When an Organisation Develops a Franchisee Arm, the Advantage of Delegating

question 49

Multiple Choice

When an organisation develops a franchisee arm, the advantage of delegating activities to franchisees is that:

• A)the franchisee can personalise the service
• B)the franchisee can adapt processes to meet needs
• C)the franchisee can improve on company standards
• D)franchisors can release some of the control
• E)none of the above

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Definitions:

Net Present Value

A calculation used to assess the profitability of an investment or project, considering the time value of money by discounting future cash flows to the present value.

Required Rate Of Return

A minimum yearly interest rate that motivates companies or individuals to invest in a specific security or endeavor.

Strategic Options

Options for future, related business products or strategies.

Scenario Analysis

A process of analyzing possible future events by considering alternative possible outcomes (scenarios), often for the purpose of strategic planning.