By Opting for Franchising Instead of Setting Up Company-Owned Branches,a

question 18

Multiple Choice

By opting for franchising instead of setting up company-owned branches,a firm most likely overcomes the problem of ________.

• A) managerial scarcity
• B) brand inconsistency
• C) inadequate service
• D) strategic control
• E) free riding

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Definitions:

Bona Fide Seniority System

A legitimate system in a workplace that rewards employees based on length of service, often affecting pay and promotions.

Business Necessity

A legitimate, documented reason for a business action that is essential for the operation or survival of the business.

Illegal Discrimination

Unfair or unequal treatment of an individual or group based on certain characteristics deemed by law, such as race, age, sex, religion, or disability.

Bona Fide Occupational Qualification

A legal term referring to employment qualifications that are reasonably necessary to the normal operation of a particular business or job.