Three Major Reasons That Explain Why Franchisors Distribute Via Franchise

question 27

Multiple Choice

Three major reasons that explain why franchisors distribute via franchise channels are:

• A) (1) reduce uncertainty; 2) obtain training; and 3) obtain assistance from franchisee.
• B) (1) capital advantages, 2) potential to reduce distribution costs, and 3) possible high level of managerial motivation fostered by franchising.
• C) (1) capital advantages, 2) obtain training; and 3) obtain assistance from franchisee
• D) (1) capital advantages, 2) potential to reduce distribution costs, and 3) obtain assistance from franchisee.
• E) (1) reduce uncertainty; 2) obtain training; and 3) possible high level of managerial motivation fostered by franchising.

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Definitions:

Held-to-maturity Securities

Debt securities that a company intends and is able to hold until they mature.

Equity Securities

Equity Securities are financial assets representing ownership interest in a company, such as stocks, which provide voting rights and potential dividends.

Multinational Corporations

Multinational corporations are large companies that operate commercially in multiple countries, expanding their manufacturing, sales, and services beyond their original borders.

Foreign Exchange Rates

The price of one country's currency in terms of another country's currency.