Which of the Following Statements About the Purchase of a Franchise

question 68

Multiple Choice

Which of the following statements about the purchase of a franchise is NOT correct?

• A)A franchisee has the right to change the operating procedures to improve the business's profitability in his or her territory.
• B)A franchisee has the right to use the franchisor's brand name.
• C)A franchisor provides operational advice to a franchisee.
• D)A franchisor provides some level of marketing advice and assistance.

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Definitions:

3-D Printers

3-D printers are machines that create three-dimensional objects by adding material layer by layer, based on digital models.

Third Industrial Revolution

The period characterized by the digital revolution and the use of electronics and information technology to automate production.

Law of Diminishing Returns

A principle stating that as one factor of production is increased while others are held constant, there comes a point at which the marginal gain in output begins to decrease.

Long Run

A period in which all factors of production and costs are variable, allowing for complete adjustment to changes.