In Which Format Does a Franchisor Grant You the Right

question 34

Multiple Choice

In which format does a franchisor grant you the right not only to operate an outlet in a specific territory but also to sell sub-franchises to others within that same territory?

• A) Single-unit franchise
• B) Area franchise
• C) Master franchise
• D) Corporate franchise

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Definitions:

Unethical Behaviour

Actions that are dishonest, immoral, or violate moral principles and standards.

Profit Motive

The primary incentive for businesses to operate and expand, driven by the pursuit of financial gain.

Pareto Efficient

A state of allocation of resources from which it is impossible to reallocate so as to make any one individual or preference criterion better off without making at least one individual or preference criterion worse off.

Net Benefit

The total positive impact of a decision or action, subtracting any costs or negative effects associated with it.