Question

An advantage of which of these tactics is that there is a shorter start-up time and an existing track record?

a.
Buy a franchise
b.
Buy an existing business
c.
Start a new business
d.
Participate in a business incubator
e.
Debt financing

Answer 1

The advantage of a shorter start-up time and an existing track record is typically found when buying an existing business, which includes immediate operational capabilities and customer base. Buying a franchise can also offer a quicker start-up due to structured systems in place, albeit with less autonomy than an independent business. Debt financing, however, involves borrowing money with interest repayments, suitable for businesses that prefer to maintain full ownership control.

Step-by-step explanation:

The advantage of a shorter start-up time and an existing track record is most associated with buying an existing business. When you buy an existing business, you're acquiring not only the physical assets but also the company's clientele, reputation, and operating systems. This contrasts with the process of starting a new business from scratch, which typically involves a longer period before operations can begin and profits are realized.

Choosing to buy a franchise also presents the benefit of having a structured system in place as well as ongoing support from the franchisor. In return, the franchisee pays initial franchise fees and ongoing royalties. This option can also provide quicker start-up compared to starting an entirely new business, but it usually requires adherence to established procedures and systems dictated by the franchisor.

Debt financing, on the other hand, involves borrowing funds which need to be paid back with interest. While it allows a business to maintain control without diluting ownership, it necessitates a commitment to scheduled repayments, which can be challenging for a brand-new business without an established income stream.

Answer 2

An advantage of of buying a franchise is that there is a shorter start-up time and an existing track record. The correct answer is a.

Step-by-step explanation:

Franchises come with a proven business model, established brand recognition, and operational systems in place. Entrepreneurs benefit from leveraging the success and experience of the franchisor, reducing the time needed for market research, trial, and error.

Franchisees receive comprehensive support, including training, marketing assistance, and ongoing guidance, which accelerates the business launch process. Additionally, the franchise's established reputation can attract customers quicker than starting a new venture from scratch.

This advantageous head start allows entrepreneurs to focus on operations rather than building a brand identity or testing market viability, contributing to a more immediate and potentially profitable business establishment. Therefore, the correct answer is a.