Which of the Following Statements Regarding Franchising Is FALSE

question 98

Multiple Choice

Which of the following statements regarding franchising is FALSE?

• A) Franchises are more risky than other forms of business ownership.
• B) Franchisees have the benefit of name recognition.
• C) Franchisors provide a wide range of support to franchisees.
• D) Benefits for the franchisor include opportunities for expansion that might not otherwise be available.

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Definitions:

Regressive

Pertaining to a tax system where the tax rate decreases as the taxable amount increases, leading to a higher tax burden on lower-income earners.

Government Expenditures

The total amount spent by the government on goods, services, and public projects.

Net Taxes

The difference between total taxes paid and government transfers received, representing the actual tax burden on an individual or business.

Shifted

Refers to a change in position or direction, often used in economics to describe movements in supply or demand curves.