What Is the Most Significant Disadvantage of Owning a Franchise

question 166

Multiple Choice

What is the most significant disadvantage of owning a franchise?

• A) Start-up costs
• B) Operational guidelines
• C) Difficulty obtaining loans
• D) Double taxation
• E) Competition

---

Definitions:

Open Systems

A perspective in organizational theory that views organizations as entities that interact with their environments to acquire resources and adapt to changes.

Intellectual Capital

Intellectual capital is the intangible value of a company's knowledge, experience, and intellectual property, contributing to its competitive advantage.

Structural Capital

The knowledge, processes, databases, and intellectual property that an organization possesses, which together contribute to its value and productivity.

Employee Capital

The value that employees bring to an organization through their skills, knowledge, and abilities, contributing to its competitive advantage and success.