Successful Franchisors Are Particularly Vigilant in Avoiding Situations Where the Behaviour

question 122

Multiple Choice

Successful franchisors are particularly vigilant in avoiding situations where the behaviour of an incompetent or irresponsible franchisee harms the reputation of the franchisor and other franchisees. What do we call this effect?

• A) pie-in-the-sky effect
• B) restructuring effect
• C) saturated effect
• D) negative halo effect

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Definitions:

Negative Income Tax

A taxation framework where individuals earning under a specified threshold get additional compensation from the government rather than contributing tax.

Earned Income Tax Credit

A refundable tax credit for low- to moderate-income working individuals and families, designed to encourage and reward work.

Negative Income Tax

A tax system where people earning below a certain amount receive supplemental pay from the government instead of paying taxes.

Government Intervention

Actions taken by government to influence or regulate economic activity, often to correct market failures and promote welfare.