Explain Why a Firm May Hire Managers to Operate Outlets

question 68

Essay

Explain why a firm may hire managers to operate outlets near the firm's headquarters,but may sell franchise rights for the outlets located greater distances from the headquarters.(With a franchise,the firm sells a brand name and a method of doing business to someone who then owns and operates the outlet.)

Understand the roles and views of entrepreneurs and risk in generating profits.

Recognize the implications of taxation on land and its economic effects.

Learn the factors that cause changes in rent and land valuation.

Grasp the interplay between market forces in determining wages, interest, and rent.

---

Definitions:

Kinship System

The network of social relationships that form an important part of the cultures of most societies, often based on blood relations, marriage, or adoption.

Fewest Number

The smallest quantity or count in a set or group of objects, people, or entities.

Genetically Close

Describing organisms or individuals that share a high degree of genetic similarity, often implying close kinship or common ancestry.

Relatives

Individuals connected by blood, marriage, or adoption, forming a family network.