Which of the Following Statements About Franchising Is True

question 39

Multiple Choice

Which of the following statements about franchising is true?

• A) It guarantees consistent product quality.
• B) It tends to involve more short-term commitments than licensing.
• C) It is a specialized form of licensing.
• D) It is employed primarily by manufacturing firms.

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Definitions:

Selling Assets

The process of liquidating company assets for cash or other considerations, often done to meet financial obligations or as part of a strategic business restructuring.

Paying Creditors

The process of settling debts owed by an individual or entity to its lenders or claimants.

Power To Dissociate

The legal ability of a partner in a partnership to unilaterally sever their association with the partnership under specific conditions.

Expressing Intent

The act of communicating one's purpose or goals clearly, especially in the context of contracts or legal agreements, to ensure mutual understanding and agreement.