John and Lena Sign a Contract with the Owner of Little

question 3

Multiple Choice

John and Lena sign a contract with the owner of Little Fairy, a well-known preschool chain, to start a preschool in their city. They take permission from the owner to use the name and products of Little Fairy. They also furnish their preschool in Little Fairy's trademark style. In this scenario, John and Lena are starting a _____.

• A) corporation
• B) sole proprietorship company
• C) limited liability company
• D) franchise

---

Definitions:

Education System

The network of public and private institutions that provide educational services from primary to higher education.

Productivity Increase

The improvement in the efficiency of production, often seen through a higher output of goods and services without an increase in input.

Industrial Revolution

A period of major industrialization that took place during the late 1700s and early 1800s, significantly transforming economies with the introduction of machinery.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, often indicated by a rise in real GDP (Gross Domestic Product).