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:

Economic States

Economic States refer to the conditions or phases of an economy at a given time, which can include growth, recession, depression, and recovery.

Cyclical Stock

A stock whose price is affected by macroeconomic changes in the overall economy, often correlated with economic cycles of expansion and recession.

Expected Return

The anticipated return on an investment, calculated as a weighted-average of all possible returns, based on their probabilities.

Expected Return

The anticipated percentage return on an investment, accounting for all possible outcomes and their probabilities.