Which of the Following Is a Reason for the Popularity

question 55

Multiple Choice

Which of the following is a reason for the popularity of franchising in the business world?

• A)A franchisor can offer a standard, well-known product that is produced by a consistent, well-tested process.
• B)The profitability of individual franchises does not have to be shared with the franchisor.
• C)Buying a franchise does not take as much planning and thought as starting a business from scratch.
• D)There are no significant risks involved in buying a franchise as the losses will be compensated by the franchisor.

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Definitions:

Indemnity Action

A legal action seeking compensation for damages or loss from another party as recompense for harm suffered.

Duty To Defend

The duty to defend entails a legal obligation, often found in insurance policies, where the insurer must provide legal defense to the insured party in case of a lawsuit that falls under the policy coverage.

Compensatory Damages

Monetary awards issued to a plaintiff to compensate for actual losses, injuries, or damages they have incurred.

Liability Case

A legal dispute or lawsuit in which the plaintiff seeks damages from the defendant due to injury or loss caused by the defendant’s actions or negligence.