Which of the Following Is a Disadvantage of Franchising

question 92

Multiple Choice

Which of the following is a disadvantage of franchising?

• A) Franchisors face tariff and nontariff barriers when trying to enter a market.
• B) Franchisors face a loss of control when they sell businesses to franchisees who are thousands of miles away.
• C) Franchisors face power struggles and a lack of leadership when trying to adapt the franchisee's management practices.
• D) Franchisors can eventually become competitors, especially when a licensing agreement includes access to important technology or proprietary business knowledge.

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Definitions:

Heterogeneous Catalysts

Catalysts that are in a different phase than the reactants, often used to increase the rate of chemical reactions without being consumed in the process.

Homogeneous Solutions

Mixtures that are uniform in composition and appearance throughout, where all components are dissolved into a single phase.

Reactants

Chemicals that exist before a reaction takes place, consumed in the process to yield the products.

Catalyst

An agent that boosts the pace of chemical reactions without being permanently altered in the process.