Author Question: Which of the following is not one of the 10 warning signs that a business is growing too fast? A) ... (Read 41 times)

Ebrown · **on:** Jul 6, 2018

Which of the following is not one of the 10 warning signs that a business is growing too fast?

A) Borrowing money to pay for routine expenses
B) Comfortable operating margins
C) Customer complaints are up.
D) Those working with the business's financial structure are starting to worry.
E) E-mail and text messages start going unanswered.

Question 2

List and explain three of the common misconceptions about franchising.

What will be an ideal response?

cuttiesgirl16 · **Reply #1 on:** Jul 6, 2018

Answer to Question 1

B

Answer to Question 2

Franchising is a safe investment. Franchising, in and of itself, is no safer an investment than any other form of business ownership.
A strong industry ensures franchise success. While it is generally important to operate in a growing industry, the strength of an industry does not make up for a poor product, a poor business system, poor management, or inappropriate advertising. There are many firms that fail in growing industries just as there are firms that succeed in unattractive ones.
The franchisor is a nice person-he'll help me out if I need it. Although it may be human nature to rely on the goodwill of others, don't expect anything from your franchisor that isn't spelled out in the franchise agreement.