Which of the Following Statements Is a Disadvantage of Franchising

question 32

Multiple Choice

Which of the following statements is a disadvantage of franchising?

• A) The retailer bears all the loss.
• B) Heavy taxes are levied on the retailer.
• C) Local laws favor the franchise.
• D) The potential profit is reduced.
• E) This is the most expensive method of entering a new market.

Understand the significance of cognitive processes in psychology.

Appreciate the interdisciplinary nature of psychology and its relationship with other sciences.

Understand the concepts and significance of organizational development (OD) and total quality management (TQM) in organizational change.

Identify the different techniques and tools used in organizational development and total quality management.

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Definitions:

Creative Destruction

An economic theory that suggests that old industries or technologies are destroyed and replaced by new ones for economic growth and development.

Disruption

A significant disturbance or interruption to the normal flow or process, often leading to a need for adjustment or a new way of thinking.

Social Entrepreneurship

An approach to business where solving social problems and issues is as important as profitability, innovatively blending commercial and social objectives.

Enterprising Social Innovation

The creation and implementation of novel solutions to social problems that harness entrepreneurial principles to achieve sustainable, impactful change.