Which of the Following Statements About Buying a Franchise Is

question 255

Multiple Choice

Which of the following statements about buying a franchise is most accurate?

• A) One of the advantages of buying a franchise is that franchisors are so closely regulated that there is virtually no chance for scams to succeed.
• B) Before purchasing a franchise, the buyer should carefully evaluate the franchise, the franchisor, his or her own situation, and the nature of the market.
• C) Franchise agreements are simple to evaluate, since federal law requires that all such agreements must be written in plain English with all fees and terms clearly explained.
• D) Buying a franchise is the simplest and least expensive way to set up a business, since the franchisor has already worked out all of the details for setting up and running the business.

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Definitions:

Ethical Climates

Ethical climates are the shared perceptions of what is ethically right or wrong and what ethical behavior is expected within an organization.

Moral Development

The process through which individuals develop proper attitudes and behaviors toward other people in society, based on social and cultural norms, rules, and laws.

Pragmatists

Individuals who approach problems and decisions based on practical considerations, often focusing on the consequences and practical effects rather than theoretical principles.

Golden Rule

A moral or ethical guideline suggesting that one should treat others as one would like others to treat oneself.