Entrepreneurship Theory Process and Practice 9th Edition Kuratko Solutions Manual

Entrepreneurship Theory Process and
Practice 9th Edition Kuratko Solutions

Manual
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CHAPTER 7 PATHWAYS TO ENTREPRENEURIAL VENTURES
CHAPTER OUTLINE
I. Creating New Ventures

A. New-New Approach to Creating New Ventures
B. New-Old Approach to Creating New Ventures
C. Examining the Financial Picture When Creating New Ventures
II. Acquiring an Established Entrepreneurial Venture
A. Personal Preferences
B. Examination of Opportunities
B. Advantages of Acquiring an Ongoing Venture
1. LESS FEAR ABOUT SUCCESSFUL FUTURE OPERATION
2. REDUCED TIME AND EFFORT
3. A GOOD PRICE
C. Evaluation of the Selected Venture
D. Key Questions to Ask
1. WHY IS THE BUSINESS BEING SOLD?
2. WHAT IS THE CURRENT PHYSICAL CONDITION OF THE
BUSINESS?
3. WHAT IS THE CONDITION OF THE INVENTORY?
4. WHAT IS THE STATE OF THE COMPANY’S OTHER ASSETS?
5. HOW MANY OF THE EMPLOYEES WILL REMAIN?
6. WHAT TYPE OF COMPETITION DOES THE BUSINESS FACE?
7. WHAT DOES THE FIRM’S FINANCIAL PICTURE LOOK LIKE?
E. Negotiating the Deal
III. Franchising: The Hybrid
A. How Franchising Works
B. Advantages of Franchising
1. TRAINING AND GUIDANCE
2. BRAND-NAME APPEAL
3. A PROVEN TRACK RECORD
4. FINANCIAL ASSISTANCE
C. Disadvantages of Franchising
1. FRANCHISE FEES
2. FRANCHISOR CONTROL
3. UNFULFILLED PROMISES
D. Franchise Law
E. Evaluating Franchising Opportunities
1. LEARNING OF FRANCHISING OPPORTUNITIES
2. INVESTIGATE THE FRANCHISOR
3. SEEKING PROFESSIONAL HELP
4. MAKING THE DECISION: IT’S UP TO THE ENTREPRENEUR
FEATURED CONTENT
Entrepreneurship in Practice: The “Real” Opportunities in Virtual Worlds
Chapter 7/ Pathways to Entrepreneurial Ventures
1
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated or posted to a publicly accessible
website, in whole or in part.
The Global Perspective: Taking Cues from the Third World
Entrepreneurship in Practice: Some of the Most Recognized Franchises
Entrepreneurship in Practice: To Franchise or Not to Franchise, That Is the Questions
The Entrepreneurial Process: The Franchise Disclosure Document
CHAPTER OBJECTIVES
1 To describe the major pathways and structures for entrepreneurial ventures

2 To present the factors involved in creating a new venture
3 To identify and discuss the elements involved in acquiring an established venture
4 To outline ten key questions to ask when buying an ongoing venture
5 To examine the underlying issues involved in the acquisition process
6 To define a franchise and outline its structure
7 To examine the benefits and drawbacks of franchising
8 To present the franchise disclosure document (FDD) as a key item in franchises
CHAPTER SUMMARY
The easiest and best way to approach a new business venture is to design a unique product or
service. Sometimes this involves what is called a new-new approach – that is, the development
of an entirely new idea for a product or service, as was the case with Zynga and Google. In most
instances, however, the prospective owner-manager must be content to use a new-old approach
by “piggybacking” on someone else’s ideas. This involves either expanding on what the
competition is doing or offering a product or service in an area where it is not presently
available.
On the financial side, the prospective owner-manager needs to examine the enterprise’s
financial picture and to determine the costs of setting up the operation and the amount of revenue
that will be generated during the initial period. Finally, the prospective owner-manager must
review a series of other operational considerations ranging from the building, merchandise, and
equipment needed for operations to record keeping, insurance, legal, marketing, and personal
matters.
Another opportunity is the purchase of an existing successful firm. It has a number of
advantages. Three of the most important are that its successful future operation is likely, the time
and effort associated with starting a new enterprise are eliminated, and a bargain price may be
possible.
Before deciding whether to buy, however, the prospective owner needs to ask and answer
a series of “right questions,” Some of these follow: Why is the business being sold? What is the
physical condition of the business? What is the condition of the inventory? What is the state of
the company’s other assets? How many of the employees will remain? What competition does
the business face? What is the firm’s financial picture?
After all questions have been answered satisfactorily, the prospective buyer must
negotiate for the business. In the final analysis, however, the prospective owner should be
concerned with buying the company’s assets at market value and then paying something for
goodwill if it is deemed an asset. Valuation is discussed further in Chapter 14.

2
LECTURE NOTES
I. Creating New Ventures

Every prospective entrepreneur wants to know the best method for getting a new business
started.
New-New Approach to Creating New Ventures

The most effective way to start a new business is via the introduction of new products or
services into a market.
Most business ideas for new ventures come from one’s experience, such as prior jobs,
hobbies or interests, and personally identified problems.
New-Old Approach to Creating New Ventures

Most small ventures do not start with a totally unique idea. Instead, they often
“piggyback” on someone else’s idea by either improving a product or offering a service
in an area where it is not currently available.
Examining the Financial Picture When Creating New Ventures

The worst thing an entrepreneur can do is adopt an “all or nothing” strategy to creating a
new venture.
The entrepreneur must consider the enterprise’s financial picture. Consideration of start-
up and monthly expenses is a must. The entrepreneur must be concerned with upside gain
and downside loss (the profits the business can make and the losses it can suffer). The
entrepreneur must gain an adequate return on the amount of money risked.
II. Acquiring an Established Entrepreneurial Venture

Prospective entrepreneurs may elect to purchase an existing business rather than start
one, but purchasing a business venture is a complex process.
Personal Preferences
Entrepreneurs need to limit their choices of ventures to buy by recognizing certain
personal factors: background, skills, interests, and experience all factors that should be
weighed in selecting the type of business to buy.
Examination of Opportunities
Business brokers, newspaper ads, trade sources, and professional sources can all be
sources of information for possible businesses to buy.
Advantages of Acquiring an Ongoing Venture

Three of the most important advantages of acquiring an ongoing venture are discussed
below.
LESS FEAR ABOUT SUCCESSFUL FUTURE OPERATION

3
A successful business has already proved that it has the ability to attract
customers and control costs.
REDUCED TIME AND EFFORT

An ongoing enterprise has already assembled the inventory, equipment, personnel
and facilities to run it.
An ongoing enterprise has already established relationships with suppliers,

bankers, and other businesspeople.
A GOOD PRICE
It may be possible to purchase on ongoing venture at a very good price.
Evaluation of the Selected Venture

Specific factors can be useful in evaluating the venture being offered, such as the local
environment of the business, its location, profit potential, and tangible and intangible
business assets.
Key Questions to Ask

Asking the right questions is critical.
WHY IS THE BUSINESS BEING SOLD?
WHAT IS THE CURRENT PHYSICAL CONDITION OF THE
BUSINESS?
WHAT IS THE CONDITION OF THE INVENTORY?
WHAT IS THE STATE OF THE COMPANY’S OTHER ASSETS?
HOW MANY OF THE EMPLOYEES WILL REMAIN?
WHAT TYPE OF COMPETITION DOES THE BUSINESS FACE?
WHAT DOES THE FIRM’S FINANCIAL PICTURE LOOK LIKE?
Negotiating the Deal

The potential buyer must negotiate the final deal. Information, time, pressure, and
alternatives are all factors that should be considered in the negotiations. Without reliable
information, the buyer is at a disadvantage; having more time to make the deal is an
advantage to that party; pressure from other owners can influence the deal; and a lack of
alternatives in whether to make the deal can conclude negotiations quickly.
III. Franchising: The Hybrid

A franchise is any arrangement in which the owner of a trademark, trade name, or
copyright has licensed others to use it in selling goods or services. A franchisee is the
purchaser of a franchise, and a franchisor is the seller of the franchise.
How Franchising Works

The franchisee usually contracts for the following business package:
• Make a financial investment in the operation
• Obtain and maintain a standardized inventory and/or equipment package

4
• Maintain a specified quality of performance
• A franchise fee
• Engage in a continuing business relationship
The franchisor usually provides:

• The company name
• Symbols, logos, designs, and facilities
• Professional management training
• Sale of specific merchandise necessary for the unit’s operations at wholesale prices
• Financial assistance
• Continuing aid and guidance
Advantages of Franchising
TRAINING AND GUIDANCE
BRAND-NAME APPEAL
A PROVEN TRACK RECORD
FINANCIAL ASSISTANCE
Disadvantages of Franchising
FRANCHISE FEES—It is not uncommon to be faced with fees of $50,000 to
$1,000,000.
FRANCHISOR CONTROL—The franchisor generally exercises a fair amount
of control over the operation in order to maintain a degree of uniformity.
UNFULFILLED PROMISES—In some cases, especially among less-known
franchisors, the franchisees have not received all they were promised.
Franchise Law
The courts tend to apply general common-law principles and appropriate federal or state
statutory definitions and rules, due to the absence of case law on franchises. Termination
provisions of franchise contracts normally favor the franchisors.
Evaluating Franchising Opportunities

Activities that potential franchisees perform:
LEARNING OF FRANCHISING OPPORTUNITIES
INVESTIGATING THE FRANCHISOR
SEEKING PROFESSIONAL HELP
MARKING THE DECISION: IT’S UP TO THE ENTREPRENEUR
SUGGESTED ANSWERS FOR DISCUSSION QUESTIONS (END OF CHAPTER)
1. Identify the three main pathways to entering business for a prospective

entrepreneur.
The three most common methods for entering business are to create a new venture,
acquire an existing venture, or obtain a franchise.

5
2. What is the new-new approach to starting a new venture? How does this approach
differ from a new-old approach?
New-new is when you enter a market with a new product or service. Examples of recent
new-new entries are plasma televisions, smartphones, and GPS devices. New-old is either
improving a product or offering a service in an area where it is not currently available.
While the new-new approach may receive more attention, it is more common to see
companies started with new-old approaches. There are a lot of underserved markets
around the world where a new-old approach can prove quite successful.
3. How can an individual who is thinking of going into business evaluate the financial
picture of the enterprise? Use the methodology of Table 7.2 to prepare your answer.
The entrepreneur must estimate how much it will cost to stay in a business for year, how
much revenue will be generated during this period, and how long it will take the company
to generate positive cash flow. An individual considering starting a business needs to
consider the start-up and monthly expenses of the operation. Upside gain and downside
losses must be estimated. What are the possible profits and losses of the company? Table
7.2 provides a helpful way of calculating these figures.
4. In addition to personal and financial issues, what other factors should the
prospective owner be concerned with? Describe at least four.
Factors to consider when going into business are many. Besides the personal and
financial, if you’re considering starting a business you should review operational
considerations such as the building, merchandise, and equipment needed for operations in
record keeping, insurance, legal, marketing, and personal matters. If you’re buying an
already existing business, you should also consider why the business is being sold, what
the condition of the business is, what the condition of the inventory is, what the state of
the company’s other assets are, how many of the employees will remain, and what the
competition is.
5. What are the advantages of buying an ongoing business? Explain them.

(1) Less fear about successful future operation—since the enterprise is already in
operation, its successful future operation is likely.
(2) Time and effort associated with starting a new enterprise are eliminated. The
inventory, equipment, personnel, and facilities are already in place.
(3) It sometimes is possible to buy an ongoing business at a bargain price. The owner
may want to sell it quickly because of retirement, illness, to raise money for an
emergence, or to pursue another opportunity soon.
6. What “right questions” need to be answered when deciding whether to buy a

business?
(1) Why is the business being sold?
(2) What is the current physical condition of the business?
(3) What is the condition of the inventory?
(4) What is the state of the company’s other assets?
(5). How many of the employees will remain?
(6) What type of competition does the business face?
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(7) What does the firm’s financial picture look like?
7. How should a prospective buyer examine the assets of a company? Explain.

The tangible (physical) and intangible (for example, reputation) assets of the company
need to be assessed. These assets include inventory (age, quality, salability, and
condition), furniture, equipment, fixtures (value, condition, lease or owned), accounts
receivable (age of outstanding debts, past collection periods, credit standing of
customers), trademarks, patents, copyrights, business name (value, role in the business’s
success, degree of competitive advantage, and goodwill (reputation, established clientele,
trusted name).
8. What is meant by the term franchise?

A franchise is any arrangement in which the owner of a trademark, trade name, or
copyright has licensed others to use it in selling goods or services.
9. In a franchising agreement, what is the franchisee often called on to do? What

responsibility does the franchisor assume?
The franchisee usually contracts for the following business package:
(1) Make a financial investment in the operation
(2) Obtain and maintain a standardized inventory and/or equipment package
(3) Maintain a specified quality of performance
(4) A franchise fee
(5) Engage in a continuing business relationship
The franchisor usually provides:

(1) The company name
(2) Symbols, logos, designs, and facilities
(3) Professional management training
(4) Sale of specific merchandise necessary for the unit’s operations at wholesale prices
(5) Financial assistance
(6) Continuing aid and guidance
10. What are some of the major advantages of franchising? Cite and explain three.
The advantages of franchising include training and guidance from the franchisor, brand-
name appeal, a proven track record, and some financial assistance. Professional training
and guidance from an established franchise gives a franchisee a great advantage over the
small business owner starting from scratch. The franchise also has already invested
heavily to promote the name of the franchise, so the new business will have instant
recognition and legitimacy in the market. Franchises will often offer help in getting the
business started by offering loans and not requiring any repayment until the operation is
running smoothly.
11. What are some of the major disadvantages of franchising? Cite and explain at least
two.
The disadvantages of franchising are the franchise fees⎯both initial fee and royalty
payments each year, control exerted by the franchisor, and the sometimes unfulfilled
7
promises made by franchisors to franchisees. There will the usual start-up costs of
creating a business, as well as the franchise fees that must be paid. This may prove too
large a burden for the entrepreneur. Many entrepreneurs enter business to be their own
boss, but the franchise may be stifling to the owner. With less established franchises with
less reliable reputations, franchisees may become frustrated if the franchisor is lax about
holding up their end of the contract.
12. How can a prospective franchisee evaluate a franchise opportunity? Explain.

The key to evaluating the value of a prospective franchise is a proper information search.
It is important to examine the Uniform Franchise Offering Circular (UFOC), in order to
learn more about the franchise. Typically, the age of a franchise, number of retail units,
concentration in the state, and national representation are all reflected in the price.
However, it is vital to do due diligence in learning all one can about a franchise from
many sources, such as current and past owners of the franchise.
13. In evaluating whether or not to buy a franchise operation, the potential investor
should ask a series of questions. What questions should the potential investor ask
about the franchisor, the franchise, the market, and the potential investor (himself
or herself)?
There are a number of questions the potential investor should ask:
(1) What are the contract provisions? Can the franchisor take away the franchise for
minor infractions?
(2) Is the franchise prospectus reasonable? Is the projected revenue too high for a new
unit? Is the return on investment overly optimistic? Would the bank be prepared to
advance a loan on this type of business undertaking?
(3) Does the investment look promising? What might go wrong and jeopardize those
investments?
(4) Ultimately, am I willing to take the risk on this franchise?
14. What are the advantages and disadvantages of franchising?

Advantages of franchising:
(1) Training and guidance
(2) Brand-name appeal
(3) A proven track record
(4) Financial assistance
Disadvantages of franchising:
(1) Franchise fees—it is not uncommon to be faced with a fee of $5000 to 100,000
(2) Franchisor control—the franchisor generally exercises a fair amount of control over
the operation in order to maintain a degree of uniformity.
(3) Unfulfilled promises—in some cases, especially among less-known franchisors, the
franchisees have not received all they were promised.

8
15. Identify the Franchise Disclosure Document. Explain why it is important in
franchising.
The Franchise Disclosure Document was originally known as the Uniform Franchise
Offering Circular (UFOC). It underlies the franchise agreement (the formal sales
contract) between the parties at the time the contract is formally signed. It governs the
long-term relationship and contains the only promises and obligations of the parties to
each other that will remain in effect over the stated time term of the contracts. The FDD
is essential for providing information as to the obligations of the franchisee and
franchisor. Anyone considering buying a franchise should carefully read the FDD to
ensure it is an arrangement they want to enter into in the long term.
TEACHING NOES FOR END-OF-CHAPTER EXERCISE
The Personal Entrepreneurial Action Plan
Before a prospective entrepreneur goes into business, they need to ask a number of personal
questions. Ten questions are listed, and the reader is asked to mark the response that best fits
them. After answering the questions, the reader is to count the number of times the first choice
was selected and multiple it by 3, count the number of times the second choice was marked and
multiple it by 2, and count the number of times the third choice was marked. Total the three
numbers. The reader is advised that if the number is not at least 25, then they may want to
consider either bringing in a partner or abandoning the project.
TEACHING NOTE FOR END-OF-CHAPTER CASES
Case 7.1: An Idea for the Dogs!
1. Is anything unique about Chris’s idea? Explain.

Chris has a unique idea in the sense that he is finding a niche in the market he wants to
enter. An entrepreneur is making custom doghouses and selling them for $5,000 to
$15,000. Most doghouses sell for $50 to $150. It would appear there is middle ground for
customers who want a special home for their canine companions but can’t afford to spend
$5,000 on it. Additionally, pet owners are spending larger sums of money their dogs
these days. The idea has potential.
2. What is the first thing he should do to follow up on his idea? Explain.

Chris needs to study the market and the buying behaviors of its customers.
Is the $50 to $150 doghouse adequate for most dog owners? What would they be willing
to pay more for? What features matter most to them regarding doghouses? What are they
willing to pay for a doghouse? A profile of these buyers would be useful.
3. When this is done, what else should Chris do? Outline a general course of action for
him. Once Chris finds out whether the market has potential, he then must determine if
it’s feasible for him to pursue. A doghouse that is well insulated, floored with washable
9
vinyl, and personalized to the dog and designed like the owner’s own home would
probably be more expensive than $500. Chris must begin to work with the concept to
make it appealing to consumers, both with regards to features and price, while still being
profitable to him. At this point, Chris might consider writing a business plan to examine
the different elements of his business that must be in place for him to be successful.
Case 7.2: Checking It Out
1. What is your appraisal of the situation? Does it look good or bad?

Arlene must be very careful in this situation. The fact that the company has 111
franchises throughout the nation is a potentially good sign. The $75,000 franchise fee and
the 4 percent of gross revenues may be reasonable too. However, Arlene must do her due
diligence to insure that there are no potential problems with this franchise. There are
troubling signs. First, a woman is willing to sell her franchise for less than the $75,000
franchise fee, which would imply that she is wanting to get out of the situation. Also, she
is having a hard time acquiring information about the franchise. The lack of
professionalism displayed by the franchisor is also a concern.
2. Would you recommend that Arlene buy the franchise from the woman who has
offered to sell? Why or why not?
Arlene should not buy the franchise from the woman. It could potentially be a good deal,
but she does not have enough information to go off of to make such a big decision. She
must first know all she can about the franchise before buying it.
3. What would you recommend Arlene do now? Be complete in your answer.

I would recommend Arlene do more due diligence. She needs to learn all she can about
the franchise. Does the franchise deliver on its promises? Is it supportive of its
franchisees? What is the track record of other franchisees? Until she has answers to
questions, she should pass on buying this franchise.
SMALL BUSINESS AND ENTREPRENEURIAL RESOURCE CENTER
Sources:
Question 1:
Franchising Weathers Economic Challenges (IFA PRESIDENT'S COLUMN)(Industry
overview). Matthew Shay.
Franchising World 40.5 (May 2008): p8(1).
Source Citation: Shay, Matthew. "Franchising weathers economic challenges.(IFA
PRESIDENT'S COLUMN)(Industry overview)." Franchising World 40. 5 (May 2008): 8(1).
Small Business Resource Center. Gale. Higher Education. 5 Nov. 2012.
Question 2:
Want to Buy a Business? Your Timing is Right
10
Kiplinger Business Forecasts 2007.(Nov 5, 2007): pNA.
Source Citation: Mogul, Matthew. "Want to Buy a Business? Your Timing is Right." Kiplinger
Business Forecasts 2007. (Nov 5, 2007): NA. Small Business Resource Center. Gale. Higher
Education. 12 Oct. 2012.
Questions:
1. Why have franchises, historically, outperformed independent businesses during times

of economic uncertainty? What evidence does the article provide to substantiate this
claim?
A. One major reason franchises have historically outperformed independent businesses during
bad economic times is job security. As corporations tighten their belts and reduce their
workforces, those who find themselves facing layoffs begin the search for alternatives. One
popular alternative is self-employment and it doesn't take long to realize that owning a
franchise is a much better alternative than starting a business from scratch.
As evidence of the resiliency of the franchising industry is the fact that the economic output
due to franchising grew by more than 40 percent, while all other businesses increased by only
26 percent. Employment in franchising grew by more than 12 percent compared to the 3
percent of other businesses. These growth rates have proven, beyond anecdotal evidence, that
franchising is counter-cyclical to an underperforming economy.
2. Why is there going to be a glut of businesses on the market for sale? What can you do
to prepare, if you were going to sell or buy one of these businesses?
A. Expect that many businesses will go up for sale as thousands of baby boomers retire. With
about 8,000 Americans turning 60 every day, more and more business owners are thinking
about retiring. By 2009, an estimated 750,000 companies owned by boomers -- one in every
six -- will be looking for buyers, up fifteen-fold from 2001.
Most firms will sell to strangers. Children today feel less pressure to run the family business,
and even those that want to often find it tough to come up with the cash to pay off parents or
other relatives who hold shares in the firm. Family in-fighting and prolonged legal spats also
make family handoffs that much harder. Studies show that less than 15% of family
businesses successfully make it down the third generation.
There will be opportunities to buy businesses at a discount. With roughly 20 million more
people in the boomer generation than the X Generation, there will be fewer potential buyers,
so a good price will be harder to find. Current business owners will need to an exit strategy to
avoid selling at a steep discount.
Expert advice is a must. Owners need to consult a battery of advisers, from attorneys to
accountants to appraisers, at least a year or so ahead of any expected sale. Potential buyers,
including rival businesses, private equity firms and venture capitalists, all have sophisticated
experts on their side and owners will need to be able to keep up. An exit planning team will

11
do everything from entertaining bids from potential suitors to making sure the sale is tax-
advantageous to spotting and correcting hidden liabilities that could torpedo a sale.
One option that's growing more popular is selling to employees -- either a management
buyout or employee stock ownership plan (ESOP). Both take time to set up but give owners
the fulfillment that they're passing on their legacy. In management buyouts, owners must
weed out ill-suited managers and groom and train the best personnel so the firm will succeed
without them. In these cases, management will often buy into the business over a number of
years.
An ESOP tends to be a good route for firms with stable earnings and revenue. But the plan
gets way too costly for small firms -- those under $1 million in yearly pre-tax profit -- due to
associated upkeep costs like annual appraisals.

12

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Entrepreneurship Theory Process and

Practice 9th Edition Kuratko Solutions

I. Creating New Ventures

1 To describe the major pathways and structures for entrepreneurial ventures

Chapter 7/ Pathways to Entrepreneurial Ventures

I. Creating New Ventures

New-New Approach to Creating New Ventures

New-Old Approach to Creating New Ventures

Examining the Financial Picture When Creating New Ventures

II. Acquiring an Established Entrepreneurial Venture

Advantages of Acquiring an Ongoing Venture

Chapter 7/ Pathways to Entrepreneurial Ventures

REDUCED TIME AND EFFORT

An ongoing enterprise has already established relationships with suppliers,

Evaluation of the Selected Venture

Key Questions to Ask

Negotiating the Deal

III. Franchising: The Hybrid

How Franchising Works

Chapter 7/ Pathways to Entrepreneurial Ventures

The franchisor usually provides:

Evaluating Franchising Opportunities

SUGGESTED ANSWERS FOR DISCUSSION QUESTIONS (END OF CHAPTER)

1. Identify the three main pathways to entering business for a prospective

Chapter 7/ Pathways to Entrepreneurial Ventures

5. What are the advantages of buying an ongoing business? Explain them.

6. What “right questions” need to be answered when deciding whether to buy a

7. How should a prospective buyer examine the assets of a company? Explain.

8. What is meant by the term franchise?

9. In a franchising agreement, what is the franchisee often called on to do? What

The franchisor usually provides:

12. How can a prospective franchisee evaluate a franchise opportunity? Explain.

14. What are the advantages and disadvantages of franchising?

Chapter 7/ Pathways to Entrepreneurial Ventures

TEACHING NOES FOR END-OF-CHAPTER EXERCISE

The Personal Entrepreneurial Action Plan

TEACHING NOTE FOR END-OF-CHAPTER CASES

Case 7.1: An Idea for the Dogs!

1. Is anything unique about Chris’s idea? Explain.

2. What is the first thing he should do to follow up on his idea? Explain.

Case 7.2: Checking It Out

1. What is your appraisal of the situation? Does it look good or bad?

3. What would you recommend Arlene do now? Be complete in your answer.

SMALL BUSINESS AND ENTREPRENEURIAL RESOURCE CENTER

1. Why have franchises, historically, outperformed independent businesses during times

Chapter 7/ Pathways to Entrepreneurial Ventures

Chapter 7/ Pathways to Entrepreneurial Ventures

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