Which of the Following Statements Is TRUE About International Franchisors

question 33

Multiple Choice

Which of the following statements is TRUE about international franchisors?

• A) Entry into numerous foreign markets is tough and costly.
• B) Maintaining control over franchisees is seldom difficult.
• C) Franchisors need to invest substantial capital.
• D) Franchisees may use franchise knowledge to start a competing business.

Recognize the impact of behavioral biases such as overconfidence, over-optimism, and over-precision on investor decisions and market phenomena like bubbles.

Identify the characteristics and causes of the Internet bubble of 1995-2000.

Understand how the slope and intercept of the budget line relate to investor choices and the characteristics of risk-free and risky assets.

Analyze the effect of investor psychology on portfolio optimization and market outcomes.

---

Definitions:

Tender Offer

A type of takeover in which the aggressor corporation offers the target shareholders a price above their stock’s current market value.

Market Value

The estimated price at which a good or service would trade in a competitive marketplace.

Board of Directors

A group of individuals elected by shareholders to oversee the management and make major decisions for a corporation.

Officer

An individual holding a position of authority or command, especially within a governmental, military, or corporate structure, responsible for enforcing laws or policies.