B) Advance payment in the hope of a future profit

C) Periodic payments (royalties) from the profit gained by a purchaser during the time of validity

Of a contract.

3. Lump sum payments are:

a) Reparations or payments by transfer on the basis of the government’s estimation.

b) Single payments according to the experts’ estimation.

C) Fiscal payments — specific taxes.

4. The purchasing of a licence from a franchiser under the known brand name is:

A) Hardly probable as none of the famous firms want(s) to share either its name or its profit.

B) A widespread practice; for example, 30 per cent of import goods coming to Russia under

Well-known European brands have been manufactured by Asian firms.

C) Impossible as it is not profitable to small and medium-sized firms.

5. What would you refer to the advantages of arranging business under franchising?

A) Firstly, there are regular verifications (financial and technical) of your firm by the specialists

Of a larger company.

B) Secondly, it becomes necessary to adhere to the methods of conducting your business in

Accordance with the instructions of a larger company.

C) Still it remains your own business, with a small commercial risk; in addition, you have an

Opportunity to receive permanent support and recommendations of a larger company.

6. What would you refer to the disadvantages of arranging business under franchising?