An Evaluation of Franchising Would Conclude That This Type of Arrangement

question 55

Multiple Choice

An evaluation of franchising would conclude that this type of arrangement:

• A)Has become the dominant form of business organization in the United States because it has many advantages and almost no disadvantages.
• B)Appeals to people who want to own a business,but are not comfortable starting a company from scratch.
• C)Has a much higher risk of failure than independent companies.
• D)Has little chance of success outside the United States because many foreign countries do not allow such arrangements.

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Definitions:

Processing

The act of handling or manipulating data, transactions, or physical items in a prescribed manner.

Financial Electronic Data Interchange

A system that allows the transfer of financial information between organizations in a standardized electronic format.

Direct Deposit

An electronic payment method where funds are transferred directly into the recipient's bank account, bypassing the need for physical checks.

Automatic Withdrawal

A banking process where funds are automatically taken from a bank account to fulfill a financial commitment.