Which of the Following Is True of Franchising

question 91

Multiple Choice

Which of the following is true of franchising?

• A)Franchising is a form of foreign direct investment.
• B)The franchisee uses its own logo in the business.
• C)A firm has to spend a huge sum of money to enter the international marketplace through franchising.
• D)Franchising is especially advantageous for large manufacturers.
• E)Franchising minimizes problems associated with shipping costs,tariffs,and trade restrictions.

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Definitions:

Price Elasticity

Measures how much the quantity demanded of a good changes in response to a change in its price.

Coefficient

A numerical or constant quantity placed before and multiplying the variable in an algebraic expression.

Inelastic

Describing a situation where the demand for a good or service is relatively unaffected by changes in its price.

Essential Consumption

The purchase and use of goods and services that are considered necessary for basic living and well-being.