International Business Test

Result

International Business Test - 17

Score
-
out of -
Rank
-
out of -

TIME Taken - -

SHARING IS CARING

If our Website helped you a little, then kindly spread our voice using Social Networks. Spread our word to your readers, friends, teachers, students & all those close ones who deserve to know what you know now.

Weekly Quiz Competition

Question 1
1 / -0

The marketing mix when applied to international market must __________.

A
be standardized throughout the global market

B
ignore the cultural and environmental variations between the different markets

C
take into account the cultural and environmental variations between the different markets

D
both (a) and (b)
Solution
International business is broader concept to include export and import of goods and services and a wide variety of other ways in which the firms operate internationally.
The marketing mix that is to be applied to the international market must take into account the cultural and environmental variations between different markets as the business environment varies in different markets.
Question 2
1 / -0

Providing permission to use technical know how by parent organisation to another individual is known as ________.

A
dealership

B
marketing

C
agency

D
franchising

Solution

Franchising is a form of business by which the owner (franchisor) of a product, service or method obtains distribution through affiliated dealers franchisees. If buying an existing business doesn't sound right for you but starting from scratch sounds a bit intimidating, you could be suited for franchise ownership.
Question 3
1 / -0

Which of the following statement is not correct in relation to 'Franchise'?

A
Franchising is the practice to use the another firm's successful business model.

B
It is the business relationship between two organisations where a franchiser, who is the owner of a brand name, product or system of a business, permits a franchisee to use its brand, product or business process for a free.

C
The franchisor provides training and continuous assistance to the franchisee.

D
Franchiser shares all business and trade secrete with franchisee.
Solution
- Franchising is a “form of licensing in which a parent company (the franchisor) grants another independent entity (the franchisee) the right to do business in a prescribed manner. This right can take the form of selling the franchisers products, ‘using its name, production and marketing technique, or general business approach.” Donald W. Hackett
- Franchising is the practice to use the another firm's successful business model.
- The franchiser provides training and continuous assistance to the franchisee.
- Franchiser need not share all business and trade secrete with franchisee.
Question 4
1 / -0

In the World Bank's Ease of doing Business Ranking, 2015 India is placed at _________.

A
154 place out of the total 184 economies

B
142 place out of the total 189 economies

C
148 place out of the total 190 economies

D
146 place out of the total 188 economies
Question 5
1 / -0

The individual or firm which grants right is called _________ (X). Whereas the individual or firm to whom the right is granted is called _________.(Y).
Select the correct answer from the options given below.

A
(X) = Franchisee; (Y)=Franchiser

B
(X) = Franchiser; (Y)=Franchisee

C
(X) = Consignor; (Y)=Consignee

D
(X) = Consignee; (Y)=Consignor

Solution

Franchising is basically a specialised form of licensing in which the franchiser not only sells intangible property (normally a trademark) to the franchisee, but also insists that the franchisee agrees to abide by strict rules as to how it does business.
Question 6
1 / -0

The salient feature(s) of franchising is/are____________.

A
the franchiser allows the franchisee to use his trade mark under a license.

B
the franchise agreement do not requires the franchisee to follow franchiser's policies regarding mode of operation of business as they are free to conduct business in any way they like.

C
the franchiser do not provide training of personnel working in the franchisee organization or any other type of help.

D
all of above
Solution
Salient features of franchising are
1. Well established business.
2. Needs limited investment.
3. Easy entry in new markets.
4. Business has large establishments.
5. Helps in diverting business risks.
6. Results in a large turnover.
7. Separates labor and specialization.
8. Allows use of brand name and trademark.
Question 7
1 / -0

The right to use the business know-how and trade mark of the franchiser is for a ________period of time.

A
unlimited

B
limited

C
only for 5 years

D
none of above

Solution

Franchise agreements can last for periods as short as three years and as long as 20. Franchise Association Franchise Survey 2010 reports that franchise agreements in the UK are predominately for a fixed term of five years, with rights to renew at the end of the term.
Question 8
1 / -0

Which of the following can be treated as disadvantages of Franchising?

A
There is a danger that the franchisee may start an identical business with slightly different brand name.

B
The franchiser's brand name and reputation may get tarnished if the franchisee is not able to maintain standards of quality and service.

C
There is a risk of trade secrets getting leaked out in the foreign market.

D
All of above
Solution
Disadvantages of Franchising are as follows:
When a franchisee becomes skilled in the manufacture and marketing of the franchised products, there is a danger that the licensee can start marketing an identical product under a slightly different brand name. This can cause severe competition to the franchiser.
If not maintained properly, trade secrets can get divulged to others in the foreign markets. Such lapses on the part of the franchisee can cause severe losses to the franchiser.
Over time, conflicts often develop between the franchiser and franchisee over issues such as maintenance of accounts, payment of royalty and non-adherence to norms relating to production of quality products.
Question 9
1 / -0

The Licensee pays to the Licensor, a sum of money called ________or using his business know-how and trade mark.

A
trade balance

B
royalty

C
sales dues

D
account balance
Solution
- Licensing is a contractual arrangement in which one firm grants access to its patents, trade secrets or technology to another firm in a foreign country for a fee called royalty.
- The firm that grants such permission to the other firm is known as licensor and the other firm in the foreign country that acquires such rights to use technology or patents is called the licensee.
Question 10
1 / -0

Franchising is___________.

A
purchasing all parts of the company

B
allowing another party to use product or service under owner's name

C
joining two or more companies

D
a company acquiring another company at its will

Solution

Franchising is based on a marketing concept which can be adopted by an organization as a strategy for business expansion. Where implemented, a franchiser licenses its know-how, procedures, intellectual property, use of its business model, brand and rights to sell its branded products and services to a franchise. for example Mc Donald, KFC etc.

User

Question Analysis

Correct -
Wrong -
Skipped -

My Perfomance

Score
-
out of -
Rank
-
out of -

Re-Attempt Weekly Quiz Competition

International Business Test - 17

Result

International Business Test - 17

Score

-

Rank

-

SHARING IS CARING

Question 1

be standardized throughout the global market

ignore the cultural and environmental variations between the different markets

take into account the cultural and environmental variations between the different markets

both (a) and (b)

Solution

Question 2

dealership

marketing

agency

franchising

Solution

Question 3

Franchising is the practice to use the another firm's successful business model.

It is the business relationship between two organisations where a franchiser, who is the owner of a brand name, product or system of a business, permits a franchisee to use its brand, product or business process for a free.

The franchisor provides training and continuous assistance to the franchisee.

Franchiser shares all business and trade secrete with franchisee.

Solution

Question 4

154 place out of the total 184 economies

142 place out of the total 189 economies

148 place out of the total 190 economies

146 place out of the total 188 economies

Question 5

(X) = Franchisee; (Y)=Franchiser

(X) = Franchiser; (Y)=Franchisee

(X) = Consignor; (Y)=Consignee

(X) = Consignee; (Y)=Consignor

Solution

Question 6

the franchiser allows the franchisee to use his trade mark under a license.

the franchise agreement do not requires the franchisee to follow franchiser's policies regarding mode of operation of business as they are free to conduct business in any way they like.

the franchiser do not provide training of personnel working in the franchisee organization or any other type of help.

all of above

Solution

Question 7

unlimited

limited

only for 5 years

none of above

Solution

Question 8

There is a danger that the franchisee may start an identical business with slightly different brand name.

The franchiser's brand name and reputation may get tarnished if the franchisee is not able to maintain standards of quality and service.

There is a risk of trade secrets getting leaked out in the foreign market.

All of above

Solution

Question 9

trade balance

royalty

sales dues

account balance

Solution

Question 10

purchasing all parts of the company

allowing another party to use product or service under owner's name

joining two or more companies

a company acquiring another company at its will

Solution

User

Question Analysis

My Perfomance

Score

-

Rank

-

Results Announcement on: coming Monday

Stay Tuned: We’ll update you on your result via email or SMS.