Which of the following is a benefit of franchising for franchisees?
A) The franchisee finds it easier to borrow money from financial institutions.
B) The franchisee receives ownership of the franchisor's trade mark.
C) The franchisee must change its operations to suit those of the franchisor's.
D) The franchisee collects royalty payments from the franchisor.
E) The franchisee is paid by the franchisor for being part of the system.
A
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Which of the following assumptions is not required for Miller and Modigliani’s (MM) dividend theory?
A. Shareholders have no transaction costs when buying and selling shares. B. There are no taxes. C. Investors sort themselves into dividend clienteles.
By definition, a consumer's surplus occurs when ________
A) there are more buyers for a product than units of the product available for sale B) there are more units of a product available for sale than buyers of the product C) consumers purchase a product at a price greater than the utility of the product D) consumers purchase a product at a price less than the utility of the product E) consumers assign a lower utility to a product than marketers had expected