Which of the Following Is a Disadvantage of Licensing and Franchising

question 67

Multiple Choice

Which of the following is a disadvantage of licensing and franchising? 

• A) Little control over marketing 
• B) High development costs 
• C) High risk in overseas expansion 
• D) Creation of a monopoly

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Definitions:

Conditioning Theory

A psychological theory that explains learning as a process where behavior is modified through reinforcement or punishment.

Conditioned Stimulus

A previously neutral stimulus that, after being associated with an unconditioned stimulus, evokes a conditioned response.

Contingency Theory

A theory in the field of organizational behavior that posits the effectiveness of a leadership style is contingent upon the context and that no one style is best in all situations.

Blocking

In the context of learning and memory, blocking is a phenomenon where an existing association prevents the learning of a new association because the two stimuli compete for associative strength.