Scenario 5-1

question 8

Multiple Choice

Scenario 5-1. Connie is considering opening a small bakery called Connie's Cookie Cupboard. She loves to bake cookies. Family and friends have told her she should consider opening a small business using her baking skills. Connie has no business experience and no idea where to start in opening her own business. She also has very few funds available. One day she is glancing through the newspaper and notices an ad for a bakery franchise that would like to open an outlet in the local mall. This franchise provides everything from equipment to packaging to full business services. She decides to look into the opportunity further.
-In Scenario 5-1, which of the following would be the major disadvantage for Connie in purchasing a franchise?

• A) potential for business growth
• B) restrictions on her freedom and creativity
• C) marketing expertise
• D) quality control standards

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Definitions:

Intrapreneurs

Individuals in large firms who take responsibility for the development of innovations within the organizations.

Stock

Shares of a corporation that may be bought or sold.

Collateral

Assets pledged by a borrower to secure a loan or other credit, and subject to seizure by the lender if the borrower defaults.