The Two Distinctly Different Types of Franchise Systems Are ________

question 54

Multiple Choice

The two distinctly different types of franchise systems are ________ franchise and ________ franchise.

• A) product trademark; business arrangement
• B) product plus; business format
• C) business design; product improvement
• D) product extension; business design
• E) product trademark; business format

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Definitions:

Price-Taking Firms

Companies that accept the market price as given and have no power to influence that price due to competition and market structure.

Economic Profit

Profit calculated by subtracting both explicit and implicit costs from total revenues, providing a more complete measure of real profitability.

Quantity

The amount or number of a product or service available or demanded in a market.

Costs

The expense incurred in the production of goods or services or in the undertaking of any activity.