Which of the Following Is NOT True About Franchising

question 55

Multiple Choice

Which of the following is NOT true about franchising?

• A) It is the practice in which the parent firm is obligated to provide specialized equipment and/or service, and sometimes to fund some startup costs, to franchisees in return for an annual fee.
• B) The fast-food industry is best known for franchises.
• C) In franchising, the parent firm assumes relatively less risk than with licensing.
• D) The parent company's objective is to make sure that when a customer visits a franchise in any country, the quality of products and services provided are similar.
• E) Franchising typically leads to the penetration of international markets without significant capital investment abroad by a parent company.

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Definitions:

Concrete-Operations

A stage in Piaget's theory of cognitive development where children gain the ability to think logically about concrete events.

Preoperational Child

Refers to the stage in Piaget’s theory of cognitive development (ages 2-7) where children begin to use language and think symbolically, but their thinking is still intuitive and egocentric.

Conservation

The principle of saving natural resources to prevent depletion and harm to the environment.

Formal Operations

The final stage of cognitive development in Piaget's theory, characterized by logical, systematic thinking and abstract reasoning.