Which of the Following Would Be a Benefit to a Franchiser

question 2

Multiple Choice

Which of the following would be a benefit to a franchiser, such as Pep Boys, in expanding into international marketing?

• A)There are no risks involved with allowing a foreign franchisee.
• B)The franchiser does not have to put up a large capital investment.
• C)The franchiser does not have to share its name or operational procedures.
• D)The franchisee only pays a set fee every month to the franchiser.
• E)An equal partnership is formed between the franchiser and franchisee.

---

Definitions:

Price Mechanism

The process by which prices adjust to equilibrate supply and demand, guiding economic actions and resource allocation.

External Cost

A cost that is not borne by the parties directly involved in an economic transaction but by a third party or the environment.

Market System

A market system where investment, production, and distribution decisions are made according to supply and demand, and the prices for goods and services are established within a free pricing mechanism.

Mississippi River

The Mississippi River is a major North American river, flowing south from northern Minnesota to the Gulf of Mexico and serving as a key geographical and economic artery in the United States.