All of the Following Are Considered Advantages of Franchising Except

question 44

Multiple Choice

All of the following are considered advantages of franchising except

• A) reduced risk of failure.
• B) access to a proven system.
• C) restricted sales territories.
• D) immediate economies of scale.

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Definitions:

Variance

A statistical measure of the dispersion of returns for a given security or market index, indicating the degree of volatility.

Portfolio Diversification

The practice of investing across different financial assets to reduce risk by spreading exposure.

Systematic Risk

The risk inherent to the entire market or market segment, which cannot be reduced through diversification.

Total Risk

The complete range of risks involved in an investment, encompassing both systematic and unsystematic risks.