One Reason Franchises Have Become So Popular Is That This

question 29

Multiple Choice

One reason franchises have become so popular is that this arrangement provides the franchisee with

• A) a nationally recognized name and product.
• B) a low-cost way to start a business.
• C) limited liability.
• D) the right to retain all profits earned by their franchise.

---

Definitions:

Product Functions

Refer to the specific capabilities or purposes a product is designed to perform, often determining its value and appeal to customers.

Consumer

An individual who purchases goods or services for personal use, not for manufacture or resale.

Consumption Effects

The impact of consumer behavior on the economy, environment, and society, including both positive and negative consequences.

Product Cannibalization

A situation where a new product significantly reduces the sales or market share of the company's existing products.