SMALL BUSINESS MANAGEMENT

1. What do you understand by franchising? Franchise means giving the exclusive right to interested parties to use the name and goodwill of a well known and established business in return of loyalty and an annual lump sum. Franchiser is referred to the parent company (which is the well known and established company) while franchisee is the local company which agreed to do business with the franchiser. During the process of franchising the franchiser would help the franchisee to setup and run business by giving training, advice, supplying equipment and materials, and also assisting with the location premises and marketing. The franchiser charges a royalty for its service which is usually in the form of a lump sum and a share of the profit of the business.

2. What are the factors to be considered when engaging in franchising? Find out about the Franchisors Track Record. You Have More Bargaining Power. You Can Make an Impact. The Return on Your Investment Is Not As Certain. Verifying the Franchisors Financial Strength Is Essential Dont Be Afraid to Ask Questions. Pay Careful Attention to the Franchise Disclosure Document. Consider the Latest Trends Research the Franchises Business Model Dont Forget About Passion.

3. What are the problems may arrive in franchising? Problems in franchising Profits need to be arrived with the parent company After initial agreement unfavorable terms often imposed Most of the suppliers at a higher prices to be had from the parent in spite of better alternatives Compliances of the technologies very little scope for any R & D and innovation If want to remain only franchise, franchise agreement may appear expensive

Most important decision are taken by the parent company hence no freedom of making such decision.

4. Describes the major sources in finance in BD? Dhaka Multipurpose Co-operative Society Ltd. Investment Credit Co-Operative Society Ltd. 4. Bahrain Bangladesh Finance & Investment Co. Ltd. 5. Bangladesh House Building Finance Corporation Bangladesh Mutual Securities Ltd Bangladesh Shilpa Rin Sangstha Bay Leasing & Investment Ltd Chartered Credit Co-operative Ltd. Chartered Credit Co-operative Ltd Delta Brac Housing Finance Corporation Ltd. Global Investment Co-operative Society Ltd. Industrial Development Leasing Co. of Bangladesh Ltd. (IDLC)

5. What are the suggestions for minimizing risk in small business in BD? Remove the cause Purchase Commercial Insurance Practice Hedging Create Self Insurance Ensure Good Management Careful & safer use of tools & equipments Compliances of policies & rules with care Training & orientation Of personal Use Of flow risk materials Pre qualifying of all credit sales customers Maintaining safe & health working conditions Duplications And double filing of all important records Taking policies for all owners Involvement of employee safety and accident reduction campaigns In stallion of loss detection devices smoke detection, fire, and bulger alarms, etc.

6. list down the accounting books for maintain a sound accounting system? a. Cash book c. Sales book b. Purchase book d. Sales return book

e. Purchase return book f. Bills receivable book g. Bills payable book