A Franchisor Would Most Likely Punish a Franchisee for a Contract

question 23

Multiple Choice

A franchisor would most likely punish a franchisee for a contract violation when _________.

• A) the franchisee runs a shabby facility in a highly visible location
• B) the franchisee is part of a dense, tightly knit network of franchisees
• C) strong relational governance allows the system to operate on norms of solidarity
• D) the franchisor has invested significantly in the franchisee that has made the violation
• E) performance ambiguity prevents the franchisor from clearly identifying the enforcement situation

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Definitions:

Relationship

The manner in which two or more ideas, items, or individuals are linked, or the condition of being linked.

Variable

An attribute, characteristic, or measurement that can take on different values across individuals, objects, or time points in data collection and analysis.

Increases

A term indicating a rise or growth in a numerical value or quantity.

Scatter Diagram

A graph used in statistics to visually display and analyze the relationship between two numerical variables by plotting data points on a Cartesian plane.