An Entrepreneur Would Choose a Franchise Over an Independent Startup

question 66

Multiple Choice

An entrepreneur would choose a franchise over an independent startup most likely because of the

• A) decision freedom it provides.
• B) guidance it provides for organizational structure.
• C) high probability of success.
• D) opportunities to meet and share ideas with other executives.

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Definitions:

Appreciates

When the value of an asset or currency increases in value in comparison to another currency or benchmark.

Non-Free Trade

Trade practices where governments impose tariffs, quotas, or regulations to restrict the free flow of goods and services between countries.

Agricultural Subsidies

Government payments to farmers to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such goods.

Tariff

A tax imposed on imported goods, intended to increase the price of foreign products to protect domestic producers.