Peter Has Applied for a Loan to Purchase a Franchise

question 58

Multiple Choice

Peter has applied for a loan to purchase a franchise of a popular convenience store in an area that is experiencing rapid population growth. If the loan is approved, it will MOST likely be because ________.

• A)there is less risk associated with a franchise than with an independent business startup
• B)the franchise company will provide the financing
• C)the population growth justifies the market need for the store
• D)the franchise company will prevent other franchisees from operating in the same area

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Definitions:

Formal Group

A group formed with a specific structure and objective, often within organizational contexts, such as committees or work teams.

Ad Hoc Task Force

A temporary group formed for the specific purpose of addressing a particular issue or problem.

Autocratic

A leadership or governance style characterized by individual control over all decisions and little input from group members.

Consultative Leader

A leadership style where the leader seeks the input of their team members before making decisions, emphasizing collaboration and feedback.