One Drawback of Franchises Is That They Have a Higher

question 22

True/False

One drawback of franchises is that they have a higher failure rate than other types of business ventures.

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Definitions:

Risk-free Rate

The return on investment considered completely free of risk, such as the return on government bonds in stable financial systems.

Economic Factors

Various elements such as inflation, unemployment rates, and GDP growth that influence the economic environment.

Diversified Portfolios

Investment strategies that spread investments across various assets to minimize risks associated with any single investment.

Equilibrium Risk Premium

The expected return on a risky asset over the risk-free rate that brings the supply and demand for the asset into balance.