The Difference Between a Franchise Contract and a Licensing Contract

question 93

Multiple Choice

The difference between a franchise contract and a licensing contract is that a

• A) franchise contract is more specific and usually longer in duration.
• B) franchise contract must include a foreign government.
• C) licensing contract covers more aspects of operations.
• D) franchise contract involves less control and less risk.

---

Definitions:

Business Cycles

The fluctuating levels of economic activity that an economy experiences over a period, marked by periods of expansion and contraction.

Contractions

Periods in the business cycle where there is a decline in economic activity, marked by reduced spending and increased unemployment.

Recession

A brief phase of economic downturn, signified by reduced commercial and industrial operations, often defined by a sequential fall in GDP over two quarters.

Expansionary Phase

A period within the business cycle where economic activity, including production, sales, and employment, is growing.