Which of the Following Is Not One of the Disadvantages

question 126

Multiple Choice

Which of the following is not one of the disadvantages of owning a franchise?

• A) High failure rates
• B) Sacrifice of independence
• C) Difficult to terminate
• D) On-going payments to the parent company
• E) High start-up costs

---

Definitions:

Ceases Operations

The process when a business stops its principal business activities and ends its operations.

Shareholders

Individuals or entities that own one or more shares of stock in a public or private corporation, holding an ownership stake.

Residual Claim

The right of shareholders to claim assets remaining after all debts have been paid in the event of a company's liquidation.

Debts And Obligations

Amounts of money or services owed to others that represent claims against a company or individual's assets.