Which of the Following Is True of Franchising

question 66

Multiple Choice

Which of the following is true of franchising?

• A)A franchise is essentially an unpackaged business, where the policies, procedures, and buying patterns have to be established prior to beginning operations.
• B)The purchase of a well-honed, thoughtfully positioned franchise can dramatically decrease the downside risk inherent in the process of starting a business.
• C)There is no difference in the risk of buying a franchise and buying an existing business.
• D)Franchising is viewed as a new business entrepreneur's creation of a business from scratch.

---

Definitions:

Countryside

Refers to rural areas characterized by natural landscapes, farming land, and low population density, often contrasted with urbanized regions.

City

A large and permanent human settlement with complex systems for governance, communication, and transportation.

Charters

Legal documents granting rights, privileges, or authority, usually from a monarch or other sovereign authority, to an individual, group, or organization.

Western Europe

A region comprising the western part of Europe, known for its developed economies, democratic governments, and rich cultural history.