Why Is the Sharing of Profits a Limitation to Becoming

question 96

Multiple Choice

Why is the sharing of profits a limitation to becoming a franchisor?

• A) The franchisee will not share profits.
• B) Only part of the profits from the operation belong to the franchisor.
• C) The franchisor must spend those profits on training the franchisees.
• D) The sharing of profits reduces the franchisor's control.

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Definitions:

Elaboration Principle

A principle in instructional design suggesting that learning is enhanced when material is presented in a more detailed and expansive manner, allowing for deeper understanding.

Reciprocity Principle

A social norm suggesting that people should respond to others' actions with similar actions, leading to positive social exchanges.

Minimax Principle

A strategy in decision-making and game theory aimed at minimizing potential losses while maximizing potential gains.

Similarity Principle

The psychological theory that people are attracted to others who are similar to themselves in various aspects.