Which of the Following Statements Is Incorrect Regarding the Future

question 38

Multiple Choice

Which of the following statements is incorrect regarding the future of franchising?

• A) Franchise organizations represent a large and growing segment of the retail and service sectors of U.S. businesses.
• B) The future of franchising appears to be dim.
• C) More and more college graduates are choosing careers in industries that are heavily dominated by franchising.
• D) According to the International Franchise Association, franchising represents about $880 billion in annual retail sales in the United States.
• E) The International Franchise Association estimates that franchise organizations provide jobs for more than 11 million Americans.

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Definitions:

Income Effect

The adjustment in demand for goods and services triggered by a change in consumers' discretionary income.

Income Increases

Situations where an individual's or household's earnings rise, potentially affecting their spending, saving, and investment behaviors.

Budget Constraints

The limitations on the consumption choices of individuals or organizations due to limited resources.

Substitution Effect

The economic principle that as prices rise or incomes decrease, consumers will replace more expensive items with less costly alternatives.