Ele Exam Study Guide Questions with
Correct Answers | Verified 2025 New
Update
A ___ is an option for high-growth businesses to sell their stock as a public entity in the
public equities market - Answers -✔✔ initial public offering
The new owner of an existing business should avoid implementing new policies and
standards during the transition period in order to avoid upsetting the employees -
Answers -✔✔ false
Which of the following valuation methods requires that the net cash flow be projected for
some period of time in the future? - Answers -✔✔ discounted future net cash flow
A franchisor makes money by: - Answers -✔✔ selling the franchise, providing specific
training, collecting a percentage of sales
According to the book, if a business owners efforts to turn around the business fail, what
is the best option? - Answers -✔✔ declare bankruptcy of the business
What chapter of bankruptcy allows a firm to be reorganized in 90 days - Answers -✔✔
11
The basic contract a franchisor provides to a franchise is called a - Answers -✔✔
franchise agreement
A franchisor typically provides __ support through such things as brochures, signs,
logos, advertisements, and sales techniques - Answers -✔✔ marketing
In a declining small burins, the owner and key managers should resign to improve the
chances that the business can turnaround successfully. new owners and managers will
likely have better ideas to improve performance - Answers -✔✔ false
In franchising, the __ is the firm that originates the idea for the business and develops
the operational methods - Answers -✔✔ franchisor
A method of business valuation that takes the earnings of a business and multiples that
figure by the market premium of companies in its industry is called - Answers -✔✔
market estimation
Each franchisor will have a different package to sell to a franchisee - Answers -✔✔ true
Correct Answers | Verified 2025 New
Update
A ___ is an option for high-growth businesses to sell their stock as a public entity in the
public equities market - Answers -✔✔ initial public offering
The new owner of an existing business should avoid implementing new policies and
standards during the transition period in order to avoid upsetting the employees -
Answers -✔✔ false
Which of the following valuation methods requires that the net cash flow be projected for
some period of time in the future? - Answers -✔✔ discounted future net cash flow
A franchisor makes money by: - Answers -✔✔ selling the franchise, providing specific
training, collecting a percentage of sales
According to the book, if a business owners efforts to turn around the business fail, what
is the best option? - Answers -✔✔ declare bankruptcy of the business
What chapter of bankruptcy allows a firm to be reorganized in 90 days - Answers -✔✔
11
The basic contract a franchisor provides to a franchise is called a - Answers -✔✔
franchise agreement
A franchisor typically provides __ support through such things as brochures, signs,
logos, advertisements, and sales techniques - Answers -✔✔ marketing
In a declining small burins, the owner and key managers should resign to improve the
chances that the business can turnaround successfully. new owners and managers will
likely have better ideas to improve performance - Answers -✔✔ false
In franchising, the __ is the firm that originates the idea for the business and develops
the operational methods - Answers -✔✔ franchisor
A method of business valuation that takes the earnings of a business and multiples that
figure by the market premium of companies in its industry is called - Answers -✔✔
market estimation
Each franchisor will have a different package to sell to a franchisee - Answers -✔✔ true
