Which of the Following Is a Disadvantage of Franchising

question 102

Multiple Choice

Which of the following is a disadvantage of franchising?

• A)There is a large amount of risk for the franchisor.
• B)The franchisor has to put in a large amount of capital.
• C)The cost of development is high.
• D)There is a high amount of political risk.
• E)There is a possibility of losing quality control.

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Definitions:

Department Heads

Leaders responsible for overseeing specific departments within an organization, ensuring their team meets the objectives and goals set by upper management.

Promote Efficiency

Actions or strategies undertaken to improve the productivity and effectiveness of an operation or process, minimizing waste and maximizing output.

Budget Committee

A group responsible for overseeing the preparation, implementation, and review of budgets within an organization.

Internal Auditors

Professionals within an organization responsible for evaluating and improving the effectiveness of risk management, control, and governance processes.