Which of the Following Is a Benefit of Franchising for Franchisees

question 129

Multiple Choice

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 trademark.
• C) The franchisee must change its operations to suit those of the franchisor.
• D) The franchisee collects royalty payments from the franchisor.
• E) The franchisee is paid by the franchisor for being part of the system.

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Definitions:

Competitive Market

A market structure characterized by a large number of buyers and sellers, freedom of entry and exit, and a product that is homogeneous across suppliers, where no single buyer or seller can influence the market price.

Sellers

Individuals or entities that offer goods or services to buyers in exchange for money or other valuable consideration.

Market Failure

A situation in which the allocation of goods and services by a free market is not efficient, often leading to a net societal welfare loss.

Side Effects

Unintended consequences or secondary effects resulting from an action or decision, often seen in medicine, economics, and environmental policy.