Which Philosophy of Expansion Is,as a Rule,the Best Method for Franchisors

question 6

Multiple Choice

Which philosophy of expansion is,as a rule,the best method for franchisors?

• A)the shotgun approach
• B)the rifle shot approach
• C)seeding
• D)whichever method the franchisor deems appropriate for a their particular business

---

Definitions:

Efficient Level

An optimal point where resources are utilized in the most productive manner without waste, achieving the best outcome.

Positive Externality

A beneficial effect experienced by a third party as a result of an economic transaction or activity between others.

Negative Externality

A cost that affects a party who did not choose to incur that cost, often a byproduct of production or consumption.

Public Good

A good that is non-excludable and non-rivalrous, meaning individuals cannot be effectively excluded from its use and one person's use does not reduce availability to others.