Which of the Following Should Make a Potential Franchisee Suspicious

question 24

Multiple Choice

Which of the following should make a potential franchisee suspicious about a franchisor's honesty?

• A)Claims that the franchise contract is a standard agreement and that there is no need to read it or have an attorney look it over.
• B)An offer of direct financing of a specific element of the franchise package.
• C)Not providing detailed operational information until 10 days before signing the contract.
• D)Requiring franchisees to spend a certain percentage of profits on advertising.

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Definitions:

Government Expenditures

The total amount spent by the government for its operations, programs, and services.

Monetary Policy

The process by which the monetary authority of a country controls the supply of money, often targeting an inflation rate or interest rate to ensure economic stability and growth.

Fiscal Policy

Government policies relating to public spending and taxation, which aim to influence economic conditions, including growth, inflation, and unemployment.

Full Employment

The condition in which all available labor resources are being used in the most economically efficient way, typically characterized by the absence of cyclical unemployment.