Which of the Following Challenges Is Applicable to the Franchisee

question 88

Multiple Choice

Which of the following challenges is applicable to the franchisee in a franchising agreement?

• A) The franchisee must make their own arrangements to acquire initial training and know-how.
• B) The franchisor holds much power, including superior bargaining power.
• C) There is no scope to operate an independent business.
• D) There is decreased likelihood of business success.

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Definitions:

Marketing Efforts

The actions taken by a company to promote and sell its products or services, encompassing advertising, sales tactics, and public relations strategies.

Behavioral Economics

A field of economics that examines the psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions.

Heuristics

Simple, efficient rules or strategies, often used to facilitate quick decision-making or problem-solving.

System 1

Refers to the fast, instinctive, and emotional way of thinking proposed in Daniel Kahneman's dual-process theory of the mind.