Which of the Following Is an Example of Franchising

question 72

Multiple Choice

Which of the following is an example of franchising?

• A)An Italian clothing company opens manufacturing factories in China and Bangladesh to reduce manufacturing costs.
• B)A U.S-based quick-service restaurant gives rights to another business to use its entire business system in exchange for compensation and royalties.
• C)A U.S.-based animation company allows factories in China to use their famous cartoon character on mugs and stationery.
• D)A Germany automobile manufacturer opens an office in Philippines for its customer care operations.

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Definitions:

High-Technology Firm

A company that operates in industries involving advanced technological innovation and research.

Non-constant Growth

A situation in which a company's dividends or earnings are expected to grow at varying rates over time, as opposed to at a constant rate.

Zero Growth

A situation in which a company or economy sees no increase in income, output, or other measures of financial performance over a period.

Common Stockholders

Owners of common shares in a corporation, having voting rights and potentially receiving dividends.