1. expansion will always come with additional expenses true or false

2. whether the business owner likes the type of business he or she is in is not important

true or false

3. many franchises require franchisees to pay royalties

true or false

4. once a business owner proves that a franchise is successful his or her franchise will automatically be renewed

true or false

5. buying an existing business may allow a new business owner to start making money right away

true or false

6. clearly assigned roles and responsibilities are particularly important in family businesses

true or false

7. which of the following is a potential consequence if a business has more clients than it can handle?

a. it may be purchased by another business

b. it may lose clients

c. it may be forced to close

d. it may get many customer referrals

8. why is firing a family membe

1. True 

If a business is experiencing an expansion, that business would target larger amount of consumers compared to the previous years.

In order to achieve this, the business would have to face additional expenses such as increasing advertising expense, increasing salaries that they had to pay to more workers, increasing number of materials that is used for production, increasing taxes, etc.

2. False

When the business owner likes the type of business that he/she's in, that owner would had more enjoyment in doing the job. The passion that the owner put would resulted in higher productivity and higher quality of the product. It might not necessarily guarantee the success, but it is extremely important.

3. True 

Franchises see that allowing the franchisees to use their brand as an economic benefit for the franchises. Because of this, they often require the franchises to pay a certain amount of royalties in return for the the good name that the brand already established.

4. False

Whether the franchise is successful or not would definitely become a positive factor that can determine the renewal. But, there is also many other factors that needed to be considered before the renewal. (such as existence of competitors, changes in demographic, legal matters, etc)

5. True 

It all depend on the new business owner's intention in buying the existing business. For example, if the existing business produce the materials that is used by other company that is owned by the new business owner, the new business owner could make money right away by cutting down the cost of the product for the main company.

6. True

The interaction between partners in family business often become complicated since their professional and private life are heavily intertwined from one another. Because of this, it is important to clearly assigned roles and responsibilities so none of them would take it personally in their personal life in case they are facing problems in the business side of their life. 

7. b. It may lose clients

When business had more clients that it can handle, a lot of those clients would definitely feel neglected since they business does not have enough resources to take care of them.  This would make a lot of those clients started to turn away to the competitors because they feel unappreciated.