For-Profit Organisation + Franchising

Question 1

any profit is . . .

Answer 1

put back into business; owners do not keep any profit

Question 2

unincorporated association

Answer 2

unlimited liability

Question 3

social enterprise

Answer 3

profit reinvested to support social aim

Question 4

charities

Answer 4

tax relief and can apply for certain grants

Question 5

franchising

Answer 5

business gives a franchisee rights to sell their products and use trademarks

Question 6

what must a franchisee do?

Answer 6

pay an upfront fee and give a percentage of profits

Question 7

pros franchising

Answer 7

expansion with investment, no opening costs, low risks, increases awareness of business

Question 8

cons franchising

Answer 8

franchisor loses complete control on operations, can negatively affect image

Question 9

business location

Answer 9

best environment for a business to produce and sell most effectively

Question 10

factors for location

Answer 10

raw materials (dependant on type), labour (wage costs), competition, rent, market (type), e-commerce (rent and be out of town), price competition

Question 11

competition - location

Answer 11

near = easy to find skilled workers/ access to suppliers

Question 12

rent - location

Answer 12

dependant on place

Question 13

labour - location

Answer 13

competition on price

Question 14

price competition