Which of the Following Is Not an Advantage of Buying

question 20

Multiple Choice

Which of the following is not an advantage of buying a franchise?

• A) A proven product or service within an established system
• B) Franchisor ongoing support
• C) Availability of financing
• D) Potential for business growth
• E) Duration and nature of the commitment

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Definitions:

Cost Center

A department or segment of a business wherein costs can be directly attributed, but which does not directly generate revenue.

Allocation Basis

Allocation basis is a criterion used to distribute costs among different departments, products, or activities based on their use or consumption.

Departmental Costs

Costs that are attributed directly to a specific department within an organization.

Decentralized Organization

An organizational structure where decision-making authority is distributed among various levels and departments, enhancing flexibility and responsiveness.