In Franchising, Which of the Following Is Not a Benefit

question 104

Multiple Choice

In franchising, which of the following is not a benefit that the franchiser gains?

• A)The franchiser can gain more rapid product distribution.
• B)The franchiser can acquire capital more quickly for expanding production.
• C)The franchiser gains more control over how the franchisees operate the establishments.
• D)The franchiser benefits from the fact that franchisees tend to be highly motivated to succeed, which in turn leads to higher sales and higher royalties.
• E)All of these are benefits for the franchiser.

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Definitions:

Cash

Cash refers to the company's currency and coins on hand, including bank account balances, utilized for transactions and operational needs.

Revenue

The total financial proceeds accumulated from a company's chief business endeavors, including sales of services and goods integral to its operations.

Equity

The ownership interest of shareholders in a corporation, represented by the assets minus the liabilities.