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Encyclopedia > Business opportunity

A business opportunity , or biz-opp , involves the sale or lease of any product, service, equipment, etc. that will enable the purchaser-licensee to begin a business. The licensor or seller of a business opportunity usually declares that it will secure or assist the buyer in finding a suitable location or provide the product to the purchaser-licensee. This is different from the sale of an independent business, in which there is no continued relationship required by the seller.


Examples of biz-opps classified advertisements are: This article or section does not cite any references or sources. ...

  • $3500 Weekly! Work From Home!
  • Real Results Now! $360k 1st Year! No Gimmicks!
  • $$ Make $1000+ per week... EVERY WEEK! $$
  • Hottest Opportunity Ever (Numbers don't lie)!!
  • Get 96 sites for $7,795. Then Retire! Call 1-800-XXX-XXXX.
  • Many People Earn $36,000/year in Income, But . . . Very Few Earn $30,000/year working only five-six hours per week.
  • Access products at below wholesale pricing you can sell for HUGE profits!!

The use of a toll-free telephone number makes it difficult for customers to immediately identify the company's geographical location. Moreover, a company can own many 1-800 numbers, using a different one for each area in which it advertises. In the event of consumer complaints, this thwarts investigators from recognizing the connection between biz-ops listings in various newspapers. This article or section does not adequately cite its references or sources. ... This article does not cite any references or sources. ...


A common type of business opportunity involves a company that sells bulk vending machines and promises to secure suitable locations for the machines. The purchaser is counting on the company to find locations where sales will be high enough to enable him to recoup his expenses and make a profit. Because of the many cases of fraudulent biz-ops in which companies have not followed through on their promises, or in which profits were much less than what the company led the investor to believe, governments closely regulate these operations. Bulk vending is the sale of unsorted confections, nuts, gumballs, toys and novelties (in capsules) selected at random and dispensed generally through non-electrically operated vending machines. ...


Multi-level marketing is often presented as a business opportunity. Multi-level marketing (MLM) is a business model that combines direct marketing with franchising. ...


In the United States, the Federal Trade Commission receives complaints and helps coordinate enforcement action against fraudulent business opportunities[1]. FTC headquarters, Washington, D.C. The Federal Trade Commission (or FTC) is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act. ...


External links

  • Business Opportunities Reviews

References

  • FTC: Business Opportunities.
  • Investor Bulletin: Business Opportunity Fraud, State of Connecticut Department of Banking, July 1995.
  • What To Know About Multi-level Marketing Business Opportunities

  Results from FactBites:
 
Not a Franchise? Do Business Opportunity Statutes Apply? (1773 words)
There are a series of specific remedies for either the failure to comply with the business opportunity statutes or a willful misrepresentation either verbally or in the disclosure document that lead to a sale.
Although the business opportunity disclosure document is not overly burdensome to prepare, most entrepreneurs would prefer to avoid the characterization of their venture as a business opportunity.
Business opportunity regulations at the state level are a patchwork quilt of similar definitional statutes with widely varying prohibitions, enforcement activity, and exemptions.
  More results at FactBites »


 

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