Franchises Can Be Used for Which Types of Businesses

question 93

Multiple Choice

Franchises can be used for which types of businesses?

• A) services
• B) goods
• C) goods and/or services
• D) goods and services, but only for services if the services are connected with a particular good
• E) services and goods, but only for goods if a "secret formula" is connected with a particular good

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Definitions:

Demand

The willingness and ability of consumers to purchase goods or services at a given price level.

Supply

The complete quantity of a product or service that can be bought at a particular price point.

Price Floor

A legally established minimum price for a good, or service. Normally set at a price above the equilibrium price.

Competitive Market

A market structure characterized by a large number of buyers and sellers, free entry and exit, and a high level of competition.