Which of the Following Is a Disadvantage of Franchising

question 55

Multiple Choice

Which of the following is a disadvantage of franchising?

• A) It doesn't ensure consistent product quality.
• B) It hinders companies ability to engage in global strategic coordination.
• C) It involves high development costs and risks.
• D) It enables the company to collect all the profits made by the franchisees.
• E) It frees companies from the task of monitoring and assisting operations at franchisees.

Interpret beta values and their indication of a security's systematic risk level.

Understand the effects of portfolio diversification on risk.

Identify the impact of inflation and changes in risk aversion on the SML.

Calculate the expected return of portfolios and understand the role of beta in portfolio management.

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Definitions:

Native American Policy

An overarching term for the United States' policies and attitudes towards Native American tribes, which have varied greatly over time, including periods of conflict, assimilation, and negotiations.

Congress

The national legislative body of the United States, consisting of two chambers: the Senate and the House of Representatives, responsible for making federal laws.

Ohio River

A major river in the United States that flows southwesterly from western Pennsylvania to the Mississippi River, serving as a natural boundary and important transportation route historically.

Articles of Confederation

The original constitution of the United States, ratified in 1781, which was eventually replaced by the U.S. Constitution in 1789 due to its weaknesses.