Why Is the Sharing of Profits a Drawback to Becoming

question 32

Multiple Choice

Why is the sharing of profits a drawback to becoming a franchiser?

• A) The franchisee will not share profits.
• B) Only part of the profits from the franchise operation belongs to the franchiser.
• C) There are usually no profits to share.
• D) The sharing of profits reduces the franchiser's control.

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Definitions:

Percentage Of Risk

The proportion of uncertainty or the chance of occurrence of potential adverse events expressed as a percentage.

Undesirable Outcome

An unfavorable result or effect that occurs from an action, process, or situation.

Probability

A measure of the likelihood that a particular event will occur, often expressed as a number between 0 and 1.

Occurrence

Occurrence refers to the act or fact of happening or existing in a particular time or place.