Which of the Following Statements About Operating a U

question 194

Multiple Choice

Which of the following statements about operating a U.S.-based franchise in a foreign country is most accurate?

• A)U.S.-based franchises are most likely to succeed in a foreign market if they use the same strategies and procedures used by franchises in the United States.
• B) There are limited opportunities for U.S.-based franchises to open in foreign countries because, aside from Canada, Mexico, and a small number of European countries, most foreign nations do not allow American-owned franchises to operate within their borders.
• C)The operating costs for franchises in foreign countries may be fairly high, but chances for success are quite good, because competition is likely to be less intense and the customer base in many foreign countries is expanding.
• D)It is difficult for U.S.-based franchises to succeed in most foreign countries because the low incomes of most households in these

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Definitions:

Federal Taxes

refer to levies imposed by the government of a country on income, property, goods, services, and activities, used to fund public services and obligations.

Government Regulation

The establishment of rules and laws by governmental bodies intended to manage and control activities within various sectors of society for public welfare.

Profit Margins

The difference between the cost to produce a good or service and its selling price, expressed as a percentage of the selling price, indicating financial health.

American Manufacturers

refers to businesses and individuals involved in the production of goods within the United States, contributing to the country's industrial and economic growth.