According to the Textbook, from the Franchisor's Point of View

question 25

Multiple Choice

According to the textbook, from the franchisor's point of view, the primary disadvantage of franchising is that:

• A) it is not legal in 11 states
• B) an organization allows others to profit from its trademark and business method
• C) franchise organizations consistently makes less money than alternative forms of business ownership
• D) it typically takes longer to grow an organization via franchising than company-owned stores
• E) the franchisees, rather than the franchisor, typically makes most of money

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Definitions:

Negative Reinforcement

A process in behavior modification by which the likelihood of a behavioral response increases by the removal of an unpleasant stimulus.

Positive Reinforcement

A process in psychology which increases the likelihood of a behavior by following it with a desirable outcome or reward.

Flooding

A therapeutic technique used in psychology to treat phobias and anxiety disorders by exposing the patient to their fear object in a controlled environment.

Habituation

The psychological process by which an individual becomes accustomed to a stimulus and consequently decreases their response to it over time.