Domestic Firms Developing a Global Entry Strategy Might Consider Franchising;

question 70

Multiple Choice

Domestic firms developing a global entry strategy might consider franchising; however,the disadvantages need to be considered.All of the following are disadvantages of franchising except

• A) The franchisor has limited ability to ensure that foreign operations follow all the concepts and ideas that made the firm successful domestically.
• B) The franchisee might end up becoming a competitor.
• C) Franchising limits profit potential, since profits will have to be split with the franchisee.
• D) Franchising is the riskiest way to enter a foreign market.
• E) All of these are disadvantages a firm must consider.

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Definitions:

Cerebral Cortex

The outer layer of neural tissue of the cerebrum of the brain, playing a key role in memory, attention, perception, cognition, awareness, thought, language, and consciousness.

Temporal Lobe

A region of the cerebral cortex located beneath the temples, associated with processing auditory information and encoding memory.

Parietal Lobe

An area of the brain located between the frontal and occipital lobes, responsible for processing sensory information related to touch, taste, and temperature.

Wernicke's Area

A region in the brain's temporal lobe associated with the understanding of spoken language.