A(n) ________ Is a Company That Has a Proven Business

question 50

Multiple Choice

A(n) ________ is a company that has a proven business model and is willing to sell the rights to use the business model to others so that they can sell the same product or service within a given territory.

• A) intrapreneur
• B) franchisee
• C) limited partner
• D) franchisor

---

Definitions:

Compensating Differentials

Wage differences across jobs that reflect the desirable or undesirable aspects of each job, equalizing the overall desirability of different positions.

Above-Equilibrium

A situation where the price of a good or service is set above the market's equilibrium price, resulting in excess supply or a surplus of the product.

Equilibrium Level

The state in which market supply and demand balance each other, resulting in stable prices and quantities.

Efficiency Wages

A higher wage paid by employers to increase worker productivity and loyalty, reducing turnover and shirking.