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3. What aspects are not relevant in investigating the previous owner? A) why the owner is selling the business B) whether the owner will be available to help C) whether the owner will provide financing D) what college the previous owner attended 4. How can you ensure that a franchisor won't saturate your market with franchises? A) indicate territorial rights in the contract B) ensure that part of your payment to the franchisor is made in royalties C) only sign with a reputable franchise D) all of the answers are correct 5. The following is not an advantage of franchising: A) provides assistance to ownej B) eliminates a competitor C) provides financing D) provides advertising 6. One of the most valuable sources of information to utilize before signing a franchise contract is A) government agencies B) a current or previous franchisor C) industry evaluations D) your accountant I 7. Managerial incompetence and inexperience result in the following financial problems? A) underestimating financial requirements B) lack of knowledge of sources of debt and equity financing C) lack of skills in preparing and presenting a proposal D) all of the answers are correct 8. The following criteria are used to make a loan decision: A) applicant's management ability B) applicant's knowledge about the business c) how much care was taken in preparing the proposal D) all of the answers are correct