Which of the Following Is a Disadvantage of Franchising

question 22

Multiple Choice

Which of the following is a disadvantage of franchising?

• A)The franchisee seldom receives any support or training from the franchisor about running the business.
• B)The franchisee faces the task of establishing brand recognition among customers.
• C)The franchisee has no flexibility as it is required to follow the franchisor's procedures to the letter.
• D)The franchisee faces funding challenges as bankers are often reluctant to fund franchisees.

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Definitions:

Recessions

A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

Automatic Stabilizers

Economic policies and programs designed to offset fluctuations in a nation's economic activity without the need for intervention by policymakers.

Expenditures

The amount of money spent on goods, services, or other expenses within a certain period.

Recessions

Periods of temporary economic decline during which trade and industrial activities are reduced, generally identified by a fall in GDP in two successive quarters.