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:

Cohesiveness

Refers to the strength of the bonds among members of a group, which often helps in enhancing group performance and satisfaction.

Emergent

Describes phenomena or patterns that arise or develop in complex systems, often unexpectedly and without a singular entity controlling them.

Circumstantial

Depending on specific conditions or circumstances rather than being absolute or inherent; context-dependent.

Network

A structured arrangement of nodes (which can be individuals, organizations, or computers) connected by links which facilitate the exchange of information or resources.