Which of the Following Is True About Franchising as an Entry

question 14

Multiple Choice

Which of the following is true about franchising as an entry strategy?

• A)It provides firms with minimum control over foreign operations.
• B)It is an ownership-based international business activity.
• C)It restricts a firm's ability to expand more rapidly abroad.
• D)It is typically characterized as an unstable, short-term entry strategy.

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Definitions:

Cost

The monetary value incurred in the production of goods and services, including materials, labor, and overhead expenses.

Raw Materials

Basic materials that are used in the production process to create finished goods, often reflecting a significant portion of manufacturing costs.

Accounts Payable

Liabilities owed by a business to creditors for goods and services purchased on credit.

Accounts Receivable

The money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.