There Are Two Primary Advantages to Buying a Franchise Over

question 32

Multiple Choice

There are two primary advantages to buying a franchise over other forms of business ownership. First, franchising provides an entrepreneur the ability to own a business using tested and refined business methods, and second:

• A) franchising is almost a sure way of making a profit
• B) a franchise agreement is typically easy to exit if expectations aren't met
• C) franchisors typically encourage creativity on the part of franchisees
• D) the franchisor typically provides training, technical expertise, and other forms of support
• E) franchise organizations are consistently more profitable than non- franchise organizations in the same industry

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Definitions:

GDP

Gross Domestic Product, the total market value of all finalized goods and services produced within a country's borders in a given time period.

Reagan Presidency

The period of U.S. governance under President Ronald Reagan, from 1981 to 1989, characterized by economic policies that emphasized tax cuts, deregulation, and increased defense spending.

Government Budget Deficit

The financial situation where a government's expenditures exceed its revenues within a specific period, leading to borrowing or depletion of reserves.

National Saving

The sum of private and public savings in a country, essentially the total income of the nation that remains after paying for consumption and government expenditures.