Which of the Following Is an Advantage of Franchising

question 38

Multiple Choice

Which of the following is an advantage of franchising?

• A) It ensures tight control over quality.
• B) It enables companies to engage in global strategic coordination.
• C) It involves low development costs and risks.
• D) It enables the company to collect all the profits made by the franchisees.
• E) It frees companies from the task of monitoring and assisting operations at franchisees.

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Definitions:

Proxy Statements

Documents containing information that a publicly-traded company must provide to shareholders to solicit proxies for voting on corporate matters during shareholders' meetings.

Board of Directors

A group of individuals elected by the shareholders of a company to oversee and make decisions on its behalf.

Revised Act

A revised act is a piece of legislation that has been amended, updated, or rewritten to reflect current standards, practices, or understanding.

Quorum

The minimum number of members needed to be present for a meeting to legally conduct business and make decisions.