Which of the Following Statements Best Differentiates Between Franchising and Licensing

question 72

Multiple Choice

Which of the following statements best differentiates between franchising and licensing?

• A)Licensing gives a company greater control than franchising over the sale of its product in a target market.
• B)Franchising is common in manufacturing industries while licensing is primarily used in service industries.
• C)Franchising requires ongoing assistance from the franchiser while licensing normally involves a one-time transfer of property.
• D)Licensees must often meet strict guidelines on product quality, day-to-day management duties, and marketing promotions unlike franchisees.

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Definitions:

Lower Control Limit

A statistic used in process control charts to signify the lower threshold below which a process is considered to be out of control.

Defect Rate

The proportion of manufactured items that do not meet the prescribed quality standards.

Control Chart Limits

the pre-determined upper and lower boundaries on a control chart within which a process is considered to be in control and performing as expected.

P-chart

A type of control chart used in statistical quality control to monitor the proportion of defective units in a process.