Which of the Following Is NOT a Franchising Benefit to the Franchiser

question 73

Multiple Choice

Which of the following is NOT a franchising benefit to the franchiser?

• A) The opportunity to gain knowledge of local markets
• B) The maintenance of consistency in service outlets
• C) The control of customer relationships by the intermediary rather than the service principal
• D) The sharing of financial risk
• E) Leverage for the business to gain expansion and revenues

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Definitions:

Utilitarian Theory

A normative ethical theory that suggests that the best action is the one that maximizes utility, often defined as maximizing happiness and reducing suffering.

Deontological Theory

An ethical framework that judges the morality of an action based on its adherence to a set of rules, rather than the consequences of the action.

Profit Maximization Theory

An economic principle suggesting that the goal of a business is to increase net income by managing revenue and costs.

Rights Theory

A framework in ethical philosophy that focuses on the rights belonging to individuals, emphasizing the importance of respecting these rights in societal and personal interactions.